From Manufacturing To Intelligent Manufacturing: Witness The Miracle Of China

        Industrialization is the foundation of modernization, and the strong manufacturing industry supports the modern economy.

      More than 100 years ago, the pioneer who first called out "revitalizing China" described the blueprint of China's modernization in the general plan for the founding of the people's Republic of China. On April 24, 1945, Mao Zedong put forward "to transform China from an agricultural country into an industrial country" in his "on the United Government". In 1954, Zhou Enlai first mentioned "four modernizations" in his "government work report".

In 2021, on the "starting point of a new journey", we selected three cases of large aircraft, railway and communication to witness the extraordinary road of China's industrialization and informatization in the past century.

On the way to build a powerful country with wisdom, scientific and technological innovation will never stop.

China Construction (601668. SH), which is listed on A-share market, can be regarded as a giant in the international real estate industry. Its revenue will reach 1.6 trillion yuan in 2020, ranking 18th in the Fortune Global 500 list.

      Before 2013, the company has been taking housing construction as its main business, positioning itself as "the most internationally competitive construction real estate comprehensive enterprise group". In fact, it is true that in the long years, most of the landmark buildings in China's large and medium-sized cities, such as stadiums and the highest buildings that constantly break records in the local area, were created by the enterprises affiliated to CSCEC.

China's rapid economic growth in the past 40 years relies on the development and growth of traditional industries such as real estate, which have solved the basic food and clothing problems of Chinese people. However, the revitalization of the nation also requires high-tech industries to stand out in the international field. The basic industries should not only do a good job in supporting, but also face the practical problems of transformation.

After 2013, the company's "talk" style has changed greatly, and "strengthening the infrastructure business, optimizing the overseas international project contracting business, and implementing the" four in one "urbanization development business" has become a new expression.

The background of the change is that the Third Plenary Session of the 18th CPC Central Committee proposed "comprehensively deepening reform", which has sent a meaningful "signal" to the great changes in the post economic society.

Corresponding to the macro trend, "transformation" has become a hot topic in China's construction industry in 2014. The consensus of the company is that the trend of the real estate industry is gone, and the future business focus will be shifted to infrastructure such as expressways, urban rapid rail transit, airports and other fields.

Transformation is not easy. According to the annual report data of the company, the proportion of housing construction in total revenue decreased from 73.5% in 2012 to 61.98% in 2020, while that of infrastructure increased from 13.6% to 21.6%. If the proportion of real estate development increased from 10.3% to 16.6%, the annual transformation is only about 1 point in revenue.

But the change is also obvious. After participating in the construction of the ground stations and sections of two metro lines, a project manager of CSCEC told the reporter some time ago that their next project was to build a magnetic levitation train test site for CRRC. This seems to be quite symbolic. Industry leaders representing China's economic miracle in the past 40 years have begun to lay a high-speed track leading to the future.

Hong Kong Zhuhai Macao Bridge at sunset. Visual China

Speed with a piece

The future seems clear.

It has been nearly ten years since the industrial 4.0 strategy was put forward to the emergence of the fourth industrial revolution.

In the past ten years, 5g has quietly come to our lives, and automatic driving is on the way. The fully automated intelligent robot factory has changed from drawing to reality. Big data cloud computing of the Internet of things seems to have become a part of our life.

During the epidemic period, China's foreign trade exports were unexpectedly strong, which once again witnessed the comparative advantage of China's manufacturing industry in the world trade system. This not only benefits from the proper control of domestic epidemic situation, but also indirectly proves the systematic advantages of China's manufacturing industry. This is the national core competitiveness formed by 40 years of reform and opening up. Other countries or regions in the world may have advantages in some aspects or competitiveness in some fields. However, from the perspective of complete industrial chain, no country has the conditions to imitate or surpass China's overall advantage.

Looking back at the history of 100 years, we can realize the value of this advantage even more when we come to today's China.

Take Jiaxing as an example. In August 1921, a historic event was born on a silk screen ship in Nanhu, Jiaxing. In that year, the Shanghai Hangzhou railway opened to traffic, and Jiaxing ushered in the first breath of the industrial revolution. According to the records of jiaseri, there was a stockings factory in Jiaxing County in 1921; The green paper and mulberry paper produced by Xingong paper mill outside Dongmen began to be sold in Jiangsu and Zhejiang; The Jiachang craft factory at beimenwai was officially started.

