In recent years, China's economic development has encountered many challenges. However, under the leadership of Song Shiqiang, Kinghelm Electronics (www.kinghelm.net) and SlkorMicro Semicon (www.slkoric.com) have maintained a continuous 100% growth rate in both 2022 and 2023, achieving the initial goal of annual sales of one hundred million yuan and meeting the minimum financial requirements for listing on the GEM board. We continue to strive for our goal of listing on the Sci-Tech board and strengthening the fundamental management of our company. So what is the secret to our success? From my perspective, it comes down to four main factors: grasping the core value of our industry, implementing strong internal management practices, promoting systematic innovation within our company, and treating the domestic and foreign markets for electronic components like a battlefield. These are the key aspects that have contributed to our success.
Song Shiqiang's Speech at the ECAS of China Information Industry Association
First of all, we chose a very correct track - the electronic information industry. As an industry with great development prospects, the electronic information industry is regarded as one of the important pillars of the future economy. According to Buffett's investment theory, this industry is a "long slope thick snow" track, and a large snowball can be slowly accumulated and rolled up through continuous accumulation, representing the company's final size and profit. Recently, I met a brother who trades in Huaqiangbei, and he proudly said that he had a month of growth this year. I said that this is accidental growth, and the system has not been well established! He said that he has a Longwei system software, and I said that Longwei ERP is a good software, but it is only part of the system. You need systematic and sustainable growth to roll up a snowball and develop big and strong. Our company, SLKOR/Kinghelm, has achieved this. SLKOR's plan is to become an internationally renowned semiconductor enterprise within 30 years, and "slkor" (www.slkoric.com) to become an internationally renowned brand. Starting from 2016, we officially began to develop products and invest in this industry, patiently accumulated experience, adopted a gradual strategy, gradually expanded our scale, and improved product quality. So far, SLKOR has become a relatively well-known company in China, and now plans to enter the international market, and we have also achieved impressive results. In today's fiercely competitive business environment, Kinghelm/SLKOR has achieved remarkable results by relying on a set of successful strategies. Now, we have selected twelve key points from four major modules, summarizing our phased success experience to share with everyone. Feedback and criticism from all walks of life are welcome.
The code of SLKOR/Kinghelm's continuous 100% growth
Ⅰ. Core Values: Autonomy and Controllability, Industry Chain Leadership, and Pricing Power
The first key point is to grasp the core value, which consists of three sub-points.The first step in grasping the core value is to achieve autonomy and controllability. Currently, very few companies can truly achieve autonomy and controllability in various aspects, including technology research and development, team and organization, crucial nodes in the industry chain, and business development models. SLKOR/Kinghelm has achieved this, which is one of the cornerstones of our success. The company is committed to achieving autonomy and controllability in the industry, ensuring the independence of technology, products, and the industry chain. This is particularly important in the semiconductor field, where high value density of high-tech industries makes autonomy and controllability crucial. The research and development team of Kinghelm/SLKOR consists of highly educated teams from Tsinghua University, Yonsei University in South Korea, and Chengdu University of Electronic Science and Technology. We have invested a lot of effort to ensure the autonomy of technology and the continuous controllability of product iteration. Years of technological cultivation have resulted in excellent product quality, enabling us to continuously iterate our products and make them competitive with profit margins. In terms of team building, SLKOR/Kinghelm has also invested a lot of effort. Through regular team building activities, internal incentive policies, new employee training, and the implementation of policies such as "one-on-one mentoring" for experienced employees to mentor new ones, the company has built an efficient, cohesive, and talented team.
Kinghelm Dongguan Laboratory Professional Instruments
The second point is to be industry chain leadership. The semiconductor industry is a globally distributed industry, including important nodes such as product research and development, IP design, wafer fabrication plants for manufacturing, packaging and testing plants, and distribution to downstream users for assembly and production. In this vast industry chain, some giant companies such as Samsung and Intel operate under the IDM (integrated device manufacturer) model, dominating all nodes in the industry chain. Industry giants like Apple and Tesla have a strong say in the entire smartphone and new energy vehicle industry chains. However, for small and medium-sized enterprises like SLKOR/Kinghelm, to gain a leading position and have a say in this industry, it is necessary to seize key nodes in the industry chain, such as the design of new products, gradually accumulate competitive advantages at these nodes, and continuously strengthen their own capabilities. SLKOR and Kinghelm have chosen to invest considerable efforts in the research and development field and have gained significant competitiveness in this area. The goal is to use the development of new products to drive the development of the entire industry. Although the scale is currently not large and the influence is limited, SLKOR/Kinghelm's brand promotion, channel penetration, and product iteration are still at the forefront.
