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Jin Baofang: Follow the way and act diligently to leave our brand prints in the no man's land

chinadaily.com.cn | Updated: 2019-11-05 16:55
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- Speech at 2019 Yanqi Lake Entrepreneur Forum

Distinguished colleagues, deal friends,

Hello everyone! I am Jin Baofang, president of Jinglong Industry and Commerce Group and JA Solar.

It is such an honor to have this opportunity to speak again at the Yanqi Lake Entrepreneur Forum. In the past two and a half years of study, my team and I have strived to discover ourselves and purify our souls, and worked diligently to improve our spiritual qualities. So we can stand afresh here.

I launched Jinglong Group in 1996, starting from three monocrystal ovens, and found my way into the solar PV industry. After two decades of hard work, Jinglong and JA Solar have become international solar manufacturing companies and PV power-generation solution providers, and for many years, China's top 500 companies and top 50 global energy leaders. It is fair to say that where there is solar, there are Jinglong and JA Solar.

In the past 15 years, as a sunrise industry, the global solar market has maintained a compound annual growth rate of over 25%. But there have been ups and downs. Companies come and go, they get their fair share of good and bad days. As they go through prosperity and crisis, we witness these roller-coaster rides.

In 2004, PV application took off, marking acceleration of the industry. Initially, the cost of silicon material was US$50 a kilogram. Before the 2008 financial crisis, the market was so hot that the cost was more than US$500 a kilogram. Everyone was expanding at a crazy rate. In 2005, I established JA Solar. Since then, close to 100 Chinese PV companies have gone public in domestic or overseas markets. This industry has created three China's richest men.

Back then the PV industry was dominated by a model in which both the materials and end products were outside the control of the Chinese market. That meant the material and end markets were subject to impact of European and US markets. Due to the global financial crisis and anti-dumping and anti-subsidy investigations launched by the U.S. and EU authorities in 2011, the industry fell. Several leading players suffered bankruptcies or restructuring, and "China's richest men" in the sector also became a past story. The whole industry was sluggish. JA Solar suffered some major losses during that period. In the midst of industrial slump, on June 7, 2013, Premier Li Keqiang visited the company and gave us some much-needed encouragement by telling us that we should "keep the dragon head up, wave the dragon tail, and soar in the world". His words boosted our confidence. JA Solar components climbed to the fifth place in 2014 from 10th in 2013 globally.

When the domestic application market saw a quick reboot, the Chinese PV industry embraced another round of growth. As of the end of 2018, China had more than 70% share of global PV manufacturing capacity. Among the top 10 PV companies across the world, nine were based in China. China has been the world's largest PV application market for six years in a row.

However, when China issued new PV policies on May 31 last year, the domestic market was hit by unexpected subsidy cuts and market compression. The market froze and prices of components experienced a free fall. Many companies, even the big ones, were in trouble. The US Sections 201 and 301 investigations on China-made PV products launched by the US authorities last year and the ongoing US-China trade frictions only made things worse. But despite all the turbulence, my thinking has not changed, as I firmly believe that in a world of light, issues causing darkness shouldn't be there.

Back then, some industry leaders failed to cope with the pressures and complained to the national authorities. But I chose to attend a study trip to Jiangxi organized by the ZS Institute to be closer to the red spirits of Jinggang Mountain, and the men of virtues at Luoxing Pavilion. I believe in men of virtues and that our government makes national policies looking at the longer term. Back from Jinggang Mountain, I shared an internal report with the company staff members about this. We made timely adjustments to the strategy and enhanced investment in overseas market to offset the impact of new PV policies. Last year turned out to be one of the best years we have had in recent past, in terms of year-end performance and profit. Our component shipment ranked second in the whole world. After this round of policy change, the companies have further developed, and the industry is solid and mature. Following the right way, we can see it clearly and act wisely.

JA Solar of Jinglong underwent life and death experiences during its two decades of trials and tribulations, but it succeeded in maintaining steady development. By discovering ourselves and purifying our souls, I began to realize that what we have accomplished today is a result of our complete compliance with the heavenly principles and the great laws. The cultural soft power is the true source of the strategic hard power of an enterprise. In the earlier days, I set the company mission as "developing solar power to benefit mankind". Upholding the corporate spirit of "honesty, simplicity, respect, and gratitude", we have been doing what we believe are the right things to do, and running the company diligently. When market is good, we stay vigilant, and when market goes down, we do not lose confidence. Following these principles, we stay aligned with the way of the men of virtue.

