From: Shanghai Securities News

□ By focusing on key points, relying on new technologies, and adhering to the concept of green development, Xinbo has grown into a leading domestic aluminum profile service provider after four industrial upgrades.

□ From low-end products to high-end products, from domestic market to overseas market, behind the transformation of Xinbo is the innovative power of management and the cohesive power of talents.

□ Xinbo 's recycled aluminum project not only contributes to "dual carbon" strategy but also integrates and extends the industrial chain, ensuring high-quality raw materials while reducing costs and enhancing efficiency.

17 years ago, Tang Kaijian, who had the dream of starting a business, resigned from a senior executive position in a company and returned to his hometown of Tianchang City, Anhui Province with several fellow villagers to establish a small aluminum enterprise. 17 years later, the company not only landed on the A-share market, but also experienced industrial iteration and has grown into a leader in the green transformation of the aluminum industry.

"With every evolution, Xinbo consistently updates its products and technology reserves within a three to five-year cycle," said Tang Kaijian, the company's chairman. His astute ability to capture prevailing trends with each iteration has undoubtedly been a key factor in Xinbo's ongoing success.

Tang Kaijian's capacity to capitalize on opportunities transcends mere chance; it's a testament to his inherent ability and astuteness. Over a span of slightly more than a decade, he has guided the company along a trajectory of high-quality development, harnessing emerging industries, technological prowess, and enhancements in management. Through his leadership, Xinbo has continuously evolved and thrived in a dynamic business landscape.

Tang Kaijian emphasized, "I firmly believe that an enterprise's advancement should be guided by technology and efficiency at every stage of its journey. Going forward, Xinbo will increase investments to promptly tackle technical obstacles within the aluminum-based industry. We'll closely monitor policy shifts in emerging sectors, accelerate the digitalization of our enterprise management, and assist businesses in improving quality, efficiency, and cost-effectiveness. Our commitment remains unwavering: steadfastly progressing towards environmentally sustainable development."

Embarking on a new journey of green development

Chuzhou's rich history and strategic location along the northern reaches of the Yangtze River have conferred upon it a prominent position since antiquity. With a robust economy and a vibrant cultural scene, the city thrives. Notably, "The Pavilion of the Drunken Old Man" remains a cherished landmark, enduring through the ages as a testament to the city's enduring charm. It is against this backdrop of historical significance and cultural vitality that Xinbo was founded, adding to the fabric of Chuzhou's entrepreneurial spirit.

During a recent visit by a Shanghai Securities News reporter to Xinbo, the company's distinctive strategies for fostering new, high-quality productivity were explored. Tang Kaijian, brimming with enthusiasm, shared exciting news: "We're embarking on a project to annually produce 600,000 tons of recycled aluminum. The first phase is on track to commence production by month's end." This announcement underscores Xinbo's dedication to innovation and sustainability."

According to reports, the outcome of this project is recycled aluminum alloy bars, which Xinbo further processes into high-performance aluminum parts such as solar photovoltaic aluminum frames and parts for new energy vehicles. Acknowledging the importance of recycled aluminum at an early stage, Xinbo has dedicated years to intensive research, development, and the accumulation of technical expertise in this field. Consequently, Xinbo has successfully mastered the core technology and production processes required for manufacturing high-end products from recycled aluminum.

The data clearly illustrates the significant benefits of recycled aluminum as a renewable resource, making it a prime example of both circular and green economies. According to research from the International Aluminum Institute (IAI), producing recycled aluminum consumes just 5% of the energy required for electrolytic aluminum production, resulting in a remarkable 95% reduction in greenhouse gas emissions. Furthermore, calculations by the Ministry of Industry and Information Technology highlight the substantial resource savings associated with recycled aluminum production. Compared to electrolytic aluminum production, manufacturing 1 ton of recycled aluminum can conserve approximately 3.4 tons of coal and 22 tons of water. Additionally, it slashes solid waste emissions by a substantial 20 tons, demonstrating its significant contribution to environmental sustainability.

