Rongsheng Chemical Fiber Group Co., Ltd. In 1989, Li Shuirong, who ran a small lumber shop, became interested in the Chinese cloth industry market. At that time, the domestic cloth industry market was turbulent, and a price war was about to break out. However, Li Shuirong had a unique view on the cloth industry crisis. He said: "Under relative conditions, there are business opportunities behind the crisis. There are also business opportunities in the business before the storm." But now. Shaoxing and Xiaoshan are only separated by a road. Why can’t Xiaoshan people do the business that Shaoxing people can do?”
After a year of watching and analyzing the cloth industry market, Li Shuirong did it in 1990. An unexpected decision was made: to change career and set up a cloth factory. When he first made this decision, Li Shuirong didn't think too far ahead. He just thought that the cloth industry would have a better chance of making money than the timber industry.
Starting from 8 shuttle looms, the starting capital was 200,000 yuan from selling the lumber shop and all belongings. The factory buildings were rented from 6 idle old bungalows in the town at that time, employing He recruited more than 20 local workers and started his business on the tidal flats where there was never a train or a decent road.
Li Shuirong's behavior was called "somewhat impulsive" by many people at the time, and most people were skeptical about whether Li Shuirong could "get angry". It is difficult for anyone to understand that he sold his entire family and the lumber store that he had worked so hard to run, and then jumped into a market that was risky, highly competitive, and unpredictable.
Li Shuirong started his entrepreneurial career from then on. And gradually showed his extraordinary talent in the textile industry. He established the business strategy of "market-oriented products". The factory grew bigger and bigger and achieved initial success. By the end of 1995, the scale of the enterprise increased from 8 looms to 8 looms. Increased to 100 looms. However, success is always accompanied by ups and downs. In 1996, the entire textile and chemical fiber industry entered a trough, and some large and medium-sized enterprises closed down or changed production. Some people expected that the textile rice bowl had come to an end. The situation has posed a severe test to Rongsheng Company, which has just gained a foothold: after drinking the "headwaters" of Xiaoshan chemical fiber industry in the texturing project of changing "filament" to "elastic yarn", will Rongsheng's development continue? Will you continue to make breakthroughs based on adding texture? Rongsheng Chemical Fiber Company, which had already decided to add texturing projects and booked equipment, launched a historic and substantial "big discussion" for the company's development: Should the industrial chain extend downstream or upstream?
Going downstream means that the company's development will develop in a labor-intensive direction. Its shortcomings are that the market competition is fierce, products are easy to be imitated, and there are too many companies going downstream; the advantages of going downstream are Yes: technology and capital requirements are relatively low, production is relatively simple, and market risks are small. Going upstream involves large investments, high risks, and high technical requirements. However, going upstream has less competition among peers, high value-added products, and high investment will bring high returns. Li Shuirong decided to go upstream.
At that time, China's chemical fiber industry was entering a trough, and many companies were switching industries to seek other development. At this juncture, Rongsheng's "abnormality" was met with many sarcastic comments: It was necessary to "hold it in" until it was done!
Of course, Li Shuirong did not just make big claims when he placed this "order". He firmly believed that his decision-making would not be biased. Faced with the fierce price competition in the cloth industry, profit margins are very narrow. Li Shuirong inspected the domestic and foreign markets and did a lot of market research in countries as far away as Japan, Australia, New Zealand and other countries. He found that in today's dotted world of weaving factories fighting each other, chemical fiber raw material manufacturers have become the favorites, while domestic chemical fiber raw materials There are only a few manufacturers, so why not turn to chemical fiber raw materials? The development of this industry will present unlimited business opportunities. Although the investment cost of chemical fiber raw material projects is scary, often tens of millions, if you go downstream, the future is very slim. If we continue to want to become bigger and stronger in the chemical fiber industry, we must extend the industrial chain upstream. Therefore, I still decided: start the polyester and stretch yarn project! People were secretly sweating for Li Shuirong!
At the critical moment, Fang showed his heroic nature of daring to be the first, and Li Shuirong’s talent and strategy were soon verified.
In 1998, the textile industry became warmer and the demand for polyester and stretch yarn increased significantly. This year became a bumper year for Rongsheng. The company's output value soared to more than 100 million yuan, occupying a leading position in Xiaoshan's textile industry. People who were worried about Li Shuirong finally breathed a sigh of relief.
