The Long Journey of Hong Run – Summary Report Deli
I would often be asked whether my name is Hongrun, and I would say "no". "Hongrun" is the name of my company. Then why is the company named "Hongrun"? The two Chinese characters means "the rainbow after the storm" and "water everything peacefully" respectively. It is the highlight as well as the soul of our corporate culture.
Let me talk about "the rainbow after the storm" first. It means that the company and every employee of the company will go through and overcome the difficulties of the market economy with no exception. Only after we survive the difficulties can we stand still in the fierce market competitions and become talents. Then how can we survive? It needs a spiritual support. I watched a TV play called The Long March starring by Tang Guoqiang in 2003. I was deeply moved when I saw the Red Army walked out of the grassland hand in hand, which shows the spirits of the Long March: tenacity, solidarity and perseverance. Hongrun is located in the mountain area, so it faces lots of difficulties and obstacles while developing. Then what is our spirit? I was inspired by the Red Army and came up with "Hongrun fears no difficulty in long march!'. Hongrun is on the top of the wave in the market economy, so we need the spirit and courage of the Red Army to "climb the snow mountain and cross the grassland". We need "solidarity" of all the employees if we want to overcome all the difficulties that we may come across. The picture in the brief introduction of Hongrun embodies this spirit. In the picture, all the employees stand hand in hand to symbolize that they cooperate with each other and work hard to reach higher peaks. Why is the background red? It is intended to give the impression that Hongrun and the employees have experienced the old days besetting with challenges and difficulties. And the goshawk in the picture means to fly in the sky and have a great ambition. I added to the picture a sentence that is "Having made a promise, we keep on walking without hesitation or stop; and owning a dream, we walk night and day to seize every minute. The picture became widely known within the industry, local enterprises and working places. Everyone will have this picture in mind wherever they go. So that Hongrun was an instant hit. It was the spirit that encouraged the Red Army to make the Long March, including the Battle of Xiang River; Zunyi Meeting; crossing Chishui for four times; surmounting Wujiang; tactically crossing the Jinsha River; fighting for the Luding Bridge; climbing the snow mountain and crossing the grassland; and final arrival at Yan'an., which needs to be promoted and disseminated. However, the spirit of many people in our society has degenerated gradually. Only with the spirit can the company have the due vitality and develop ceaselessly. Many instances can prove the importance of courage. Persistence of Chen Yi and Xiang Ying's south guerrillas are all instances that show their strong mind in the hard times then. The core spirit of the hot TV play Drawing Sword is that the braver ones of the strangers will win when they come to unavoidable confrontation. Facing strong enemies, Li Yunlong would never be afraid to draw his sword to fight. The spirit is the soul of the army. However, lots of people are spoiled nowadays. They hesitate and even give up when facing with the difficulties. It is because they've lost their faiths. The cozy life deprives them of courage. It is the firm faith and the mind that empower Lin Juemin from Tong-meng Hui and Qiu Jin from Guangfu Association in the Revolution of 1911 to sacrifice their lives to overturn the monarchy in situations of extreme difficulties and dangers willingly. A group or a company without faith will end up in a state of disunity, thus the avocation of the spirit of "Hongrun fears no difficulty in long march". It requires that every staff in Hongrun should learn to stand up in the storm and carry forward the spirit of the Red Army who was not afraid of the difficulties encountered during the expedition and make contribution to the society quietly. Today, as we are marching towards the socialist modernization, we need to combine the Red Army's spirit with the culture of high-tech enterprises in the new century to show the spirit that will move forward continuously; be brave enough and work together to reach new heights; contribute to and repay the society quietly.
