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Honour and Reward Diligence | Recalling the Founder of Sande Group-Mr. Gao Xinping (May 1)

Release time:

2022-07-29

Mr. Gao Xinping is ambitious, empty-minded, tenacious and hard-working to establish a great cause. He is honest and supremacy, strict management, good management, and winning. He not only has an extraordinary decision-making ability to strategize and seize opportunities, but also has the ability to break through difficulties and transform and rebirth, making Sande Group continue to grow bigger and stronger. Into the track of sustained and sound development. From the only historical data available, we can see a few cases that describe Mr. Gao Xinping's business skills back then.

Honour and Reward Diligence (May 1)

Remembering the Founder of Sande Group-Mr. Gao Xinping

Honour Diligence, Mr. Gao Xinping has the skills to manage

. Mr. Gao Xinping has lofty aspirations, is empty-minded, works tenaciously and builds great achievements. He is honest and supremacy, strict management, good management, and winning. He not only has an extraordinary decision-making ability to strategize and seize opportunities, but also has the ability to break through difficulties and transform and rebirth, making Sande Group continue to grow bigger and stronger. Into the track of sustained and sound development. From the only historical data available, we can see a few cases that describe Mr. Gao Xinping's business skills back then.

(VI) master trader, second sale to find new machines

Japan's "god of management" Panasonic Yukiyuki once divided the growth of businessmen into three realms: first, entrepreneurs; Second, entrepreneurs; The third is a businessman. What is a business man? It is to have a vision that transcends immediate strategy and interests. Mr. Gao Xinping has it all.

Mr. Gao Xinping-China has always been regarded as a hot spot for investment. In an exclusive interview with relevant newspapers in June 2012, he pointed out that China's investment environment is becoming more and more difficult, and the company will turn to the third and fourth tier cities to develop small real estate with faster payback period, and go to Myanmar and Laos to discuss investment opportunities, and also consider returning to Singapore for investment.

Singapore-listed Sande Company (San Teh) was once the world's largest manufacturer of electronic instrument keys. After selling this business to ITT Company of the United States in 1999, it moved to China's cement industry for the first time. Transformation to catch up with the express train of China's economic development. In 2011, it sold all its cement business to China Resources Group, a Chinese state-owned enterprise, to prepare for the second transformation and invest in real estate and hotel business in China's third-and fourth-tier cities.

This development trajectory and adjustment reflects the changes in China's investment environment. Mr. Gao Xinping, executive chairman of Sande Company, which entered China to invest in 1985 and has been stationed in China for a long time, said in an interview that China was poor and backward in the early stage of reform and opening up, and needed foreign capital, management technology and foreign markets. But with the passage of time, especially after 2000, China's economic growth rate is high, the government's tax revenue has increased rapidly, and it is no longer so dependent on foreign capital and technology. In addition, state-owned enterprises are expanding rapidly. As soon as they step into the industry, "it is difficult for you (foreign businessmen) to survive".

For foreign investors, China's long-term attraction lies in cheap human resources, abundant natural resources and a large domestic market. However, the attractiveness of human and natural resources has changed over the years.

Mr. Gao Xinping pointed out that although there are 1.3 billion people in China, there are currently problems of difficult recruitment and high wage costs. After the implementation of rural urbanization in China, small cities have also developed. Many farmers who work in big cities return to their hometowns to do small businesses or open small factories, and they are also hiring workers. "It's getting harder and harder to hire people. It's the same all over the country, including Yunnan".

On the other hand, although the unemployment rate of college graduates in China is high, the demand for skilled workers from technical schools is in short supply. China's wage costs are also getting higher and higher. Employers need to pay five social insurance and one housing fund (pension, medical care, work injury, unemployment, maternity insurance and provident fund) equivalent to 50% of workers' wages, while overtime pay requires more than double the wages.

In front of natural resources, he said: "The government has so many restrictions on resource investment that you have no choice but to sell it."

Mr. Gao Xinping visited Xiamen in 1985 and the first project he invested in was an electronics factory. Later, he found that China's infrastructure needed a lot of cement. In 1992, he prepared to build a cement plant in Longyan City, Fujian Province, and put it into operation in 1997. He began to stay in China.

However, cement investment has experienced ups and downs. The actual investment far exceeded the budget. In the Asian financial turmoil of 1997, banks tightened their monetary policy. Mr. Gao was forced to sell the keystroke business to ITT in 1999 to cash in Singapore dollars to repay bank debts.

Mr. Gao Xinping said that he paid a lot of "tuition fees" in Longyan Cement Plant, and it took seven years for the project to start making money. However, he continued to invest in cement and went to Heqing County, Dali Prefecture, Yunnan Province in 2007 to build a cement plant. The cement plant in Dali was profitable after its first year of operation. However, the rise of large and small cement plants has led to fierce competition in the industry. The central government has begun to consolidate the cement industry and large state-owned enterprises have also merged. In 2010, Mr. Gao Xinping sold the cement plant in Longyan, Fujian to China Resources Group, focusing on the more remote Yunnan cement plant. However, as a number of Chinese state-owned enterprises also went to Yunnan to buy cement plants, he also sold Dali's cement plant to China Resources in 2011. After cashing out, he completely withdrew from China's cement business.

The keystroke industry and cement industry which had been cultivated for many years were sold successively. How did he feel?

Mr. Gao Xinping said that it was "a last resort" to sell the keystroke business in 1999, so he felt "a pity" when he sold it ". However, when he sold his cement business at a high price last year, he did not have this emotional baggage. "After selling the cement plant, I have a concept that I will sell any project that anyone wants to buy from me as long as the price is good. Doing business is originally to make money. The electronic industry has been very hard in the past two years, and many people say that we were right to sell the electronic business at the beginning."

This change of concept is reflected in the future development direction of Sande. After exiting the cement business, Sande's investment in China left two PVC pipe and fitting plants and two hotels. Mr. Gao Xinping said that if there is a good price, he will consider selling these investments, and even if someone wants to buy his stake in Sande, he will consider it. Everything "depends on the price".

Sande's second transformation at that time focused on small real estate and hotel investments with faster payback periods. He said: "China's first and second tier cities, the real estate market is going downhill, but third and fourth tier cities, 3000 yuan (RMB) a square meter of houses, there is a rigid demand. Young people in these places, 3000 yuan a square meter, each 100 square meter house is still affordable."

In addition, Chairman Gao Xinping will build affordable housing (low-cost housing) for local governments through the "construction and transfer" method, and then transfer it to local governments for allotment. Mr. Gao Xinping said that the annual return rate of these projects can reach more than 10%.

However, Sande's next largest real estate investment is the business plaza project in Anting Town, Jiading District, Shanghai. Anting Town is an international automobile city, 40 kilometers away from downtown Shanghai. Sande launched the project in 2012, converting the original 15-story office building into a 168-room business hotel and building a four-story shopping mall with a total area of 23000 square meters and an office building of 16743.57 square meters in an adjacent area. The entire project cost S $40 million million and took two and a half years.

Sande plans to sell this office building, but keep the business hotel and rental mall. Mr. Gao Xinping said that if there is a good price, it is also considered to sell and cash out.

On the other hand, Gao Xinping is also preparing to use his experience in operating cement and business hotels in China to look for investment opportunities in Myanmar and Laos. But he believes that real estate investment with a faster payback period is "relatively simple, one by one project (project), the key is to find good sales managers". He also looks for real estate and small hotel investment opportunities in Singapore.

He said: "They (large enterprises and state-owned enterprises) will not do small projects. Vanke and China Resources will go to see small projects".