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Innovation is the Eternal Theme of Enterprise’s Development
Views:9333   Time:2017-07-22

Innovation is an unique cognitive ability and practical ability of human beings. It is a high-level manifestation of human subjective initiative, an inexhaustible motive force for promoting national progress and social development.If a nation wants to stand at the forefront of the times, it will always have innovative thinking and not stop innovation at all.For a company wants to develop continuously and steadily, it must encompassthinking innovation, management innovation, quality innovation, and scientific research innovation.When General Secretary Xi inspected Jilin Northeast Industrial Group two years ago, he said that innovation is the source of power for enterprises. Quality is the foundation of the company. Management is the foundation of the company's survival. We must grasp innovation, quality and management, and always take the initiative in the market competition.

Innovation is the only way into a big company——Jeffrey (management master)

Chifeng Jilong Gold Mining Co., Ltd. (referred to as Chifeng Gold) is entering the ranks of the twelve major gold groupsfrom an ordinary private enterprisein the process of innovation.

Chifeng Gold is a listed company on the Shanghai Stock Exchange’s A-share main board with its stock code 600988.In the past five years since its listing, Chifeng Gold has grown from the initial single gold mining to today’s two major businesses of gold mining and comprehensive recycling of resources. The main products are gold, silver, antimony, palladium rhodium and other rare metals. Operating income from the initial public offering of 574 million yuan in 2012 to 2.112 billion yuan in 2016; with total assets from 506 million yuan to 3.845 billion yuan at the end of 2016, this is not only a pile of numbers, but also an imprint of innovation and hard work. .


Before the listing of Chifeng Gold,Mr. Zhao Meiguang (the founder of Chifeng Gold) always thought about a question. Where is the development direction of private enterprises?He believes that the key is to get rid of the development model of traditional private enterprises, and adhere to standardized operations and independent innovation, establish their own brands, and corporate listing is a good way to achieve this goal. At the beginning of the preparation for the listing, Mr. Zhao Meiguang hired professional managers to jointly design the company’s listing target and overall plan, created the prototype of Chifeng Gold, clarified the corporate governance structure, established and improved more than 100 internal control systems. After more than a year of hard-working, in July 2012, it successfully passed the audit of the China Securities Regulatory Commission and successfully achieved a backdoor listing.

After the company’s successful listing, it has done so much work in exploration and storage, technological transformation, technological innovation, safety and environmental protection, standard management, corporate culture, employee training, social responsibility, etc., thatthe enterprises have entered the track of standardization and institutionalization.Every step of the company’s progress, as well as every achievement, embody the hard work and wisdom of all employees, and reflect innovation everywhere.

Innovation is a concrete tool for entrepreneurs, a means by which they use change as an opportunity to create a new industry and a new service.......Entrepreneurs need to consciously look for sources of innovation and look for signs of change and signs that indicate opportunities for successful innovation. They also need to understand the principles of successful innovation and apply them——Peter Drucker (the father of modern management).

In the five years after the listing, Chifeng Gold has innovated in many jobs.Thinking innovation—broaden the development ideas, determine the development strategy of the company’s gold mining and resource comprehensive recycling and utilization of two-wheel drive. Management mechanism innovation—enterprises that develop from extensive management to intensive management and further to fine management, implemented annual production and operation objectives, responsibility, to form an unique management system with a more standardized enterprise management.The construction of talent team innovation—employing professional managers with high salaries, completely separating the ownership and management rights of the company, giving full play to the subjective initiative of the management layer, designing salary standards according to different positions, and fully mobilizing the enthusiasm of all employees. Corporate culture innovation—established a corporate culture concept with “Chijin” culture as its main content. The company has applied for registration of 21 “Chijin” and “Chiyin” text and graphic trademarks in the National Trademark Office, which can be used in 46 categories in five categories.

At work, the management of Chifeng Gold fully realized that the production technology and scientific research innovation are the top priority in the developing of enterprises.In the production organization, in addition to the production plan, on-site production, and basic management, it also should mobilize the enthusiasm of professional and technical personnel fully, and give full play to their ingenuity to promote the improvement of production technology.

First, establish employee innovation concept. Chifeng Gold specifically integrates scientific research and innovation concepts into production technology, site management, civilized production, safety and environmental protection etc. All employees are required to form a consensus. Putting forward rational proposal, the small reform as well as the improvement process are all types of innovation. The innovation is reflected in the specific work of each item, so that all employees have a new understanding of innovation.