"Water everything peacefully" of Hongrun lies in five aspects. First, our products serve the modernization of China. The products of Hongrun enjoy a high reputation, so we won a lot of key customers in the past years, including China Air-borne Missile Academy (CAMA), China Academy of Space Technology (CAST),Institute Of High Energy Physics (IHEP), Academy of Military Medical Science (AMMS), the 58th Institute of Ministry of Industry and Weapons, the Microsoft Asia Research institute, ThyssenKrupp Stahl AG, Tsinghua University (THU), Daya Bay Nuclear Power Station, Daqing Oilfield, Shougang Group, First Auto Work (FAW), etc. The products are widely applied to different fields, including the Shenzhou spacecraft, the Chang'e Lunar Probe Program and nuclear power and made great contributions to the prosperity and the technology development of China. Secondly, Hongrun has not only created more than 300 jobs, furnished the employees with a good working and living environment, but also dedicated to improving their salary and the social security level continuously. Thirdly, Hongrun has been operated with integrity and we have paid taxes according to relevant laws since it was founded, which doubled every year compared with the previous year and increased from over 200,000 Yuan in the early time to nearly 10 million in 2008. Fourthly, it is always the mission of Hongrun to repay the society. During the development of Hongrun, we received concern and care from Party committees and the government, and got supports from the folks. We want to send our love and care to the folks, and make contribution to the development of Shunchang. Since 2002, Hongrun has donated 3 million Yuan in total to the public welfare course, the reconstruction of the disaster stricken areas and the poverty-stricken students. In 2008, I was appointed as vice president of Nanping Charity Federation. Fifth, actively perform the duties as a NPC representative. I was elected member of Shunchang CPPCC Committee in 2003, and NPC representative of Nanping in 2007, and NPC representative of Fujian Province in 2008. I am active and serious in performing my duties and fulfilling my responsibilities. I have put forward many proposals concerning environment protection, economic development and improvement of people's livelihood. Many of them have been adopted.
I would quote two lines of ancient poems to summarize the development of Hongrun, which are "plum blossom from the bitter cold" and "maple leaf is redder than flowers in February". The development of Hongrun experienced six times of "planning for change when trapped in extremities", which brought about six times of reformations. The bitterness is unforgettable.
1. First, the six times of "planning for change when trapped in extremities" of Hongrun
An old saying goes that every successful person has a memory of bitterness embedded in his mind. The achievements we have reached at present imply confusions when making choices and difficulties and obstacles standing in way of surviving hard times and making breakthroughs. In short, Hongrun went through six times of "planning for change when trapped in extremities" and five reformations, thus the achievements today. I will briefly describe the six times of "planning for change when trapped in extremities.
(1) The first change: study hard and resolve to be a talent
I was also a child of the poor. People who have acquaintance with me know that I'm from Yangkou, Shunchang County. I was born in a poor family. Although my father worked very hard, my mother was very economical when managing our family, and they both were busy with work except for the first three days of the Chinese New Year to support the family when I was a child, our family was still in poverty. When I was a child, I had to give a hand to our parents at the weekends. The sweaters today in the department stores are colorful and stylish. My sweaters I wore when I was in high school were also multicolored, but they were not stylish at all. Because of poverty, we could not afford new cotton yarn so that my sweaters were knitted with those from different old sweaters. Therefore, I had a dream then and I made up my mind to study hard and become a talent so as to change the situation of my family and show filial piety to my parents to provide them with a better life. This was my first "planning for change when trapped in extremities". After I graduated from school and started to work in the Shunchang Automation Factory, a branch of No. 8472 Factory of Military Industry, I worked very hard and studied assiduously. As the knowledge I learned in the school was fragmented, I was very hardworking when I was at the Shanghai Mechanical Institute (University of Shanghai for Science and Technology today) and the