The period of over a decade from the very beginning of the new millennium is the period of rigorous highway development in Yunnan as well as an important period of reform and restructuring, with profound changes in the highway enterprises of Yunnan. Compared to numerous transformed enterprises of the same industry, Yunnan Sunny Road & Bridge Co., Ltd. (YSRBC) has taken a way of development that seems somehow “special”. However, such “specialness” has been increasingly recognized by the employees, praised by all social fields and identified by the universal values. Some senior leaders of the provincial department who have been always paying attention to the development of YSRBC praise the way of development taken by YSRBC as a “sunny” flag for the transformed enterprises in the highway industry of Yunnan. In April 2012, the Department of Transport of Yunnan Province granted YSRBC the advanced enterprise in the traffic industry of Yunnan for spiritual civilization and cultural construction, and in May 2012, YSRBC was appraised as “Harmonious Enterprise” of Kunming. In the past over ten years since restructured, YSRBC has been granted the Class I Qualification for general contracting of highway works, Class II Qualification for premixed commercial concrete and Class B Qualification for testing as well as the right for foreign economic cooperation. The Company has established such subsidiaries as Real Estate Development Company, Property Management Company, Labor Service Company, Testing Company and International Project Company as well as a Supervision Division. Integrating road, bridge, tunnel, housing and airport pavement construction, supervision, design and real estate development and property management, it has the annual construction capacity of over RMB two billion. The projects undertaken by the Company are widely spread in such provinces and regions as Yunnan, Qinghai, Inner Mongolia, Guangdong, Hunan and Sichuan as well as such countries as Laos and Sri Lanka in Asia, and Nigeria, Ethiopia, Chad, South Sudan and Niger in Africa. Today’s YSRBC is harmonious internally with a stable team. In the past over ten years since the reform and restructuring, with what culture has the people of YSRBC given YSRBC increasingly more “sunny” connotation?
System Arrangement: Undertakings Created Together, Fruits Shared
On January 12, 2001, “the Fifth Highway Engineering Division of Yunnan”, one of the seven provincial highway building teams of Yunnan originally with the government-sponsored establishment， through separated restructuring based on the requirements of “clear property right, specific authority and responsibility, government-enterprise separation and scientific management”, was reorganized into a new company, the Fifth Road & Bridge Co., Ltd. of Yunnan. On November 28, 2002, it was separated from the Department of Transport of Yunnan Province and Highway Bureau, transferred to Kunming City for territorial management. On March 8, 2005, the Company, based on the spirit of “No. 3 Document” of CPC Yunnan Provincial Committee and “No. 4 Document” of CPC Kunming Municipal Committee, was further reformed through overall restructuring, with all the state-owned shares withdrawn and “Yunnan Sunny Road & Bridge Co., Ltd.” established. It was developed into a market subject with “autonomous operation, sole responsibility for its profits or losses, self-restriction and self-development”, with the Company and employees pushed to the market.
“Sunny” is a part of the name of YSRBC, the internal requirement for the business operation of the company and behavior of the employees as well as the external social image pursued by the Company. After restructured, “YSRBC” made a real “sunny decision”: solving the employment problems of all the employees through shareholding by all employees. At that time, as many state-owned enterprises did in restructuring, the Company might execute the “three 50%” policy based on the No. 3 Document of CPC Yunnan Provincial Committee and No. 4 Document of Kunming Municipal Committee, i.e. the management personnel above medium level in the restructured enterprise may hold more than 50% of the shares held by all the employees, the business operation team may hold more than 50% of the shares held by the medium-level management personnel and the legal representative of the company may hold more than 50% of the shares held by the business operation team. If the Company did exactly what specified by the policy, it would have no worry about violation. However, the business operation team led by Xun Jiazheng finally gave up this choice that would have turned the business operation team rich over night; instead, it allowed all the employees to hold the share of the Company on a voluntary basis, finally the business operation team of the Company holding only less than 9% of the shares. Just when the restructuring was to be completed, another climax arrived in highway building of Yunnan Province. If the operation team had held majority of the shares to become major shareholders of the restructured company, they would be subject to extremely low risks with low financing cost. By so doing, in less than two years, the National Class I enterprise with the assets of hundreds of millions of RMB and Class I Qualification for general contracting of highway construction would have been owned by the minority. However, the decision makers of YSRBC didn’t do that; instead, they, resisting various pressures and temptations, allowed the employees to participate voluntarily through shareholding and to share the fruits of reform and development.
