Since 2020, a sudden outbreak of COVID-19 has brought a huge impact and profound impact on China's economic and social development. Many industries and enterprises are mired in the quagmire and are struggling to find a breakthrough. In this economic exam, KAN Group rose against the trend and delivered impressive results. In 2020, KAN Group achieved a revenue of 1.55 billion yuan, a year-on-year increase of 34.53%, and a net profit of 168 million yuan, a year-on-year increase of 144.51%. Among them, electrical and industrial supporting materials achieved a revenue of 603 million yuan, a year-on-year increase of 3.68%, a gross profit margin of 36.37%, and a year-on-year increase of 5.36 percentage points. The sales of leading products such as electrolytic capacitor paper and tea filter paper have reached a historic high! What is the struggle story behind performance growth, and what are the winning strategies? With these questions in mind, the author interviewed Hua Yiming, Deputy General Manager of KAN Corporation and General Manager of KAN Paper Industry, and listened to him decipher each one for us.
Take the initiative to expand territory and continuously expand territory
Faced with the uncertainty brought about by the epidemic, the sales team of electrical and industrial supporting materials did not passively wait, but with greater momentum, worked hard to explore, and went all out to compete for the market. The sales department closely cooperated with the production department to adjust the product structure more flexibly, provide faster market feedback, and increase service efforts. Efforts were made to expand market share, achieving significant results. The total sales of products for the year increased by 3.08% year-on-year. Among them, the company's leading products, electrolytic capacitor paper and tea filter paper, achieved historic highs in sales, which is commendable.
Fine management, deep exploration of potential, and dual improvement of quality and efficiency
The company firmly grasps the main contradiction of insufficient supply of its core product, electrolytic paper. On the one hand, through measures such as technological transformation, it improves the speed and yield of paper machines, reduces equipment downtime, and effectively increases the production of electrolytic paper; On the other hand, careful production scheduling, deep tapping into potential, timely adjusting the product structure of each machine, expanding the potential of each model, and further improving the production of medium and high voltage electrolytic paper.
After multiple efforts, the company's electrolytic paper production increased by 8.78% year-on-year in 2020, reaching a new historical high and effectively alleviating the tight supply and demand situation of electrolytic paper. In 2020, the operating rate of all machines in the company exceeded 90%, achieving full load production. The production of tea filter paper, paper and other products has also significantly increased, laying the foundation for the company's sales growth.
While increasing production capacity, the company also pays attention to the dual improvement of quality and efficiency. In 2020, the company launched a 100 day challenge for quality and efficiency improvement around the business theme of "dual improvement of quality and efficiency, creating a competitive working atmosphere among various machine teams through labor competition. The team ranked first in quality and efficiency indicators can receive the company's incentive bonus for all members. The implementation of the activity effectively promoted various machines to focus on improving quality and efficiency, and various product quality indicators have significantly improved. The working hours and consumption per ton of paper for each machine have decreased to varying degrees. Significant results have been achieved.
Scientific analysis and rational arrangement of bulk material reserves
The company's leading product is electrolytic paper, which is a high-end paper product with high-tech content. The main raw material is imported wood pulp. Faced with the ever-changing international market, the company assesses the situation, makes scientific judgments, and decisively purchases reserves during low raw material prices, ensuring production needs while reasonably controlling product costs.
Increase investment in technology and enhance core competitiveness
For many years, the company has maintained a high investment in scientific research and development, valued independent intellectual property rights, strengthened its core competitiveness, and continuously stabilized its leading position in the industry.
In 2020, the company strengthened technological research and accelerated the development and entry of new products into the market, achieving significant results. Several products such as supercapacitor paper achieved breakthrough progress and formed small batch sales.
In 2020, KAN Corporation won numerous honors and awards: Top 100 Enterprises in China's Electronic Components Industry, Provincial Champion Cultivation Enterprise, and Zhejiang Province Green Factory. Led the completion of two national standard approval drafts, two Zhejiang manufacturing standards were certified, and three invention patents were authorized. In 2020, the company also passed the integration of industrialization and industrialization and the 16949 system certification.
The company has also introduced high-end scientific research talents and established a postdoctoral workstation, which has built a new platform for the company's scientific research and development, the cultivation of scientific and technological talents, and external scientific and technological exchange and cooperation, helping the enterprise to reach new heights in scientific and technological innovation.
When it comes to new developments this year, Mr. Hua is full of confidence. He said that the company's annual production of 4000 tons of electronic fiber technology renovation project has been completed and is about to start production. The company's development trend is promising. Against the backdrop of a significant increase in employee income last year, the company will continue to strengthen its salary system construction, open up channels for talent promotion, and stimulate talent vitality. KAN has gone through 80 years of ups and downs, and is confidently walking on the glorious path of creating a century old enterprise. With time and vitality, it remains fresh!