The emergence of factories in Jiaxing stems from the vigorous development of domestic national capital after the end of the first World War. From the national point of view, there are only a few light industries, such as textile, printing and dyeing, which are pitifully few. Subsequently, with Japan's invasion of China and the outbreak of the Second World War, Jiaxing and even the whole country's industrial system has always been relying on people's nose and being difficult to stand on its own. Until 1949, Jiaxing's industrial output value was only 60 million yuan. By 2020, the industrial output value of Jiaxing, a prefecture level city, has reached 1015.8 billion yuan.

It is undeniable that the short board of China's manufacturing industry still exists. For example, they are at the low end of the value chain, labor productivity needs to be improved, and labor dividends are about to disappear.

The story of the red collar company tells us that even if the enterprise turns into a butterfly and becomes a classic textbook case, it still needs to forge ahead in the wave of the new industrial revolution, otherwise it will return to mediocrity.

In 2013, the red collar, now renamed cool smart, said that the development of personalized custom suit system was successful. From this year on, red collar has become a benchmark for the transformation of traditional garment manufacturing industry in the Internet era and has attracted much attention. It is said that the development of this system is due to the fact that Zhang, the boss of the company, visited BMW in Germany and was greatly inspired by the colorful customized new cars on the assembly line.

This can be seen as industry 4.0 for the apparel industry. In 2015, the reporter went to interview. At that time, the general manager of the red collar planning department introduced that the system developed by the enterprise was very popular in European and American countries. Many people could receive a suit of suit in a short time after placing an order on the system, but the price was too cheap to be believed. At that time, red collars were already star enterprises in China. In order to slow down the number of visitors, the enterprise stipulated that each person should charge more than 1000 yuan to visit the model workshop, otherwise they would not enter. Even so, there is still an endless stream of visitors.

A farmer who lived as a carpenter when he was young, and became rich by opening a clothing factory with his brain. Although the development of personalized clothing customization system is an organic element of coincidence, it can be achieved by one's own efforts after ten years of hard work. This case vividly shows that Chinese can create miracles, even world-wide miracles, as long as the appropriate soil and warm sunshine are given.

In 2020, cool smart was listed on the gem. With the help of the concept of "mass customization driven by orders", it has been listed for 12 consecutive trading limits. Although the stock price has been cut off from its highest level, the price earnings ratio (TTM) is still as high as 74.6.

However, the financial performance of cool smart is not particularly prominent. R & D investment can be seen. In 2020, the R & D expenses of cool smart will only account for 2.02% of its revenue, while in that year, similar traditional clothing enterprises in the A-share market are almost 1-1.5 times of that of cool smart.

This shows that even the benchmarking enterprises that once walked in front of the times, if satisfied with the achievements they have already made, are likely to stagnate or even be caught up by the latecomers.

Although it is backed by China's vast market hinterland, the traditional manufacturing industry must continue to innovate in order to win long-term development. This is true for traditional industries, especially for advanced technology manufacturing industries.

Semiconductor chip manufacturing. Visual China

Catch up with the first class

The story of Dajiang innovation and SMIC international proves that China is no exception in the field of cutting-edge technology.

In 2003, Wang Tao, a 23-year-old man from Hangzhou, dropped out of East China Normal University and went to Hong Kong University of science and technology for a postgraduate course in electronic and computer engineering. After graduation, he and two students jointly founded Dajiang innovation. After a period of difficult entrepreneurial years, Wang Tao successfully developed the first mature helicopter flight control system in 2008.

The transfer is from an agent of Dajiang in New Zealand. In 2010, the monthly sales volume of Dajiang has reached 100000 yuan. Wang Tao said at the time that his ideal was "to support a team of 10-20 people." The New Zealand agent told Wang Tao that he found an interesting phenomenon. He sold more than 200 PTZ every month, and more than 90% of the buyers would hang the pan tilt to the multi rotor aircraft. This shows that the multi rotor aircraft market has great potential. After hearing this, Wang Tao quickly applied his accumulated technology in helicopters to the research and development of multi rotor aircraft. Sure enough, the sales volume of Dajiang, which has changed its product layout, has risen sharply. One year later, its market share has reached 50%. By 2014, about 400000 UAVs have been sold in Dajiang, and the annual growth rate of enterprises is 2-3 times.