Strong wind won’t last for an entire morning and torrential rain won’t last for a whole day. Perseverance is required to succeed in any industry. It is a long-term process to establish a culture keeping the interests of the employees and the Company consistent. In particular, after the incentive shareholding plan was implemented, the best way to make the employees “think and act like shareholders” was to make them real shareholders, never abandoning them or giving them up.
The Company was entitled as the “Advanced Enterprise for Reform” by Kunming municipal government as the restructuring and reform of the Company reflected the substantial interests of most employees, reflected sharing of reform and development fruits with the employees, reflected the fundamental requirements for constructing a harmonious society, maintained the legal rights and interests of the employees, actively assumed the social responsibility and maintained social stability.
Value Orientation: It Is Good only if Everyone Is Good
The name of the restructured company was “Sunny Road & Bridge”, with the original intent that everything done by the Company would be “sunny”. In the entire process of reform and restructuring, we insisted the development philosophy of “human orientation, overall coordination, stability and harmony and sustainable development” all along, insisting the organization target of “continuously satisfying the increasingly growing material and cultural demand of all the employees. With the starting point and aim of promoting the overall development of the employees, we tried to put the development idea of “development for the employees, by the employees and fruits shared by all the employees” into practice, reflecting the core idea that “it is good only if everyone is good, with joint creation and sharing”. In the process of restructuring lasting for more than three years from February 2002 to March 2005, there was a small “low tide” in highway building of Yunnan. Despite such difficulties as overstaffing, market shrinkage and defaults, YSRBC didn’t have any one employee divided or unemployed or push the employees to the society for no reason; instead, it made appropriate arrangement for the employees, reasonably allocated the stock rights, trying to allow each employee with enthusiasm and making contribution to the Company to grow together with the Company and share the fruits of its development. Neither did the company reduce the employees’ income due to restructuring to expel the employees in disguised form; on the contrary, it increased the employees’ pay immediately in 2005 after restructured, and then increased the salary for four times in 2009, 2010, 2011 and 2012 respectively. The average salary of the employees was increased by more than three times as compared to the average salary before restructuring. At the same time, dividends were distributed based on profits of the Company to increase the employees’ income, thus to allow the employees for returns from wealth.
As the Company was always an organization of enterprise-style management with the nature of a government-sponsored institution, the initial fee for social insurance was high with the supplementary fee of tens of millions of RMB required, which was a heavy burden for the Company. However, the Company emphasized the interests of the employees. President Xun Jiazheng pointed out for many times that social insurance was the concrete reflection of maintaining the employees’ interests and putting the idea of “three representatives” into practice. Ultimately, the Company overcame extremely great difficulty and made supplementary payment of the insurance premium required, successfully taking all the employees into the social security system, realizing the wish of participating in five social insurances (i.e. endowment insurance, medical insurance, unemployment insurance, birth insurance and employment injury insurance) and solving the trouble of employees back at home.
In the several years before and after reform and restructuring, the Company raised funds to build nearly 600 sets of houses for the employees, thus to solve the housing problems of most employees. A large part of employees got houses in Kunming and realized their dream of living in a large city like Kunming. The employees who didn’t get houses or who got insufficient housing area were paid with housing subsidy. The temporary domicile at the construction site was planned and built collectively, which reflected the civilized image of a professional team while improving the working and living conditions of the employees, allowing the employees practically feeling and sharing the fruits of reform and development.
Development Philosophy: Work Happily, Live Happily
The culture actively advocated and earnestly practiced by President Xun Jiazheng is trying to make the employees of YSRBC “work happily, enjoy work; live happily and enjoy life, with everywhere full of singing and laughter”. In the reform and restructuring and scientific development idea learning and practicing activities, the Company is closely centered on the core o human orientation. With the starting point and aim of promoting overall development of the employees, we try to practice and develop the idea of development for the employees and by the employees with the development fruits shared by the employees, giving unprecedented vitality to YSRBC and the employees.
