Boshen's strategic transformation is getting better

The Boshen tool (15.79, 0.32, 2.07%), which has been adhering to the steady development, has not been willing to start the reform journey after the listing, and the strategic transformation drama is getting better.

On October 27, 2010, Boshen Tools Co., Ltd. (hereinafter referred to as “Boshen Tools”) submitted a “stable” quarterly report. The company achieved a total operating income of 320 million yuan, a year-on-year increase of 20.62%; The net profit of shareholders of listed companies was 50.423 million yuan, a year-on-year increase of 27.68%; the realized earnings per share was 0.29 yuan.

The Boshen tool, which landed on the Shenzhen SME board on August 21, 2009, has maintained a stable style. Li Yanmin, CFO of Boshen Tools, admitted in an exclusive interview with the Chief Financial Officer magazine at the headquarters of Shijiazhuang that the listing of Boshen Tools is also considered to be “five years of hard work,” but this listing process is, to some extent, our company's finance. The process of taking it to the next level.” Li Yanmin said that the Boshen tool, which is actively pursuing a second venture, is full of confidence in the future.

Second venture
At present, Boshen Tools is conducting a second venture. “Our founder as a shareholder has all retreated to the background. Now all the company’s executives are professional managers fully authorized by the board of directors. The second venture is a professional manager who is starting a business.” According to Li Yanmin, just from well-known A group of professional executives introduced by enterprises are full of hope for the "second venture".

Founded in 1994, Boshen Tools is a high-tech enterprise specializing in R&D, production and sales of diamond tools, power tools and alloy tool products. It has two wholly-owned subsidiaries, Boshen and Singapore. Although Boshen tools have been firmly established in the industry, the pace of development has not stopped, so Boshen tools have not yet reached the point of monopoly market share. Li Yanmin said modestly that the company is still in its infancy and needs to accumulate.

“Because the market capacity of diamonds is very limited, we have extended the series of products around diamonds.” Li Yanmin explained that it mainly extends in two directions, firstly to expand market products, such as power tools related to the diamond market; Technology-related products, such as PCD tools, etc., "In May of this year, we acquired a 60% stake in Shanghai Pu Rui, held by Germany's Prewi for 600,000 euros. The products mainly include PCD tools and profiled tools. ”

At this time, Li Yanmin is immersed in the company's second venture. "We are different from the executives of other companies, we have to give life to private enterprises." And the employees of Boshen Tools also do, they join Bo Deep tools, in addition to material rewards, are more important to regard this place as a place to accumulate experience and enhance the wealth of skills. "Give you steel, cement and other construction equipment. Finally, whether you are building a villa or a rough house, you must look at your own accumulation. "The financial team led by Li Yanmin is highly responsible for things. For this reason, she cited a case of daily work. "For example, I will attend an important meeting tomorrow morning. At noon today, I deployed employees to collect some materials, but it would have ended at 5 o'clock." The meeting was postponed until 7 o'clock. It was originally possible to leave after 5 o'clock, but they would never leave when the work was not completed accurately. Instead, after I finished the meeting, I personally sent the information to me. In fact, they all have mine. E-mail, according to common sense, just send it to my mailbox."

However, this huge picture of the company's strategic shift can be painted by the new executives? In the face of the reporter's inquiry, Li Yanmin decisively gave the answer: Let time come to witness.

Li Yanmin said that she has always believed that "stable" can make a great company. "There are often investors who ask me how to understand the stock price and the next work plan." With the principle of "seeking truth from facts", she admits that "hype" can be in the short term. Drive stock prices up, but in the long run, it is still necessary to rely on solid performance to support stock price increases. "So every time I answer, I will continue to operate steadily."

Talking about this, Li Yan is sensitive to the fact that investors are not particularly familiar with the tools of Boshen. However, she is not discouraged, but rather quite confident. "After decades of development, we rely on our own research and development to produce products that are not inferior to any company. We are strategically engaged in the second venture of strategic transformation, and we have a very strong execution team in tactics. What we need to do now is to give in-depth feedback to the investors about these situations.” Then she concluded that in-depth communication with investors is just like the performance of Boshen Tools. “I believe that time will be objective, A fair assessment."

ERP

Prior to joining Boshen Tools, Li Yanmin was engaged in financial consulting work at an accounting firm in Beijing. In 2004, Boshen Tools was ready to go public, which became Li Yanmin's customer. It was in the constant communication between the two parties. Li Yanmin, who is very optimistic about the company's development, joined Boshen Tools in 2006 and led Boshen Tools to become the main purpose of her company. one. On August 21, 2009, Boshen Tools successfully listed on the Shenzhen Stock Exchange, opening at $17.01 per share.

