Mr. Zhibiao Ye: Three major industries of Ruihe have made miracles

Introduction: Instead of following the traditional way of focusing solely on the traditional decoration industry, Ruihe specializes in three major industries – public workplace decoration and customized decoration as its basis industry, photovoltaic power generation as its pillar industry, and construction and installation for photovoltaic building as its supporting industry – and all three industries develop synchronously as an aircraft carrier, which is the miracle Ruihe Shares creates.

When Mr. Zhibiao Ye, the General Manager of Ruihe Shares travelled to Shanwei from Shenzhen on April 20th, he was surprised to be informed that the guests he was to receive at the Ruihe Construction & Decoration Materials Industrial Park were Mr. Chunhua Hu (Secretary of the Guangdong Provincial Committee of the CPC) and Mr. Xingrui Ma (Secretary of Shenzhen Municipal Committee of the CPC).

As a listed company, the construction & decoration business of Ruihe is closely linked with the trend of social development. Meanwhile, "as a Shanwei posterity, who makes his fortune in Shenzhen, is now giving back to Shanwei", is the portrayal of the spirit of Jieping Li, who is known to be kind, keeping his homeland at heart and willing to give back to his hometown.

Ruihe Construction & Decoration Materials Industrial Park is located in the Shenzhen-Shantou Special Cooperation Area in Shanwei City, and it contains supporting plants for the decorative materials, expert building, R&D center and other parts. When the project is put into operation, it can effectively improve the industrial chain of Ruihe Shares, and plays an important role in improving the service level of the decoration industry, and boosting the local socio-economic development.

Stick to public workplace decoration and customized decoration as its basis industry

As a professional manager, Zhibiao Ye admired Chairman Jieping Li, and so after decades of hard work in construction & decoration industry in Shenzhen, he decided to wholeheartedly follow Jieping Li. During the interview, Zhibiao Ye warmly invited the reporters to visit the building of the company headquarters. He said: This building is the masterpiece of transition from "extensive labor-intensive enterprises" to "technology-intensive enterprises" by Chairman Jieping Li.

Indeed, on Shennan Road, the street known as the "Shenzhen Chang'an Street", the headquarters of Ruihe Construction & Decoration Co., Ltd. resembles a sparkling diamond, shining brilliantly. When night falls, the dazzling LED floodlights clearly outline the charming structure of the building, casting lights against the indoor lights, looking very personalized and magical, which is regarded as another landmark view in Shenzhen.

General Manager Zhibiao Ye commented that, the building had a triple meaning. Firstly, the design and construction of the whole building, fully reflects the high-tech strength of Ruihe Shares, and has become a model of green, energy-saving, environment-friendly, low-carbon, intelligent technology. Secondly, as a successful example of the transformation of old buildings, the project represents a new direction of Ruihe’s major business. Thirdly, which is more important, the whole building is introduced with photovoltaic power generation, which shows the bright future of Ruihe’s new business.

Meanwhile, the building has also demonstrated the long-term outcome of the scientific management of Ruihe. Under the guidance of Chairman Jieping Li, Ruihe has introduced the Enterprise Resource Planning (ERP) Management and Control System, using the Internet, optimizing the supply chains, tracking the implementation of transportation, trenching, construction, inspection and so on, as a result to reduce losses, eliminate waste, and put an end to the possibility of corruption.

And the more important initiative is the separation of the decision-making sector and management sector of the company. Headquarters provide management and services, including recruitment and training, integration of resources, supervision of the implementation of management, supply chain integration and implementation, negotiations, etc..  The company applies group-company management and control model, and implements organizational management of the multi-branch system. Through effective incentive mechanism, all business managers have entrepreneurship. Thus, they are all like tigers, being very energetic. Under the background of the general declining profit of peer companies, the achievement of Ruihe Shares shows explosive growth.