Now, the ideas of “working happily, enjoying work, living happily, enjoying life, learning happily, enjoying learning, growing happily and enjoying growing” have penetrated into every aspect of the life of YSRBC people. As long as permitted by conditions, the employees will be required to spend an hour on exercising, and to participate in the learning, training and entertainment activities organized by the Company and Project Team.
The Company invested a huge amount of capital in reconstructing the hot water system in the residential quarter of the employees, building bowling center, badminton hall, tennis hall, basketball court and gate ball court. The grassroots projects, in association with the practical situation, built entertainment and cultural activity places equipped with such entertainment and cultural activity facilities as sonic equipment and physical training equipment, providing good places for cultural and sports activities.
In recent years, the Company has actively conducted various entertainment activities to enrich the cultural life of the employees. Making full use of various festivals including “the Women’s Day”, “the Youth Day”, “the Children’s Day”, “the Party Birth Day”, “the Mid-Autumn Festival”, “the Double Ninth Festival”, “the National Day”, “the New Year’s Day” and “the Spring Festival”, the Company conducted colorful mass entertainment activities, realizing the goal of edifying the sentiment, cohering people and improving the employees’ physique, promoting the communication among employees, cultivating the spirit of team work and creating harmonious working and living atmosphere. In addition to the activities organized for employees, the Company organized the employees’ children for celebration activities on the “Children’s Day” and carried out the annual Aged Sports Games on the “Double Ninth Festival”, providing a platform for the employees’ family for improving communication, promoting understanding, deepening friendship and creating harmony.
YSRBC has been attaching great importance to employee training all along. The Company makes great efforts in training the employees for practice as well as the employees in active service. Before placing the practicing employees on job, the Company will spend at least ten days on training them; and for new employees, the training time is more than a month. In many years, in such forms as inviting in, sending out and internal training, the Company has conducted vocational training of different levels and different specialties meeting different demands. Totally, the Company has conducted intern pre-job training, new employee pre-job training, constructor pre-examination training, professional manager certification training, project management knowledge PMP training, tester business training, cost engineer training, instrument operation training, internal auditor training, accounting practitioner training, statistical personnel business training, quality inspector pre-job training, special operator training, three-type personnel training, document writing training, photography training and party affairs personnel training, greatly improving the professional skills of the employees.
While vigorously conducting vocational training, the Company has strengthened the education of employees for occupational attainment and moral integrity. Based on the fundamental requirements of the Idea of Scientific Development, carefully summarizing the Company’s success and failure in years’ cultural construction and economic development, the YSRBC people have deeply realized that to realize healthy development of the company, we must absorb the essence of the ancient Chinese culture, learning from such classic ancient Chinese doctrines as Confucianism, Taoism and Buddhism; at the same time, we should also learn and follow the international conventions to improve the realm and level of the development of the Company. The Company has successively organized all the employees to learn the Art of Worldly Wisdom by Zhai Hongsang, a master on Chinese culture, Harmony Save the Crisis by Master Jing Kong, Caux Business Principles, Professional Ethics and Professional Duties and basic classic works of Confucianism, Taoism and Buddhism. By so doing, the Company has improved the ideology, occupational attainment and sense of moral responsibility of the employees, unifying the thoughts, cohering the people and providing a powerful spiritual support for the reform and development of the Company.
Strategy Choice: Rooted in Yunnan, Oriented to China and Developed to the World
For YSRBC, Yunnan is the birthplace, the root as well as the source of vitality. Rooted in Yunnan, relying on the Gateway Strategy of Yunnan, YSRBC takes the whole situation into account, insisting on building bridges and roads to make contribution to the economic and social development of Yunnan. In the past decade, YSRBC has left it footmarks in the building of most highways in Yunnan Province and participated in the construction of many local highways.
