Xinghai Group

Biodata

Feature	Information
Name	Xinghai Group Co., Ltd.
Original Name	星海集团 (Xinghai Group)
Alias(es)	Xinghai Company; Xinghai Group
Type	Diversified private enterprise group
Founder / Chairman	Fang Bai 186 228
Predecessor	Wen City Xinghai Home Appliances Company / Xinghai Electrical Appliances Company 59 243
Headquarters	Shen City, following relocation to the Group’s new factory campus 228
Core Industries	Engineering machinery, diesel engines, consumer electronics, real estate, construction, commercial retail, investment, and network development 186 234 259
Status	Active; a major domestic private enterprise with assets reaching 50 billion yuan by 1995 261
First Appearance	Chapter 59 — as Wen City Xinghai Home Appliances Company 59

Background / History

Xinghai’s predecessor, Wen City Xinghai Home Appliances Company, was registered with 100,000 yuan in capital. Fang Shi served as its legal representative, while its business scope covered home-appliance sales and repairs. The company name was selected by Fang Bai. 59

The business expanded beyond appliance retail through the Xinghai Plaza project. Its initial electrical-appliance mall began operating before the larger comprehensive plaza entered construction, giving the company a commercial foothold in Oubei. 97

Xinghai Group’s corporate history identifies 1991 as its founding year: Fang Bai arrived in Shen City in July, Xinghai Machinery Company was founded in August, and Xinghai Group was formally established in May 1992 to pursue international diversification. 186 243

The Group subsequently added real-estate and construction operations. Xinghai Construction Company undertook internal projects and residential development, while Xinghai Real Estate Company developed and sold residential complexes. 113 174 261

The Group relocated to a new Shen City factory campus, placing the “Xinghai Group Co., Ltd.” name directly on the operating site rather than using a subsidiary name. The relocation marked the organization’s transition into a large-scale integrated industrial group. 228

Documented Growth

Milestone	Documented scale
Early group profile	Total assets exceeded 500 million yuan; workforce numbered about 500; the first phase of the new factory covered 1,000 mu. 186
Expansion of subsidiaries	The Group reported five subsidiaries and total assets exceeding 1 billion yuan. 200
Large-scale recruitment period	Workforce exceeded 7,000; Machinery Company monthly revenue reached 300 million yuan, while Technology Company’s VCD business exceeded 1 billion yuan monthly. 234
Headquarters performance	Headquarters revenue reached 10.5 billion yuan; VCD and machinery businesses respectively contributed about 7 billion and 3.5 billion yuan. 241
1994 total performance	Total Group revenue reached approximately 26.4 billion yuan, while Group assets reached 50 billion yuan. 261

Subsidiaries and Operations

Entity / Division	Activities
Xinghai Machinery Company	Produces concrete machinery, ground pumps, pump trucks, excavators, and diesel engines. 234 250 261
Xinghai Technology Company	Develops consumer electronics and computer products, including VCD players and the 586 Microcomputer. 200 235
Xinghai Construction Company	Handles Group construction projects and residential development. 113 261
Xinghai Real Estate Company	Develops and sells residential projects and supports Xinghai Plaza developments. 174 201
Xinghai Commercial Co., Ltd.	Successor registration of Xinghai Electrical Appliances Company; operates commercial business including Xinghai Shopping Mall. 243
Xinghai Investment Company	Established in New York; raised $1 billion through investments in long-term stocks. 223
Xinghai Network Company	Established to prepare for internet-related business and future online services. 259 261

Products and Technology

Engineering Machinery

• Ground Pumps — The XH45-30 was Xinghai Machinery’s first product; later offerings included 45–90 kW ground pumps. 173 249
• Pump Trucks — Produced 35–45-meter models, later expanding to a 50-meter pump truck. 249 261
• Excavators — Product line included the XH45C, XH60C, XH75C, XH90C, XH120C, and XH150C excavators. 249 256 261
• Concrete equipment — Developed concrete mixer trucks and mixing stations alongside pumps and excavators. 249

Diesel Engines

Xinghai developed small- and medium-sized diesel engines with localized key components and world-class claimed performance, though electronic-control systems still relied on imported technology. 228 256

• The 163-horsepower engine was designed for medium dump trucks, cargo trucks, light transport vehicles, pickup trucks, and 5–10-ton truck cranes. 256
• The Group signed a diesel-engine cooperation agreement with FAW. 258
• Later engine products included 90 kW, 200 kW, and four-cylinder models. 261