Tang Kaijian emphasized that the company's recycled aluminum project not only aligns with the "dual carbon" strategy, aimed at reducing carbon emissions and achieving carbon neutrality, but also facilitates the integration and expansion of the company's industrial chain. By prioritizing high-quality raw materials, the project ensures the company's standards are maintained while simultaneously driving down costs and enhancing operational efficiency.

In fact, since its establishment, the company has always adhered to the development concept of green aluminum industry, taking the transformation and upgrading of the aluminum industry, the extension and value enhancement of the aluminum profile industry chain and business layout as its strategic direction, and actively developing the recycling of recycled aluminum, technology research and development, and capacity construction.

Tang Kaijian strongly agrees with this statement: the underlying color of new quality productivity is green, and developing new quality productivity means taking the path of green development.

With green technology paving the way, Xinbo has the confidence and courage to explore overseas markets. Tang Kaijian said frankly that the company had planned to go overseas the year before last. "If you want to be a leader in multiple market segments, you must look at the world and form an industrial layout overseas." Consequently, after extensive research, the company selected Malaysia as its overseas destination last year. Tang Kaijian disclosed that if the Malaysian project progresses smoothly, production is anticipated to commence by the end of this yearm which will not only increase the profitability of the company, but also enhance the company's international reputation.

After four industrial upgrades and transformations

Rome was not built in a day, and the recycled aluminum business that Xinbo now admires was not achieved overnight. Since the start of the business, Tang Kaijian has led the team to implement four industrial upgrades along the green goal. Each time is a painful and happy breakthrough.

In 2007, Tang Kaijian resigned from his position as vice president of a company and returned to his hometown to start a business with several fellow villagers. The five founders all ran sales during the day and worked in the workshop at night. He recounted an incident when the company's vice chairman, Li Jie, nearly lost several fingers while installing equipment in the workshop. These moments of hardship and perseverance laid the foundation for the company's eventual success.

The company produced traditional building profiles from 2007 to 2013, catching up with the rapid development of urbanization. "The construction industry was very good at that time, but we started to make technical reserves in 2011, and successfully entered the industrial profiles such as consumer electronics and rail transportation from 2013 to 2017." Tang Kaijian talked about the company's development history, "In order to make the business more solid, the company started to make photovoltaic aluminum frames and brackets in 2017, and entered the lightweight aluminum parts of new energy vehicles in 2021."

"Each stride we make aligns with the national strategic vision and caters to the demands of strategic emerging industries," emphasized Tang Kaijian, gesturing towards a sizable aluminum tray for lithium batteries in the exhibition hall. "Substituting traditional materials with aluminum addresses the lightweight requirements of new energy vehicles," he pointed out. Through targeted focus and harnessing innovative technologies, the company has navigated its development journey with remarkable success.

In the new energy vehicle parts production workshop, the reporter saw a row of display cabinets showing samples of automotive parts such as battery casings, door sill beams, and anti-collision beams. The end customers include well-known domestic automobile manufacturers such as BYD, Xiaomi, Geely, and Chery.

Hong Zhiyong, who joined the factory in 2012, highlighted a significant advancement: the sandblasting machine. "Previously, numerous processes were handled manually," he explained. "Now, with automation, only two individuals are required to monitor the equipment, ensuring its smooth operation and promptly addressing any irregularities." This transition underscores the company's commitment to efficiency and technological innovation.

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According to Hong Zhiyong, previously, the manual operation of the sandblasting machine required significant manpower. One person was stationed on each side of the machine to lift the material, while two others transported it to the platform. Once on the platform, four individuals were needed to clamp the material at its four corners. In total, this process necessitated eight people per platform. Therefore, to achieve a daily production target of 100 tons per shift, four platforms would be required, employing a total of 32 people.

Talking about the current situation of the photovoltaic industry, Tang Kaijian said that the photovoltaic aluminum frame industry is highly competitive, but the company's orders are saturated and it has maintained a high growth rate in the past two years. "Advantageous production capacity will never be excessive, while backward production capacity actually wastes a lot of social resources and must be eliminated."

