Business integrity as the foundation - the way to success for Chen Zhiming

by dianxin8 on 2011-04-16 09:55:00

In our company, management is the Western way of management, but our approach to dealing with the world remains the Eastern way, and the ideas, opinions, and practices are all Chinese methods. We strive to integrate the two different secrets of success, leveraging strengths while avoiding weaknesses, utilizing them in the process of business growth. We happily adopt the Western approach to service and the Chinese approach to being a person. What is the Chinese approach? It means valuing integrity and emphasizing emotions during the process of doing business. Perhaps it is precisely because of this that our company has always received everyone's support, allowing us to conduct business smoothly. Additionally, we believe that Hakka merchants possess a spirit: happiness, diligence, and not easily giving up. This secret to success must have had a certain influence on us. To succeed in business, one must have an unwavering spirit.

In our memories, our grandparents and father each had strong ties to their hometown. For example, during the Bandung Conference period, to ensure the tranquility of the Chinese delegation members, the Hakkas' community association in Bandung initiated a movement where overseas Chinese lent their homes for the Chinese delegation to reside in. Our grandparents and father together voluntarily lent their residence to some members of the Chinese delegation, sparing no effort to protect their compatriots. Moreover, in 1987, when diplomatic relations between China and Indonesia had not yet been normalized, my father secretly traveled from Indonesia to Macau via a roundabout route to avoid direct visa issues, then returned home from Macau. Later, he repeatedly donated funds to support cultural, educational, and medical causes in his hometown. In response to these patriotic actions by our ancestors and parents, we descendants have been subtly influenced and deeply inspired.

Our grandfather went to Indonesia at the beginning of the 20th century and focused on cassava flour and local specialty trading. The entire history of massacres against overseas Chinese in Nanyang (Southeast Asia) is a history of blood and tears! When he first arrived in Indonesia, our grandfather pooled capital with fellow villagers to start businesses, opening a small grocery store and selling pork, gradually building his business step by step. Later, as he ventured into the cassava flour trade, it became even harder. He would travel to small workshops in remote villages to purchase cassava flour that had been preliminarily processed, then further refine it himself, grinding it into powder, and finally carrying it on his shoulders to sell at central markets. These small workshops were located in remote villages, requiring him to traverse mountains and rivers, relying solely on his hands and feet to work hard!

The family business reached a new height in our father’s generation. Under his leadership, they operated a tapioca starch factory, port, and import-export trade, importing chemical materials and petroleum products extensively, which were well-received in the Indonesian market as well as in Singapore and Thailand.

I was born in Bandung in 1957 and started helping my father with the business in 1976, just before I turned 20, having just graduated from high school in Singapore. At the time, I really wanted to attend university, but as the eldest son, with three younger brothers and a sister still in school, my father needed me to return and help him manage the business, so I had no reason to refuse. At that time, Indonesia was implementing a five-year economic development plan, vigorously promoting industrialization among enterprises. Many companies began setting up large factories in Indonesia, necessitating a great deal of chemical materials. Our chemical materials trade was perfectly timed, growing alongside the national economy and reform direction, expanding rapidly. My father couldn't handle it alone and needed my help.

During my father's era in the petrochemical trade, we imported drum-packed chemical materials and resold them to various factories. The cost of drum-packed materials was relatively high, and the profit margin was slim. As Indonesia's domestic demand for chemical materials continued to grow, in 1982, I seized the opportunity, partnering with a buddy from Singapore and a major Japanese company. We began importing bulk chemical materials from Japan, equipped our own port, purchased tanker trucks, filled drums with bulk materials, and resold them to factories, reducing costs and achieving greater profits. My father started the chemical materials trade in 1972, and by 1982, after establishing our port and importing bulk materials, within ten years, I had expanded the family business significantly, discovering the key to success. Therefore, 1982 was a crucial turning point in my entrepreneurial journey.

From 1989 to 1992, over three years, we successively invested in and established three factories for ink, fabric coating, and plastic dyeing, diversifying our business and taking our first step in manufacturing. In 1996, we also invested in constructing a chemical solvent factory, gradually developing into a comprehensive factory that consumes various chemical materials. Subsequently, we also engaged in export trade with China, Thailand, Singapore, Malaysia, and the Philippines. Today, we have our own ports and storage tanks in these five countries.

Perhaps due to the integration of Chinese and Western approaches, the Hakka merchants in Nanyang have changed significantly compared to the past: in the past, Hakka families mostly engaged in small businesses like grocery stores, being rather conservative and cautious. However, modern Hakka families have broadened their horizons and are brave in innovation. In recent years, some Hakka merchants have seen their businesses grow significantly and have become very successful in Southeast Asia, daring to venture into large-scale industries such as manufacturing, banking, and shipping companies.

We've actually been cooperating with Japanese companies for a while. Initially, our chemical materials were imported from Singapore, but the materials from Singapore originally came from Japan. Later, we bypassed Singapore and traded directly with Japan, simplifying many costs. Now, to partner with Japanese companies in developing port storage tanks, the most challenging part was gaining their trust. At the time, I was young, only in my early thirties. They investigated me thoroughly from various aspects. Thanks to my detailed and honorable business practices, despite my youth, I eventually earned their trust, leading our company to achieve new leaps in development.

Throughout the company's operations, I have always believed that the most critical secret to success is honor. The most important aspect in doing business is maintaining integrity. In my entrepreneurial journey, the hardest period was when we first partnered with Japanese companies in 1982. Japan's economy and technology were very strong in the 1980s. At that time, to develop port storage tanks, we needed both Japanese capital and technology. However, Japanese companies have their own principles. If they don't trust you or lack confidence in you, they won't do business with you. Therefore, we had to show them our integrity and make them feel that we were reliable, so they would support us.

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