Why Da Yu Water-Saving Products Stand Out: An Investigation into the Popularity of Water-saving Drip Irrigation Products in the Market (2009-10-14 09:35:57) Source: Gansu Daily, Xinhua News Agency Gansu Channel. In August this year, Jiuquan City, known as the birthplace of flying celestial beings and the cradle of spaceflight, welcomed a group of special guests. Among them were leaders from the Ministry of Water Resources, local government officials, experts in water-saving technologies, and corporate executives responsible for producing water-saving products. They came from all over the country to Jiuquan, not to admire the graceful postures of ancient flying celestial beings in Dunhuang or to specifically experience the grandeur of the modern space city, but for one purpose only: to attend the eighth national micro-irrigation conference, to study and visit at Gansu Da Yu Water-Saving Co., Ltd. This article was actually finished long ago, having obtained the "true scriptures". The arrival of more than 500 people in Jiuquan was unexpected by the leaders of the Ministry of Water Resources and also left Gansu Da Yu Water-Saving Co., Ltd. overwhelmed with visitors. Director Wang Xiaodong of the Rural Water Conservancy Department of the Ministry of Water Resources said that the national micro-irrigation conference has been held eight times, and the number of participants this time is twice that of previous editions, making it an unprecedentedly grand event.
Walking into the modern production workshop of Da Yu Water-Saving Co., Ltd., the representatives praised the eight production lines for drip irrigation pipes (belts) with world-leading technology. Director Wang Xiaodong mentioned in his opening speech at the eighth national micro-irrigation conference: "I arrived here two days ago, and on the afternoon of the same day, I visited Da Yu Water-Saving Co., Ltd., where we received a lesson. The comprehensive technical strength of Da Yu Water-Saving Co., Ltd. is comparable to Israel's, leading nationwide. Last year, the company's output value was about 2 billion yuan, and this year it will exceed 2.6 billion yuan, exporting to more than twenty countries. After hearing this, I felt very pleased, truly feeling that the trip was worthwhile and rewarding."
Not only the leaders and experts, but also the peers in the industry were greatly impressed by Da Yu Water-Saving's water-saving drip irrigation demonstration projects and praised the company's overall strength.
One of the projects undertaken by Gansu Da Yu Water-Saving Co., Ltd. is the micro-sprinkler irrigation project at the Qianmu edible fungus base in Xidong Town, Suzhou District, Jiuquan City. After the implementation of the project, the temperature and humidity in the greenhouses were effectively controlled, the survival rate of fungal strains improved, the quality of mushrooms improved, farmers' income increased, achieving the purposes of water saving, land saving, and yield increase, with significant economic benefits. The town mayor of Xidong introduced that each square meter of the Qianmu edible fungus base in Xidong Town can produce 10 kilograms of high-quality double-spore mushrooms. Selling at 5 yuan per kilogram, a 400-square-meter greenhouse can earn more than 20,000 yuan, and most mushroom greenhouses can recover their investment in the same year they are built, showing very promising economic benefits. After completion, the park can produce 2.78 million kilograms of fresh mushrooms annually, generating sales revenue of 12.4 million yuan, with the average net income from edible fungus planting reaching 830 yuan per farmer.
The drip irrigation project of Gansu Xiagheqing Industrial Co., Ltd. is another project undertaken by Gansu Da Yu Water-Saving Co., Ltd., with a total investment of 71 million yuan. To date, 48 drip irrigation wells have been built, controlling an average area of 479.2 mu per well. The main economic crops planted include hops, potatoes, onions, cotton, tomatoes, and peppers. Technicians from Xiagheqing Industrial Co., Ltd. introduced to the representatives that after the implementation of the drip irrigation project, the uniformity of irrigation and fertilizer utilization has significantly improved, water-saving effects are noticeable, machinery and labor power have been saved, labor intensity has decreased, arable land area has effectively expanded, soil in the tillage layer has been improved, yields have increased, and product quality has improved; pest and disease control has achieved zero breakthroughs, water and fertilizer savings range from 40% to 52%, and cost-effectiveness per acre has increased by 419.36 yuan. For example, after implementing drip irrigation for hops, the average yield per acre (dry flowers) reached 320 kg, with a maximum of 338 kg, and α-acid content increased by 1%. Cotton grew uniformly, had higher boll setting rates, heavier individual bolls, generally increasing production by 20%, and low-yield fields by 25%, with better maturity, fiber length, fiber uniformity, and appearance gloss.