Over the span of more than a decade, under the guidance of Tang Kaijian, Xinbo has made remarkable strides forward, consistently evolving and upgrading its capabilities. What began as a manufacturer of architectural aluminum profiles for energy-efficient doors and windows has transformed into a provider of industrial aluminum profiles for high-end equipment. Subsequently, the company expanded its offerings to include industrial aluminum components for emerging sectors such as photovoltaics and lightweight automobiles. Today, Xinbo stands as a premier domestic provider of aluminum profile services, showcasing its adaptability and leadership in the industry.

Relying on institutional innovation to build soft power

From low-end products to high-end products, from the domestic market to the overseas market, behind the transformation of Xinbo  is the innovative management and the aggregation of talents.

"We have a profound appreciation for the value of talent. The growth of an enterprise relies on both technological prowess and continuous management enhancement," Tang Kaijian emphasized. He stressed that attracting talent is just the first step; the company must also effectively utilize and retain them. In pursuit of this goal, Xinbo has implemented a series of policies, forming the company's distinct "soft power" aimed at fostering an environment where talent thrives and contributes to the company's success.

Tang Kaijian emphasized, "Our priority is to identify individuals who share our vision and are well-suited to join us in pioneering and contributing to the industry. This ethos embodies our corporate culture." In recent years, the company's talent acquisition efforts have been highly successful. For instance, key positions such as the financial director, board secretary, and general managers of subsidiaries, among other senior executives, have all been successfully recruited.

In terms of retaining talent, in addition to conventional equity incentives and salary packages, the company will also introduce some supporting policies in the future. For example, the company will provide a housing subsidy policy for senior talents, and the company will provide a down payment and amortize it over 5 years. In addition, the company actively seeks preferential policies from the government for the education of managers' children, talent settlement, medical care, etc.

"If you want people to identify with your ideas, you have to take action, explain things to them with reason, and appeal to their emotions," said Tang Kaijian.

"Management is an essential element for the development of an enterprise and is also a part of new quality productivity. The management of an enterprise must start with the management level." Tang Kaijian said that the company has maintained a very fine tradition to this day, arranging management level to be on duty in the workshop from Monday to Friday, including the founder.

In terms of technology improvement, the company mainly cooperates with universities and research institutes to tackle key problems. In recent years, the company has cooperated with Central South University many times, not only providing an internship platform for universities, but also retaining some undergraduates and postgraduates to enter the company. It is worth mentioning that the company and Central South University recently cooperated to establish an alloy material research institute. This is the first time that Central South University and an enterprise have established a research institute in the county.

Li Feiqing, the company's technical research and development director, feels the same way. "With the support of Hefei University of Technology, we have successfully developed a high-strength and high-toughness rail transit core product by continuously adjusting the production process and mold design parameters. Currently, this product has accounted for more than 70% of the domestic market."

According to Tang Kaijian, the cost has been reduced by 15% by improving the new material of photovoltaic aluminum frame. The new technology is undergoing intellectual property protection and has passed small batch production tests and relevant department inspections. It is expected to be put into mass production in June this year. "As the company's main industry, once it is promoted, it is equivalent to the company's entire generation of products, which will bring considerable profits to the company." Li Feiqing said excitedly.

With a talented team, it is easy to implement the strategy. Xinbo has made a lot of arrangements in advance and achieved precise transformation and upgrading time and time again. Tang Kaijian said that looking back now, this is the embodiment of new quality productivity in practice. Technological innovation, cost reduction, improved production efficiency, and the use of products will empower the enterprise The cumulative impact of these efforts ultimately defines the competitive advantage of our product costs.

"Unlike other companies, we assess the growth of per capita wages every year, which is also a very important indicator for evaluating general managers." Tang Kaijian said firmly, "We want employees to contribute to the company, while also doing our best to protect their income and welfare benefits."

