Wang Hao, the Deputy Secretary of Zhejiang Provincial Party Committee and Governor of Zhejiang Province

On June 1, 2022, Wang Hao, the Deputy Secretary of Zhejiang Provincial Party Committee and Governor of Zhejiang Province, and some officials surveyed Damingshi Industrial Park in Xinchang. Ji Junmin, the Secretary-General of Zhejiang Government and Yao Gaoyuan, the Director of Economy and Information Technology Department of Zhejiang, Sheng Yuechun, Party Secretary of Shaoxing, Huang Xurong, Party Secretary of Xinchang accompanied Wang Hao during this survey. They were received and given reports by Zhang Yabo, vice board chairman of Sanhua Holding Group and chairman of Sanhua Intelligent Control, Chen Yuzhong, general manager of Sanhua Commerical.

Huang Xurong, Party Secretary of Xinchang reported the economic development of Xinchang County. He pointed out that economic development of Xinchang was prosperous. The gross output by industry aced for 40% of Xinchang’s GDP. Though the gross output of industry was not large, its quality was excellent. Sanhua, a “hidden champion” company, was the representative of Xinchang’s industry. Also, there were a lot of key programs of Xinchang’s listed companies in the Cooperation Park for Global Industrial Acquirement. At the same time, Xinchang’s economy thrived by inviting enterprises from specific industries based on Xinchang’s small land areas.

Zhang Yabo gave a report about the development of Sanhua. In the past 20 years, Sanhua stuck to the strategy of globalization and technological advancement, developed new products and application for heat pump technology to realize thermal management, and d the categories of products from control units to integrated modules. At present, international sales ed for 50% of Sanhua’s total sales revenue. Over 20 products from different categories had the biggest market share in the world. Each year, Sanhua applied for about 1000 patents, over half of which were invention patents.

Next, Zhang Yabo gave an introduction about the construction and planning of Sanhua’s Damingshi Industrial Park Sanhua Commercial would output 6 billion RMB each year with its high additional value products. All honored guests were interested in and talked a lot about the products exhibited in the industrial park. As Zhang Yabo mentioned that Sanhua replaced yellow copper with stainless steel, to make products smaller and lighter. Governor Wang picked one product and praised, “What a light and thin product!”, after observing the product features. He also asked whether raw materials such as stainless steel, purple copper, yellow copper, engineering plastic and enameled wire were available in Zhejiang Province and issues about the supply chain.

Governor Wang also asked whether the decrease in industries influenced Sanhua and caused operational problems. Zhang Yabo answered that in China, the home appliances market faced decline, but international markets grew fast. Director Yao pointed out that the slump of China’s real-estate was impacting the HVAC&R, home décor, and household textile industry. Zhang Yabo talked about the impact of Covid-19 which has caused great troubles for Sanhua Automotive since the key acs in automotive industry had to stop production. But as the production was revived, Sanhua Automotive overcame such problems and recovered lost sales in June.

During the talk, Zhang Yabo presented Sanhua’s globalization layout and strategic development plans and expressed thanks to Xinchang.

Governor Wang appreciated Xinchang’s ideas and system that attached great importance to industries, innovation, and enterprises. He noted that enterprises would choose to develop their business in Xinchang for the startup atmosphere and ed appreciation to Sanhua’s perseverance in technological innovation, concentration strategy in developing main business.

This survey ended with the summary and hopes from Governor Wang, and confident smiles from all the participants.