In fact, among the projects undertaken by Da Yu Water-Saving Co., Ltd., such highly beneficial projects for farmers and farms are just the tip of the iceberg. Chairman Wang Dong told reporters that so far, the company has successfully completed over 200 major water-saving irrigation projects, including the Xinjiang Water-saving Irrigation Project, Shihe River Basin Drip Irrigation Project, Lun Tai Water-saving Irrigation Project, Key Governance Project of Shihe River Basin Ring River Irrigation Area Water-saving Renovation Project, Medium-sized Ma Ying River Irrigation Area Comprehensive Agricultural Development Water-saving Supporting Renovation Project, Jiuquan City Su Zhou District 2007 Japanese Yen Loan Desertification Control Drip Irrigation Project, Dunhuang Party River Irrigation Area Continued Supporting and Water-saving Renovation North Main Canal Project, Sino-German Financial Cooperation Project Ying Ji Sha County Drip Irrigation Infrastructure Construction Project, Xinjiang Yi Li Nan An Gan Qu Cha County Self-flow Irrigation Area Project, Xinjiang Tomato Ground Drip Irrigation Project, Japanese Association Bo Le City Water Conservancy Bureau Cotton Drip Irrigation Project, etc. The company has cumulatively completed construction of water-saving irrigation projects covering over 2 million mu. In the细分 market of drip irrigation systems within the water-saving irrigation industry, the company's market share reaches 20%, ranking second nationwide. Its market share in the Hexi Corridor region is even dominant.
With the implementation of a series of water-saving projects, Da Yu’s reputation has grown increasingly prominent, and its products have gained recognition from an increasing number of users. Da Yu has become renowned both domestically and internationally, with orders pouring in like snowflakes towards Da Yu Water-Saving Co., Ltd.
In Xinjiang, local residents, seeing the enormous benefits, specially come to the company to place orders. In the bidding processes for major projects such as the Shiyang River Basin governance project, the Jiuquan one-million-mu water-saving demonstration project, and others, the company, with its strong comprehensive strength, outperformed competitors and won the bids. In 2008, the company's total assets reached 340 million yuan, and its comprehensive benefit indicators ranked among the top in the domestic industry. Its products serve water-saving farmland covering over 2 million mu domestically and are exported to over 20 countries and regions including South Korea, Thailand, South Africa, Australia, and India. In the first half of this year, the company signed new sales and engineering contract orders worth 160 million yuan, generated operating revenue of 120 million yuan, and realized taxes and profits of 16 million yuan.
Guided by the spirit of Da Yu managing floods, the company develops Da Yu’s water-saving endeavors. Under the leadership of Chairman Wang Dong, Da Yu people carefully studied and interpreted the spirit of national water-saving policies, analyzed international trends in micro-irrigation technology development, established a strategic mindset of starting from a high point, taking internationally advanced mainstream technology of embedded patch-type drip irrigation pipes (belts) as the core, aiming to produce mid-to-high-end complementary, serialized micro-irrigation products, relying tightly on technological innovation, seizing opportunities provided by national policies and project constructions, committing to promoting the development of China's water-saving irrigation industry, striving to create an industry-leading enterprise with advanced concepts and excellent performance, and achieving remarkable economic and social benefits.
From a small factory developing into today's first professional water-saving irrigation listed company domestically. Why does the company's product stand out in the market? What is the secret behind the company's rapid development? Chairman Wang Dong said that talent cultivation, innovation construction, and new technology product research and development are the main secrets to the company's success.
At Da Yu Water-Saving Company, through the integration and training of domestic and international talents, a high-level technical team and a group proficient in technology, capable of development, and skilled in management have been formed. The company has successively recruited over 280 graduates and mid-to-senior level technical managers from all over the country, sent over 80 employees abroad for training, among whom 8 have obtained master's degrees and MBAs from Tsinghua University and Lanzhou University. Currently, the company has over 275 professionals, accounting for more than 40% of the total number of employees, including 18 senior titles, 127 intermediate titles, and 130 assistant and entry-level professional technicians; there are 2 master's degree holders, 86 bachelor's degree holders, and 187 college diploma holders. Through the diffusion and publicity of talents, technology, achievements, and products, the company has established its image, expanded its influence, and created a good environmental atmosphere.
