Heng­tong has over­seas vi­sion

China Daily (USA) - - BUSINESS - By FANFEIFEI in Beijing and CANG WEI in Nan­jing Con­tact the writ­ers at fanfeifei@chi­nadaily. and cang­wei@chi­nadaily.com.cn

Ed­i­tor’s note: In this on­go­ing se­ries on the birth and growth of pri­vately owned Chi­nese com­pa­nies that are re­defin­ing in­no­va­tion, China Daily pro­filesHeng­tong Group Co Ltd, a Jiangsu-based com­pany en­gaged in op­ti­cal fiber man­u­fac­tur­ing and elec­tric power and net­work con­struc­tion, which eyes over­seas ex­pan­sion.

Heng­tong Group Co Ltd, a Jiangsu-based com­pany en­gaged in op­ti­cal fiber man­u­fac­tur­ing and elec­tric power and net­work con­struc­tion, aims to es­tab­lish two to three over­seas bases and achieve two to three over­seas ac­qui­si­tions an­nu­ally. This plan is aligned with the coun­try’s Belt and Road Ini­tia­tive.

The com­pany is mak­ing ef­forts to speed up its over­seas mar­ket ac­tiv­ity. It has es­tab­lished seven re­search and de­vel­op­ment cen­ters over­seas, and set up branches for mar­ket­ing and tech­nol­ogy ser­vices in more than 30 coun­tries and re­gions.

share of Heng­tong Group’s over­seas rev­enue in its to­tal sales

It es­tab­lished its first over­seas fac­tory in Brazil in 2012, fol­lowed by a joint ven­ture in India in 2013. It also bought op­ti­cal fiber and elec­tric power en­ter­prises in In­done­sia, South Africa, Spain and Por­tu­gal in 2015.

Ithas­reg­is­tered­trade­marks in more than 100 coun­tries and re­gions and its busi­ness cov­ers 120 coun­tries and re­gions. Its op­ti­cal fiber prod­ucts ac­count for a 15 per­cent share of the glob­al­mar­ket.

“If there is no op­ti­cal fiber web, there is no in­ter­net, let alone big data and cloud com­put­ing,” said Cui Gen­liang, chair­man and pres­i­dent ofHeng­tong Group.

The com­mu­ni­ca­tion in­fra­struc­ture is rel­a­tively back­ward in some coun­tries along the B& R Ini­tia­tive, which gives huge op­por­tu­ni­ties for Chi­nese com­pa­nies like Heng­tong to ex­pand over­seas, Gui added.

China’s B & R Ini­tia­tive aims to build a trade and in­fra­struc­ture net­work connecting Asia with and Africa, along trade routes.

Founded in 1991, Heng­tong has seen its busi­nesses cov­er­ing not only tele­com and elec­tric power, but also be­ing in­volved in fi­nance, cul­ture, tourism, real es­tate, cap­i­tal in­vest­ment and e-com­merce plat­forms.

It has put for­ward a goal called the “5-5-5” in­ter­na­tion­al­iza­tion tar­get. That means that more than 50 per­cent of its prod­ucts will be sold over­seas, more than 50 per­cent of its cap­i­tal will be from over­seas and more than 50 per­cent of its pro­fes­sional peo­ple will have in­ter­na­tional back­ground, ac­cord­ing to the com­pany.

The op­ti­cal fiber com­mu­ni­ca­tion gi­ant now serves var­i­ous na­tional pro­grams, in­clud­ing, in­tel­li­gent cities and com­mu­ni­ties, ul­tra­high volt­age and in­tel­li­gent power net­works, big data, in­ter­net of things, high-speed trains, aerospace, na­tional de­fense and other high-end fields.

In 2015, its over­seas rev­enue ac­counted for 20 per­cent of the to­tal sales. In the next decade, Heng­tong will grasp the op­por­tu­ni­ties brought about by the B& R Ini­tia­tive and con­tinue to push for­ward its in­ter­nal­iza­tion strat­egy.

“The in­ter­na­tional mar­ket is a touch­stone of an en­ter­prises’ com­pet­i­tive­ness, in which we test our prod­ucts and achieve­ments, as well as the tech­nol­ogy level of an en­ter­prise,” said Gao An­min, the in­ter­na­tional vice-pres­i­dent atHeng­tong Group.

Heng­tong will make com­pre­hen­sive use of tal­ent and tech­nol­ogy in the do­mes­tic and over­seas mar­kets, ex­pand the chan­nels in­side and out­side China and speed up its in­ter­na­tional ex­pan­sion by de­pend­ing on for­eign in­vest­ment and ac­qui­si­tion. Europe an­cient

XIN­HUA

Work­ers in­spect prod­ucts at a work­shop of Heng­tong Group Co Ltd, a Jiangsu-based com­pany.

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