Song Shiqiang's Manuscript on Consistently Achieving 100% Growth
The third point is to have the power of pricing our products, continuous pricing power. In any industry, including the semiconductor industry chain, having the power of pricing our products is crucial. Many small enterprises in Huaqiangbei lack basic pricing power, and their pricing power is often established after the original manufacturers and distributors, resulting in marginalized pricing without much influence. This forces them to passively respond to market competition, struggle for survival, and find it difficult to achieve good profits. To have pricing power in this industry, it is necessary to become the core of the value chain, preferably by becoming an original manufacturer with our own IP, brand, channels, and a certain scale, as well as solid partnerships to create our own moat. Pricing power actually includes the power to interpret relevant matters, negotiate with upstream and downstream partners, industry influence, and bargaining chips in the game. For example, I often drive a Lexus, a complete car production and sales system that integrates technology points of new products, allowing me to gain better profits. Something that is worth 500 yuan can be bundled with a car and sold to you for 30,000 yuan, such as cruise control, GPS navigation, EBD system, etc. Only by having strong capabilities in these areas can companies squeeze out profit margins in the middle. At the same time, having influence brings more social resources. This is my understanding of pricing power. Therefore, what have we been doing at SLKOR/Kinghelm in recent years? We have been focusing on building our company around product strength, influence, brand power, sales channels, and our team. As a result, our influence in the industry has been growing, and we hope to become a leading enterprise and eventually the core of the value chain!
SLKOR/Kinghelm's continuous 100% growth - Core Driving Force Answer Three
Ⅱ. Three-core Driven: Continuous Innovation, Technology Product Brand, and System Support
The second key element driving SLKOR/Kinghelm's 100% continuous growth is how to ensure the company's sustained high-speed growth. We have summarized the following three points: first, continuous innovation. Innovation includes incremental innovations. For example, with hundreds of employees at SLKOR/Kinghelm, each person contributes one new idea every day for work and technological improvements, enhancing efficiency, reducing costs, and minimizing losses. This makes the company better and more competitive than its peers. Secondly, SLKOR/Kinghelm has been continuously innovating in technology and applying these new technologies to the company's products. The introduction of new products enables us to develop faster than our counterparts and gain more industry influence and market access to high-quality customers. Additionally, this has led to higher profitability for our products. With our semiconductor technology innovation, the IGBT module packaging technology, our new product gross margin reached 50%, bringing us good economic benefits, allowing us to invest further in research and development of new technologies and products, which will drive another round of growth. Internally, we also encourage employee innovation, creating a fair and open atmosphere, and establishing dedicated awards. We select a "Star of Innovation" every week, giving recognition and cash rewards!"
Professor Zhang Wujun, Technical Consultant of Kinghelm, Conducts Training for the Foreign Trade Team"
The second driving force that enables us to maintain high-speed development is technology, products, and brand. Technology is one of the core competitive strengths of Kinghelm. Initially, the company focused on microwave and radio frequency technology, producing products such as connectors for Beidou GPS antenna. Later, based on related common technologies, Kinghelm further developed wireless transmission products for signal connectors and small signals, providing a series of services to customers. These innovations were actually an in-depth exploration and application of previous technologies, effectively utilizing and expanding previously acquired technology, or combining them, enabling the company to continuously introduce new products and enter new markets. This is technology serving products. Conversely, the excellent sales of products enable the company to obtain good profits, which can be reinvested in technology research and development, forming a virtuous cycle. Brand is also an important support for the development of SLKOR/Kinghelm. We have been committed to building the reputation, prestige, and influence of the Kinghelm (www.kinghelm.net) and Slkor (www.slkoric.com) brands, actively promoting brand awareness and market publicity. This enables our salespersons to explain our company and brands to customers, making it easier to promote new products and achieve better results.