Boshen’s legal structure is very simple. There are 40 natural person shareholders and 2 overseas wholly-owned subsidiaries. There is no illegal or infringing behavior. The CSRC will announce the final prospectus from the meeting to the final, mainly focusing on the financial management of the Boshen tool. Review. “Bo Shen’s listing process has been well received by the China Securities Regulatory Commission. This is the result of the company’s accumulated years of development, but a role that must not be overlooked is from the full launch of the ERP system.”

After joining the Boshen tool, in order to prepare for the listing and better support the company's decision-making, Li Yanmin decided to re-engineer the financial. In 2004, Boshen Tools officially introduced the ERP system. In 2007, the first and second phases of the project were successfully launched. In 2008, ERP was all launched, and the whole process of computer management for R&D, sales, production, procurement and finance was realized.

“The ERP system covers all the business of production, supply, sales, storage and finance. It rationalizes the relationship between various business departments, optimizes and solidifies the main business processes, improves work efficiency and quality, and enables the company's overall response capability. Significant improvement, basically achieve the unification of logistics, capital flow and information flow." Li Yanmin believes that ERP system plays an important role in the modernization of enterprise management, of course, the completion of such an arduous project is not a cold day. Li Yanmin admits that the promotion of ERP construction is undoubtedly a "revolution", and the most complicated and difficult change is the transformation of the concept of organization and personnel. “When the pyramidal organizational structure is replaced by a flattened service organization, when personalized management is replaced by standardized services, some functions in the original organization and process will have some balance of interests. These difficulties are not easy to detect. But it does exist and is a big challenge."

However, the benefits of ERP are also obvious. First and foremost. After owning the ERP system, the quantity of inventory, the cumulative quantity and amount of daily shipments, the cumulative production quantity and amount of the day, etc., can only provide one total quantity, and it takes three to four days to complete the calculation. Now apply the ERP system report. These data can be obtained in a few minutes, not only accurate, but also can be refined to specific product categories, even individual products, "this is good for dealers, payments, etc. It can also be easily compared with historical data, business Decision-making has played a very good supporting role.” Li Yanmin also said that this kind of rapid change will bring financial functions to the financial staff, and to some extent, they will affect some of their original ideas.

Secondly, through the implementation of the ERP project, the “gradual carry-over cost reduction method” is used to calculate the actual production cost of the product (this method requires a large amount of data record accumulation, and the calculation method is detailed and accurate, and cannot be realized by manpower). The cost is closer to reality. “Multi-dimensional analysis of product costs through a large number of cost analysis reports makes it easy to monitor product costs.

Again, the ERP system is not only accurate and detailed, but also has a complete time record. By analyzing and collating these data, combined with the company's assessment indicators, Boshen Tools has established a scientific and comprehensive performance system and has been effectively operated.

In-depth management
As the CEO "eyes and ears", Li Yanmin has been very successful in transforming from financial to managing the company's management business. Li Yanmin described management as “being a detective” and needed to be fastened. She once knew the company's products with more than 100 parts and components, from depreciation to performance. "Only by familiarizing with this process, we can understand every link and do better business. Finance is the blood of the company. It must be circulated to every thread of the company. As the company's CFO, my hand must also reach the company. Every corner, in order to support the company's decision-making."

The cautious attitude of “needle-punching” is indispensable. “For example, talking about a sales model innovation, I will speak with specific numbers, where does the innovation of sales model start, why do we want to innovate, whether there is data to support this kind of innovative decision, how to innovate, and where to draw conclusions. How much growth will be brought about after the change of sales model, and where will it grow? If it is because of the increase in control costs, then where does cost control come from, whether it controls the price of raw materials or other aspects, etc. The chain pattern of a ring is like analysing the "mathematical equation". It is not a sloppy one.

Li Yanmin said that this is also the difference between doing business finance and doing financial affairs in accounting firms. “Doing business needs to continue to deepen, deepen, and deepen! Analyze problems, feedback problems, and finally solve problems and alert them.” She added that if you want to evacuate a dealer in Boshen, you must produce enough data. To support this decision, "turn on the dealer's operating records for the last five years, and see through the data whether these dealers have average sales or too much inventory every year." She even laughed, this is a process of skinning, finishing the data. After that, we will also combine all aspects of the company, feedback to the leadership, and solve the problem. If you are in an accounting firm, just find the problem according to the standard, then it will come to an abrupt end. Li Yanmin deeply felt that she had experienced a change from painful adaptation to ease of enjoyment. Now the company has just recruited a deputy director of finance, and is also an accounting firm. Li Yanmin said that he may be in a more painful transition stage. “My advice is to maintain an optimistic attitude and a positive attitude.”

 

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