When it comes to Yaohua, probably everyone knows about it. It has pioneered the world's advanced production technology and is known as the cradle of China's glass industry. But as if in an instant, it suddenly disappeared from public view, and when people talked about it again, it was full of regret.
So why did Yaohua, which was so prosperous for a while, suddenly decline? Can Yaohua achieve nirvana and rebirth after the reorganization? I believe that not only I am interested, but everyone who cares about the development of Qinhuangdao and knows Yaohua may be curious. In this article, I invited my friend Zhou Ziheng to write this article by combing through vast historical materials. Hope it can bring inspiration to everyone.
Wedge’s “backdoor listing” is nothing but regrets
On September 29, 2009, Jiangsu Phoenix and Yaohua Group formally obtained the approval of the China Securities Regulatory Commission for the major asset restructuring plan of Qinhuangdao Yaohua Glass On December 31 of that year, the two parties completed the asset exchange. Jiangsu Phoenix Real Estate injected 100% of its equity into Yaohua Glass. Yaohua Group transferred the control of Yaohua Glass to Jiangsu Phoenix, Jiangsu Phoenix obtained listing resources through this method and became a model of "backdoor listing". In early 2010, the stock code 600716 was officially renamed "Phoenix Shares". Since then, "Yaohua Glass", which was listed on the Shanghai Stock Exchange in 1996, has sadly left the capital market. In 2016, the unsustainable Qinhuangdao Yaohua announced the suspension of production, and Qinhuangdao’s honor as the Glass Capital fell with Yaohua.
I saw him building a tall building at a glance
In the late Qing Dynasty and the early Republic of China after the Sino-Japanese War of 1894-1899, the great powers were busy merging with each other, and national industry was beginning to take off, and a group of patriotic industrialists emerged. In 1922, the famous patriotic industrialist Zhou Xuexi founded Yaohua Glass Company in Tianjin, a joint venture between China and Belgium. Yaohua Glass became the first company in China to use machines to produce and process flat glass, and it was also the first Sino-foreign joint venture in China. Therefore, Yaohua Glass It is known as the "cradle of China's glass industry".
In 1924, in order to facilitate transportation, Yaohua built a factory in the port city of Qinhuangdao and put into production. In the 15 years since the Sino-Belgian joint venture was established, Yaohua Glass has taken the lead in adopting the most advanced production technology in Asia, and its products have not only sold well domestically, but also entered the European and American markets.
After the outbreak of the Anti-Japanese War, Belgium sold its shares to Japan for fear of being affected by the war, and Yaohua Glass was changed to a Sino-Japanese joint venture. After the victory of the Anti-Japanese War, the Japanese equity was taken over by the Nationalist Government, and Yaohua was changed to a government-business joint venture.
In 1947, Yaohua established a branch factory in Pudong, Shanghai. Later, affected by the civil war, Yaohua Glass had difficulties in production and sales and was on the verge of bankruptcy. After the founding of the People's Republic of China, Yaohua Glass recovered from the desperate situation, increased its output, improved its quality, and sold well both at home and abroad.
In 1966, Yaohua was changed from a public-private partnership to a state-owned company, and the company in Tianjin was cancelled. Qinhuangdao and Shanghai set up separate factories, and finally used the Yaohua trademark to form Da Yaohua, which means that the north and the south shine,* **Glory to China.
After the reform and opening up, Qinhuangdao, where Yaohua Glass is located, became one of the first coastal cities to open to the outside world and ushered in a broader development platform. In 1986, the 450-ton float glass production line, a national key project, was completed and put into operation. Yaohua flat glass thus entered the "float" era. By the 1990s, Yaohua gradually developed into the largest glass production enterprise in the country. The profit and tax revenue exceeds 100 million yuan. Its main flat glass accounts for 1/10 of the country's total output and sells well at home and abroad.
The second sight saw him entertaining guests
In 1996, Qinhuangdao Yaohua Glass Co., Ltd. was established. The main sponsor was China Yaohua Glass Group, also known as Da Yaohua as mentioned above. , other co-sponsors include Boa Aluminum Company, Qinhuangdao Glass Industry Design Institute, Hebei Construction Investment, etc.
In June of that year, Yaohua Glass was officially listed on the main board of the Shanghai Stock Exchange with the stock code 600716.
The company's main products include high-quality float flat glass, industrial construction technology glass, ultra-hard and high-strength glass, new functional polymer materials, special performance glass products, ultra-high temperature refractory materials, tempered glass products and other series. The remaining products, "borosilicate glass float production technology" and "online LOW-E glass production technology" have reached the international leading level.
The company's flagship product, Yaohua brand glass, was recognized as a "China Famous Trademark" by the State Administration for Industry and Commerce in 2002. Later, it was rated as the first batch of national inspection-free products and the first batch of Chinese famous brand products by the General Administration of Quality Supervision, Inspection and Quarantine. Yaohua is the only company in the entire glass industry to have the "three gold medals" at the same time, and its brand value has reached its peak.