"Science and technology are the primary productive forces, and talent is the primary resource," Tang Kaijian emphasized. "Xinbo has embraced both principles, leading to the successful realization of four industrial deep transformations and upgrades. This infusion of high technology, high efficiency, and high quality has revitalized seemingly 'old' traditional industries."

【Dialogue with Chairman】

Tang Kaijian of Xinbo : Transformation and upgrading must keep up with national strategic needs

"As times evolve and industries undergo change, it's imperative for every sector to stay abreast of current trends and innovate accordingly," emphasized Tang Kaijian, Chairman of Xinbo. "Our industrial upgrading and transformation initiatives are a testament to our commitment to keeping pace with the times. In our pursuit of cultivating and developing new quality productivity, we welcome the recent visit and interview from a reporter of Shanghai Securities News."

Shanghai Securities News: The company has seized the trend of the times every time, it transforms and upgrades. Do you have any secret to success?

Tang Kaijian: Since its establishment, the company has undergone four transformations and upgrades. The products are basically transformed and upgraded every three to five years, and the technical reserves are upgraded accordingly. I think that if an enterprise wants to develop well, it must follow the national strategic guidelines and serve the country's strategic emerging industries.

Each time we transform, we do not transform when the industry is at its lowest point, but we start to prepare technology and plan new businesses in advance when the industry is at its highest point. For example, in 2013, we planned to switch from building profiles to industrial profiles.

Shanghai Securities News: Can you analyze the application areas and future development trends of the aluminum industry?

Tang Kaijian: In the past 10 years, the aluminum-based materials industry has maintained an annual growth rate of 8% to 10%, which is rare in most industries.

Because aluminum has a high recycling rate of over 95%, is easy to process, has strong plasticity and good stability, aluminum products are widely used in construction, electronics, high-speed rail, photovoltaics, new energy vehicles and other application scenarios. I believe that there is definitely room for improvement in the performance of aluminum, which also means that there will be more and more application scenarios and volumes in the future.

Shanghai Securities News: Why did the company dare to invest huge sums of money to build a recycled aluminum project with an annual output of 600,000 tons?

Tang Kaijian: The project relies on two aspects: First, the project is in line with the national strategic policy. Compared with electrolytic aluminum, recycled aluminum consumes only 5% of its energy, and the energy consumption gap is very large. Therefore, through the recycled aluminum project, we can contribute to the "double carbon". Second, it can promote the company's cost reduction and efficiency improvement. The company's industrial chain is constantly integrating and upgrading, and the quality requirements for raw materials are very high. Recycled aluminum can provide the company with better raw materials and achieve cost reduction at the same time.

Shanghai Securities News: How do you understand new quality productivity?

Tang Kaijian: Based on practice, I think there are three main aspects: first, technological innovation, the company relies on technology to lead the development of the industry; second, internal management upgrades, combined with digital and information transformation and upgrading, to empower the company; third, products must comply with national strategic guidelines and serve the country's strategic emerging industries. It is precisely because of these guarantees that Xinbo has become a leader in the subdivided industry in a short period of time.

Shanghai Securities News: How will companies cultivate and develop new quality productivity in the future?

Tang Kaijian: As a leading enterprise in the industry, it's our responsibility to drive the development of the entire aluminum-based industry," asserted Tang Kaijian. "To this end, we will ramp up investments, prioritizing the long-term advancement of aluminum-based technologies. Through a combination of in-house research and collaboration with academic institutions, we aim to tackle critical technical challenges and facilitate the transition to advanced technology solutions. Simultaneously, in our enterprise management practices, we will accelerate the transition to digitalization and informatization. By doing so, we'll aid enterprises in enhancing their quality, efficiency, and cost-effectiveness, thereby endowing our products with a distinct competitive edge.

Shanghai Securities News: The country is promoting entrepreneurial spirit. What is your idea of entrepreneurial spirit?

Tang Kaijian: First and foremost, it's essential to give back to society. In my view, resources are the property of society as a whole, rather than belonging exclusively to any individual or company. Secondly, we have a responsibility to our employees, ensuring their income is secure and continually striving to enhance their quality of life. As entrepreneurs, it's crucial to maintain a realistic and pragmatic approach, actively contributing to the advancement of the industry.

