Click to watch the interview video of Xie Jihua, Chairman of Yanjiang Co., Ltd.

In the past few years, through the drama, the small merchants used to cross the ancient times to become the empress. When they were addicted to it, they suddenly thought of a question: What should I do when I came to the aunt in ancient times? There was no sanitary napkin at that time! The small business has checked the information. It turned out that in ancient times, the sanitary napkin was a piece of cloth! Also clean and reuse! It's hard to imagine! In addition to the dirty, it is not hygienic, forget it, or stay in the modern society!

As a long-term need for women in their lifetime, sanitary napkins have also driven the development of an industrial chain. Today, Yanjiang Co., Ltd. (300658) sounded the listing bell on the Shenzhen Stock Exchange and became the first material in China's disposable hygiene products.

Recently, Panorama Business School interviewed Xie Jihua, the chairman of Yanjiang Co., Ltd., who led the family business to the capital market. Who can think of the brand, materials and performance of sanitary napkins as a shy boy who dared not buy sanitary napkins in the supermarket?

At first glance, Xie Jihua, he is very tall, has no shelf, his speech is very logical, and there is a unique sense of science and technology.

Science and technology male machine is a coincidence to make sanitary napkins

Xie Jihua graduated from Xiamen University with a major in polymer chemistry. He graduated from Donghua University with a degree in chemical fiber, specializing in plastics, fibers and nonwovens. After graduating, he went to a chemical fiber company as a process engineer, mainly engaged in the production and research and development of clothing materials such as polyester yarn.

Many people are curious, how can a boy be engaged in the sanitary napkin industry? Xie Jihua said that this is also a coincidence: one colleague said that his family wants to invest in a business and does not know what to do. Just the home of this colleague is in Anhai, Jinjiang. Here is the largest sanitary napkin company in China, Hengan Group. After deliberation, it decided to make sanitary napkins. Xie Jihua participated in the establishment of the factory and was in charge of production and R&D.

"I just started to make the sanitary napkin industry a little embarrassed, I dare not tell people about this matter. I remember when I went to the supermarket to buy sanitary napkins, I dare not go to checkout. I said to the sales colleagues, "You will sell the products in the future, you should Going to checkout, and hiding behind them." Xie Jihua said with a smile, "It was very shy at first, and then gradually got used to it. Most foreign sanitary napkin developers are also male."

“The boys are really not understood in this industry. At the time of the company, our salesmen went out to sell the products, and introduced the products to the customers. It’s so dry and comfortable.” Many customers are bosses, pushing them. Anxious, they will ask 'you have never used it, how do you know if it is good?'"

In 2000, Beschut also had a certain market position in the north. Xie Jihua was the deputy general manager here. However, at that time, the traffic was inconvenient. Beijing was more than 2,000 kilometers away from Xiamen. It was not easy to return to a home. Xie Jihua considered returning to Xiamen for development.

"I want to start my own business after I come back, but I don't want to be engaged in the sanitary napkin manufacturing industry because I will compete with Beschut. This is not very kind. What should I do?" Xie Jihua said, "I am a polymer professional. With the special material of the surface layer, I decided to set up a factory that provides the surface material for sanitary napkins. For more than ten years, we have a good relationship with the investors of Beschut, and Besut is now one of our main customers. ."

Open the board at mom's table

In 2000, under the auspices of his parents, his brother Xie Jiquan invested 100,000 yuan. His sisters Xie Yingqiu, Xie Shudong, his father and mother respectively invested 50,000 yuan. Xie Jihua invested 200,000 yuan in non-woven fabrics with a price of 200,000 yuan. Xiamen Yanjiang Industry and Trade Co., Ltd. (the predecessor of Yanjiang Co., Ltd.) was established under the family “Crowdfunding”.

“Company registration requires a cycle. In order to get the product to go into production as soon as possible, the company will set up the company to purchase raw materials, so it has the so-called capital contribution from the raw materials.” Xie Jihua explained.