Accelerated the construction of innovation projects. Since the establishment of the provincial enterprise technology center in 2003, the company has consistently included R&D funds in the annual financial budget, investing over 10 million yuan, constructing a 2,800 square meter R&D center building, completing computer network system integration and local area network system construction, installing OA collaborative office systems and firewall devices; establishing six laboratories, two pilot workshops, four pilot production lines, and a 200-acre test base. Meanwhile, actively collaborating with renowned domestic and international research institutions to jointly build innovation carriers, implement strategic cooperation, and undertake the National 863 Program "Research on Underground Drip Irrigation Products and Systems" project in collaboration with the Chinese Academy of Agricultural Sciences Irrigation Institute, China Agricultural University, Northwest Forestry University, etc.; sincerely inviting the China Institute of Water Resources and Hydropower Research and the Ministry of Water Resources Science and Technology Promotion Center and other research institutions to invest and join the "Da Yu Water-Saving" strategic alliance, establishing a R&D entity based on science and technology with asset ties.
Accelerated the development of high-tech products. In recent years, the demand for filtration and fertilization equipment among domestic users has started to increase, harboring huge potential and broad market prospects. Therefore, the company, with "embedded patch-type drip irrigation pipe (belt)" as the core, actively guides the company's R&D work to deepen and broaden product development, extending vertically to vigorously develop extended layer products, accelerating the industrialization process of high-cost-performance, high-quality drip irrigation pipe (belt) products, and developing "pressure-compensating", "buried", "low-pressure thin-walled" drip irrigation belts and other series products; expanding horizontally to expand the company's product market, developing sand, mesh, stacked disc, centrifugal, combined filters and fertilization, medication, automatic control system complementary products, breaking the monopoly of foreign technology products in the Chinese market, providing high-quality and inexpensive drip irrigation products for a wide range of farmers, gradually forming a complete set of series products and industrial development patterns with Da Yu's own characteristics. So far, the company has independently owned 26 patents, including 1 invention patent, 25 utility model patents, identified 5 achievements, and 3 key new national products, winning the title of famous trademark in Gansu Province, well-known product in Gansu Province, and national water-saving product certification certificate. Entering thousands of households' fields, Da Yu's drip irrigation water-saving products have been widely welcomed by consumers due to their rich variety, excellent quality, and perfect service, establishing the Da Yu brand image and gaining reputation in domestic and international markets.
Enterprise growth and expansion is an eternal theme. To achieve this, Da Yu Water-Saving Company continuously expands production capacity and accelerates equipment and technology updates. The company has invested hundreds of millions of yuan, purchasing eight world-class imported advanced drip irrigation pipe (belt) production lines, 24 sets of matching injection molding machines, ten UPVC pipe material production lines, and eight PE pipe material production lines. In the first half of this year, the company also purchased a batch of advanced and cost-effective production equipment from some shut-down or bankrupt enterprises in the coastal and central regions, including newly purchased six injection molding machines ranging from 1000 tons to 280 tons, already possessing the conditions to produce injection-molded accessories such as fertilizers and filters, achieving the goal of doubling production capacity within the year, with annual plastic production and processing capacity increasing from 8000 tons to 16000 tons; the company's main business will also gradually expand from the original single pipe material production line to five categories of nearly 1000 varieties, including drippers, drip irrigation belts, fertilizers, filters, water conveyance pipe materials and fittings, realizing the target of 90% self-research, self-design, and complementary production of agricultural drip irrigation products, forming a "one-stop" service pattern of science, industry, trade, and production, supply, and sales.
Looking forward to the company's future prospects, the people of Da Yu are full of confidence. Chairman Wang Dong said that the state has given good policy support for the development of water-saving irrigation industries. In our province of Gansu alone, the investment scale of water-saving industry construction over the next 3-5 years has exceeded 10 billion yuan, including the comprehensive management project of the Shiyang River in Gansu Province, the 400,000-mu water-saving irrigation project in the Dunhuang Oasis, the one-million-mu water-saving project in Jiuquan City, and the comprehensive management project of the Hei River Basin, presenting unprecedented opportunities for Da Yu Water-Saving Company. After the company's successful listing this year, greater efforts will be made to lead the company's development with technology, comprehensively improve the company's technical level, develop high-tech, high-value-added products, accelerate the commercialization of the company's high-tech achievements, thereby accelerating the company's growth and expansion, while giving back more to society and making new and greater contributions to the development of water-saving irrigation industries in Gansu and even nationwide. (Reported by Zhang Gewen)
Da Yu Water-Saving: Can the advantage of replacing similar products be sustained?
According to public data, Da Yu Water-Saving's (300021) drip irrigation technology is at an advanced level domestically. The company is one of the few companies in China that first introduced and early achieved the domestication of embedded patch-type drip irrigation tapes. The produced embedded patch-type turbulent pressure-compensating dripper and drip irrigation tape, embedded patch-type underground drip irrigation pipe have received national patents. The self-developed DY-D type hydraulic piston stacked disc self-cleaning filter device fills the gap of no domestic equipment in drip irrigation filtration systems. In 2007, the company was listed as a key national high-tech enterprise under the Torch Program and is the only company in the drip irrigation field undertaking the National 863 Program.