[Reporter's Notes]

Good management can improve productivity

In Tang Kaijian's office, the presence of a towering bullet shell, standing over a meter high by the window, catches the sunlight, gleaming brightly. Against the wall, two large whiteboards display detailed work plans and execution status, resembling a "combat command center." Being in this space evokes a sense of strategic focus and operational intensity, reflecting Tang Kaijian's dynamic leadership style.

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Having served as a soldier, Tang Kaijian brought with him many beneficial practices from the military to his company. These innovative management methods have proven highly effective in fostering innovation and facilitating market expansion. Tang Kaijian's management style can generally be characterized by two key aspects: strict self-discipline and hands-on management of the team.

More than a decade since founding the company, Tang Kaijian, despite achieving significant success, maintains a rigorous work ethic. Regarded by some employees as a workaholic, Tang Kaijian leads a disciplined lifestyle, often described as ascetic. He typically works from 7 a.m. to 11 or 12 p.m. daily, and even dedicates time to the company on occasions like New Year's Eve. Reflecting on his journey, Tang Kaijian shared, "After leaving the army in 2003, I entered the aluminum product sales industry. It was then that I realized I would devote my career to this field. With that realization, I resolved to give it my all.”

Tang Kaijian is not only strict with himself, but also has strict discipline requirements for his management team.

Tang Kaijian emphasizes that once the company's development strategy is established, effective management becomes the determining factor. He regards management as a critical minority group within the organization, and believes that managing the management team is paramount to the company's success. As an example, he mandates that executives rotate to work in the factory workshop on a weekly basis to gain firsthand insight into frontline operations. This practice underscores his commitment to ensuring that leadership remains connected to the realities of daily operations.

" Mr. Tang is in his 70s, yet he possesses the physical fitness of someone in their 90s, and his mindset remains aligned with that of someone from the 2000s." Zhang Haitao, secretary to the board of directors of Xinbo, shared his feelings about his recent inspection trip to Malaysia. " During a two-day, three-night business trip to Malaysia with Mr. Tang, we opted for night flights for both departure and return. This arrangement allowed Mr. Tang to attend to company affairs during the day while utilizing the flight time for rest and relaxation."

When it comes to his employees, Tang Kaijian practices the principle of "strict management and lenient love".

The company's academician workstation has more than 20 people, mostly young people, and the satisfaction of sense of value is equally important. "We are encouraged to do something new every year, and we have a lot of research and development results." A research and development staff of the company said to reporters while holding a newly developed high-strength and radiation-resistant alloy photovoltaic frame.

Based on his actions and words, Tang Kaijian appears to be meticulous and exhibits a disciplined, military-like temperament. During the interview, he took the initiative to pour tea for the reporters several times and ensured the cleanliness of the table by wiping away any water drops. This attention to detail is also evident at Xinbo, where everything is kept spotless and items are meticulously arranged.

According to company executives, this regularity is not only reflected in Tang Kaijian's daily life, but also in the company's governance. From the formulation of the company's annual plan to the seriousness of every collective activity, Tang Kaijian requires things to be done in a practical manner.

Ji Haijun, director of the photovoltaic aluminum workshop, said: "The chairman wrote the planning blueprint on the whiteboard, and also wrote down the things to be done every day. Under such leadership, the company's achievements today are inevitable, and I believe it will be even better in the future."

As the big red characters "Leading the Aluminum Industry, Creating a National Brand" faded into the rearview mirror, the vision of a listed company committed to green development became increasingly vivid. Xinbo's journey from a small workshop to a publicly traded entity is a testament to both the opportunities of the times and the entrepreneurial spirit of its leaders, who prioritize innovation and entrepreneurship. In a private enterprise, the determination and actions of its leadership play a pivotal role. After all, excellent management can prompt productivity development forward! 

  Reporter Gao Zhigang