Consumer Electronics and Computing

• Xinghai VCD Player — Launched with registered patents and became the Group’s most profitable product line; the decoding-chip supply was difficult for competitors to obtain. 230 241
• 586 Microcomputer — Announced as the country’s first 586 Microcomputer. Xinghai independently developed the Chinese character card, motherboard, and optical drive, while CPUs, memory, and hard drives remained imported. 235
• DVD development — The Group maintained a DVD project team, building on its VCD experience while addressing more complex technical requirements. 241
• Network projects — The Network Company began groundwork for services such as 365 Navigation, Internet Cafe Assistant, and an instant-messaging platform. 261

Facilities

Shen City Factory Campus

The Group’s new factory occupies 2,000 mu of industrial land, with the first phase using 1,000 mu. Its planned workshop area totals 200,000 square meters across twenty workshops; 100,000 square meters had been completed and put into use at relocation. 228

• The machining workshop used nearly 100 million yuan in equipment investment and was primarily equipped with CNC machinery. 228
• The campus includes a glass-curtain-wall main office building, separate employee dormitory area, reception facilities, security posts, and oversized gates for heavy equipment transport. 228
• The second phase was intended mainly for laboratory buildings and advanced-technology testing. 235

Real Estate and Commercial Projects

• Xinghai Plaza — A comprehensive commercial format integrating shopping, dining, leisure, sports, and sightseeing. 97
• Xinghai Bridge — Privately funded by the Group with an investment exceeding 100 million yuan; intended to link Oubei and Wen City’s urban area. 211 247
• Xinghai Tower — Planned for Lujiazui on 90 mu of commercial land, with a 7.5-billion-yuan budget and a proposed height exceeding 600 meters. 228
• Employee housing — The Group developed employee apartments in Wen City and planned similar subsidized housing in Shen City. 228 249

Business Achievements

Event	Results
Industrial exhibition	Secured an initial $4.6 million order, followed by additional ground-pump contracts. 184
Earlier industrial exhibition	Obtained nearly 200 million yuan in orders, including more than $10 million in export orders. 197
Enterprise Technology Exhibition	Signed approximately 1.5 billion yuan in contracts over three days. 250
Shencheng International Industrial Exhibition	Secured more than 700 million yuan in orders, including roughly $30 million in exports. 258
VCD exports	Generated $250 million in high-tech foreign-exchange earnings and won the “Advanced Unit for Foreign Trade Import and Export” award for two consecutive years. 241

Corporate Strategy and Culture

Xinghai Group publicly states its vision as creating a world-class enterprise, cultivating world-class talent, and making first-class contributions. Its mission is “Quality changes the world,” with declared strategies of globalization, intelligence, and low-carbon development. 186

• Allocates more than 5% of annual sales revenue to research and development. 234
• Allocates 1% of annual profits to charitable foundations. 234
• Announced a 100-million-yuan education donation plan. 244
• Emphasizes employee welfare through high salaries, relocation allowances, shopping benefits, research funding, and subsidized housing. 234 235 237
• Maintains greening and waste-treatment measures regarded by local leaders as genuinely implemented rather than symbolic. 244
• Does not plan to list its main business, as Fang Bai does not want outside capital interfering with operations. 252

Relationships

• Fang Bai — Founder and chairman; directs major investment, technology, product, and expansion decisions. 186 228
• Fang Shi — Fang Bai’s father and the original legal representative of Xinghai Home Appliances Company; later oversees major Wen City work and Construction Company affairs. 59 215 232
• Jiaotong University — School-enterprise partner; faculty and students visit and intern at the Group’s factory, while the Group recruits graduates on campus. 228 233 234
• FAW — Signed a cooperation agreement concerning Xinghai diesel engines. 258
• Wen City Government — Partner in the Ten Billion Investment Project and Oubei-area development. 211 215
• Shen City Government — Supported factory development, land acquisition, industrial exhibitions, and major investment negotiations. 224 228
• Skogab Company — Supplier of VCD decoding chips used by Xinghai’s VCD player. 230

Notable Quotes

“Quality changes the world.” — Xinghai Group’s stated mission 186

“Xinghai Group is no longer a small company. You could say it’s the leader among private enterprises.” 243