Message from the Chairman
20th Anniversary of Newearth
I still clearly remember at the inaugural ceremony of Newearth Environmental 20 years ago I said ‘Today is September 9th, 1999 an unique day, which means the company will last long and thrive forever. It's been twenty years since then. During this period, the most words that everyone spoke repeatedly was ‘How could this year pass so fast? It is already in the end of the year. Looking back on the past, I have many feelings.’
1. The most memorable two or three things in early days
In China we always say ‘three years will foresee one’s mature age, and five years will foresee one’s old age’, the company's early experience has a profound impact on the subsequent development.
At that time, thanks to the spirit of Communist Party of China’s Fourth Plenum of the 15th Central, after five or six years of early exploration, Guangzhou Xinzhidi Environmental Protection Industry Co., Ltd. establishing was approved by Guangdong Petrochemical Design Institute, and allowing employees to become shareholders. The design institute was only a relatively large shareholder, which was still new at that time.
Inspired by Secretary Peng Xiusuo and Deputy Chief Engineer Zhou Wenhan, the leaders of the design institute took the lead to participate. Some people participated because they were familiar with their business, and some participated in the event because they were bold enough to try. Finally, there were 31 design institutes and employees shareholder. Originally planned to raise 1.2 million shares, the actual capital raised was 1.06 million. As a professional counterpart, the staff of the fourth design office did not participate much. It can also be seen from the side that this matter is full of uncertainty.
Although the company has just been established, its work is still running, and the core of the company is Marketing. In early years, I was focusing on research and development of environmental protection equipment rather than marketing. Till 1997, I was finally awakened by reality, I took my first door to door sale. I signed contracts with a total value 500k at that year and 1 million the year after. In 1999, with the expectations of the new shareholders, we fought our way to reach 2 million sale contracts, even though the plan is 10 million. The township enterprises in Yixing, Jiangsu are much larger than ours in sales, so the team Just generally doubt whether our approach is correct. After many times of analysis and discussion, we finally unified our understanding: the company must do valuable things. At the beginning of the establishment of the company, it did a lot of effective exploring in marketing, and at the same time experienced confusions and chaos when facing difficulties. These lessons were the foundations of transformation in the following six to seven years and are also very meaningful. .
2. First experiencing the ten years of rapid development
After 1998, China increased the investment on the construction of wastewater treatment plants. The number of wastewater treatment plants increased rapidly from less than 200 to more than 4,000. Thanks to grasping this small opportunity, the company's business has been rapidly expanding from 1999 to 2008. In 2009, the sales exceeded 100 million. The central drive single-pipe suction dredge sales have achieved the first place in China with a market share of 50%, which allows us to understand what is value-driven.
During this period, except products and marketing, the company paid close attention to management. In the process of business expanding, the team has been cultivated and the corporate philosophy has gradually formed. A good corporate philosophy will help company go through a difficult transition period in the future.
3. Must go through the difficult transition period
Since 2012, the construction of wastewater treatment plants has slowed down, and the sales of original products have decreased rapidly. Even if new products has filled the gap, the business scale has fluctuated in six to seven years, basically staying in the same place.
Meanwhile, the company spent a lot of manpower on new business (reforming company), and Newearth Environmental has gradually become a platform for young teams to cultivate.
The stagnant business and long payment period led to a shortage of cash flow. This kind of situation brought confusions, which leading to employees’ resignation. How to adjust company and where is the direction to go forward? All the common chaotic characteristics of the transition period are all presented one by one, and the team members have suffered.
Fortunately, our main direction is clear. Firstly, we always believe in that China's environmental protection industry will enter a new era, and the pursuit of environmental benefits will ensure good companies to finally enter a better development period. Secondly, the development of the environmental protection industry after 20 to 30 years will inevitably move towards concentration. This requires a comprehensive upgrade of the team’s operation to management. For this reason, the team has been learning to improve and change the way of thinking since 2012. The operating must be customer-oriented and the management must serve company operating.
The corporate philosophy formed before and the confidence and hope built by study ensure us to finally pass the extremely difficult transition period and prepare for the future development.
4. Set off again and face new challenges
Driven by environmental storms in recent years, the environmental protection industry has ushered in new development opportunities. At the same time, the industry is moving towards concentration. This means a large number of companies will withdraw from the competition and the remaining ones will have more market share. A group of young people has moved to company’s core positions in 2018. After the entire years’ practice of the new company philosophy formed past years, the young managing team grew rapidly with adapting and adjusting. With the series of adjustments have been made in 2019. The senior management team has assigned to different core positions, deepening performance assessment, cutting off unnecessary positions, enhancing process management, and implementing the corporate philosophy of customer-oriented management for business services in actual work. In 2019, the joint efforts of young managing team’s performance have achieved good results. Compared with the transition period, the sales have doubled and exceeded 200 million for the first time and opening a new growing time.
5. Enterprises development is like cultivating a young tree to grow up
In the bumped way of company’s developing, the young team has been cultivated and experienced a lot. Several huge opportunities have brought us profound changes. Firstly, since 1997, the emphasis on marketing has shifted company’s core philosophy from technical thinking to business thinking. Meanwhile, after a thorough summarizing, the corporate culture was determined to be based on self-questioning. Secondly, in 2012, we had the opportunity to closely observe and understand the development of Lenovo Group. At the same time, combined with our learnings from Huawei, our team's business philosophy occurred a profound change, and we recognize that customer thinking is the core. The third was starting in 2018, emphasizing the openness of the team in order to absorb the wisdom of the outside world to deal with the uncertainty of operation. Personally, after 20 years, I have continued to explore with the spirit of never admitting defeat. And I have fully realized the sense of accomplishment and fun that exploration brings. One of my mantras at work is "excitement". The other thing is when facing endless problems and challenges the thought that often comes up is: I do not believe there is any difficulties I cannot overcome. These gave me an enrichment experience.
6. The road ahead is long but cannot make me stop seeking truth
The company has entered a new period of development. Having a core team that has worked for company more than ten year or even twenty years is a solid foundation of developing.
Along the way, the company has received strong support and help from the government, shareholders, peers, experts, and business partners from community. We are very fortunate to have caught up with the good times and met many supporters. We are gratitude.
In each period, the company employees are working hard to learn and adjust when facing different problems. Some of them have already left the company. We are appreciated all employees who have sweated and contributed to the development of ‘Newearth’.
We believe that there is still a long way to go for ‘Newearth’, and our team will continue to move forward firmly and enjoy the exploration together.