From the Huangpu River to the heart of the Central Plains, this company chose to "go upstream"
2024-08-12
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Dahe.com News: From Shanghai to Zhengzhou Airport Economic Zone, from the banks of the Huangpu River to the hinterland of the Central Plains, from personnel chaos to meticulous management, from consecutive years of losses to turning losses into profits... In two years, Henan Airport Planning and Design Co., Ltd. (hereinafter referred to as "Airport Design Company") has undergone a large-scale transformation. Recently, the reporter visited the Airport Design Company to explore the high-quality development path of state-owned enterprise reform.
Solve the puzzle
The Airport Design Company was founded in 2010 and was originally a private design company in Shanghai. In September 2020, it was controlled by the state-owned enterprise of Zhengzhou Airport Economic Zone and set up offices in Shanghai and Zhengzhou Airport Economic Zone. Due to various factors, the company has been in a loss-making state for many years.
Encourage "capable people to raise their hands" and realize job competition. After selection, Zhang Kai was appointed as the general manager of Airport Design Company in September 2022. 2022 is also the year of the three-year action plan for state-owned enterprise reform. Faced with a company that has been losing money for years, how should Zhang Kai welcome and carry out deepening reforms?
Direction determines the way out. The Airport Design Company first conducted a "physical examination" on itself and found that the company had problems such as unclear boundaries, chaotic management, and high operating costs.
"When I first arrived at the company, all industries in the Hong Kong area were waiting to be developed, and the existing business in Shanghai needed to be maintained, making it difficult to execute decisions on daily affairs. In a state of loss, the annual rent for office space in Shanghai alone was 700,000 to 800,000 yuan." When talking about this experience, Zhang Kai felt deeply the severity of the difficulties he faced at the time.
Zhang Kai gave an example, "The annual salary expenditure for the Shanghai office is about 4.3 million yuan, and the company's revenue is far from covering the labor costs. Among them, the cost of personnel with professional qualifications reached 2.2 million yuan/year."
"No matter how difficult it is, the company must persist in reform." Zhang Kai said that based on its own situation, the company immediately started a series of reforms in terms of how to reduce operating costs, smooth the recruitment and selection mechanism, and innovate business methods.
Breaking the Dilemma
By solving historical problems at the source, the Airport Design Company has solved many difficult problems.
Zhang Kai said that in order to improve the company's management and control capabilities, the company moved its main management functions from Shanghai to Zhengzhou Airport. Shanghai only serves as an office and has moved away from its original office location. The rent has been reduced to 200,000 yuan/year. At the same time, by replacing personnel with excessively high costs and other measures, the cost of professional qualified personnel has been reduced to 1.5 million yuan/year.
The next step is to improve the company's management structure by sorting out the company's overall framework, establishing a party branch, setting up a general manager's office, and formulating a three-level organizational framework management structure.
"We adhere to the principle of 'selecting talents in an unconventional way' and adopt market-oriented methods to recruit professional talents. Middle and senior management sign a 'responsibility letter for target task assessment', and then assign indicators to each employee. Everyone speaks based on performance, breaking the concept of seniority and invisible steps, and promoting the rejuvenation of cadres." Zhang Kai said that the average age of the company's employees is currently about 35 years old, 43% have postgraduate degrees, 57% have bachelor's degrees, and key personnel all have national registration certificates and senior professional titles.
Ge Jianying, born in 1994, is a cost engineer at an airport planning and design company. He married and bought a house and settled in Zhengzhou Airport. "The company focuses on talent training, and the port area has a bright future. My wife and I have chosen to build our hometown." Ge Jianying is full of confidence in the future.
With innovative business models and adherence to market-oriented operations, Airport Design has undergone tremendous changes. From mainly "joint venture projects" to mainly "self-operated projects", self-operated projects accounted for more than 95% of the total project volume in 2023, increasing the company's overall revenue and profits. By taking measures to reduce costs and increase efficiency, operating costs have dropped from 5.39 million yuan/year to 3.47 million yuan/year, greatly alleviating the company's operating pressure.
Opening a new chapter
Through a series of radical reforms, the Airport Design Company has taken on a new look.
It is reported that since 2023, the Airport Design Company has designed more than 40 key projects, covering various business formats such as commercial, office, residential, industrial parks, and logistics parks. It has more than 30 patents and has formulated three provincial technical standards as the main compiler. At the same time, various operating indicators have made a leap forward.
Talking about the results of turning losses into profits, Zhang Kai told reporters that the company's operating income in 2023 increased by 460% year-on-year compared with 2022, and the profit increased by 209% year-on-year compared with 2022. Operating costs decreased by 36% compared with 2022. As of the first half of 2024, the company's total assets increased by 103% compared with the same period last year, the asset-liability ratio decreased by 3.87% compared with the same period last year, the total owners' equity increased by 117% compared with the same period last year, and the state-owned assets preservation and appreciation rate increased by 28.83% compared with the same period last year.
In March this year, the Airport Design Company was officially upgraded to a district-managed state-owned enterprise.
"The reform of state-owned enterprises cannot be a one-time effort, nor will it be a one-time effort." Zhang Kai said that in the next step, the company will, under the leadership of the Party Working Committee and Management Committee of Zhengzhou Airport Economic Zone, give full play to the leading and guaranteeing role of high-quality party building, further promote the deepening and improvement of state-owned enterprise reform, continuously innovate the system mechanism and business model, anchor the goal, go all out, and carefully "paint" a new picture of high-quality development of the port area, and contribute the strength of state-owned enterprises to the "second entrepreneurship" of the port area. (Wang Rui/Wen Liangzhen/Video)