The output value was 1 billion yuan in 2001 and exceeded 10 billion yuan in 2006. In just 6 years, it would be impossible to fathom the rapid development without the courage and courage of decision-maker Li Shuirong. In order to keep Rongsheng ahead of similar companies, Ningbo United Group Co., Ltd. started to deal with the decision to develop the domestic market. At the same time, Li Shuirong made a bold decision and decided to open up the international market. Since 1997, Li Shuirong has led the backbone of the company to continuously go out to participate in various trade fairs and product promotion meetings, and has also traveled to Japan, Australia, the United States, New Zealand and other countries to conduct a large amount of market research, and the foreign trade business has been further expanded. Li Shuirong's business has reached South Korea, Japan, the United States, and European and African countries.
While opening up external sales, Li Shuirong also did not forget to work hard on the development of the company itself. The Group invests heavily in technological innovation every year to pursue the path of higher investment and higher output. It has also established a product research institute, and has conducted industry-university cooperation with Zhejiang Science and Technology University and other institutions of higher learning to continuously develop new products and new technologies. Integrated production of PTA, polyester, spinning and texturing, Rongsheng's industrial chain and technological improvement measures in process flow are all top-notch.
Following Li Shuirong's "broken arm" in 1998, which activated the overall "first jump" decision, at the end of 2000, 400 million yuan was invested in technological innovation, achieving an output value of 778 million yuan. This is the "second jump" to activate the whole thing. In 2001, 500 million yuan was invested in the polymer direct spinning project. This "third jump" is a decisive jump in the company's development. In October, the company's output value exceeded 1 billion yuan for the first time, becoming the third company in Xiaoshan with production and sales exceeding 1 billion yuan after Wanxiang and Hangmin. The word "Rongsheng" has resounded throughout Xiaoshan since then, causing a sensation among colleagues inside and outside the province.
In 2002, riding on the spring breeze of Xiaoshan's industry reaching 100 billion yuan, Li Shuirong seized the opportunity and invested more than 300 million yuan in a 180,000-ton polyester direct spinning project to be completed and put into operation. The engineering equipment mainly came from American Contax and German Barmag. At the same time, we introduced multiple 33H texturing machines from Murata, Japan. At the end of 2002, Rongsheng Company delivered another good news: it achieved an output value of 2.03 billion yuan and a profit of 85 million yuan. On February 8, 2003, the leaders of the four teams in Xiaoshan District came to the door again and presented a golden plaque with the words "reach a new level and create new glory" to celebrate. Rongsheng was also rated as an outstanding industrial enterprise in Xiaoshan District that "reached 100 billion" As a contributing enterprise, Rongsheng became one of the eight winners of BMW cars awarded by the district government. Rongsheng attracted attention from the whole province and even the country. In early 2003, Rongsheng Chemical Fiber Group was established. In this year, the company achieved production and sales of 3 billion yuan, and was rated as one of the "Top Ten Industrial Enterprises with Outstanding Contributions in Hangzhou in 2003" by the Hangzhou Municipal Party Committee and Municipal Government.
Li Shuirong did not stop. Decided to take the road of transforming the brand into a famous brand. In 2001, the group introduced the CIS identification system, unified the design and planning of corporate image and behavioral norms, and further stepped up the pace of creating famous brands. In the next few years, "Hangzhou Famous Trademark", "Zhejiang Province Famous Trademark", "Zhejiang Famous Brand", "Well-known Trade Name", "Top Ten Brands for Product Quality and User Satisfaction in the Chinese Market", "Zhejiang Province Private Economic Brand" Honors such as "Model Enterprise" followed one after another. In August 2007, the Rongxiang brand polyester filament produced by the group won the title of "China Famous Brand Product" on the No. 5 "2007 China Famous Brand Products" list just announced by the China Famous Brand Strategy Promotion Committee. Achieved zero breakthrough in famous brand products in the chemical fiber industry in Xiaoshan District. There are only 4 products in the national chemical fiber industry that have won this honor over the years.
Now, Rongsheng has established Zhejiang Yisheng Petrochemical Co., Ltd. in Ningbo and built the first PTA production project in the province. Put into production in March 2005. Acquired a state-owned enterprise in Yibin, Sichuan, and also invested in real estate projects. The two new "engines" enabled the group's production and sales in 2006 to exceed 10 billion in one fell swoop, ranking among the top 10 companies in the national chemical fiber industry and the third largest company in Xiaoshan.
According to the announcement issued by Ningbo United on the evening of December 30, 2009, Ningbo United’s largest shareholder Ningbo Economic and Technological Development Zone Holding Co., Ltd. and Zhejiang Rongsheng Holding Group Co., Ltd. signed a "Share Transfer Agreement" Agreement", 29.90 Ningbo United shares (totaling 90,417,600 shares) held by the company were transferred to Zhejiang Rongsheng Holding Group Co., Ltd. at a price of 8.53 yuan/share. The total price of the share transfer was RMB 771,262 , 1285 yuan. Li Shuirong serves as the chairman of the listed company Ningbo United.