Boshen Tools Chen Huairong: Focus on the production of diamond tools

“Doing business and making money is totally two concepts.” This is the business philosophy of Chen Huairong, chairman of Shijiazhuang Boshen Tools Co., Ltd. Chen Huairong said that in order for the market to accept you, the key lies in its own excellent products and accurate market positioning.

At the end of 1994, the 40-year-old Chen Huairong and four colleagues resigned from the state-owned Shijiazhuang Coal Mine Machinery Factory and founded Boshen Tools Co., Ltd. In just a few years, Boshen has developed into the largest diamond tool manufacturer in the country.

Chen Huai-rong said that he often thinks about a question: Why are many of the world's top 500 companies prospering for hundreds of years? The key is to have advanced and long-lasting management. He warned himself and his staff: Don't always think about expanding the scale to "bigger" and thinking about "doing a long time" with high quality.

Chen Huairong believes that doing business and making money is totally two concepts. In the past two years, the company proposed that “the company has money, can invest in real estate, mine, and make more money”, and he resists such temptation. In 2004, a 60 million yuan oil machinery subsidiary was also stripped out, in order to concentrate on the production of his diamond tools.

The development of enterprises is inseparable from the support of talents. While introducing a large number of advanced equipment, Boshen has recruited and recruited more than 100 university graduates and senior technical talents from all over the country in order to keep pace with the development of the world diamond tool industry. At present, the company has 8 doctoral students, and also hired the chief scientist of the national high-tech new materials field and several experts in the field as the company's perennial technical consultant. Every year, a large number of scientific researchers are selected to conduct training and research abroad, and extensive technical exchanges and cooperation relationships have been established with the world-famous De Beers Company and Germany Feiyu Company. At present, Boshen has established cooperative relationships with merchants from more than 30 countries in Europe, America and Asia.

In order to implant advanced management concepts into the enterprise, he persuaded the four veterans who had started his business to retreat to the second line, specializing in directors, and hired more than 40 management talents to be senior executives. Most middle and high-level backbones hold shares in the company and share a relatively uniform share. Reasonable equity arrangements not only reduce the cost of agency, but also prevent the disadvantages of family control and monopoly.

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