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Editor's Note

The Party's 20th National Report Outlines an ambitious blueprint for building socialism with Chinese characteristics for a new era and makes important plans for supporting the healthy development of the private sector. Guangdong is a province with a large private economy, which accounts for more than 50% of the province's economy and employs more than 60% of the province's population. It has become an indispensable force in promoting high-quality development in Guangdong. In the face of the new journey new tasks and new requirements, new era guangdong corporation will be how to make further energetic, yong yi go on? How to promote Guangdong in the new journey to go in the forefront of the country, create new glory? Southern Finance and Economics Omnimedia Group focuses on representative private enterprises in Guangdong, has an in-depth dialogue on "New Cantonese businessmen", and launched a series of Omnimedia Reports on In-depth Research on High-quality Development of Private Enterprises in Guangdong.

Huang Haobo reports from Guangzhou

In the Chengxi Industrial Zone of Jiedong District, Jieyang City, Guangdong Province, nearly 100 automated production lines of polypropylene fiber are running efficiently. After production, testing, packaging, storage and other processes, more than 30,000 tons of polypropylene filament of various specifications start from here every year, and are sold to various provinces in China and many countries and regions in Asia, Europe and America, the Middle East and South America.

Guangdong Mengtai Hi-tech Fiber Co., LTD. (hereinafter referred to as "Mengtai Hi-tech"), the representative of Guangdong chemical fiber enterprises, has witnessed the rapid development here. From its establishment in 2013 to its successful listing on the GEM Board of Shenzhen Stock Exchange in 2020, Montai High-tech has grown into a leading enterprise in China's polypropylene fiber industry. Its main product, polypropylene filament, has ranked first in terms of output and share in the market in the past five years.

Polypropylene fiber is the trade name of polypropylene fiber, with light quality, high strength, acid and alkali resistance, good heat preservation, degradation and other characteristics, widely used in civil, industrial, military and other fields, from the bag ribbon, water pipe cloth cover, door and window slipper, home decoration to industrial press cloth, engineering geotextile, industrial rope, lithium battery diaphragm and so on have its figure.

Guo Qinghai, founder and chairman of Modern High-tech, is always optimistic about the development prospects of the polypropylene industry. After graduating from the university in 1992, Guo Qinghai has been rooted in the polypropylene industry for 30 years. During this process, Montague High-tech insists on scientific and technological innovation, and integrates it into various links such as research and development, design, production and quality, so as to continuously promote the high-quality development of enterprises.

"Polypropylene is an indispensable part of the chemical fiber industry. In the future, the overall technology of differentiated polypropylene new materials will continue to progress, and the application field will continue to expand. At the same time, green and low-carbon will become an important development direction of the polypropylene industry, and green manufacturing of polypropylene will usher in new development opportunities." Recently, Guo Qinghai said in an exclusive interview with the Southern Finance All Media reporter (hereinafter referred to as: Southern Finance) that Modern High-tech will accelerate the transformation and upgrading of the company from the industrial chain innovation, high-end development, digital intelligent transformation, green and low-carbon transformation and other aspects, actively go out, build a national brand in the polypropylene industry, and help the country to build a world chemical fiber power.

(Kuo Ching Hai, founder and Chairman of Modern High-tech)

Green manufacturing brings new opportunities to the polypropylene industry

Nanfang Finance: What experience has Modern gained in the development of high-tech innovation from small and medium-sized enterprises to the industry leader?

Guo Qinghai: Since its founding in 1993, Modern has gone through nearly 30 years. It has accumulated rich experience and industrial process technology precipitation in the field of polypropylene fiber. Step by step to today, Montai is closely related to the development history of China's entire polypropylene industry, but also with the development of China's economy, the continuous improvement of people's living standards and the transformation and upgrading of industrial structure and development.

In my opinion, enterprise development should be both down-to-earth and dare to try. From strictly controlling product quality and meeting customer demand, Montai High-tech can gradually develop and grow, gradually optimizing the internal production process, improving the production process, establishing and implementing the internal control system, and gradually increasing the market share, thus achieving the current scale. In this process, we also continue to explore product application scenarios and develop more differentiated products for the market, so as to meet more needs of customers and improve customer loyalty. Under the background of the transformation and upgrading of the manufacturing industry, enterprises should follow the trend, improve efficiency and reduce cost on the premise of ensuring product quality, and enhance their competitiveness.

