Zhengwei International and Huawei have many similarities. They are both Fortune 500 companies, they also insist on not going public, and they also have ambitions in the semiconductor field.
Many people don’t know Zhengwei International, but the title of this company is very gorgeous.
In 2021, Zhengwei International's turnover exceeded 720 billion yuan, ranking 76th in the world's top 500 enterprises in 2022, , , 4th in the top 500 private enterprises in China, 6th in the top 500 manufacturing enterprises in China, and 2nd in the top 500 private enterprises in China. What exactly does such a powerful company do?
Zhengwei International was registered and established in Hong Kong in 1997, and its production base was moved to Shenzhen in 1998. After fifteen years of development, Zhengwei International has become a global group company dominated by the complete industrial chains of two major industries: non-ferrous metals and semiconductors. Its main business includes non-ferrous metals, semiconductors, high-tech materials, Hanyu/rouvewood/landscape industries, etc.
Zhengwei International also has many industrial parks in all provinces in China, such as Jiangxi Ganzhou Metal New Materials Industrial Park, Gansu Lanzhou New District Zhengwei Electronic Information Industrial Park, Zhengwei Hunan Miluo Recycling Resources Industrial Base, Guizhou International Commodity Trading Center , Henan Luoyang Metal Trading Center, Anqing Hanyu Industrial Park, etc.
Zhengwei International's original main business was in the non-ferrous metals industry chain, and its founder Wang Wenyin is committed to building a copper empire. Nonferrous metals are important strategic materials that are non-renewable. With the increase in global scarce resources consumption, the scarcity of non-ferrous metals will become increasingly serious.
Zhengwei International founder Wang Wenyin
For this reason, Wang Wenyin began to plan to purchase mineral resources around the world very early.
Since 2003, Zhengwei International has successively purchased a large amount of mineral resources in Jiangxi, Yunnan, Inner Mongolia, Qinghai, Anhui, and abroad in Australia, Africa, America and other places.
After buying mineral resources, they need to be mined, smelted, and deep processing before they can enter the market. Zhengwei International first built an 800-acre copper, tungsten ore mining, smelting and deep processing industrial park in Ganzhou, Jiangxi, thus entering the upstream mining, smelting and smelting fields in these two major industries.
By 2008, Zhengwei International invested 3 billion yuan in Tongling, Anhui, and built a 250,000-ton precision copper rod project, realizing a one-stop industrial chain from fine copper sand to copper rods.
So far, the world's most complete "from stone to plug" copper industry chain integrating mining, development and smelting, copper rod processing, deep cable processing, and copper material trade has been built.
Zhengwei International also has a certain industrial position in the semiconductor field.
Everyone knows that the main element in making chips is silicon, and sand is the main raw material of silicon elements. It is not an exaggeration to say that it is made of sand to make chips.
Zhengwei International "digs" from the beginning and later entered the semiconductor industry chain, which is natural.
In August 2018, Zhengwei International and Shandong Guohui Investment excitedly signed an investment cooperation agreement and established a joint venture with a total investment of approximately 15 billion yuan in the first phase, focusing on semiconductor packaging and testing plants and packaging and testing technology R&D centers, polarizers, copper-based new materials, deep-sea equipment manufacturing, commodity trading center and other projects.
According to public interview information, Wang Wenyin, founder of Zhengwei International, aims to start from "sand", expand upward to electronic materials and equipment, and extend downward to system design and electronic machine manufacturing, and finally form a semiconductor industry cluster with chip design, wafer manufacturing, packaging and testing, and whole machine products as the core.
In other words, Zhengwei International wants to be involved in the entire semiconductor industry chain, and its ambitions are not small. At present, when China's semiconductor industry is under superpower sanctions, it is very difficult to achieve this ambition, but it is precisely this difficult time that such ambitious practical workers are needed.
Although Zhengwei International is very ambitious, there are many things worth criticizing, such as the profit is very low.
According to Zhengwei International's financial statements in 2020, Zhengwei International's total revenue exceeded 700 billion yuan, but its net profit was only US$1.8517 billion, while Huawei's net profit that year was as high as US$9.9 billion.
Low profit means that Zhengwei International's technical R&D strength is relatively weak and cannot produce high value-added output. In order to further develop, what Zhengwei International needs is to increase scientific research efforts and produce more high-value-added products.
Currently, Zhengwei International has more than 5,000 patented technologies. As a super company with annual revenue of more than 700 billion yuan, such patents are not enough. The most direct withdrawal of cash is the low salary level of employees. Currently, there are many discussions about Zhengwei International on the Internet that the employee's salary level is low. If you want to increase your scientific research efforts, the most important thing is to improve the treatment of scientific researchers. Huawei has long set an example in this regard.
In short, Zhengwei International is a very excellent private enterprise with a huge scale, deep cultivation in manufacturing, extensive business, and the founder is also ambitious, but the company's scientific research level and employee treatment still need to be improved. If Zhengwei International further strengthens its scientific research strength, the future growth space will still be limitless.