According to Wang Guangmin, the board secretary of Da Yu Water-Saving, the international water-saving industry mainly started early and has leading technology in Israel (large-scale agricultural irrigation) and the United States (urban landscaping irrigation). Da Yu Water-Saving absorbed and transformed Israeli technology since 1999, starting at a high level, and after nearly 10 years of development, it is currently the most advanced domestic water-saving technology company.
Wang Guangmin stated that there are more than 500 domestic PVC pipe manufacturing companies and about 20 companies producing complete sets of water-saving engineering dedicated equipment, but only 2-3 companies are on a large scale. Da Yu Water-Saving adopts a "product + project" model, gradually becoming a specialized water-saving irrigation engineering system supplier integrating the R&D, manufacturing, sales of water-saving irrigation materials with the design, construction, and service of water-saving irrigation projects since 2003. In the segmented market of domestic drip irrigation systems, the company's market share exceeds 20%, over 80% in Gansu Province, and over 30% in Xinjiang Province, second only to Tianye Water-Saving (0840.HK), surpassing Beijing Green Source Plastic Union Company, Yangling Qin Chuan Water-Saving Irrigation Equipment Engineering Co., Ltd., and Gansu Risheng·Amite High-Tech Agriculture Co., Ltd.
Among mature water-saving irrigation technologies such as channel irrigation, pipeline irrigation, micro-irrigation, and sprinkler irrigation, micro-irrigation represented by drip irrigation systems has the highest technical content and the best water-saving effect, being the mainstream and direction of global irrigation water-saving technology development. Currently, the domestic drip irrigation market is transitioning from single-wing labyrinth edge-seam drip irrigation tapes to embedded flat dripper drip irrigation tapes (embedded patch-type drip irrigation tapes) and pressure-compensating drip irrigation tapes. Drip irrigation products represented by Xinjiang Tianye (600075) Water-Saving, characterized by single-wing labyrinth edge-seam drip irrigation tapes, have low technical content, poor drip uniformity, short laying lengths (not exceeding 60 meters), and difficulty in improving product quality, facing challenges from embedded flat dripper drip irrigation tapes and other types of drip irrigation tapes, showing a trend of being replaced by embedded flat dripper drip irrigation tapes (embedded patch-type drip irrigation tapes) and pressure-compensating drip irrigation tapes.
Wang Guangmin indicated that some of Da Yu Water-Saving's products can replace similar products from Tianye Water-Saving, showing partial replacement signs in recent years. However, Da Yu Water-Saving's drip irrigation tape selling price is higher than Xinjiang Tianye Water-Saving's similar products, with the latter priced at 1.4-1.5 cents per meter, while Da Yu Water-Saving is around 2 cents. By June 30, 2009, the company had cumulatively completed the construction of water-saving irrigation projects covering over 2 million mu and completed or ongoing large-scale water-saving irrigation projects numbering over 400. Recently, at the end of September and beginning of October, Da Yu Water-Saving secured a 105,000-mu drip irrigation project in a county in Inner Mongolia.
[2010-12-13] Da Yu Water-Saving (300021): Can the Advantage of Replacing Similar Products Be Sustained?
■Investor Report
In the early 21st century, the wave of state-owned enterprise reform was intense, and the bundling of state assets to private individuals was not uncommon. However, the blatant undervaluation purchase of state assets by Da Yu Water-Saving (300021) is still quite shocking. And combining institutional reform with "deception" of international aid projects in such a tight manner may only be possible for Da Yu Water-Saving.
Reform suspected of state asset loss
Unlike many Growth Enterprise Market companies that rented office spaces before going public, despite being located in the relatively less wealthy Jiuquan City, Da Yu Water-Saving had its own independent office building and workshop several years before going public, and the office building was rather luxurious in terms of design and decoration.
This is a company spun off from a state-owned enterprise and closely related to the government. Tracing back to the history of Da Yu Water-Saving, one cannot help but mention the Jiuquan Regional Water-Saving Irrigation Materials Factory. In October 1999, the Jiuquan Regional Economic and Trade Commission approved the establishment of the Jiuquan Regional Water-Saving Irrigation Materials Factory as a fully state-owned enterprise, with registered capital of 4.9 million yuan.
Wang Dong ultimately