Nanfang Finance: In recent years, the output and market share of Modern High-tech in the domestic polypropylene filament industry are among the best. How does the company build a "moat"?

Guo Qinghai: Our product advantage lies in the development and application of various functional and differentiated polypropylene filament. Simply put, it is to achieve the ultimate in the direction of high strength and ultra-fine polypropylene filament to meet the one-stop purchasing needs of all kinds of customers. Another is in the "double carbon" environment, the acid and alkali resistance and environmental protection properties of polypropylene will have a better development prospect.

In the past five years, our output and market share in the domestic polypropylene filament industry are ranked the first, compared with a single product small enterprises also have obvious scale advantage; Since its inception, we have attached great importance to the research and development of new technologies and new products. Through continuous accumulation and improvement, we have gradually formed a complete set of research and development and innovation system. We have established a management model in line with our own business characteristics in R&D, production, procurement, sales and quality control. The management team also has rich experience in technology development, quality control and marketing, to ensure that the company's management structure can continue to meet the requirements of business scale expansion.

Nanfang Finance: What impact has the epidemic brought to the operation of Mengtai High-tech in recent years? How did the company respond?

Guo Qinghai: Since the beginning of this year, the global economic growth is expected to slow down, the international situation is accelerating, the growth of external demand is slowing down, and the recovery of domestic consumption is also facing many difficulties. In the first half of this year, the industrial operation is difficult. The local logistics in Jiangsu and Zhejiang chemical fiber industry cluster is not smooth, the downstream demand is not high, the industry cost is high, the company's business is also affected by the macroeconomic environment, and the demand of some downstream customers is weak.

By continuously tracking the price trend of raw materials, we have carried out resource integration and technological innovation, established long-term cooperative relations with upstream suppliers, analyzed the direction of market changes according to the supply information collected from multiple channels, timely adjusted the stocking strategy, reduced the procurement cost of raw materials, expanded the channels, increased the supply guarantee of raw materials, and timely avoided market risks. The sales end pays close attention to the epidemic situation in the customers' region, timely adjusts the shipping route and integrates customer orders to overcome the impact of the epidemic to the maximum extent and maintain the stability of the company's business.

Nanfang Finance: Facing the development trend of digitalization and greening, how will enterprises evaluate the development trend of chemical fiber industry in the future? How should enterprises grasp "tuyere"?

Guo Qinghai: As a subsector in the chemical fiber industry, I think the development of the polypropylene industry will be strengthened from several aspects: first, the overall technology of differentiated polypropylene new materials will continue to progress, and the application field will continue to expand and penetrate; Second, as environmental costs become more transparent and measurable, low-carbon constraints extend from enterprises themselves to the upstream and downstream of the industrial chain and all stakeholders, and it becomes a trend to promote low-carbon emissions in the whole life cycle of products. Third, green environmental protection promotes the development of polypropylene, the national environmental protection requirements are becoming stricter, green manufacturing of polypropylene will usher in new development opportunities; Fourth, the government has introduced a series of supply-side structural reform policies, optimized the stock, intensified mergers and reorganizations, and promoted industrial agglomeration. In the above context, large-scale polypropylene production enterprises will get further growth opportunities, market concentration will be further improved.

Industrial chain synergy is the key to maintaining competitiveness

Nanfang Finance: How do you view the role of digitalization and intelligence in the transformation of traditional manufacturing? How should manufacturing enterprises promote digital transformation?

Guo Qinghai: Digital and intelligent manufacturing enterprises are the trend and the future. With the increase of domestic labor cost, land cost and other related costs, improving efficiency and reducing cost is the ultimate problem faced by every manufacturing enterprise. Digitalization, intelligent transformation and even machine replacement can help enterprises to solve this problem.

To promote digital transformation, manufacturing enterprises should proceed from the actual situation. Firstly, they should make use of existing mature technologies to optimize and transform the pain points and difficulties that enterprises need to solve, so that the cost is relatively low and the burden of enterprises can be reduced. Then, they should gradually explore what enterprises still need to customize and improve, and gradually develop digital and intelligent processes and products suitable for their own processes. Only in this way can the transition be smooth and achieve the goal of improving efficiency and reducing cost.

Nanfang Finance: As the first stock of chemical fiber registered in the GEM, how does Modern High-tech utilize social capital and ensure continuous investment in research and development? What are your suggestions for the Greater Bay Area on strengthening financial support for the real economy?

