Xinlianxin Chemical Group Chairman Liu Xingxu stated that the fundamental purpose of running an enterprise is "to create the greatest social value with the least resources." This requires a deep commitment to the core business and making products incomparable. In operations, it is essential to adhere to low cost and differentiation, exploring the laws of business with the spirit of "one meter wide, one thousand meters deep" drilling. In terms of operational orientation, one must not rely on short-term price fluctuations for profit but rather treat operations as a process of enhancing competitiveness. Liu Xingxu made these remarks during a recent high-end private sharing session for entrepreneurs organized by the Henan Private Enterprise Association.
Public information shows that Xinlianxin Chemical Group is a large coal chemical group integrating research and development, production, sales, and services. With total assets of 27.9 billion yuan, the group is a top-tier urea enterprise in China in terms of single-unit scale and product profitability.
During his keynote speech, Liu Xingxu emphasized that "management is about controlling oneself and rationalizing relationships," which involves curbing erroneous ideas and laziness. The process of "rationalizing" is the continuous reorganization of various resources, and different combinations can lead to vastly different core competencies. "Different ways of integrating resources produce different core competencies. An entrepreneur's mindset is the ceiling for a company's development. It is essential to build systematic, strategic, dialectical, and customer-oriented thinking to grasp the main contradictions in a complex market," Liu said.
Notably, Xinlianxin Group has maintained profitability for 55 consecutive years. In the first quarter of this year, CHINA XLX FERT (01866.HK) achieved revenue of approximately 6.822 billion yuan, a year-on-year increase of 16.7%. Net profit surged by 68.7% year-on-year to about 421 million yuan, with net profit attributable to owners of the parent company reaching approximately 300 million yuan, up 51.7% year-on-year.
Yu Youfei, Dean of Huafei Economic Research Institute, commented that Xinlianxin adheres to the principles of "focus, systematic excellence, and value altruism." Among these, focus serves as the "directional anchor" for strategic determination, ensuring the company remains committed to its core business without being swayed by temptations. Systematic excellence acts as the "moat" for core capabilities, enabling cost reduction, efficiency improvement, and waste transformation across the entire value chain. Value altruism serves as the "ballast stone" for long-term development, creating real value for customers, employees, and society.
Liu Xingxu previously served as the rotating chairman of the Henan Private Enterprise Association and currently holds the position of honorary chairman. The aforementioned private sharing session was organized by the Henan Private Enterprise Association. Liu Xingxu noted that Henan's private enterprises are at a critical juncture of transformation, upgrading, and navigating economic cycles. There is a need for a platform where entrepreneurs can "discuss real issues and exchange genuine ideas," and he hopes that the platform can serve as a "spiritual sanctuary" for business leaders.
Wang Long, Secretary-General of the Henan Private Enterprise Association, stated that the platform aims to connect benchmark resources, gather practical wisdom, and build an ecosystem for Henan's private entrepreneurs to learn, grow, and collaborate. Moving forward, the association will continue to organize visits to benchmark enterprises to help companies make more confident decisions, achieve steadier transformations, and ensure more sustainable growth.
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