China is an emerging gold brick market with broad development space and numerous development opportunities. While rooted in Yunnan, YSRBC is also oriented to the entire China. Making use of the opportunity in other provinces, cities and regions for rigorous development of traffic, the Company actively participates in bidding for projects of other provinces, with projects available undertaken by the Company in Qinghai, Inner Mongolia, Guangdong, Hunan and Sichuan.
With sufficient support in terms of capital, technology, management and talents, the Company has entered such relevant fields as public utilities, real estate, property management, premixed commercial concrete and high-grade sandstone material processing, labor service export and testing. Expanding related industries based on the main business of road building, the Company has taken the way of development focused on one main business assisted with multiple businesses. In 2007 and 2008 when faced with extreme difficulty for survival, the Company proposed the reform and development thoughts of surviving by separated governance, breaking down accounting units, establishing multiple supporting points and pulling through by joint efforts of the entire Company, expanding the industrial chain and establishing subsidiaries with relatively independent operation. Through delicate preparation, the Company registered and established the international subsidiary in 2007, established the property management, labor service and testing company in 2008, which started operation in succession. By so far, all the subsidiaries have gained considerable effect. The international subsidiary has obtained projects in several countries; and the testing subsidiary has not only obtained the certification for Class B Testing Qualification, but also increased a large number of hardware facilities, developed the market in and out of Yunnan Province, increasingly promising a good development prospect, realizing the original goal of surviving, development and expanding industrial chain.
“Going out” has all along been a major strategy implemented by YSRBC. In the past fifteen years, to expand the survival space of the Company, the company leaders have carefully analyzed the survival environment faced by the highway construction enterprises and the development trend of highway industry, making the decision to seek for new market in foreign countries in response to the call of the government for “going out”. In December 2000, based on the train of thoughts of “cooperating for win-win and innovative development”, the Company cooperated with a company in Beijing in technical and labor service to enter the African market. Due to various reasons, the cooperation failed. In 2004, the Company finally decided to establish strategic alliance with China to Overseas Construction Group Co., Ltd. (CGCOC). The Company cooperated with CGCOC in Nigeria for the first project, KEBBI——ARGUNGU asphalt concrete repaired pavement. The project was completed six months ahead of schedule, with the project quality and progress highly commented by the local government and President Obasanjo of Nigeria cutting the ribbon personally at project completion ceremony. Due to the success of this project, both parties had further cooperation overseas, having carried out tens of projects in five countries (namely, Nigeria, Ethiopia, Niger, Chad and South Sudan of Africa and Sri Lanka of Asia) which were unanimously praised by the local government and various social fields.
In December, 2008, the Company was awarded China-aided Nadui-Bameng Highway (North Section) Repairing & Improving Project, indicating that the Company had entered the international market based on its own force and gained great breakthrough in the strategy of “going out”. In December 2010, the Company was awarded Laos Phôngsali National Highway 1B Reconstruction Project (Banannuo – Banyue Highway). Winning the two projects in Laos symbolizes that the Company has gained primary effect in the strategy of “going out” autonomously, which further consolidates the Company’s confidence and resolution for “going out”.
Powerful Support: Strategy Implementation
The competition on highway building market is a low-cost competition on the one hand, requiring high management level; and on the other hand, it is the competition for technical strength requiring high technical level. YSRBC has always emphasized the learning, research, promotion and application of new technique, technology and materials to continuously improve the technical competition strength of the Company as the powerful support for implementing the strategy of the Company. In particular, the Company has always been the leader in the highway pavement building team in Yunnan Province in terms of pavement construction, with leading advantages in construction team, technical strength, mechanical equipment and science and technology R&D. For years, the Company has improved the manpower and material input in this aspect, gaining some effects in learning, introducing and applying new techniques and technology: Firstly, the Company has been able to produce high-quality modified emulsified bitumen with various special purposes. Secondly, the Company has introduced the slurry seal equipment and technology. Thirdly, the Company has learned, researched and applied the micro-surfacing technique and technology. Fourthly, the Company has introduced and applied the plant mixing heat recovery technology. Fifthly, the Company has researched and applied the plant mixing cold recovery technology. Sixthly, the Company has learned and applied the flexible base pavement structure technique. Seventhly, the Company has greatly improved its scientific research capacity through integration and strengthening of its testing and detecting capacity. And eighthly, the Company has gained substantial development in anti-crack water stabilization layer technology. Such technologies rank leading positions in Yunnan Province, which objectively improves the Company’s competitiveness and promotes the advancement of Yunnan in highway construction science and technology. The Company participated in the construction of Kunming New Airport, responsible for supply of most asphalt mixture and the pavement of the west airport runway, south working area and service track, which fully indicates the technical innovation ability and construction technical strength of the Company.