Shanghai Industrial Instrument Institute. I had reached achievements in the field of computer software only when I was 21 or 22. I published several papers on the magazines of national level and got provincial and ministerial rewards. I will introduce here a few innovations of mine. The first was created when I was assigned to Shanghai to take over the technology assignment project. After the products were produced, I paid visits to Shanghai Jiangnan Ship Factory, Shanghai Heavy Machinery Factory and Shanghai Turbine Works. Jiangnan Ship Factory was founded in 1865 and has an over 100 year history. At that time, the height of its kiln was 81 meters. During the visit, I found out that the temperature of the kiln was controlled by traditional PID. The PID had three control nodes which are proportion, integral and differential. It was basically a permutation and combination in the range from 1 to 1000. Although Shanghai was then the industrial technology center of China and had the first-class engineers, the onsite measured accuracy of the kiln thereof could not be ensured to meet the relevant requirements. The same case is with Shanghai Heavy Machinery Factory and Shanghai Turbine Works. The factory director asked my tutor to conduct the project at first, but he was not willing to do so. I accepted the project afterwards. There were only three months for me to finish the development, so I was under great time pressure and psychological pressure. I thought that if I could use the traditional way of experienced formula to realize automatic control instead of artificial adjustment, then the problem will be solved. Then I summarized an experienced formula by modifying the formula based on the deviation of the kiln temperature and the speed of the rising temperature as well as its inertia. I had the formula tested by Mr. Ge Jian in Shanghai Industrial Automation Instrument Research Institute and teachers in Shanghai Jiao Tong University. The result was exhilarating. I was told that it was fuzzy data control that constituted the theoretical foundation of the resolution provided by me. I did not learn about the meaning of fuzzy, but just developed the resolution based on my study insights and working experience. Papers about this project were published on many professional journals. The product was awarded the provincial Excellent New Product Award. The second is when I was in Chingtechen upgrading the first generation kiln. The heating materials for the kiln were coals and woods. The curves for the rising temperature when firing the porcelain is various, but the curves of the kiln were rather unsatisfying. It was an urgent need to realize the automatic temperature control. When I was back to the factory, an idea occurred to me. If I could integrate all the programs in a memory card, all the temperature curves could be stored in a memory card to realize automatic temperature control. The third is when I sold the instruments adopted the above software in Beiliu, Guangxi Province. A sudden telegraph came from my teacher instructing that there was something wrong with the software. I was in anxiety and borrowed several hundred Yuan and bought a black duffle coat. I bought a ticket to Yingtan without seat. I transferred to a small town called Litang in Binyang County, Guangxi Province and took a bus to Beiliu. It took me two days. After the onsite test, it turned out that there was nothing wrong with my software but the change of onsite parameters. I did not say anything but went to the Yulin Diesel Engine Plant in Guangxi with the letter of introduction from the Ministry of Light Industry and borrowed the power supply of 25 V for the burning of CPU. It was recognized and appreciated by the clients. When I got back to the hotel, I found that the duffle coat as well as the money was stolen. I was not annoyed but felt relieved that there was nothing wrong with my software. When I told my teachers about this several years later, they said that I wouldn't come if they didn't say so. The incident reminded me to serve customers with sincerity and I am still doing so, and make it the fine tradition of Hongrun. My plan for change was to become an excellent engineer, and there was no intention of starting an enterprise. However, the mechanism was different from now. Although I had so many achievements during 1986 and 1991, my salary was only 10 Yuan more than that of a security. The dream of making fortune through knowledge can hardly be achieved then. Therefore I started reflecting and wondering and even could not fall asleep at night. Should I choose to leave the state-owned enterprise and start a business of my own or keep on working to live a plain life? I didn't want to live a life like that, so I decided to change myself.
