Deep cultivation and perseverance: Hong Kong-funded enterprises take root and transform in the Pearl River Delta
Xinhua News Agency, Guangzhou, June 14, Title: Deep cultivation and perseverance: Hong Kong-funded enterprises take root and transform in the Pearl River Delta
Xinhua News Agency reporter Wang Panye Qian Zhanyan
As one of China's well-known mobile phone manufacturers, Hong Kong-funded Huizhou Guanghong Technology Co., Ltd. completed the first phase of the second phase expansion project at the end of 2016. At present, Tang Jianxing, chairman of Guanghong Technology, is busy preparing for the second phase of the project. It is expected that after it goes into production in 2018, the annual production capacity of this company will reach 65 million units, and it will be among the "first echelon" of Chinese mobile phone manufacturers.
"The closure, suspension and transfer of a few companies does not mean the decline of Hong Kong's manufacturing industry. There are still many manufacturing companies in Hong Kong that have taken root and developed in the Pearl River Delta and occupy an important position in the global market." He said.
In 1998, the second year of Hong Kong's return to the motherland, Tang Jianxing rushed from Hong Kong to Huizhou Daya Bay and began a new job experience. In just 20 years, he not only witnessed the transformation of many industrial parks in Daya Bay from wasteland to prosperous towns, but also witnessed two earth-shaking changes in the company's product line.
"In 2002, we transformed for the first time, from audio and DVD accessories to digital cameras and printers. In 2007, we once again switched to the production of mobile phones. The manufacturing industry is ever-changing, but the key is to master the core technology." He said.
Not far from Guanghong Technology is Bern Optics (Huizhou) Co., Ltd., which is also rooted in the smartphone industry chain. In the past year, the company's two new production bases with a total investment of more than HK$5 billion have been put into production, and the annual added output value is expected to reach HK$5 billion this year.
"With the expansion of production capacity, our employment will also increase from the current 90,000 to 110,000 by the end of the year. We expect to achieve annual sales of more than HK$60 billion by 2019," said Yang Jianwen, president of Bern Optics (Huizhou) Co., Ltd.
Similar to Guanghong Technology, Bern Optics has also experienced a complex transformation process. When it started in Xiasha, Shenzhen in 1986, Bern Optics was still a small factory with only more than 100 people, and its main business was watch glass. From 2006 to 2008, Bern Optics took mobile phone accessories as its main development direction and invested in technology research and development.
To date, Bern Optics has developed more than 70 patents including optical glass, sapphire glass, touch screen, fingerprint module assembly, etc., and has become one of the most important mobile phone glass accessories suppliers in the world. Apple, Samsung, Huawei, Xiaomi and other well-known companies at home and abroad are on its customer list.
"Because we have laser 3D processing technology, we have undertaken the task of supplying all glass accessories for Apple smart watches. Normally, Apple will choose at least two suppliers worldwide, but in the field of watch glass, we are the exclusive supplier." Yang Jianwen said.
In the eyes of the two "heads" of Hong Kong companies, every transformation is in line with the changes in the development of the mainland economy. Tang Jianxing said that the development of Guanghong Technology is inseparable from the rise of domestic mobile phone brands such as Huawei, Xiaomi, OPPO, and Vivo in the global market. It is precisely because of seizing this wave of opportunities that the company has been able to develop rapidly.
"Only in the mainland can we have a complete industrial chain and a complete technical team from mobile phone research and development to production and sales. Whether it is modules, glass, back covers, structural parts, injection molding, or cameras, there are high-quality suppliers and logistics systems. If Hong Kong's manufacturing industry wants to continue to move forward, it must be based in the mainland. This is my personal experience." Tang Jianxing said.
Yang Jianwen also believes that the vast demand in the mainland is a solid market foundation for Bern Optical to continue to expand. With the continuous deepening of the digital economy and mobile economic model, from mobile phones to air conditioners, refrigerators, and then to cars, glass screens are becoming the "standard configuration" of daily consumer products, "driving us to increase investment and expand production 28 times in a row since 2010, with a total investment of more than 30 billion Hong Kong dollars."
While taking root in the Pearl River Delta, Hong Kong still plays an important role in the development of Hong Kong-funded manufacturing companies. At present, Bern Optics is preparing to be listed on the Hong Kong Stock Exchange before the end of the year. In addition, in the global market sales of hundreds of billions of RMB, Hong Kong is also the procurement and order center of Bern Optics, while the mainland is the production and R&D center.
"Financing, logistics, accounting and business negotiations all need to rely on Hong Kong, and we are also considering deploying certain R&D capabilities in Hong Kong." Yang Jianwen said.
In fact, Bern Optics and Guanghong Technology are just a microcosm of many Hong Kong-funded enterprises taking root and transforming in the Pearl River Delta. Xie Yuguo, deputy director of the Huizhou Municipal Bureau of Commerce, said that among the major projects in Huizhou with a total investment of more than 10 million US dollars last year, Hong Kong-funded enterprises accounted for nearly two-thirds. In the first two months of this year, 12 projects with an investment of more than 10 million US dollars accounted for 10 of them. Hong Kong-funded enterprises are still the most important and valuable investment attraction targets in the Pearl River Delta. At present, there are 2,603 Hong Kong-funded enterprises operating normally in Huizhou, accounting for 77% of the total number of foreign-funded enterprises in the city.
"From capital to talent, from technology to internationalization, Hong Kong-funded enterprises are indispensable to Huizhou, the Pearl River Delta, and Guangdong. Local business departments have also spared no effort in promoting the transformation and upgrading of Hong Kong-funded enterprises." Xie Yuguo said.
Today, more than 100 Hong Kong employees are active in Bern Optics' Pearl River Delta factory. They are mainly responsible for engineering technology research and development tasks, covering a number of fields from production automation to vacuum coating. Yang Jianwen said that the mainland's continuously developing high-end manufacturing industry is a new space suitable for the employment of young engineering talents in Hong Kong.
"On the 20th anniversary of the return, we must see that Hong Kong-funded enterprises in the Pearl River Delta are becoming more and more localized, and we must also see that Hong Kong's role as a window for our companies has not changed. We especially hope that more young people in Hong Kong will choose to develop in Hong Kong-funded manufacturing enterprises in the mainland, and embrace the Guangdong-Hong Kong-Macao Greater Bay Area and the motherland with a broader vision." Tang Jianxing said.