Interview with Baianmei Innovation Technology (Guangzhou) Co., Ltd.

Guangdong Province is an important scientific and technological base in mainland China. In 2016, there were more than 6500 high-tech industrial enterprises in the province, accounting for 1/5 of mainland China, and the number of enterprises was the highest in the country. Taking on the advantages of Guangdong Province, the Guangdong Provincial Government issued the "Guangzhou-Shenzhen Science and Technology Innovation Corridor Plan" at the end of 2017 to create an innovation economic belt linking Guangzhou, Dongguan and Shenzhen, with the goal of leading the country in the innovation capacity of science and technology industry by 2020. It coincides with the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and innovation and technology are an important part of it. The Guangzhou-Shenzhen Science and Technology Innovation Corridor extends to Hong Kong and Macao to jointly promote the Guangdong-Hong Kong-Macao Greater Bay Area to become an international science and technology innovation center.

In order to explore how Hong Kong and other regions can develop their strengths and complement each other under the framework of the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, with the assistance of the Guangdong Provincial Department of Commerce, the Research Department of the Hong Kong Trade Development Council visited three cities in Guangdong Province (Guangzhou, Dongguan and Shenzhen) in September 2018 to discuss the cooperation space and development opportunities brought to Hong Kong and Guangdong by the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, communicate with local business departments and representative enterprises of innovation and entrepreneurship. Among them, the experience of Baianmei Innovation Technology (Guangzhou) Co., Ltd. (hereinafter referred to as "Baianmei"), one of the interviewed enterprises, just shows how Hong Kong businessmen can make use of the innovation and technology resources of Guangdong Province to enhance their competitiveness and further develop the mainland market.

Actively enter the mainland market

Baianmei is an aluminum dye high-tech enterprise, founded in Hong Kong in 1993, has a history of 25 years. Baianmei specializes in various metal surface treatment products, aluminum anodizing dyes and pre-and post-treatment additives, such as degreasing agents, sand beating agents, oxidation additives, etc.

In the early days of its establishment, the company's business was based in Hong Kong. However, the new materials used by Baianmei's main industry inevitably caused pollution problems, so it gradually shifted its business focus to the development of mainland China, which had lower environmental protection requirements at that time.

In view of the growing demand in the domestic market, Baianmei finally settled in Guangzhou, and even moved its headquarters from Hong Kong to Guangzhou South China New Materials Innovation Park, and set up branches in Shanghai, Suzhou, Nansha and other places. Bai Anmei chose to settle in mainland cities in order to get closer to customers and consumers, which will help deepen its understanding of the mainland market and explore business opportunities in the huge mainland market. Chairman of Bo Anmei

Chen Guoliang mentioned: "We are following the market."

On the other hand, the transfer of Baianmei to the mainland is also a consideration to help the company develop. Guangdong is the most important production base in the country, and the supply chain is quite mature. Baianmei has set up its laboratory in the mainland. When new products are launched, they can quickly improve the products to meet the market demand and help accelerate the process of product commercialization.

Strong Mainland Support for Innovation

For innovative enterprises, especially those with a short operating history, government support is very important for the development of enterprises. At present, the support of the Hong Kong Special Administrative Region Government for innovation and technology mainly comes from the "Innovation and Technology Fund" coordinated by the Innovation and Technology Commission to provide funding for key R & D projects. The Innovation and Technology Commission has also set up the "Guangdong-Hong Kong Cooperation Funding Scheme" under the framework of the Innovation and Technology Fund to promote and encourage cooperation between research institutions and enterprises in Guangdong and Hong Kong.

In addition, Hong Kong high-tech enterprises entering the mainland market can also receive multi-faceted support, and capital and other assistance measures have also become a consideration for Baianmei to penetrate the mainland market. "The mainland of China actively promotes innovation and provides financial encouragement and all-round support for the transformation of enterprises, the development of high-tech, and even the application of patents."

High-tech enterprises operating in the mainland can benefit from the preferential policies of the state, provincial and municipal governments, and even the support of industrial parks. Take the South China New Materials Innovation Park where Baianmei is stationed as an example. The park provides enterprises with a series of services and supporting facilities, including enterprise equipment sharing service platform, investment and financing services, marketing services, as well as entrepreneurship and policy consultation and guidance.

In addition, Chen Guoliang believes that the mainland has a high-quality entrepreneurial environment and innovative atmosphere, which is conducive to the development of enterprises. Innovative technology is an important development element of high-tech enterprises such as Baianmei. Therefore, Baianmei actively cooperates with mainland universities and purchases patents for new technologies. Chen Guoliang said that the purchase of these patents is very helpful to enhance the technology and competitiveness of enterprises.

Hong Kong platform docking overseas market

Hong Kong's role in Paian's business is shifting as its focus shifts northward. At present, Baianmei's products are mainly sold domestically, and 20% to 30% are exported to Southeast Asian countries. The Hong Kong market only accounts for about one-tenth of Baianmei's business. For Paian Mei, Southeast Asian countries are important markets outside the Mainland, and goods exported to Southeast Asia will still be re-exported through Hong Kong, highlighting Hong Kong's

Logistics center function.

In addition to logistics, Hong Kong is also a platform for Baianmei to respond to overseas business. As an international financial center, Hong Kong can provide diversified financial services to enterprises. In addition, Hong Kong's financial system is better than that of the mainland, which makes it easier for Baianmei to deal with the financial problems of overseas business, such as settlement and overseas remittance. Hong Kong is an ideal platform for enterprises to explore overseas markets and explore opportunities in countries along the Belt and Road.

"A sound financial system and an efficient logistics network are the two major elements supporting SMEs." However, Chen Guoliang also felt that Hong Kong's development in recent years has not caught up with mainland cities. As the gap between the advantages of Guangdong and Hong Kong is gradually narrowing, Hong Kong needs to continue to develop and improve on a good foundation. With the completion and opening of large-scale infrastructure such as the Hong Kong-Zhuhai-Macao Bridge and the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong high-speed railway, the traffic between Guangdong and Hong Kong will become more convenient and rapid, and the links between the two places are expected to be further strengthened. the effect of complementary advantages will be more remarkable, and promote the development of enterprises in the Greater Bay area.