Reform and rectification quality and efficiency improvement
Sailing to the future with three-wheel drive
Call of the times | Painstaking entrepreneurship
In January 1988, China’s reform and opening up policy has won support among the people. In particular, the publication of the speeches made by Deng Xiaoping, chief architect of the reform, such as “encouraging some areas and some people to become well-off first and then bring along others so as to achieve common prosperity ultimately” and “looking to the future”, aroused strong emotions in the 26-year-old Chen Jinshi. The rise of the individual economy and the private economy constantly inspired Chen Jinshi, a young man who wanted to do something. He started to raise funds and organized and built a team in response to the call of the times and the arrival of historical opportunities. On Feb. 18, Chen Jinshi led Lu Jianzhong and Song Jianshi to Shandong on the second day of Lunar New Year to discuss business of projects and set up temporary buildings. On Feb. 23, the seventh day of Lunar New Year, a team of 28 people, along with RMB5,000, which was all they had, started off from Changle, Haimen, to Dongying, Shandong, embarking on a hard road to entrepreneurship.
Recruitment of a team
In January 1988, in order to recruit a team, Chen Jinshi braved the weather to communicate with potential members from door to door. Only 28 people arrived when the team set off, comparing to the original 70 after communication.
Yanxinke Building of Dongying Shengli Oilfield
In February 1988, Zhongnan undertook the project of Yanxinke Building of Dongying Shengli Oilfield, which was the first project undertaken by Zhongnan, a labor subcontracting plaster work. With the completion of the project with assured quality and quantity, Zhongnan began its construction business.
Farrington Hotel (Weifang)
In July 1992, the company undertook the construction of Farrington Hotel (Weifang), which had a construction area of 45,000 square meters. It was the first joint venture double-contracting project since the establishment of the company, having a milestone significance in the development history of Zhongnan. From then on, the company has entered the development stage of independent market-featured and large-scale operation.
Establishing rules and regulations and standardizing operations
With the publication of Deng Xiaoping’s speech on the southern tour, the state vigorously promoted the pace of reform and opening up, and emerging companies were established one after another. Taking advantage of this historical opportunity, Zhongnan gradually opened up the market and developed its team, entering the rapid development period for the first time, when Chen Jinshi began to seek breakthroughs in the management. In 1993, Zhongnan established 132 rules and regulations for the first time at the staff meeting held in Weihai, marking the company’s exploration and experimentation on institutionalization and standardized management, and laying a solid foundation for future healthy development.
Yincheng Building in Qingdao
In 1993, Zhongnan undertook the construction of Yincheng Building in Qingdao, which had a total construction area of 35,000 square meters and a height of 33 stories. It was the first general contracting high-rise project of the company since its establishment, marking Zhongnan’s leap to a new height.
Jinguang Building in Qingdao
In 1994, Zhongnan undertook the construction of Jinguang Building in Qingdao, which was a general contracting (substantial) project of the company and a milestone project in the company’s construction of substantial projects.
In 1997, Zhongnan Group and Qingdao Jianxing Rongchang Real Estate Co., Ltd. jointly developed Zhongrong Building, the first real estate cooperation project, marking Zhongnan’s official entry into the real estate sector.
Forging ahead with determination, breaking the ice and moving forward
As the team of Zhongnan continued to grow, the business continued to increase, but there were problems with the project payment. Some construction units and partners owed money or refused to pay even if they had money, putting tremendous pressure on Zhongnan’s development. In 1998, while the real estate industry gradually emerged, Zhongnan was facing a situation in which large amounts of funds from external cooperation units were not credited into the account. In order to change the situation and enable the company to develop better, after some mental struggles, Chen Jinshi decided to develop real estate. However, some of the management of the company were easily to be content, standing still and refusing to make progress, and being opposed to the business of real estate development. Chen Jinshi stood his ground and decisively entered the real estate sector.
In 1998, the company grew gradually and achieved moderate success, but Chen Jinshi did not rest content with the status quo. He led several executives to Beijing to unify their thoughts and make a pledge on the Great Wall, which became a turning point in the development history of Zhongnan. Subsequently, Zhongnan successfully developed the construction market in Beijing.
Zhongnan Apartment in Qingdao
From October 2002 to October 2003, Zhongnan independently invested RMB10 million to develop Zhongnan Apartment in Qingdao, which covered a construction area of 38,000 square meters. This was the third real estate project of Zhongnan, which accumulated experience and laid foundation for Zhongnan’s development in the real estate sector.