Guo Qinghai: I have been engaged in the chemical fiber industry for 30 years from the predecessor of Modern High-tech (Yuehai Chemical Fiber) to the current Mengtai High-tech. I think the first thing is to ensure the quality of products and establish a good reputation in the market, which is the foundation of life and survival. In recent years, our R&D investment continues to increase, the cumulative R&D investment in the past three years reached 44,124,500 yuan, accounting for more than 4% of the total.

When an enterprise reaches a certain scale, it needs to keep pace with The Times in terms of internal norms and management. Through the IPO process, it is a gradual process to force the transformation and upgrading of the enterprise, embrace the capital platform and achieve greater development. With sufficient cash flow, we built a research and development center, established a more powerful research and development team, vigorously promoted the research and development projects, and then supported the long-term development of the enterprise.

Now, the society has a consensus on financial services entities, enterprises are facing a relatively friendly financing environment, the implementation of the registration system and attention to information disclosure also encourage enterprises with ideas and ability to IPO and refinancing, with the power of social capital to accelerate the development of enterprises, tap the potential and momentum of enterprises, and make enterprises bigger and stronger. I hope that both the Greater Bay Area and the Eastern and northwestern areas of Guangdong will have better policies to support, encourage and guide potential enterprises to enter the capital market.

Nanfang Finance: Innovation is the first driving force for the development of enterprises. How to continuously improve the innovation ability of enterprises? How do you evaluate Guangdong's innovation environment and atmosphere?

Guo Qinghai: It is our consistent strategy to adhere to innovation-driven development and take the road of technological strength. We always regard technological innovation as the core strategy and integrate it into the core culture of the enterprise. The company has three practices: one is to strengthen the top-level design of scientific and technological innovation, the second is to strengthen the conditions of enterprise technology research and development platform, and the third is to pay attention to the training of scientific research and innovation team. At present, we have established strategic cooperative relations with Donghua University, Guangdong University of Technology, Shantou University, Guangdong Institute of Chemical Fiber and other universities and research institutes. By mobilizing innovation resources of universities and colleges, we can help enterprises to upgrade technology. While breaking through the key core technologies that restrict development, To identify, develop and assemble a group of high-level innovation teams that can be used by enterprises.

The level of science and technology innovation environment construction in Guangdong has always been in a leading position in China, which provides a lot of valuable experience for the construction of innovation environment in other regions, and also continuously promotes the scientific and technological innovation ability and level of Jieyang chemical fiber industry. However, compared with the Greater Bay Area, the innovation environment and atmosphere in the east of Guangdong is not strong enough. In the future, we will accelerate the transformation and upgrading of the company from the aspects of industrial chain innovation, high-end development, digital intelligent transformation, green and low-carbon transformation, etc. At the same time, we will actively go out and communicate with the counterparts in developed countries and regions to establish a national brand in China's polypropylene fiber industry. To become an expert in polypropylene fiber enterprise vision and push forward.

Nanfang Finance: How do you evaluate the development layout of Guangdong's chemical fiber industry? In the future, how should private enterprises play a bigger role in the industrial chain?

Guo Qinghai: With the development of reform and opening up, Guangdong's chemical fiber industry has a certain accumulation and strength. There are also some well-known brands of chemical fiber and textile enterprises. However, compared with Jiangsu and Zhejiang regions, the depth of industrial agglomeration effect, collaborative development and coupling development still needs to be improved.

Modern Hi-tech has been operating in Jieyang City for nearly 30 years, and has been digging the potential of polypropylene production technology progress, developing more functional and differentiated fibers that meet the market demand, and constantly expanding the application of polypropylene in the downstream industry chain. Only the coordinated development of the industrial chain can enhance the market competitiveness. We are also actively seeking mutual cooperation among enterprises in the industrial chain. For example, the upstream enterprises in which we have shares produce polypropylene as our main raw material.

As a local enterprise in Jieyang, we are also planning the long-term development of the company under the new situation based on the existing industrial advantages of Jieyang and the development platform of listed companies. For example, the chemical fiber industry is a sub-industry of Dananhai Petrochemical Industrial Zone in Jieyang City. The operation of petrochina Guangdong Petrochemical Refining and Chemical Integration Project will provide an endless source of raw materials for the subsequent development of the company and lay a foundation for the coordinated development of the company's industrial chain.