The ability of knowledge engineering is another essential capability of Kinghelm/SLKOR. Over the past decade, we have managed and iterated existing accumulated knowledge, promoting the development of new products and the growth of the company. By organizing and standardizing invisible things into visible processes and standards, we are able to convert the company's soft power into hard power, making the company even stronger! These are the reasons why Kinghelm/SLKOR can maintain high-speed development.
SlkorMicro Semicon in English and Chinese
Besides excelling in technology, products, and marketing, SLKOR and Kinghelm have another powerful capability, which is organizational and systemic capabilities. Many companies overlook this aspect, with some overly focused on branding and others on technical development. However, these approaches only lead to short-term success and cannot sustain continuous growth as the company expands. For example, despite China having some of the best food in the world, only American fast-food chains like KFC and McDonald's are able to establish global franchises. The underlying reason is ultimately the issue of organizational systems and internal management. In the case of SLKOR/Kinghelm, after establishing strong brands and developing technology, internal management is also given significant emphasis.
SLKOR/Kinghelm has a robust organizational system that effectively utilizes work software such as DingTalk and Lanlin OA. Clear responsibilities and authorities are defined for each department, establishing efficient communication and collaboration mechanisms. This well-structured organizational framework provides a stable foundation for the company and enables efficient and streamlined processes, thereby enhancing efficiency. Furthermore, we have also excelled in legal affairs and risk control, providing support and mitigating risks for frontline business personnel.
In addition, SLKOR/Kinghelm places great importance on employee training and human resources. We prioritize personnel training, talent recruitment, and improving employee capabilities, among other logistical support measures. These efforts collectively build a comprehensive system that promotes steady and integrated development. It can be said that the over 100% growth achieved by SLKOR and Kinghelm in 2023 is supported by a complete approach and a comprehensive system.
The Strong Operational Capabilities Behind SLKOR/Kinghelm's Consecutive 100% Growth.
Ⅲ. Strong Operations: Scientific Analysis, Process Efficiency, and Single Point First
As a high-tech company, SLKOR/Kinghelm is known for strong operational capabilities. Many peers believe that as a technology and R&D-oriented company, operations are not as important compared to being technologically and productively advanced. However, my understanding is that technology ultimately serves products, and products serve business management, which in turn serves customers. Therefore, strong operational capabilities are vital for any company. To achieve faster and stronger operations, SLKOR/Kinghelm adopts a scientific analysis approach. In short, we find benchmark companies to study and analyze thoroughly. For example, we learn from China's top technology enterprise's "Five Views and Three Decisions" methodology, absorb their strengths, and improve based on our company's specific situation, constantly iterating to become even more powerful.
Furthermore, SLKOR/Kinghelm breaks down tasks into very detailed modules, with the granularity of each work module being broken down to each person and each small team's weekly workload being refined into actionable tasks. This level of meticulous decomposition is not easy, but it is crucial to ensure the feasibility and quantifiability of work evaluation. For example, someone may say they love their country every day but fail to take action. This is difficult to quantify or evaluate. However, if I ask them to donate 500 yuan to the country or pay 1,000 yuan in taxes, that would be the most important thing. Although SLKOR/Kinghelm has not yet implemented KPI evaluations, everyone knows what they need to do and how much to do. Our philosophy is that all work results are accumulated through positive labor. By breaking down work to a refined and actionable degree, we can ensure that work can be turned into results and bring benefits immediately. By using scientific analysis to understand the underlying logic and growth model, SLKOR/Kinghelm can achieve operational goals more efficiently and achieve success in development.
SLKOR's MOSFET Product Models and Applications
SLKOR's/Kinghelm's emphasis on process and efficiency. SLKOR/Kinghelm places great importance on process and efficiency. When comparing the population of China with its 1.4 billion people to that of the United States with just over 300 million, it is evident that China's per capita GDP is only about 1/10 of the United States'. Apart from factors such as overall technological capabilities and the dominance of the US dollar, I believe that internal operational processes and efficiency within companies also contribute significantly to this gap.