After a learning process of more than two years, I discovered three changes in myself. First, I resumed my passion and sense of responsibility. I am 68 years old, and many of my peers have retired. But I feel more energized than ever. In addition to routine management responsibilities, on July 19 last year, we completed privatization delisting of JA Solar from NASDAQ, and initiated the backdoor listing process in China. The listing preparation was arduous, but I did not feel tired as I had clear goals and determination. Follow the way and act diligently. On 19th last month, JA Solar was approved by the CSRC for listing, marking the start of second take-off of the company.

Second, the company spirit has further improved. "Honesty, simplicity, respect, and gratitude", these qualities that I have upheld over the years have been upgraded as corporate spirit, a source of power for over 30,000 staff members working toward shared goals. I am touched by their passion for learning and their shared stories. "Honesty, simplicity, respect, and gratitude" have been the underlying strength of the company and won recognition from our partners. This is what the learning process has done for us.

Third, development goals of the company have been found. The Chinese culture has given us new force as it has helped us break bottleneck and find greater goals. We have responded actively to the Belt and Road Initiate proposed by President Xi, as we are committed to making PV industry stronger and better to serve the community with a shared future for mankind with Chinese power.

As entrepreneurs, we must be aligned with the government and national strategy so that we find the right direction of realizing the China Dream for the great rejuvenation of our country. Alignment with our great nation is the way today!

The Belt and Road Initiative is an overall strategy for the nation as it goes forward, a great practice seeking to establish the shared community of mankind, a great stage and historic opportunity that the time has endowed on us. The great power of Chinese civilization gives us confidence to establish business plans in markets along the Belt and Road and expand our presence globally. Jinglong and JA Solar have opened factories in Malaysia and Vietnam, respectively, and we now have over 20 offices or facilities worldwide supported by sales team of over 300. In Malaysia, or in PV markets in Europe, the US, or Middle East, our employees, including Vietnamese front-line staff members working in factories and US sales representatives representing us in negotiations, all fight for the shared goals for the company with a pure mind. These common goals help them find common ground as Jinglong and JA Solar staff regardless of their race or nationality.

When the Malaysia factory was first established, we had a high employee turnover due to cultural difference. A Chinese employee dispatched to the factory noted down his communications with local staff, familiarized himself with local customs, shared with local team his technical expertise, helped stabilize local teams with continued effort, and improved technical capacity of local staff. When asked about his secrets, he said that "talking to them with their interest at heart, you break the boundaries of borderline and languages and realize real man-to-man connection." Our companies have brought benefits to local employees and acted as cultural envoys to facilitate exchanges between our two nations.

When we were working on the Vietnam factory, locally there were no technical standards on monocrystalline silicon industry. Our staff members engaged local government and communities in discussions and made known the company's mission to serve mankind and technical strength. As "preachers" of the PV industry, we have won extensive support locally. Last year, the Vietnam factory made its first monocrystalline silicon rode, also the first rod ever made in Vietnam. An industrial gap has been closed.

With light in our heart, we see the blue ocean. Our companies have made good products and contributed to business models in line with local community interests. South America is an emerging market along the Belt and Road, but the market has been developing relatively slow. Inspired by the Chinese culture, we found investors from Europe in an innovative way with customers in our heart. Connected with local power authority and global engineering companies, within a short timeframe, we successfully provided good quality clean electricity to local households.

The world is connected when the heart is. For growth of the industry and market, we must ensure the mind is prepared. Globalized companies are required to go beyond the national borderlines, spot opportunities others do not see or are reluctant to see, in order to benefit the world. It is the entrepreneurship under the Belt and Road Initiative when we have a desire to meet interest of the people, and act in benefit of local communities.

As a business owner with more than 40 years of experience, I have seen so much and gone through a lot, like the rise and fall in the business world. Today, while I am here, I'd like to share with all of you some of my thoughts: running business is like conducting oneself. We are confronted with temptations, but no matter what changes there are or how hard the time is, do not doubt yourself, do not be scared, and do not retreat from your mission. We should have firm confidence in our culture, believing that the great power from Chinse culture will give us strength. Act for interest of people and the society, and we will secure development in longer term for greater success.

I am more confident than ever that I will continue to lead Jinglong and JA Solar in drawing on the Chinese culture, following the way, and implementing corporate spirit of "honesty, simplicity, respect, and gratitude". Under the Belt and Road Initiative, we will act sustainably for greater deeds, leave firm footprints in the inhabited areas, and light the world up with clean power.

Thank You!

Jin Baofang, president of Jinglong and JA Solar

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