(2) The second change: start from scratch and persist in adversity
In the 1990s, It was very rare to go into business, and even rarer for a state-owned enterprise employer, especially that in a county of mountain areas. After I made up my mind to resign and go into business, my family and friends could not understand me and did not offer their support. They said that "You are a civil servant. How can you make a living and what about the life after retirement if you failed?" I replied that "The current mechanism cannot last forever, and it definitely will change. My life will last longer than the present mechanism. Since I've made up my mind, I will never look back and I am confident to success." The teachers from Shanghai Automation Instrument Research Institute and the professors from the Light Industry Department of Ceramics Research Institute in Chingtechen gave me great support. I tried to make money as I was developing my own products. The Research and Development Department was founded right after the product came out. I had less than 2000 Yuan at that time, so we rented a room of 15 square meters with no telephone, and even the office tables were borrowed. There was only a ceiling fan shaking and the rain could fall through the broken thermal-protective coating. We suffered a lot at that time. The product had been under developing for only one year and was not mature, so that they had many defects and could not work. And the business in Chingtechen should continue. We often went to Chingtechen in carriage with hard seats that cost only 10 Yuan. We were so tired that we even could fall asleep while standing. It was cold and I was wearing a woolen vest and thin suit and shivering. Because of all those difficulties, I was confused and discouraged. I even thought about giving up and found a job in Xiamen. But I made through it. Heaven helps those who help themselves. The product was successfully developed after the Spring Festival and named User-Friendly Fuzzy Controller. It was easy to use and small in size. It was tested and operated well and popular among the clients. And the business heated up. When establishing the development department of the secondary legal person, I only had about 1000 Yuan. In the hard time like that, there were many people who trusted me and my course. They offered their money with no condition and ignored the returns, which strengthened my confidence greatly. I invited the directors of industry and commerce, taxation authorities and machinery company from the department we were affiliated to and had a dinner. Then we founded a development department with the registered capital of 5000 Yuan. The department of automation development for the machinery company was founded, which was the predecessor of Hongrun. We were in lack of money when the department was initially founded, and had to wait for the draft from the clients in Chingtechen to print the instructions and the package boxes. Thanks to the high profit and effectiveness, the business could continue. As we had only a single product and did not have our own brand, we went through a bottleneck. The sales revenue could not rise when it reached a certain amount. These problems forced us to plan for change.
(3) The third change: find help and take advantage of the favorable situation to develop.
The company was founded in 1996. As we did not have funds to exploit the market or establish our own brand, we acted as an agent for the other brand, i.e. the instruments of the D Company in Fuzhou. There were 40,000 colored cards printed for promotion and the sales volume doubled every month at that time. However, during the later stage of the agency, problems started to emerge, especially that the D Company refused to replace or refund the instruments that had quality problems. It brought troubles to the after-sales services and lifted up the cost of our work. I realized that we could not continue to cooperate with D Company anymore and must change the brand we acted for. In 1996, I had already founded the Hong Da Automatic Instruments Factory. With the introduction of our counterparts, I decided to cooperate with S Company in Fuzhou. I went to the Laiwu Iron and Steel Factory in Shandong Province and undertook a technological renovation project worthy of 200,000 Yuan. After rounds of discussions, we signed a sales contract and they paid 70% of the goods price in advance before I went to Fuzhou with the contact and passed by Tai'an. Although Mountain Tai was very near, I didn't get off and have a tour. I had no career or money to afford any travel. My goal was to expand my business rather than to travel. I looked for and found S Company after arrival at Fuzhou. S was a company with great technological strength. But it was the initial stage of its establishment, so that they were weak in the market expansion. Through negotiations, it was decided that we would be in charge of the market expansion and S Company would be responsible for the research and development of products and the production. After three years of hard work and fine business operation as well as market expansion, S Company together with Hong Da became the famous brands of China's display & control instrument industry. During those three years, we printed tens of thousands of our company profile for promotion; and attended China Instrumental Exhibition; and along with Lenovo, we organized a technological lecture through the platform of China Instrument and Control Society (CIS) during the Beijing Instrument Exhibition. There were 100 experts and professionals attending the lecture. This bold step improved the popularity of the brands of Hong Da and S Company. The sales revenue rose greatly, and that of only Beijing was 2 million Yuan in that year. Thanks to the successful commercial promotion, the well-known companies from Chuanyi, Xiyi and the Industrial Controlling Department of Lenovo all chose to act for our products.