Xie Jihua (right) and father Xie Daoping (middle), brother Xie Jiquan (left)

Xie Jihua also did the previous production and research and development of the old bank; his brother Xie Jiquan graduated from the papermaking profession and had relevant industry experience and was in charge of sales; Xie Jihua’s father was a mechanical engineer and could be a mechanical engineer; due to Xie Jihua’s reasons, the mother and sister were The towel industry knows more or less - so the company structure is built up like this.

"In the past few years, the company has been a few of us. We can open the shareholders' meeting, the board of directors, and the department manager at the mother's table." Xie Jihua said, "Our family is very harmonious and will not care about it. What are the issues? The discussion can lead to results and decide what to do."

At that time, the surface layer material of the perforated film was very popular, and the big companies that did well were foreign companies. There are also several manufacturers in China, but they buy foreign machinery and equipment, buy plastic film and reheat it, then use vacuum to punch holes.

The key point of the perforated film process is to vacuum the holes while the plastic film is being formed. Xie Jihua, who was born in Keban, had been exposed to plastic film technology. After more than a year of experimental research and development, he developed a vacuum suction hole technology. In the process of plastic film production, the vacuum was punched, and the two processes were combined into one.

Yanjiang Co., Ltd. hot air non-woven production process

The new process not only simplifies the process, reduces the cost, but also improves the product quality. It has been welcomed by the market and has become a supplier to customers such as Besut, Baiya and Shulai.

Xie Jihua has worked as a process engineer for polyester yarn. He draws on the advanced production management process of polyester yarn, strictly controls product production and guarantees product quality. “The top layer material is directly attached to the skin surface. All raw materials and formulas must be certified for safety. This is the most basic, ensuring that the safety is based on the customer's needs.” Xie Jihua said.

“We have established a complete quality control system. Anti-mosquito and anti-pollution measures are very strict. When customers come to the factory, they will squat on the ground to see if there is any gap in the factory. The production line is equipped with an online detection system, and the camera checks each product if there is any defect. The words will be detected, and then eliminated by the manual one by one."

In 2003, Yanjiang became a supplier of surface materials for Hengan. Until today, Hengan is still one of the top 5 customers of Yanjiang.

Recalling the days of starting a business, Xie Jihua said, "very hard": "At that time, there were no technical personnel, and everything had to be done by myself. Once there was a problem with the production equipment, I organized everyone to check. Although it was only 20 minutes away from home, I am three. I didn't go home for three days and nights."

Yanjiang stock production workshop

Hard work has not been in vain. In 2005, Yanjiang's PE perforated film has gained a reputation in the industry and entered the supply system of internationally renowned diaper manufacturers. The market for PE perforated film is in great demand. In 2009, Yanjiang’s operating income was over 100 million, making it an industry leader.

Entering the diaper industry

PE perforated film is mainly used in the fabric of sanitary napkins. The main feature is dry, but after all, it is a plastic film, not soft enough to have a plastic feeling. The non-woven fabric is very soft, but the liquid will stay between the fibers and will feel wet when used. “We want a best-of-breed solution: replace the plastic film with a non-woven fabric and use 3D punching technology to make the non-woven fabric dry.” Xie Jihua said.

In 2006, the company successfully developed 3D taper punching technology, and first introduced 3D perforated non-woven fabric, which has both dry and breathable properties and soft touch, and was first used on sanitary napkins.

"We usually see that the perforated non-woven fabric feels only one layer. In fact, there are several layers. This material is very thin, only about 20g per square meter. The 3D funnel-shaped small hole will be closed under pressure, so that the liquid can only enter "I don't know." Xie Jihua said, "Our future goal is to make the surface fabric look like a lotus leaf. The liquid does not stick to the surface, and the liquid leaks through the small hole, so as to achieve a more dry and faster penetration."

Yanjiang shares punching non-woven production process

With the increase in per capita disposable income and the shift in consumption and parenting concepts in China, and the liberalization of second-child births in recent years, the market for diapers is growing.

"Unlike sanitary napkins, the users of diapers are infants and young children. They can't complain. At first, mothers can only judge whether the diapers are good or not, and have not considered the comfort of the baby's buttocks. “Xie Jihua explained, “The skin of the baby is very sensitive. As the standard of living improves, the mothers are more and more critical about the diapers, not only dry but also soft.”

