A team led by chairman Zhang Jianhua inspect Keeroyal Company
Time:2011-05-06 18:38:00    From:
     In the morning of March 30, Chairman Zhang Jianhua led a team and inspected Keeroyal Company. After hearing a work report presented by Wei Wei, general manager of the company, Mr. Zhang made an important speech mainly covering two issues.

      First, Keeroyal has actively implemented going international and forward integration strategy which becomes a strong impetus to the rapid development of the company.

      When working out the 2nd Five-Year Strategic Plan for Development in 2008, the Group had determined to implement going international and forward integration strategy. Under the guidance of the overall developing strategy and with the full support of the Group, the overseas acquisition squad, set up by Keeroyal Company and some relevant departments of the Group, worked together to get through toughness and achieved fruitful results, which marks the first stride forward for Keeroyal in going international and forward integration strategy. They have made the positive and useful exploration and practice for Keeroyal as well as the Group in transnational operation and industrial chain extension, and also set a successful example for other trading companies in the Group.

      As things stand now, the effectiveness of overseas acquisitions has come into being, OR company’s profits in the first two months of this year witnessed a year-on-year substantial growth, factories in Cambodia saw significant improvement in output capacity, which is an effective support for human hair products exports, while Keeroyal Company has maintained a good development momentum in recent years. All the facts have proven that the adoption of going international and forward integration strategy is a correct choice.

   At present, the hair products sector faced a series of difficulties, the ones who can overcome these difficulties, will get the development opportunities. The enterprises in the east coastal region of China are facing more and more difficulties such as significant increase in labor costs, RMB appreciation, rising raw material prices. From the perspective of industrial relocation of the hair products business from the United States to Europe, Japan, Korea and China in sequence, human hair products business may be relocated to another country. We must strategically slow down this relocation process through industrial chain extension so as to maintain continuous development. Facing operational difficulties, some companies may go bankrupt, but we will develop better instead, because we have seized the opportunity, and gained new competitive edges in cost, the ability to fend off RMB appreciation.

  The second is to strengthen the management of overseas enterprises, to maximize the usage of resources and markets at home and abroad, and to promote sound and sustainable development.

  At present, we need to study how to manage OR company and the factories in Cambodia in a better way so as to make full use of their advantages. The Group will draw on wisdoms from all possible sources and draw up a workable proposal on the management model of these overseas enterprises in time with a world vision in an effort to promote the overall competitiveness of the whole industrial chain of the hair products in the Group. The proposal should include all the factors like business operation, enterprise management, culture integration and future development strategy. It shall include not only the culture integration, business complementary development, industrial chain support between the overseas companies and the Group as well Keeroyal and domestic factories, but also the business support, market layout, competition coordination of customers, and strategic synchronization among these overseas enterprises.

  First of all, integration of culture should be ensured, which is the basis for good management of overseas enterprises. Only the consistency of our values, mutual integration and mutual understanding are achieved, can we work together to develop a good business. This requires our leaders and staff to further improve the general competence as well as the management capacity to adapt to the multinational operations.

   In addition, we shall also attach importance to the work morale of foreign companies.  When Mr. Xu leads delegation to OR company in the United States next time, please, in the name of the Group and me, formally invites employees who have made outstanding performance last year, or have great contributions to the development of the company or employees at some important positions, to China, to Qingdao to know more about Hiking Group; as for workers in the Cambodia factories, can we invite some outstanding employees to work in China for a period of time, or in the headquarters for a few months? This is very useful not only for the spread and implementation of the Group’s corporate culture, but also for the stimulation of their work enthusiasm, as well as the retaining of talented people of the foreign companies.

  Moreover, long-term development plan should also be worked out. We should, together with each overseas companies, draw up their corporate development visions, including market objectives, operational goals and financial targets, so as to reach the goal set by the plan in joint efforts and to increase the value of industrial chain of the hair products.