General Manager Zhibiao Ye stated that, Ruihe Shares had established a centralized procurement platform on the basis of their own original scale-procurement of materials, to lower raw material costs as well as to implement the "green decoration" concept. It would establish the standard system of internal green decoration, and detect and monitor the decoration materials through the whole process, to ensure that the usage of raw materials in a project has been in a timely manner, and met the environmental standards and quality standards.

With scientific management and brave innovation, Ruihe has fully embodied the affectionate perseverance towards basic industries of construction and decoration. Therefore, the company has been ranked for 13 years consecutively as Top 10 among the Top 100 Companies in National Construction & Decoration Industry, and Chairman Jieping Li has been awarded the title of "People of 30 years of Meritorious Service in China Construction & Decoration Industry", and the project of Shenzhen Stock Exchange the company undertook has been awarded the honorary title of "Classic Project in 30 years in China Construction & Decoration Industry".

High-tech reflects the strength of Ruihe

General Manager Zhibiao Ye said, many skyscrapers built in Shenzhen at the beginning of reform and opening up had become worn-out, but the main structure was fine. It would be a waste to demolish them for redevelopment, therefore, Chairman Jieping Li predicted that the climax of transforming old buildings would come and that would be the new growth point in construction and decoration industry.

In fact, when the Ruihe headquarters completed, this magazine published a report - "An odd building rises in Shenzhen". Today, nearly a year later, this odd building has become the golden brand of Ruihe, and attracted many orders of transforming old buildings for Ruihe. Many developers signed the contracts right on scene when they laid eyes on Ruihe headquarters.

General Manager Zhibiao Ye admitted that he admired Chairman Jieping Li because of his calm wisdom, which was incomparable. Faced with the popular concept of so-called "capital operation", Chairman Jieping Li insisted that the sole purpose of business was profit, not making up themes, telling stories, marketing concepts, and then collecting money in the stock market. Thus, it might appear that Ruihe’s expansion with the transformation of old buildings did not seem fast enough, but the outlook was actually very promising because its “hematopoietic function” was strong enough to ensure sustained and healthy development.

What Ruihe does is transforming “old” buildings, but the company applies the “latest” technology of Building Information Modeling (BIM), fully realizing data sharing and management integration. To put it simply, the original architectural design is a lot of drawing, which outsiders do not understand. Now with the introduction of BIM technology, what the project would look like when it is completed can be demonstrated directly in a cartoon form on a computer. As a result, when joining any bid, Ruihe does not need to take a lot of files like its peers, but it just demonstrates the design pictures directly on the big screen, which is intuitive and precise, and naturally improving its successful rate of bidding.

More importantly, with the application of BIM technology, after one inputs the construction area and the materials used, the computer will automatically calculate the cost, without any omissions nor wasted, fully realizing the actuarial management and saving a great deal of manpower and resources.

In Shanghai where BIM was promoted earlier, it has been specified that from 2016, any project of more than 20,000 square meters, BIM technology should be enforced. Ruihe has foresighted this and taken an early step, and has implemented BIM for the management of whole objective. Therefore, General Manager Zhibiao Ye has proudly said: Do not forget, our company is a national-level high-tech enterprise!

As one of the few national-level high-tech enterprises in the industries, Ruihe has received numerous honors, among them are 10 Luban Prizes, 57 awards of China Construction & Decoration Award, more than 400 provincial and municipal awards of quality projects, and more than 110 various patents altogether.

The new pillar industry enables Ruihe to fly with wings

General Manager Zhibiao Ye said that, when Chairman Jieping Li expressed his great foresight about Ruihe should make photovoltaic power generation a pillar industry, most people inside and outside the industry were puzzled.

Why would Ruihe set foot in the photovoltaic field? To explain it, it is necessary to mention that as the competition in architectural decoration industry gets more and more competitive, companies often fight for orders with low-cost. Thus it has become the consensus from the top to bottom of Ruihe that opening new pillar industry has become necessary.