Judging from this market trend, Yanjiang shares recommended the perforated non-woven fabric to the partners, and recommended it on the diaper. In 2012, a world-renowned health care company began experimenting with perforated nonwovens as a topping material for use in high-end diapers. At the end of 2013, Hengan also began to use perforated non-woven fabrics on diapers.

The dry performance and soft touch of perforated non-woven fabrics have been recognized by consumers. More and more international famous brands and domestic famous brands of diapers use Yanjiang's perforated non-woven fabrics as diaper fabrics and base film composite non-woven fabrics. Cloth, perforated non-woven fabric gradually became the main product of Yanjiang Co., Ltd.: 2016, the proportion of perforated non-woven fabrics accounted for 67.11%, and PE perforated film accounted for 22.14%.

The 3D perforated non-woven technology pioneered by Yanjiang Co., Ltd. helped the company seize the market opportunity. From 2014 to 2016, the company's 3D perforated non-woven fabric sales revenue increased rapidly, 260 million yuan, 311 million yuan, 402 million yuan. Driven by perforated non-woven fabrics, the main business income of Yanjiang Co., Ltd. from 2014 to 2016 was 370 million, 465 million, and 599 million, with a compound annual growth rate of 27.34%.

Xiamen Yanjiang Co., Ltd.

On June 2, 2017, Yanjiang Co., Ltd. officially landed on the GEM. The IPO raised funds of 434 million were used for the perforated non-woven project with an annual output of 22,000 tons. Xie Jihua said, “There is still a lot of space in the Chinese diaper market. In the future, our development direction will focus on diapers.”

"Treading your own tofu"

In the past 17 years of entrepreneurship, two original research and development (PE perforated film and 3D perforated non-woven fabric) have brought development opportunities to Yanjiang. With continuous quality products, Yanjiang has formed a stable cooperative relationship with many domestic and foreign high-end brand customers.

The cooperation with major international brands also forced Yanjiang to grow rapidly. “Internationally renowned diaper manufacturers require Yanjiang’s various departments of the entire company to connect with their respective departments, which is the interface between the system and the system. This also requires us to have a sound department structure and formal management.” Xie Jihua said, “Big customers We review each year, not a single department, but the entire company. If the score is not met, we will cancel our supplier qualification."

Under the influence of major customers, Yanjiang has also established a complete operation team, research and development, product management, business, logistics... each team is connected with the corresponding department of the customer. “We have been learning from our customers, let the machine work automatically, let the gears and parts run automatically, and I don’t need to push it in person.” Xie Jihua said, “So, I am not particularly tired now, I have time to read the novel and do it. Exercise is relatively easy."

On June 2, 2017, Yanjiang shares listed on the Shenzhen Stock Exchange and officially landed on the GEM.

With the good cooperation relationship with leading international sanitary products companies, Yanjiang Co., Ltd. actively participates in the international market competition, and the proportion of product sales continues to increase. In 2016, the export proportion of the company's products reached 47.39%. In recent years, major international clients have begun to ask Yanjiang to support its overseas production base. In order to better serve its customers, Yanjiang also plans to expand its overseas sales.

“The company is getting bigger and bigger. We hope to find professional managers with multinational companies to manage the company. The operation mode and cultural background of private enterprises are different from those of multinational companies. What we need is to integrate into Yanjiang. The requirements for bringing change to the company are quite high."

Looking back on the road to entrepreneurship, Xie Jihua said that he only wanted to make the company work hard and did not think about going public. “In 2012, there was PE (Private Equity Investment) to find us and asked if we wanted to go public. I think if Yanjiang can do a good job at the same time, it will be good. It is good to be listed, of course, if we can’t get it. The work that will be done will continue."

"Someone asked me what is the secret of the company's listing. I think it is to do things in a down-to-earth manner, just like Ren Zhengfei said. If you seriously put the tofu on, and you get the product done, someone will buy it. And listing is a natural thing."