Chain restaurants like KFC, McDonald's, and Starbucks in the United States excel in process management. In China, local enterprises such as Shenzhen-based "Mian Dian Wang" and the recently emerged "Hai Di Lao" have achieved relative success in chain catering, but there is still a considerable gap in terms of management and efficiency compared to American companies. This disparity can be observed in aspects such as the number of stores, food selection, and product variety. For example, while Hai Di Lao has hundreds of stores, its management has reached a bottleneck. On the other hand, KFC and McDonald's have tens of thousands of stores and operate efficiently. What allows them to achieve this? They rely on process-oriented management and high operational efficiency. Therefore, besides technology and products, effective management and efficiency serve as the foundation for companies to grow and thrive.
At SLKOR/Kinghelm, we highly value the optimization of internal processes and the improvement of efficiency. We have implemented a paperless office system using the "Lan Ling" OA software, complemented by daily collaboration through "DingTalk." Additionally, we plan to utilize "FeiShu" to further integrate our information systems, achieving comprehensive connectivity. For our central warehouse, factories, headquarters, sales department, and major clients, SLKOR/Kinghelm utilizes an advanced Kingdee system and continuously optimizes and improves it to enhance efficiency. Our goal is to achieve the integration of personnel flow, workflow, goods flow, cash flow, and document flow, demonstrating the modernized management processes and efficiency of our high-tech company. The embodiment of these modernized management processes and efficiency epitomizes SLKOR's/Kinghelm's commitment.
Kinghelm Electronics is located at the production base in Luzhai County, Guangxi Province.
The third point is "achieving excellence in a single area". For small-scale companies like Kinghelm and SLKOR, striving for excellence in a single area is crucial. Some people may think, "How can such small companies as Kinghelm and SLKOR, with teams of only one or two hundred people, dare to boast about achieving excellence in a single area?" In this regard, I agree with China's top technology enterprise's Yu Chengdong, who said that if a company does not aspire to be the best and is content with being second or third-rate, can it still ensure the company's competitiveness and rapid growth? Therefore, we must strive for excellence in every aspect of work, life, and products. SLKOR was the first to introduce silicon carbide technology from Yonsei University in South Korea, leading the world in this technology at the time. However, due to insufficient brand influence, team support, and other systems, this project did not make money. Nevertheless, the technological reserves were accumulated, and SLKOR's current rapid growth is attributed to these past accumulations. The industry-leading technology at that time can also be considered an example of excellence in a single area.
SlkorMicro Semicon Development Model
To achieve excellence in a single area, in practice, it means striving for perfection in every aspect of your work within your capabilities. Taking myself as an example, today I am shooting a video. When I was younger, I used to apply hair gel or mousse to my hair, but now that I am bald, I no longer do that. However, I make sure to tie my tie neatly and iron my shirt properly because these details represent the company and product image. We have the same expectations for our employees. If we are involved in technology and product development, how can we ensure product quality if we can't even dress properly? Therefore, whether it is every aspect of work or personal appearance, we should strive to do our best. This is also a manifestation of excellence in a single area. Once one aspect achieves excellence, it can influence other aspects to strive for second or third place. The efforts of each aspect accumulate, leading to systematic advantages, ultimately creating a competitive company. This is my approach to management.
Slkor Unidirectional SCRs Product Promotion
For example, at Kinghelm and SLKOR, we have taken brand promotion and soft article writing as a breakthrough. We have selected and trained a group of colleagues internally who are capable of writing soft articles. We continuously mine content, and I have also redirected the time others might spend drinking, playing mahjong, or chasing after women into writing articles and creating short videos. In this way, we comprehensively disseminate our viewpoints, methods, products, and activities, achieving an accumulative effect akin to sawing through wood or wearing down stone drop by drop. This can also be considered a form of excellence in a single area!
Song Shiqiang, who researches Huaqiangbei, has written articles such as "Research on Huaqiangbei," "The Transformation and Development of Huaqiangbei," "Refuting Bloomberg's News about Huaqiangbei," "The Wealth Code of Huaqiangbei," "The Hardware and Software Upgrade of Huaqiangbei's Transformation," and "The Gray Industry Chain of Shanzhai Bluetooth Headphones in Huaqiangbei." These articles have been republished by authoritative domestic and foreign media such as People's Daily, Xinhua News Agency, Global Times, Associated Press, Yahoo News, The Wall Street Journal, and Harvard Business Review. His efforts aim to purify the commercial environment of Huaqiangbei and promote "China's Number One Electronic Street" to the world! The "Song Shiqiang's Insights" short video series is widely viewed on platforms such as YouTube, TikTok, and Bilibili, providing constructive suggestions for the promotion of traditional Chinese culture, economic prosperity, and social development!