Second, improve the knowledge level of professional technicians and managers continuously. Chifeng Gold pays great attention to the on-the-job training of professional technicians and managers. Taking the approach of coming in and going out by hiring the universities’ professors to teach, and selecting professional technicians to study at the university, to participates in relevant summits organized in the industry, and cooperating with scientific research institutions to hold special academic seminars and other forms to promote the improvement of professional technicians and managers’ innovation capabilities.

Third, improve the salary of professional and technical personnel. Adhere to the people-oriented principle and establish a talent management concept of “retaining people with high salary and emotions”. The salary of Chifeng Gold professional technicians is generally higher than that of general management personnel. At the same time, the super-production award is also designed for the professional technicians who made outstanding contributions in prospecting and storage.

The only advantage of sustainable competition comes from the ability to innovate beyond competitors—James Morse (the world famous management expert)

In addition to encompassing resouces, the key to the survival and development of gold mines to have advanced production technology.Those who owns the resources and advanced production technology own the competitive capital. At present, the pressure on environmental protection faced by gold mining companies is growing. If they want to survive, the ability of scientific research and innovation will become more and more important.

Innovation is more than a concept, a system, but more importantly, it must have the ability of innovation. Being equipped with innovation capability will increase the core competitiveness of the company.Chifeng Gold has taken the following measures in the cultivation of scientific research and innovation capabilities.

First, increase investment in research funding. Research funds are mainly used to improve the processes, prospecting, storage, equipment transformation, and participation in industry research projects, etc. Since 2011, the company has invested a total of 892 million yuan to rebuild and expand the expansion of three gold mines, with a production capacity of 1,600 tons per day. The recovery rate has gotten greatly improved through the adjustment of selecting minerals and by updating and eliminating backward production processes and equipment.

Subsidiary Jilong Mining has successively built a tailings filter press workshop, and two new single-layer thickeners with a diameter of 24 meters which was successfully tested once, effectively improving the metal recovery rate.The tailings denitrification treatment was applied to the cyanide workshop of the concentrator to achieve zero discharge of sewage.After the acquisition of Wulong Gold in 2013, the former concentrating plant was built using some of the original equipment, and a second expansion was carried out. A new flotation system was added to improve the processing capacity and economic benefits of the processing capability and economic profit on the mineral-seperation day.

Second, promote the transformation of scientific research results into productivity. Five years after the listing of Chifeng Gold, a number of technical personnel with strong business capabilities and high professional skills have been selected to take up professional technical management positions. So the company’s research and innovation capabilities have been strengthened, and scientific research results have directly transferred into productivity and turned into economic benefits.

From 2015 to 2016, Chifeng Gold has won two scientific research awards from the China Gold Association and the National Committee of the China Machine Metallurgy Building Materials Trade Union, the “First Prize of Science and Technology Achievements of the First-line Staff of China Gold System” and the “Science and Technology Award” issued by the China Gold Association”. Only one subsidiary of Xiongfeng Technology has achieved two scientific research results in 2016. The project of Micro-arsenic and Polymetallic Complex Materials for Microwave Arsenic Removal and High Value Utilization successfully passed the evaluation of the results of the Provincial Science and Technology Department. And the project of Production of High Purity Nano-cerium Oxide by Magnetic Mirror Arc Furnace successfully declared the technology innovation fund for small and medium-sized enterprises. In addition, it has successfully obtained a national invention patent, applied for an invention patent and a utility model project together with the Changsha Nonferrous Design Institute. The application of these scientific research results to production practices will help to improve the economic benefits of Chifeng Gold.

Third, strengthen cooperation with scientific research institutions. In order to further strengthen scientific research, Chifeng Gold has cooperated with a number of scientific research institutions such as the Institute of Geology and Geophysics of the Chinese Academy of Sciences, the Changchun Gold Research Institute and the Tianjin Institute of Geology of Sinosteel, providing technical support to carry out geological scientific research, prospecting and exploration as well as spur the amount of resources. In the first half of 2017, Chifeng Gold cooperated with gold research institutions to jointly solve the problem of replacing other cyanide preparations with cyanide preparations.

“No innovation means perish” is the lesson learned by Ford’s founder Henry Ford in the 1970s when Ford was on the verge of bankruptcy.It can be seen that innovation is so important to a country, a nation, and a company.Chifeng Gold has gone through seven years of history since it was reorganized and successfully listed.Especially in the five years after the listing, the abundantresearch results, the constant improvement of the research and innovation capabilities support the vigorous development of enterprises.



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