In­no­vat­ing for brand­ing, ex­pan­sion

Net­work equip­ment ma­jorHeng­tong finds the per­fect for­mula for di­ver­si­fi­ca­tion along Belt and Road stretch

China Daily (USA) - - BUSINESS - By FAN­FEIFEI in Bei­jing and CANG WEI in Nan­jing Con­tact the writ­ers at fan­feifei@chi­

Heng­tong Group Co Ltd, a pro­ducer of op­tic fiber and tele­com net­work equip­ment, will in­crease its overseas investmentsandacquisitions in view of the­huge­growth­po­ten­tial in coun­tries along the Belt and Road Ini­tia­tive.

The Jiangsu-based Heng­tong says it plans to es­tab­lish two to three overseas in­dus­trial bases and­make twoto three overseas ac­qui­si­tions each year.

Inthe in­ter­net era, con­struc­tion of tele­com net­works, par­tic­u­larly those us­ing op­tic fiber ca­bles, has be­come a sig­nif­i­cant in­di­ca­tor of a coun­try’s de­vel­op­ment. The com­pany has stepped up build­ing such net­works in overseas mar­kets.

“If there is no op­tic fiber, there is no in­ter­net, let alone big data and cloud com­put­ing,” said Cui Gen­liang, chair­man and pres­i­dent of Heng­tong Group.

Cui said com­mu­ni­ca­tion in­fra­struc­ture is rel­a­tively back­ward in some coun­tries along the Belt and Road Ini­tia­tive, which pro­vides huge op­por­tu­ni­ties for Chi­nese com­pa­nies like Heng­tong to ex­pand overseas.

The ini­tia­tive aims to build a trade and in­fra­struc­ture net­work con­nect­ing Asia with Europe and Africa, along an­cient trade routes.

“We will firmly grasp the op­por­tu­ni­ties brought by the ini­tia­tive and con­tinue to push for­ward the in­ter­na­tion­al­iza­tion strat­egy in the next decade,” said Cui.

Founded in 1991, Heng­tong has seen its busi­nesses ex­pand­ing from tele­com and elec­tric power to fi­nance, cul­ture, tourism, real es­tate, cap­i­tal in­vest­ment and in­ter­net plat­forms.

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

The com­pany has put for­ward a goal called the “50-5050 in­ter­na­tion­al­iza­tion”. That means, more than 50 per­cent of its prod­ucts will be sold Gao An­min, overseas; more than 50 per­cent of its cap­i­tal will come from overseas; and more than 50 per­cent of its pro­fes­sion­als will have an in­ter­na­tional back­ground, ac­cord­ing to the com­pany.

More­over, it will serve both the do­mes­tic and in­ter­na­tional­mar­kets, in­te­grate­and­make use of the do­mes­tic and in­ter­na­tional re­sources, as well as widen the do­mes­tic and in­ter­na­tional fi­nanc­ing chan­nels through in­vest­ments in overseas merg­ers and ac­qui­si­tions.

So far, it has es­tab­lished seven re­search and de­vel­op­ment cen­ters overseas, and branches for mar­ket­ing and tech­nol­ogy ser­vices in more than 30 coun­tries and re­gions.

It has reg­is­tered trade­marks in more than 100 coun­tries and re­gions. Its busi­ness cov­ers 120 coun­tries and re­gions. Its op­ti­cal fiber net­work prod­ucts ac­count for a 15 per­cent share of the global mar­ket.

Its first overseas fac­tory was set up 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.

Cui said: “These moves will pro­mote the in­dus­trial trans­for­ma­tion, up­grad­ing and global ex­pan­sion of our com­pany, fur­ther en­hanc­ing its com­pet­i­tive­ness.”

Cui em­pha­sized the key to com­pete with other in­ter­na­tional gi­ants is to in­crease in­de­pen­dent in­no­va­tion, im­prove core com­pe­tence and pro­duce prod­ucts with cut­tingtech­nolo­gies.

At present, Heng­tong is the only Chi­nese com­pany with the state-of-the-art tech­nol­ogy in op­ti­cal fiber com­mu­ni­ca­tion and owns re­lated in­tel­lec­tual prop­erty.

Tech­nol­ogy ex­per­tise and high-qual­ity prod­ucts can make a Chi­nese la­bel a suc­cess­ful global brand, Cui said.

Ad­di­tional rev­enue mainly came from overseas mar­kets in re­cent years. In 2015, its overseas rev­enue ac­counted for 20 per­cent of to­tal sales.

“Suc­cess in in­ter­na­tional mar­kets is a touch­stone of an en­ter­prise’s com­pet­i­tive­ness,” said Gao An­min, Heng­tong’s vice-pres­i­dent for in­ter­na­tional op­er­a­tions.

Suc­cess in in­ter­na­tional mar­kets is a touch­stone of an en­ter­prise’s com­pet­i­tive­ness.” op­er­a­tions Heng­tong’s vice-pres­i­dent for in­ter­na­tional


Heng­tong's in­ter­na­tional R&D team.

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