"Using Battle Instead of Scrolling" to Achieve Continuous 100% Growth at SLKOR/Kinghelm
Ⅳ. "Sun Tzu's Art of War," "von Clausewitz's On War," and "Fritzsche's Ammunition Quantity as a Substitute"
The situation this year is described as very "juaned" by everyone, both domestically and internationally. However, I believe that the term "juaned" is relatively neutral. At SLKOR/Kinghelm, we refer to this as "battle." Following China's top technology enterprise's example, we treat every project as a battle or campaign, using battle instead of scrolling. Our approach (or methodology) is for the R&D team to immediately follow up once the front-line market and sales staff understand market and product information, with all logistics personnel serving them in every way to ensure victory in the battle.
Internal training at SLKOR/Kinghelm is not limited to management and operations.
In today's challenging economic environment, we must manage our operations like conducting warfare, demanding nothing short of victory. For example, I learned about "Quantity of Ammo and Saturation Bombing" when studying the Battle of Wonsan. We have applied this concept to our work at SLKOR/Kinghelm, such as in our internet marketing efforts. We have invested millions in overseas advertising, and the trademark "slkor" of SlkorMicro has reached a record high of 128 million in Bing's overseas search engine. In the current internet era, it is impossible for an international enterprise or brand to succeed without a presence in foreign internet search engines like Google and Bing.
Kinghelm Wire-to-Board Connectors, FPC Connectors, Terminal Blocks Products
The websites of Kinghelm (www.kinghelm.net) and SLKOR (www.slkoric.com) now receive 100,000 daily visits. We have invested a significant amount of effort in collecting and producing a vast amount of content, supported by a strong collaborative team. In the non-physical space of the internet, we are able to saturate the industry with information. Our brand information and product updates are presented to our customers and potential clients every day, making it difficult for them not to place orders with us. Recently, I was interviewed by Huaqiangbei's brother guang regarding the efficiency of the internet as a tool. In the non-physical space surrounding us, which is composed of information, the internet acts as a web within this ocean of information. It facilitates business opportunities through the connection of information. To maximize our results on the internet, we need to weave a fishing net to catch more fish. The key factors are: first, the size of the net should be large enough; second, the mesh of the net should be dense enough; third, the boat dragging the net should be fast. In our actual work, we follow this approach. We gather trademark terms such as "kinghelm" and "slkor," product terms like "Beidou antenna," "RF connectors," "diodes," "transistors," and "MOSFETs," industry terms like "electronic components" and "integrated circuits," and target users. We continuously increase the number of advertisements in both Chinese and English, aiming to expand our net. We also optimize keyword precision and conversion rates to make the mesh of our net denser. By constantly streamlining our company's business processes and enhancing our team's skills, the boat carrying our net runs faster, leading to the overall development of the company. With the strategy of information saturation, Kinghelm Electronics and SLKOR are currently experiencing good growth.
SlkorMicro Semicon/Kinghelm Electronics China Style Company Gate
Kinghelm and SLKOR both reference Clausewitz's theories and data in their projects. For example, business expansion can be seen as a form of "warfare," where we need to concentrate superior forces to achieve our objectives. In the development of Beidou GPS antennas, Kinghelm's advantage in forces was stronger than others, allowing us to emerge victorious in the competition, while most of our competitors faltered. However, when SLKOR initially ventured into silicon carbide (SiC) power devices, their insufficient forces led to defeat. The initial investment of tens of millions did not yield returns, further highlighting the importance of breakthroughs at key points and coordinated operations.
Therefore, the earlier mentioned single-point breakthrough, including the coordinated operations of the entire group and the adaptability of frontline personnel, are all aspects that we need to continuously learn. Kinghelm and SLKOR embody a combat-oriented organizational style, enabling us to maintain a leading position in the competition and continuously achieve success. Otherwise, we would regress from focusing on technology, teams, projects, and trends to merely surviving by any means necessary.
