Weihai Jinhong Group Co., Ltd. stands as a leader in China's new materials sector, with many of its products already commanding significant market share. However, against the backdrop of intensifying competition within the chemical industry, the question remains: how can the company sustain its trajectory of high-level growth? Currently, the enterprise is channeling its full efforts into three key strategic fronts—product R&D, automation upgrades, and market expansion—thereby injecting fresh growth momentum to help achieve its new corporate objectives.
Recently, Jinhong Group’s newly developed plastic processing aid, MBS, secured an initial order for 1,000 tons almost immediately upon entering its trial production phase.
As a critical additive for mitigating the issue of low-temperature brittleness in plastics, MBS has long been a product for which China's high-end domestic market relied heavily on imports. To bridge this gap, Jinhong Group assembled a dedicated team five years ago to tackle this technical challenge with full commitment.
Yang Bai, Manager of the Technical Department at Weihai Jinhong Group, stated that their R&D team—comprising 15 members—conducted approximately 300 rounds of testing throughout the development process. He noted that the product's fundamental performance metrics are now on par with international standards; moreover, they have successfully reduced its odor levels, and the product is priced approximately 15% lower than imported alternatives.
The mass production of new products serves as Jinhong Group’s strategic "opening move" in its bid to achieve new corporate milestones this year, with the trial production of MBS representing the pivotal piece in this strategy. Currently, this product has entered the "fast lane" toward full-scale industrialization. Once the production lines reach full capacity, the facility is projected to yield an annual output of 30,000 tons of MBS, generating an estimated 800 million RMB in additional annual sales revenue.
These new products promise to deliver not only higher profit margins but also expanded avenues for growth for Jinhong Group. To maximize the impact of this advantage, the Group has—since its inception—invested substantial resources into establishing high-standard innovation platforms, thereby continuously accelerating the pace of its new product R&D.
Cong Xiaori, Project Department Manager at Weihai Jinhong Group Co., Ltd., stated that the Group currently possesses two national-level platforms—a National Enterprise Technology Center and a Postdoctoral Research Workstation—along with ten provincial-level platforms. Each year, the company recruits approximately five postdoctoral researchers to engage in collaborative R&D, resulting in the development of over 20 new products annually.
To solidify its position at the high end of the industrial chain, Jinhong is not only increasing its investment in R&D but also actively establishing a "smart factory." The company has invested over 30 million yuan to construct a new intelligent management platform—effectively the "brain" of the entire facility. This platform integrates five major functional modules—including the DCS central control system, SIS safety instrumentation system, and GDS gas alarm system—to enable real-time monitoring and intelligent regulation of the entire production process. Today, this transformation in production methodology is yielding tangible benefits for the enterprise.
Cong Xiaori stated that overall labor costs can be reduced by 30%, and total costs by 10% to 15%; furthermore, feedback regarding anomalies is received more promptly, resulting in higher yield rates and making the products more competitive in the market.
While enhanced efficiency boosts product competitiveness, market expansion broadens the scope of the company's annual objectives. This year, while consolidating its position in the domestic market, Jinhong Group is making an all-out effort to overcome international barriers and establish a market framework characterized by "coordinated interplay between domestic and international operations."
Song Jiwei, General Manager of a business division at Weihai Jinhong Group Co., Ltd., stated that the company maintains an International Trade Department and operates its own independent manufacturing facility in Singapore. They are currently engaging with partners in Europe and the United States to conduct product trials; once these tests are successfully completed, they are projected to generate nearly 300 million RMB in additional sales revenue for the Jinhong Group.
From tackling technical challenges in the laboratory to implementing intelligent upgrades on production lines, and extending to the strategic expansion of their global market presence, the Jinhong Group has consistently focused on cultivating its core competencies. This dedication has enabled the company to firmly establish itself amidst fierce industry competition. Last year, the Group’s sales revenue reached 720 million RMB; building on this momentum, they are now making steady progress toward their ambitious target of 1 billion RMB this year.
