Adhere to manufacturing for 40 years, business management can not blindly greedy

Hu Chengzhong initially started from joining the Wenzhou 100,000 supply and marketing army, and founded Qiujing Switch Factory (the predecessor of Delixi) in 1984, developing Delixi from a family workshop into a large group with five production bases and nearly 20,000 employees, and the product and service support network covering more than 60 countries and regions. Around 2000, Delixi began to explore outside the main electrical business.

6186M-17PT But for cross-border and business diversification, Hu Chengzhong’s attitude is more cautious.

“There are many so-called tuyere in different periods, and if the mountain looks high at the other mountain, it is difficult for such enterprises to do better, stronger and do it for a long time.” ‘he said.

Once all the rage under the attractive light of business diversification is actually full of hidden dangers, once the high growth slowdown, economic headwinds hit, diversified expansion of the business empire may suffer multiple shocks at the same time, aggravate the blood loss and thus crash down. “Bigger is not always better.” Hu Chengzhong believes that the manufacturing industry wants to do a century-old store, and needs to withstand the “temptation” of strategic concentration.

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He said that enterprises to achieve a certain scale, diversified exploration is a natural move, the industry has a ceiling, the economy is also cyclical, to disperse risks, expand growth points, you need to diversify. “Where there is no risk and smooth sailing in business operation, exploration will inevitably take detours and pay tuition fees, like we have tried auto parts, mining, LED and other businesses, and finally did not do it.” In doing the above attempts, Delixi has always not shaken the core of the electrical industry, “so even if the new business is not successful, it has little impact, and will not ‘hurt the bones’ and damage the base camp.”

6186M-17PT Delixi finally chose the concentric and diversified expansion mode of manufacturing industry, in recent years, around the main line of “electricity” and “high-end intelligent manufacturing”, and gradually entered the military electronics, semiconductors, new energy precision manufacturing and other fields. Hu Chengzhong explained that making this choice is close to the natural nature of the manufacturing industry, which can form synergy with the main industry, and the second is in line with the national strategic orientation, which has achieved better expectations.

In July 2018, Hu Yu𠨱‘, 34 years old, took over the position of president of Delixi from his father Hu Chengzhong and began to take full charge of group management and take the helm of tens of billions of dollars After the “succession”, Hu Chengzhong “focused” on three things: major strategic decisions, important personnel arrangements and consolidation and expansion of domestic and foreign markets. “Delixi has basically maintained double-digit annual growth in recent years, which shows that our cooperation has worked well.” In the era of enterprise navigation, Hu Chengzhong is full of confidence in Delixi’s ability to withstand wind and waves.