Many industrialists in China made a lot of grievances on the sudden global financial crisis, but Shide has grasped the golden opportunities made by the central government’s huge investments on large scale infrastructure. Many industrialists adopted many kinds of conservative policies to lower production costs, but Shide has used a new survival policy of “Coalition to get mutual benefits”. Many companies have been making their scales of operation smaller, but Shide has been expanding and expanding. Currently Shide has made a bright record of annual turnover over 10 billion RMB in 2009, and the tax paid to the government was 0.4 billion RMB. The growth rate for 2009 was 30 %.  

 

Serving the smaller markets can create more profits  

 

In the first half of 2009, the booming real estates market in China dropped to the freezing point, and the prices decreased significantly. The whole market was full of pessimistic expectations, and the unemployment rates were high. The phenomena had created some worries to Shide as her primary business is to produce construction products which are closely related with the construction industry. During an interview by a journalist, Chen Chun-guo used 4 words to describe the situations of Shide – the sales dropped sharply. And the overseas exports were dropped from 10 % to 2 %.  

 

Shiders’ morale was still high. Shide’s chairman Xu Min has one remarkable saying “Shide’s driving force is by innovations”. Shide always puts a lot of efforts on marketing new products, lowering production costs, producing high-quality products. The research centre, the production bases, and the sales teams have produced and marketed  100 thousand tones of new products, with new ingredients, new materials, and new uses  to the southern, northern, north-eastern, north-western and the overseas markets. Shide always takes a market-oriented approach and is fully confident on the vitality of China economy. And the Shiders have dissected the 8 sales districts into 29 smaller marketing areas. Smaller areas can have more efficient and uniform management, particularly true to the smaller towns and cities.

 

Shide has fully prepared for the sudden opportunities. After April 2009, the China government used various measures to stimulate the economy by building more government apartments for the low and middle income groups, by new urban planning and development, and by investing in infrastructure which created a strong demand on construction products, and Shide had got the sudden massive government orders. Shide has spent a lot of resources on marketing in Shen Yang, An Shan and Tie Ling , and got substantial results ,as  the growth rates were  more than 15%.  

 

The big coalition leads to the mutual benefits  

 

Shide’s chairman Xu Min has a proverb “Shide is a big brother enterprise which always leads and guides the whole industry” And during the financial tsunami, the responsible and reputable Shide has lowered the risks of the whole industry. Shide assured the production processes, guaranteed the quality of the windows, and Shide’s brand name became better. Shide’s products were sold to the smaller companies and they could get profits and upgrade their products. Shide and the smaller industrialists are complementary and interdependent. Now Shide has cooperated with 300 industrialists to form the Shide’s Strategic Alliance of Doors and Windows Producers, which has proved successful.  

 

The series of bold actions have earned the appreciation of the industry and Shide’s employees. In 2009, the unemployment rates in China were more than 10 %, but Shide did not dismiss one of her employees and did not cut their salaries. On the contrary, Shide had brought many happy surprises to them by gradually increasing their salaries and bonuses. And Shide has recruited more than 200 persons.  

 

Based on her several years of sound capital management experience, Shide has got a lot of returns. After the sales of Ling Yun Corporation and the shares, and in July 2009, Shide sold the shares of Dai Yuan which brought a great deal of profits to Shide. And Shide could sell the shares of China Pacific Insurance Company which would also bring returns. Shide has developed a stable, rational and health capital portfolio. And her affiliated company Sidelong heaters has become the only made-in-China products which are used by the Commerce Ministry to donate to the poor in the rural areas.  

 

 

Shide has used 2.5 billions to expand during the difficult period  

 

Many companies adopted policies to make their sizes of operations smaller during the financial crisis. However, Shide treated this as opportunities. In April 2009, Shide signed the contract of building the industrial base capable of producing 160,000 tonnes annually at  Jiangxi An Yi. From the negotiations to the signing the contract, it only took 28 days which was a very fast decision. The first phase project has been in full operations and the results are promising. In October 2009, the foundation work of Tianjin Bao Di         industrial park which comprises 780 hectares and has the ability to produce 160,000 tones of PVC products annually. And the base will be completed on October 2010. In December 2009, the Luo He industrial base, the largest chemical construction products industrial base, was in full operations which can produce 160,000 tones of PVC products annually. And in 2009 Shide totally spent 2.5 billions on those projects. Chen Chun-guo stated that the investments during the risky time required lower costs, which would lead to more profits. Now, Shide has the Liaoning Dalin industrial base, the Sichuan Cheng Du industrial base, the Zhejiang Jia Xing industrial base, the Ningxia Yin Chuan industrial base, the Henan Luo He industrial base , the Jiangxi Nan Chang industrial base (under construction) , and the Tianjin Bao Di industrial base which would be completed by the end of 2010,  so Shide has owned a rational distribution of production bases across the whole country which marked a new history of Shide’s rapid development.  

 

Due to the needs of the whole urban planning, Shide will move the Dalian industrial base to Zhang Xing Island after one and half years, and the old equipment and production lines at the old base will be discarded.