The industry of construction values hundred-year basis, and the highest aim of companies is to become century-old enterprise. How to become a century- old company? Chairman Jieping Li always insists on being innovative, staying ahead of the times, but he is against following suit, or being blindly obedient. When architectural peers test the water in home decoration, Ruihe unexpectedly enters into the photovoltaic industry, and that is the refined implementation of this principle.

Thanks to the favorable policy environment and market outlook of building PV power plant, Ruihe has valued photovoltaic power generation industry as a new pillar business, and established a long-term comprehensive strategic cooperative partnership with Xinyi Solar (Hong Kong) Co., Ltd. to make use of complementary advantages and achieve common development. Currently, the 100MWp PV power plant in Jinzhai Anhui Province that has been jointly invested has started to work. Meanwhile, the PV power plant in Xinfeng Town Jiangxi Province undertaken by Ruihe has been constructed in full swing.

General Manager Zhibiao Ye explained that those who did not understand the investment of photovoltaic power plant may misunderstand that Ruihe would become a company of heavy assets, but in fact PV power plant has become products both investment trusts and insurance companies try to acquire, and the realization of asset securitization will become a means to revitalize corporate assets. There would be bright prospects for the company in the business development of photovoltaic power plants, and it has been believed that it would form the scale effect, and become new core business that drive the high-speed growth of the company.

Then, would it be too big a business span between architectural industry and PV power plant? General Manager Zhibiao Ye quoted Chairman Jieping Li that these two business had strong association with each other, and they would bring new market space to Ruihe Shares. As China puts more and more attention on environmental governance, the application of new energy has become increasingly widespread, and the photovoltaic construction is emerging quietly, integrated with the green decoration concept. As Ruihe Shares has both mechanical and electrical construction qualification, and the qualification for intelligent design, installation and construction, the company would make use of the cooperation opportunity with Xinyi Solar (Hong Kong) Co., Ltd. to accumulate and enhance its technical capability of photovoltaic installation and construction. It can carry out EPC mode, and vigorously expand the business of installation and construction of photovoltaic building. Meanwhile, as the PV power plants invested by Ruihe depend on the company’s own technical strength, there are advantage in their quality and cost control, so it is possible to carry out the implementation of BOT business.

Currently, Ruihe’s installation team of photovoltaic power plants has started operation independently. In the future, the company will transform from a company solely relying on traditional single major of decoration to a company focusing public workplace decoration and customized decoration as its basis industry, photovoltaic power generation as its pillar industry, and construction and installation for photovoltaic building as its supporting industry, and form a marketing pattern of all “three industries” develop synchronously. 

To establish top century-old brand

Before named General Manager, Zhibiao Ye has served as Secretary of the Board at Ruihe Shares for a long time, and he has won the "Gold Governance Award for Excellent Secretaries of Listed Companies". This award is not only a recognition to Zhibiao Ye’s personal work, but also a recognition to the standardized corporate governance of Ruihe Shares.

In the opinion of General Manager Zhibiao Ye, personal honor is not as important as the collective honor of Ruihe. As a company which stays top 10 at "the Top 100 Companies" for 13 consecutive years, Ruihe’s business philosophy expresses the same spirits promoted by the Shenzhen enterprises - "be brave to create, be pragmatic and progressive" - therefore, Ruihe is able to win the honor of “Shenzhen time-honored brand” in such a young city of Shenzhen, which makes all Ruihe staff proud.

General Manager Zhibiao Ye stated that the aircraft carrier of Ruihe led by Chairman Jieping Li, would make full use of its advantages, to create the image of "King of Transformation" and "King of Photovoltaic Construction". It would comprehensively implement the ERP project management and control, and make use of information management platform, to improve project management and control capabilities. And it would enhance the company's business performance with the three major industries, create good social images to influence and inspire the contemporary and future generations, and strive to establish a top brand and century-old company in China’s construction and decoration industry.