, February 12th (Shao Wanyun, Zhongxin Finance and Economics) Shanshan Holdings issued an obituary on the 11th. Zheng Yonggang, the founder of Shanshan Enterprises and the chairman of the board of directors of Shanshan Holdings, died on February 10th due to a sudden heart attack. At the age of 65.

screenshot of obituary

  Just on January 12 this year, Zheng Yonggang also presided over the 2023 annual economic work conference of Shanshan Enterprise.

In the content published on the website of Shanshan Enterprises, Zheng Yonggang, who once built "China's first clothing stock", mentioned more fields such as lithium battery new energy materials and optical display materials.

  How did this well-known Zhejiang businessman turn a garment factory on the verge of bankruptcy into a technology group in more than 30 years?

The story also begins with Ningbo Yonggang Garment General Factory.

"China's first clothing stock"

  Shanshan's starting point was a local state-owned garment factory.

  In May 1989, Zheng Yonggang was appointed as the director of Ningbo Yonggang Garment General Factory.

According to media reports, the state of the garment factory at the time was "insolvent, with a yearly loss of more than 10 million yuan."

  After investigation and visits, Zheng Yonggang found that although Yonggang Garment Factory is the most advanced in the world in terms of equipment and technology, it has suffered continuous losses because there is no market for its products.

  Faced with such a "mess", Zheng Yonggang's "prescription" is to change the business philosophy and strategy, and everything will be carried out according to the market economy model.

He also pulled out the banner of "creating the first brand of Chinese suits" in the factory.

  In order to promote the brand, Zheng Yonggang once borrowed 60,000 yuan to do TV commercials, making "Shanshan suits, don't be too chic" a well-known slogan at the time.

  It is said that in order to let consumers know that Shanshan suits are not deformed by washing, there are two washing machines in front of Shanshan Clothing Store, and Shanshan suits are churning inside. When the dehydrated and wrinkled suits are shaken by the staff , The onlookers were convinced.

  In fact, in 1990, the second year after Zheng Yonggang took over as the factory director, Shanshan suits were put on the shelves of ten exclusive stores on Nanjing Road and Huaihai Road in Shanghai, setting off a buying frenzy.

  In 1996, Shanshan became the first listed company in China's garment industry.

According to the website of Shanshan Enterprises, by 1997, Shanshan Clothing and Shanshan brand "reached an unprecedented development peak", and the market share of suits reached 37.4%.

  Then, in 1998, Shanshan’s headquarters moved to Pudong, Shanghai; in 1999, Shanshan carried out the reform of franchising according to the international optimal marketing model, formed a marketing network with franchisees as the main body, and opened exclusive stores in major cities in China. Mainstream shopping malls have opened exclusive stores, reaching more than 2,000.

"11 out of 10 people say I'm crazy"

  When the clothing industry was booming, Zheng Yonggang made a shocking prediction: Shanshan, who made clothing, was "dying soon."

  Zheng Yonggang later said, "I want to find the next industry with explosive growth potential. When I entered the lithium battery material industry, 11 out of 10 people said I was crazy, but entrepreneurs are not ordinary people. Entrepreneurs look at the future. .”

Screenshot of Shanshan Enterprise website

  After Shanshan headquarters moved to Shanghai in 1999, under the leadership of Zheng Yonggang, Shanshan successfully implemented diversified development.

In this year, Shanghai Shanshan Technology Co., Ltd. was established, and Shanshan successfully realized its march into high technology.

  "The era of relying on clothing to make money has passed." In Zheng Yonggang's view, "If I was making clothing 30 years ago and I was still making clothing 30 years later, I would have been 'dead' long ago."

  However, the road to transformation was not all smooth sailing. At the beginning, Shanshan did not make any money in new energy for a long time, relying entirely on the support of the group, but Zheng Yonggang calmed down.

A few years later, Shanshan's high-tech segment ushered in explosive growth, with annual profits leaping from one million to one billion, becoming the main profit point of listed companies.

  The outlet project was once an important engine for Shanshan's development.

Later, Shanshan Group sold 100% of the shares of Shanshan Commercial Group to Vipshop for 2.9 billion yuan.

  "Many people feel that it is a pity to sell outlets. I think they should be sold. In addition, other assets that have nothing to do with new energy are also being sold. Human energy is limited. We just want to focus on new energy. Focus on the main business.” Zheng Yonggang explained in an interview with the media in 2019.

  According to media statistics, from 1999 to 2019, that is, the first 20 years of Shanshan’s business transformation, the company’s stock price has only increased by 4 times.

It wasn't until around 2020, with the maturity of China's power battery industry chain and the outbreak of the new energy vehicle market, that Zheng Yonggang and Shanshan, who had been practicing in the industry for 20 years, stood under the bright light of business and capital markets.

"If you can't be number one, you'd rather quit"

  In recent years, Shanshan Group has continued to develop in the new energy industry.

In 2014, the annual shipment of Hunan Shanshan Cathode exceeded 12,000 tons.

In 2015, the 35,000-ton negative electrode material production base of Shanghai Shanshan Technology in Ningbo was officially started; Baotou Graphene Research Institute and Yunshan Smart New Energy Vehicle Operation Service were established.

In 2016, Shanshan Energy was successfully listed on the new third board, and the Ningxia base officially started...

  Zheng Yonggang once said, "Global lithium batteries look at China, and Chinese lithium batteries look at Shanshan. If you can't be the first, you would rather quit."

Data map.

Zheng Yonggang participated in the program.

  According to Shanshan’s corporate website, Shanshan’s lithium battery technology research and development is in the leading position in the world. At present, Shanshan has 3 national high-tech enterprises (negative electrode, positive electrode, electrolyte) and 2 national enterprise technology centers (negative electrode, positive electrode) , 1 provincial enterprise technology center (electrolyte), 2 postdoctoral workstations, participated in the formulation of national standards, and has more than 400 technical patents.

  According to public reports, Zheng Yonggang resigned from the chairmanship of Shanshan in 2007 and returned at the end of 2020; then in February 2021, he led Shanshan to cross the border again, spending more than 5 billion yuan to successfully acquire the South Korean company LG Chem. Polarizer business, thus becoming the world's largest and technology-leading polarizer manufacturer.

  Zheng Yonggang said, "This time the transformation is passive, and it is more to follow the law of industrial cycle development, hoping to make Shanshan shares more vigorous vitality."

  According to reports, in the "2022 Hurun Global Rich List" released by the Hurun Research Institute in March 2022, Zheng Yonggang ranked 1864th with a net worth of 12.5 billion yuan.

  Looking back at Zheng Yonggang's business journey, the key word "transformation" runs through it all.

  He once said that his success was due to his ability to "cross the river by touching the stones" in the context of reform and opening up.

He also said frankly, "True entrepreneurs still have to have feelings, and they still have to have energy in their bones." (End)