Our sales market of Hong Da was expanded by the acting for S Company's brand and the development of Hong Da was driven forward at the same time. The popularity of S Company was increased with the help of our market operation and the value of the brand was improved, thus the vast profits. We could say that was a win-win situation. At the end of 1998, the two executives of S Company left suddenly and took away the businesses, talents as well as the technologies (including the source programs and object programs of the products' software) of the company when it was expanding. They also deleted all the programs in the company's computers. They founded the C Automatic System Co., Ltd. in Fuzhou. Under that circumstance, we had to choose a new partner. At the beginning when C Company was founded, it was very hard for them to get orders so that the business was hard to sustain. While after years of market expanding and promoting, Hong Da had accumulated many resources of the customers and enjoyed a relatively great popularity, hence C Company came over for the discussions of cooperation for many times and assured us many favorable terms. As I was a friend of the manager of C Company for many years, and Hongrun was also at the beginning of the business, we didn't have enough strength to do the research and development on our own. If we continued to cooperate with S Company, the technologies of the product cannot be improved. Therefore, we terminated the cooperation with S and turned to C Company.
(4) The fourth change: strive to create a famous brand
At the beginning of the cooperation, the quality of the products of C Company was very unstable, which resulted in a repair rate as high as 30%. That made it difficult for us to sell the products. We tried our best to improve the after-sales services at one hand and strengthened the efforts of promoting at another to open the market gradually and promote the business development of C Company. The sales revenues of the two companies both rose at a rate no lower than 50% every year. In order to adapt to the development, I founded the Shunchang Hongrun Precision Instrument Co., Ltd. in Fujian Province and took over the business of Hong Da. We achieved a new height in the cooperation with C Company. The cooperation was very harmonious. The two companies were like friends and brothers. We started to change under the background of cooperating with C Company and had our own production line. We started to produce our own products and establish our own brand. The office of our company firstly changed from the 15 square meters' single room to a rented room of 50 square meters offered by the Committee of Science and Technology. Then we bought the 300-square meters place in Baixiangge, and then rented a 6-floor building of CCB of the Shunchang County. And at last, we have a Hongrun Technopark that covers 118 mu today. During that time, we founded the branch companies in Beijing, Shanghai and Guangzhou. We stared with acting for other brands and then have our own production line and groups of technical personnel. We developed and expanded step by step. As for the promotion of our brand, we designed the trademark of Hongrun and advertised on the cover of and in professional magazines of instrumentation. In 1997, when Hong Kong returned to China, I came up with the idea and printed and distributed desk calendars that celebrated the return of Hong Kong. We used the Hong Kong's scenery as backgrounds of the company's advertisement in the calendars. The company profile and the introductions of the products were on the front covers. No company had tried this way to advertise at that time. Our advertisement outshone the others and the result was satisfying. The sales revenue increased by 150% in that year. We also printed tens of thousands booklets with company profile and model selection guides. They filled up three trucks and were distributed throughout the country. In 2003, we attended an exhibition that had exhibitors from many countries. Our booth faced the entrance of the second floor, which was well located. We designed a time and space shuttle as the package of the booth that impressed the visitors. We had the advertisement of our company on the cover and the first to the seventh pages of the exhibition catalogues, which were distributed by us so that it gave the visitors an impression that we were the co-organizer of that exhibition. We also distributed promotional gifts including the yellow cloth bag with the company's logo, penholders and card cases. The bags provided convenience to the visitors and advertised for the company at the same time. The penholders and card cases were also very popular. There were visitors coming over for the gifts even at the end of the exhibition. Series of advertising increased the popularity of Hongrun and the value of our output at the same time. It also brought the market share and the popularity of our company to a higher level. The market share of our company was growing during 2000 and 2003. But there was no weal without woe. In 2004, C Company started to fight for the market share with us through unfair competitions in fear that the growth of our company would be a threat to them. We tried to negotiate with them on this but were ignored by them. They became aggravated. The contradiction sharpened between us.
