Xu Ming is a person of free style. He likes going out solitarily. Sometimes even his secretary does not know where he goes. His mobile phone was powered off on 25 Oct 2001 and journalists kept on calling him. At the moment when his phone was powered on, our journalist successfully reached him and asked him for an interview. Xu Ming happily promised and our journalist fled to Dalian at once.

<The 21st Economy Report>: <Forbes> said your assets hit USD240 million ranking the 18th place. You are the youngest billionaire under 30 in China? Do you agree?

Xu Ming said, “Thank you very much. You are the first one to tell me about this. I haven't heard about it before. I am shocked by the investigation ability of <Forbes>. They've never come to our office before and nobody has interviewed me about this. How can they estimate so correctly the net assets? I really appreciate their ability”.

<The 21st Economy Report>: And how are your undertakings and assets distributed?

Xu Ming said, “Shide's undertakings include building materials, petrochemical, home appliances, sports and insurance industries, etc. seven items in total. The key industry is the chemical building materials including profiles, sheets and pipes. For profiles, we target to hit 1,000,000 tons with an approximate sales revenue of RMB¥10.7 billion. In addition, the other two key projects are Sidelong heaters and 500,000 tons of PVC petrochemical project. Of course football is the most famous industry”.

<The 21st Economy Report>: It is said that you started your business in Dalian with six books. What was your initial plan? Have you ever thought that you would one day make so many accomplishments before?

Xu Ming said, “Some media have mentioned it before. I come from Zhuanghe, Actually I came to Dalian in 1992 upon my graduation. Frankly speaking, I was so ambitious at that time that what I dreamed and planned was much more remarkable than that of now. However, I came to realize that it was uneasy to build up a business later when I started to do it. Every fresh graduate dreams to be the president of a country”. (laughing)

<The 21st Economy Report>: It is said that before 1994 it was an accumulating stage of the primitive capital for Shide. During the period there were over 30 decisive projects including the Triumph Square and Xinghai Bay Square. What were the key factors for Shide to win these projects?

Xu Ming said, “Shide initially undertook projects. We undertook tens of large projects in Dalian. I now would conclude that we were making scales. At that time we were the strongest and our scale the largest in Dalian. From 1992 to 1994, the projects that you've mentioned were almost undertaken at the same time. Later when we changed to plastic profiles, we were still in a leading position by scale”.

<The 21st Economy Report>: In mid 90s' Shide decided to transform to chemical building materials (plastic profiles). How did you judge and seize the market opportunity at that time?

Xu Ming said, “This is a very good question. This is a principle that we have been upholding in the process of strategy development. In mid 90s', aluminum alloy doors and windows were dominant in the market while plastic profile was just a budding industry. We upheld the innovative principle of “production guides consumption”. Product strategy cannot be limited by popular products in the market. Consumption should be led and incubated through innovation. Doing popular products does no good for market resources distribution, and disturbs market resources integration. New products reintegrate market resources and stimulate consumption. A product can only survive with continuity through innovation”.

<The 21st Economy Report>: Shide is doing the 500,000 tons of PVC petrochemical project with an initial investment of RMB¥5 billion and a total investment of RMB¥16 billion. The investment is so huge. How does Shide avert the risk?

Xu Ming said, “We have been doing the project for five-years. There is a need for strategic transformation for Shide. Our plastic profile products grew steadily in the past five years, and how about the next five years? Our growth item will be the petrochemical sector. This is our strategy. Secondly, we should solve the supply problem of PVC, or the development of our plastic profile products will be hindered. Thirdly, it is the market opportunity. By 2005 the total nationwide PVC demand will hit 10,000,000 tons while the production capacity of the existing domestic manufacturers only hit 3,330,000 tons.

To ensure a smooth implementation of the project, we use the profits gained through the steady growth of plastic profiles as well as past accumulations. They are used as the budget for the initial stage. Moreover, there are also an investment of USD0.15 billion and some bank loans. All these will ensure a smooth implementation. There is no risk at all”.

<The 21st Economy Report>: Shide is entering the insurance sector. Can you disclose some tactics?

Xu Ming, “Last year we set up Sino Life Insurance Co., Ltd with more than 10 shareholders. We are one of the largest shareholders. Sino Life is one of the four insurance companies especially ratified and approved by the State Council. In our plan, Sino Life is considered as our auxiliary industry. In the next five years, and even decade, we wish that our capital allocation will be more reasonable and, the industrial capital integrates effectively with the financial capital. We regard it as a long-term strategy”.

<The 21st Economy Report>: Over the years Shide focuses on industries. Many private enterprises starting at the same time as Shide are engaging in various forms of capital operation. Does Shide have any plans to go public?

Xu Ming said, “Yes, we have plans. Capital financing is just one of the aspects for going public. Out main purpose is to, through going public, improve our management, make our policy-making more apparent and let the society shares the benefits we create”.