As the fifth-generation office building of Zhongnan was put into use in 2003, the modern management of Zhongnan Group ushered in a new beginning. Through continuous practice, study, summarization and exploration, Zhongnan has clearly defined the development ideas of “organic integration of industrialization and diversification” and “organic combination of industrial operation and capital management”, acquired Nantong general contracting company and successfully acquired Goldflow Universal (Tianjin) Decoration Co., Ltd. and Beijing Urban Construction Metro Foundation Municipal Engineering Co., Ltd., forming a management structure of collaborative development of diversified industries and two-tier group management.
Zhongnan Building (the 5th-generation HQ)
On Sept. 28, 2003, Zhongnan Group held the inauguration ceremony for its office building. As the fifth-generation intelligent office building was put into use, Zhongnan’s management has been upgraded, providing a guarantee for the growth and strengthening of Zhongnan.
On Feb. 4, 2005, Zhongnan won the general contracting project of the core area of the new city of Nantong, which had a total construction area of about 2.5 million square meters (including CBD, Sports and Exhibition Center, and Huacheng) and was planned to build the first CBD project in the Chinese real estate industry with general systematic planning and overall operation and development. Zhongnan’s real estate business ushered in the era of a broader market.
Reform and rectification, quality and efficiency improvement
In 2008, the real estate market experienced a cliff-type decline, bringing a huge impact on Zhongnan’s main business, and triggering the fourth development bottleneck to the company. Without transformation and upgrade, the company might fall into the abyss. In order to change the situation, from July 9 to 17, 2008, the company held a 9-day “Seminar on Reform and Rectification and Strategy” in Jinggangshan, which was participated by middle- and high-level managers, and identified the year 2008 as Zhongnan’s “Management Reform Year”, thus sounding the clarion call for three years of reform and rectification.
Listing of Zhongnan
On July 15, 2009, Zhongnan Group was successfully listed on the Shenzhen Stock Exchange. Zhongnan Group, which has successfully entered the capital market, has become even more powerful and embarked on a broader development path.
NPC Promotion Conference
On Sept. 25, 2010, Zhongnan Group (NPC) Promotion Conference was held at its headquarters in Haimen, Jiangsu. More than 300 representatives from construction companies from all over the country attended the conference. The conference showcased the developments and achievements of Zhongnan’s NPC industry, and CCTV, Xinhuanet and dozens of media from various provinces and cities reported on the conference.
Sailing to the future with three-wheel drive
Culture is the soul of the enterprise. In order to rectify the team and work style, as well as to build a high-quality team that fully recognizes the culture of Zhongnan and has professional norms, tenacious style and united efforts, Zhongnan held a 12-day reform and rectification meeting in Xibaipo from Sept. 30 to Oct. 10, 2013. At the Binhai meeting held in November 2015, Zhongnan proposed new reform initiatives and development strategies such as “institutionalized, standardized and procedural reform”, “three-wheel drive”, “collaborative development of six sectors” and “linkage of seven resources”, and adjusted the strategic layout by focusing the real estate business in first- and second-tier cities and upgrading products to medium and high-end boutiques, so as to create a new industry chain and ecosystem of Zhongnan. In August 2016, Zhongnan held a press conference in Shanghai, releasing its “13th Five-Year” strategy. Subsequently, Zoina Land moved to Shanghai, the layout shifted from the third- and fourth-tier cities to the first- and second-tier cities, and the sales doubled. In 2017, the company jumped to the top 20 real estate companies in China.
New HQ base of Zhongnan Group (the 6th-generation HQ)
On Sept. 26, 2014, the office building of the new HQ base of Zhongnan Group was put into use, officially opening a new chapter of the grand blueprint of Zhongnan, i.e. based on China, making global layout, expanding overseas markets, integrating with the international first-class level, and becoming an excellent company loved by employees, admired by peers, respected by the society and with evergreen foundation.
Panshi New Energy
On June 9, 2017, Jiangsu Panshi New Energy Development Co., Ltd., a subsidiary of Zhongnan Group, was successfully listed on NEEQ in Beijing (Panshi New Energy, Stock Code: 871460), marking the landing of Zhongnan’s another important industrial sector in the capital market.