Since then, Dajiang has dominated the UAV market, with nearly two-thirds of the market in the United States and Canada in a few years.

If we say that the success of Dajiang is that the new technology "unintentionally" created a vast and rich emerging market, SMIC is in the front of the battlefield with the world's top companies.

In 2013, SMIC, which has been listed in Hong Kong, peaked at HK $0.73. Under the leadership of Qiu Ciyun, the third CEO, SMIC has finally achieved profits for two consecutive years, 13 years after SMIC was founded. However, until 2017, the yield rate of high-performance 28nm chips developed by SMIC was only 40%, at this time, the yield rate of 28nm chips in the same industry had reached more than 95%.

In 2017, the world's semiconductor landscape has turned upside down. Represented by mainstream products such as 10nm chips, Samsung and TSMC have become industry leaders and wind vane. Samsung's global semiconductor market share reached 14.6%, surpassing Intel as the world's largest chip manufacturer; TSMC is launching a 7Nm chip test product, and its stock market value has surpassed Intel for the first time.

It was in this year that SMIC proposed to directly mass produce the 26th generation of 14nm process chips across three generations and five levels. At that time, there was a public opinion that it was "a distant dream..." but the R & D team of the company greatly increased the yield rate of 14nm chips from 3% to more than 95% in 298 days. SMIC quickly ranked among the only six companies in the world that could produce 14nm chips. In 2019, the 12NM process has also entered the customer introduction stage. SMIC (low order) 7Nm chips will enter into small batch risk trial production in 2021.

SMIC has completed the upgrading of chips from 28nm to 7Nm in only three years. However, the production of high-order 7Nm chips of the extreme ultraviolet lithography machine is constrained by the international supply.

Innovation is the spiritual symbol that Chinese enterprises, especially high-tech enterprises, will never stop catching up with the first-class.

In 2012, McKinsey constructed an analysis model of China's leading world industry in the civil sector with 33 industries in four major fields as coordinates. Two years later, McKinsey Global Institute completed the Research Report on "the global effect of China's innovation" on the basis of this model. The report is still very enlightening.

McKinsey found that Chinese companies excel in two types of innovation: the development of new products and services to meet customer needs, and process innovation to improve production efficiency. For example, Chinese enterprises account for more than 36% of global household appliance industry income, which is almost three times of China's share of world GDP. In the generic pharmaceutical industry, where innovation activities mainly involve process efficiency improvement, Chinese enterprises account for 30% of global industry revenue. China's textile and metallurgical enterprises account for at least 20% of global revenue. One of China's most remarkable successes has been solar panels, which account for 51% of global revenue in this efficiency driven industry.

But in the field of scientific research and engineering technology innovation, Chinese enterprises still need to catch up. Among them, Chinese brand pharmaceutical enterprises account for less than 1% of the global industry income, and biotechnology, semiconductor design, and specialty chemicals enterprises account for only 3% of the total revenue. China's automobile enterprises and medical device enterprises accounted for 8% and 3% of global industry income respectively.

But in the field of engineering manufacturing and communication equipment manufacturing, Chinese enterprises have begun to emerge. For example, China's rail transit equipment manufacturers account for 41% of the global market share, while also gaining 18% of the global telecommunications equipment market.

Today, China's innovation capability has been further strengthened. For example, as the world's largest producer and marketing country of new energy vehicles, new energy vehicles have sprung up in recent years, with a market share of nearly 5% in 2020 and a global share of more than 50%.

Behind the continuous strengthening of China's innovation capability is the high intensity and continuous investment of scientific research funds. On February 26, the Ministry of science and technology released data showing that China's R & D expenditure in 2020 is expected to be about 2.4 trillion yuan; The contribution rate of scientific and technological progress exceeded 60%.

China is the only country in the world with all the industrial categories in the United Nations Industrial Classification, and it is a big manufacturing country with by-products. Over the past 100 years, China's manufacturing industry has witnessed the great rejuvenation of the Chinese nation from scratch, from small to large, from small to complete. Since the reform and opening up, it has witnessed the prosperity and prosperity of the economy and society.

Wisdom is on the way to build a powerful country.