In 2004, C Company tempted the manager of the Shanghai Rui Kun Company affiliated to our company with benefits and made him to sell their products. That brought great loss to Hongrun. Firstly, I was emotionally hurt by it and was discouraged. I was despaired of my career. Secondly, it had brought great harm to the market of Hongrun. It is very hard to open a market as it is known. The markets in Shanghai as well as East China were developed by great efforts made by us. But C Company snatched the fruit of ours and reaped without sowing in sales. It was a great blow to me. By mentioning this, I want you to know that the betrayals and cheats are not avoidable in your life. You should be prepared for that and be mentally strong to face that.
That was not the end of the story. It was just a tip of the iceberg. There were storms awaiting. In July 2004, C Company refused to perform the duties under Sales Contract and refused to supply us with products or technical services and even refused to deliver the instruments that were sent to repair. We did something inappropriate out of great anger. The divergence sharpened between us and led to the lawsuit on the sales contract between Hongrun and C Company. The cooperation between us came to an end at last. C Company took advantage of its social relations as well as administrative and judicial means to put pressures on us to lead us to hopeless situations. At a hard time like that, our company reported the situation to the leaders of Fujian Provincial Government, Nanping Municipal Government and Shunchang County Government timely. There were lots of people who gave us supports and helped us at that time, many of which offered help silently in every aspect. That impressed me a lot even until now. With the help and care offered by the leader at all levels, we pulled thought at last. But after all those struggles, the company was in a dilemma.
The hit TV Play called Qiao's Compound in 2006 gave me some insights. The first was a dialogue in the play that goes, "The fellows who do business should take the reputation as priority. Even if you took down others by small tricks, the reputation would be ruined. Then who will come to us for business?" The second was "Lagging behind leaves one vulnerable to attacks." And "Failure is not terrible, but it would be terrible if you don't know the reason." Hongrun and I went through the betrayal of friends and partners between 2004 and 2006. Although the sufferings and failures hit me greatly, I would stand up at the spot where I fell. The third was that the intrigues and fighting in businesses are the reflection of the sentence that the business world is like a battlefield. In a business society that is full of fierce competitions, the risks and competitors are everywhere. Your greatest emery is yourself. You would be beaten if you are not cautious enough.
(5) The fifth change: be eager to explore and be brave to reform
Having been through the crisis between 2004 and 2006, I learned from the painful experience and started the fifth time of change. I had realized that a company without intellectual property or core technology could not develop. We needed to innovate to have our own vitality. From that time, I took bold steps to innovate in developing and protecting the intellectual properties and developing the enterprise culture and talents. We also had innovations in technical equipment and quality management as well as the markets and sales. The result turned out to be satisfying.
A. We introduced many outstanding talents in 2006 and 2007, and many of them were professors in aspect of intellectual property rights development and protection. We founded research and development centers in Nanjing and Beijing. The research and pilot personnel worked day and night to overcome the difficulties. They developed five series of instrument in only several years and left all the others in the market behind. There were new high-tech instrument coming out continuously and the sales revenue rose linearly. Hongrun was among the first which were recognized the high-tech enterprises of the national level in 2009. It was authorized the test unit for intellectual property of enterprises by the State Intellectual Property Office and had over 400 national patents and more than 60 software copyrights registered. The brand of Hongrun became the famous trademark of Fujian Province. The products of the company were rated as the "National Key New Products" and were supported by the National Innovation Foundation, the key industry revitalization foundation, and the special fund for the development of small and medium enterprises.
B. We have tried to integrate the traditional Chinese culture into the modern corporate culture of Hongrun regarding establishment of enterprise culture and talent group, and have created the enterprise spirit of "Hongrun fears no difficulty in long march" and have formed a talent group with great cohesiveness. We took firm measures to ensure that the talents were valued and the less talented given way. We discovered the competent and talented employees and introduced more talents.