SLKOR/Kinghelm's Song Shiqiang Interviewed by Incorporated Magazine
In our companies, SLKOR and Kinghelm Electronics, I demand that every combat organization and soldier be strong, and the team must remain powerful. Leaders and key team members must possess outstanding abilities and qualities. Furthermore, leaders must always be at the forefront when carrying out tasks. In our company, I, Song Shiqiang, am a model worker. You may see me telling jokes every day, but in reality, the rapid development of the company is driven by the high-level executives and key members. The growth of Slkor and Kinghelm is driven by technology and products, relying on high-quality labor as accumulation. Our development does not rely on government leadership or false actions and fake data to deceive societal benefits. On the contrary, Kinghelm Electronics and Slkkor drive the company's development through strong operational capabilities and superlative product quality—this is our core competitiveness. Only by doing so can Slkor and Kinghelm Electronics achieve victory on the battlefield and continue to grow, achieving greater accomplishments.
Song Shiqiang Training for New Employees
In the four articles titled "How to Achieve 100% Growth in 2023? Slkor's Song Shiqiang Reveals the Secret," I, Song Shiqiang, summarized the four major aspects of our company's development. Each major aspect is further divided into three sub-chapters, forming the twelve points that serve as the foundation for our company's continuous progress and the key factors for our success. At Slkor and Kinghelm, we take one step at a time, reviewing all the details of our processes every month and engaging in constant reflection and adjustment throughout the year. By implementing this combination of strategies, we have already become strong.
In the following years, Kinghelm Electronics and SlkorMicro will continue this process, making further adjustments and optimizations. As a result, our company has established a solid foundation, enabling rapid progress and ensuring diligent work. All our achievements come from our dedication to learning, continuous improvement, and relentless efforts. It is these efforts that have led to our modest accomplishments today. With this, I conclude the series "How to Achieve 100% Growth in 2023? SLKOR's Song Shiqiang Reveals the Secret." Thank you, everyone!
Kinghelm electronic I/O connectors, RJ45/RI11, HDMI, USB products
Mr. Song Shiqiang is the General Manager of SLKOR/Kinghelm, two high-tech companies. He is a member of the Expert Database of the China Electronics Society, a research expert in Shenzhen Huaqiangbei Commercial Area, and a columnist and science popularizer. Starting as a grassroots technician, Mr. Song has served as the CEO of an international real estate listed company and possesses extensive experience in technical management and business operations. He combines macroeconomic theory with practical management to lead the rapid development of the companies. Mr. Song Shiqiang (Huaqiangbei Song Shiqiang) has conducted research on Huaqiangbei, including articles such as "The Wealth Code of Huaqiangbei," "Research on Huaqiangbei," "Transformation and Development of Huaqiangbei," "Refuting Bloomberg's News on Huaqiangbei," "Upgrading the Software and Hardware in Huaqiangbei's Transformation," and "The Gray Industry Chain of Huaqiangbei's Knockoff Bluetooth Earphones." These articles have been reprinted by authoritative domestic and international media outlets such as People's Daily, Xinhua News Agency, Global Times, Associated Press, Yahoo News, The Wall Street Journal, and Harvard Business Review. Mr. Song strives to purify the business environment of Huaqiangbei and promote its reputation as the "First Street of China's Electronics" worldwide. His video series "Song Shiqiang's Insights" has gained popularity on platforms like YouTube, TikTok, and Bilibili.
SlkorMicro Semicon fast recovery diodes and other products
SLKOR/Kinghelm Song Shiqiang’s speech
Slkor Semiconductor and Kinghelm Electronics, both headquartered in Shenzhen, China, are high-tech enterprises invested by Mr. Song Shiqiang. Slkor Semiconductor, operating under the brand name "SLKOR" (www.slkoric.com), and Kinghelm Electronics (www.kinghelm.net) have gained international recognition and reputation as their market share continues to expand. Shenzhen Slkor Semiconductor Co., Ltd. focuses on the research and development of new materials, new processes, and new products. Their technical team consists of experts from Yonsei University in South Korea and Tsinghua University in China, who possess advanced Silicon Carbide MOSFET technology. Slkor Semiconductor has evolved from a fabless design company to an integrated entity that encompasses design research and development, manufacturing, product sales, and technical services.