Three eyes saw his building collapse
The turning point of Qinhuangdao Yaohua began in 2000. The self-confidence of winning streak over the years made it more and more crazy, and it began to acquire other companies in an attempt to Further improve the market position, but the intensified competition in the glass industry has caused changes in the market environment. Yaohua was not sensitive enough to discover this. In addition, problems such as irregular corporate governance and lack of separation between government and enterprises were not effectively solved. The company has suffered losses for two consecutive years. . In 2005, Yaohua Glass was treated by ST.
The building materials industry was greatly affected by the world financial crisis in 2008. Yaohua Group lacked party leadership, had a disordered internal control mechanism, miscalculated the market, and blindly expanded production, resulting in serious inventory backlogs and sluggish product sales. Incidents of major shareholders misappropriating the assets of listed companies occur frequently, and operating funds are extremely tight. That year, the company's operating performance further deteriorated, it fell into financial difficulties, and its listing qualifications were seriously threatened.
In order to maximize the use of high-quality resources of listed companies and prevent the loss of listing qualifications, Yaohua Glass and Jiangsu Phoenix conducted an asset exchange. Yaohua Group transferred all Yaohua Glass shares held to Jiangsu Phoenix. Jiangsu Phoenix will replace all of its high-quality assets with Yaohua Glass.
In 2010, Yaohua Glass withdrew from the capital market. Although Yaohua has lost its listing qualifications, its economic entity still exists. By improving corporate governance and adjusting business strategies, it is possible to make a comeback. However, the malaise caused by various internal and external reasons has made the business situation of Yaohua Glass, which was once prosperous, continue deterioration.
In 2011, some production lines were suspended; in 2013, due to excessive pollution, the company was fined by the Municipal Environmental Protection Bureau and given a deadline for rectification; in 2014, a small-scale conflict broke out due to employee placement issues; in 2015, the municipal government and China National Building Materials Group Its subsidiary Triumph Technology signed a restructuring agreement with Yaohua Group; in 2016, the company's book capital was only a few hundred thousand yuan, its actual debt ratio was as high as 130, it had accumulated losses of 1.3 billion yuan for three consecutive years, and it owed employees 9 months of wages and social security fees... , Yaohua Glass, which has been famous for nearly a century, exists in name only, and the light of the "City of Glass" has completely dissipated.
Follow-up: Reset the banner and start again
On August 3 this year, the "Economic Daily" published a full-page blockbuster article "Yaohua's Rebirth after a Century of Quenching". The article points out that reshaping the backbone is the core element for Yaohua to turn the crisis around. In June 2016, the Triumph Technology Working Group settled in Yaohua Group and began entrusting management of Yaohua Group. One month later, the new Yaohua Group Party Committee, Discipline Inspection Commission, labor union and various grassroots party organizations were established one after another, and party building was incorporated into the company's articles of association to clarify the leadership role of the enterprise party committee.
The article also pointed out that optimizing product structure, increasing investment in environmental protection, and improving management mechanisms are the only way for Yaohua Group to get out of the predicament. To this end, Yaohua Group has carried out a series of reforms in accordance with the "five concentrations" concept of marketing concentration, procurement concentration, financial concentration, technology concentration, and investment concentration of China National Building Materials Group to temper and rebirth this "old glass".
At the same time, in order to safeguard the "lifeline of environmental protection", with the support of Triumph Technology, Yaohua Group has invested 180 million yuan in the construction of desulfurization, denitrification and dust removal environmental protection equipment, and added a new backup system. After the environmental protection treatment facilities were put into operation, all production lines achieved ultra-low emissions in 2019, leading the company in the flat glass industry.
On June 30, 2020, Yaohua Group completed its reorganization and officially joined the China National Building Materials Group. The total profit for the year increased by 148% compared with 2015; the average monthly income of employees increased by 123% compared with 2015... At present, China The Building Materials Group has approved Yaohua Group's "retreat from the city and enter the park" project, and the goal in the next three years is to build a new Yaohua.
Yaohua, who is nearly a hundred years old, has regained his vitality and become the young man he once was.
Finally, let me briefly talk about my feelings:
Manufacturing is the foundation of a country and the foundation of a city’s development. The fundamental reason why our country has been able to rise rapidly from poverty in the early days of the founding of New China to the current comprehensive strength is that the foundation of the manufacturing industry has been laid firmly. In the same way, if a city wants to achieve sustainable development, it must do a solid job in manufacturing.
Of course, developing the tertiary industry based on resource endowments and comparative advantages is also in line with the path of regional development. For example, Qinhuangdao's vigorous development of tourism based on its coastal coastline is fully in line with local resource characteristics. However, there are obvious seasonal differences in the north, and whether a city can be established based on tourism requires further discussion.
We can imagine, if Yaohua had not fallen, what could it have brought to China and Qinhuangdao?
Of course, we cannot turn back time, but this is a question worth pondering. Looking across the country, all provinces and cities are sparing no effort to seize projects and seize projects, striving to gain new competitive advantages in the new era. So what can we do to differentiate ourselves from regional competition?