C. We introduced from Japan two chip mounters, crest welders, Automatic Optical Detectors (AOI) and the full set equipment for the test of electromagnetic compatibility. They all passed ISO9001 international quality management system certification and the Essential Requirements of European Union. The company also has enhanced the after-sale service and improved the quality. The increase of production, the improvement of quality, the lower cost of production and enhancement of after-sale services provided the company with guarantee that allows it to expand the market. In 2010, Hongrun passed the reconfirmation test of ISO9001 certification. Its products were approved by the Essential Requirements of European Union. The brand of "Hongrun" passed the continued certification as the famous trademark of Fujian Province. And the name "Hongrun" was also granted by the Provincial Administration for Industry and Commerce the "Famous Enterprise Name of Fujian Province".
D. I was personally responsible for the product advertisement, enterprise introduction, sample selection, websites establishment, exhibitions, product appearance and workmanship as well as packaging design. Everything should meet the high standards and strict requirements. The new and old customers are impressed by our brand-new originality. As for the sales of our products, thanks to the fine market operation in the past decades, most of the customers came to us voluntarily, which made the staff weak in marketing. A few of them rejected the door-to-door sale or to pay visits to customers for some objective reasons. Some of them even had not met some regular customers that had had businesses with us for more than ten years. Hongrun bought 5 wagons to improve the sale ability. Led by the leaders, bringing model products, projector, DVD discs and publicity materials, the staff of Beijing, Shanghai, Guangzhou, Chongqing and Shunchang branches visited the customers and advertised the newly-developed products on a national scale. In spite of any difficulty and hardship, they struggled to promote the products, which yielded good outcomes. By giving full play of their advantages, every branch had actively consolidated the old customers and developed new customers as well as contributed ideas for improving the sales. The sales volume in 2010 and 2011 both rose by 40%. The products were well recognized in all aspects.
All those reforms lifted up the whole level of the company as well as its industrial influence.
(6) The sixth change: create first-class products of the world and enable Hongrun step into the global stage.
After five years' of hard working from 2007 to 2011, we become more and more mature in the products researches and development, technical equipment, talents team, corporate culture, corporate management and marketing. The fruits cultivated by the hard work of Hongrun's staff are growing healthily. During the five years many talents that are diligent, hardworking and conscientious have sprung up. They are young and full of vigor and are good at learning. They are actively working in many positions and became the backbone and the treasure of Hongrun. In the domestic market of display control instrumentation, we are walking ahead of others. Among the five series of our products, the sales volume of SWP-TSR, multi-meters and tachometers, isolators and safety barriers nationwide has rose 35% in a stagnant market like this year. And the sales revenue of digital readout instrument is of the same level of last year. And the process calibrator will soon come to the market. I want to thank the competitors of Hongrun which press us continuously. Your pressure made us strive in the adversities and changed the pressure into motivation to have today's success and glory. Our products are the leaders in China, but there is still a large gap between ours and those of the developed countries in the Europe and Japan. The quality of products and the employees as well as the production equipment need to be improved. How could we step into the global stage without the first-class products? Only by continuously innovating the technologies and follow the trend of the current times can we be vigorous and have stable development. Therefore we are having the sixth time of plan for change, which is the sixth time of reformation.
In 2012, the reformation of our company is underway orderly. What kind of reformation are we having?
A. We need to take advantage of the social strength to develop the company. We received great support from governments of all levels in the construction of the complex for production and scientific research. The governments provided us with preferential land policies and let us have the priorities of setting up the project, project approval and handling. We received a national fund for scientific research of 10 million Yuan for the development of the project. The 4000-square-meters building is being furnished and will put in use within 2012. We will introduce advanced equipment and technologies and improve the quality of our products and the ability of pilot-plant test to a new height.
B. We need to be good at learning. We have to learn from the counterparts like Chen Zhu Instrument, Hangzhou Pan Gu Automation System Co., Ltd. and Toky Electrical Co., Ltd. and communicate with each other to realize improvement.
C. We need to be good at making use of external resources. We introduced the EPR management system of UFIDA and invited the experienced EPR consultants to give their guides and train the staff, thus the integration of the industrialization with the informatization. We strictly implement the ISO9001 quality management system, change the states of the staff of being satisfied or sluggish, and informationize the enterprise management and standardize the quality management. We also invite experts from the electronics industry in Taiwan to reform the equipment technology and the management process. We also invited the professors of logistics major in Wuyi College to improve our logistics system.
D. We have to bear in mind the following five principles in the process of development of our company. First, we need to keep the innovative consciousness in mind. Innovation is the premise and the foundation that allow a company to have sustainable development, which should not be limited to technologies. We should innovate in all aspects including the ideas of development, the strategies for development and the management as well as the personnel mechanism. The development without innovation will be sluggish, and we will lose the motivation to move forward and fall behind others and be forgotten. Second, we should bear in mind the principle of "people oriented and talents valued". We need to attract, respect, cultivate, and bring up talents. We will provide the staff a platform to study, grow and create wealth as well as make them realize that the diligence, knowledge and intelligence will create wealth. Third, we should bear in mind that there is a long way for us to develop and protect the intellectual property. We should follow the step of technological innovation and create our own brand of intellectual property and ensure that our technologies are in the leading place of the same fields and keep in an invincible position in the fierce market competitions. We should make full use of laws and take them as a weapon to protect the intellectual property the innovation fruit actively and consciously. We should take the applications and protection of the intellectual properties as an important task, which is of great importance for the further development. Fourth, we should bear in mind that quality is the life of Hongrun. The quality of the products is the life of Hongrun. We must love the brand "Hongrun" as if it were the life of ours. We should keep a close eye on the quality and make the products of Hongrun first-class in China as well as the world. Five, we should bear in mind that one might be a master in his own special field, and that every industry will have its own experts. 1) We invested a great amount of energy and money in producing flow meter, liquid meter and actuators. As the subject and the fields are various, it was not well managed. I suffered from the contradictions and bitterness at that time. But we were aware of that we had to make a choice and ended the projects related to them. 2) Besides, we experienced external temptations from many aspects like investing a multi-industrial projects. But we successfully resisted the temptation and devoted to making the five series of products of the display and control instrument perfect.
All these problems mentioned above are the problems we met in the reformations and need to be solved. I do not expect Hongrun to have a great scale but wish that it can make its products competitive, specified and perfect like the medium-sized and small enterprises in Germany, and become first class in the world. By doing so, we can make Hongrun better and better and achieve the goal of "making the first-class products and step into the global stage". We can also offer the staff with good welfare and make them well-to-do so as to have more contribution to the harmonious society.
On my way of growth, when the company and I were at a very difficult time, there were many people who offered me help quietly. In the 1980s, when I just started to work and stepped into the society, I was guided by Mr. Ge Jian in Shanghai Industrial Automation Instrument Research Institute and Mr. Hong Quan in Ceramics Research Institute of Chingtechen on the techniques and received care and concern from them. In the 1990s as I decided to resign and go into business, I asked Mr. Ge Jian and Mr. Hong Quan for advices and they gave me a great deal of encouragement and supports. Whenever I met difficulties in my business, they also offered me encouragement and gave me help and support in techniques as well as funds. We also received help and supports from the leaders of all levels and people from different departments. They gave us supports when we were constructing the Hongrun Technopark. We got the research and development fund for the science projects with the help of them. We also received help from them when we met all those setbacks and difficulties in the development. We cannot achieve what we have today without the selfless help from them. We will be grateful at all time and remind ourselves to make Hongrun stronger to make more benefits to repay the society. We can make contribution to the modernization of China and create more jobs and improve the welfare of the employees. We will also make contribution to the public welfare. Only by doing so can we live up to their expectations.