Kunming New Airport is one of the key projects of China during the “Eleventh Five-Year” period as well as the fourth largest portal pivot airport following Beijing Airport, Shanghai Pudong Airport and Guangzhou Baiyuan Airport. It is planned to construct two groups, totally four runways, satisfying the use of F-type airplane, with the conditions for landing of Airbus A380. Full-width flexible asphalt pavement design and construction is applied to the runway of Kunming New Airport, which is applied for the first time in F-type airport runway design and appraised as model science and technology project for asphalt pavement by CAAC. It bears the responsibility for providing scientific design and construction bases for runway expansion and construction of civil airport in China.
YSRBC has successfully completed several research projects such as “macromolecule compound modified asphalt” of Yunnan Province, independently developed the emulsified modified asphalt suitable for various special purposes, once conducted the base construction for the first flexible pavement from Yanshan to Pingyuanjie and provided high-quality emulsified modified asphalt for preventive maintenance and slurry seal works for several expressways in Yunnan Province, with leading advantages in asphalt pavement construction team, technical strength, mechanical equipment and science and technology R&D in Yunnan. Therefore, Kunming New Airport Direction Center directly appointed YSRBC to be responsible for organizing and carrying out the research and construction of full-scale test section of the asphalt pavement, with great success gained, highly recognized by the Direction Center. Finally YSRBC was awarded the project for terminal platform cement macadam base construction of Kunming New Airport, pavement of the west runway, south working area and some service tracks as well as the supply for most asphalt mixture required for construction of the new airport.
According to the technical requirements for asphalt pavement construction of the runway, the asphalt covering of the west and east runways of Kunming New Airport must be spread at full width with no longitudinal cold joint allowed and only one transversal cold joint allowed in the middle. For the east runway of Kunming New Airport, for example, the asphalt with the length of 3,410m and width of 60m must be supplied with totally 27,007 tons of SMA-13 asphalt mixture in twice for continuous construction of eight spreading machines. It was a severe challenge for YSRBC in high technical content and high performance modified asphalt mixing and large-scale supply capacity. In only 54 hours, the great production capacity of YSRBC realized the expectation of the Direction Center, completing the mixing and supplying tasks with high quality.
Li Hanbo, former Standing Committee Member of CPC Yunnan Committee and Secretary of Disciplinary Inspection Committee of Yunnan Province, sighed with emotion when arriving at the construction site of the east runway, “such mixing and supplying capacity and such project progress are unprecedented in China and even in the world.”
The pavement construction of the west runway was responsible by YSRBC. With the gaps with the east runway in natural conditions of road trough and raw asphalt materials selection, YSRBC finally successfully completed the construction on September 29, 2011 based on the requirement of “no drop in pavement quality allowed with the quality even higher than the east runway”. The important role played by YSRBC in the science and technology model project of full-width flexible asphalt pavement construction fully showed the Company’s fruits from science and technology innovation.
Spiritual Leading: Responsibility, Honors and Nation
Over 50 years’ development has given the Company profound cultural accumulation, and the over 30 years’ history of reform and opening up, particularly the development history, exploration and thinking in more than ten years since restructuring have injected new content into corporate culture construction. Based on the fundamental requirements of the Idea of Scientific Development, the Company has developed its characteristic and great “Sunny” cultural philosophy by integrating the core cultural ideas of the traffic system and absorbing the essence of traditional Chinese culture.
The ideas advocated and earnestly practiced by President Xun Jiazheng for many years include “being a group of moral integrity instead of a narrow-minded group of interests”, “behaving with moral integrity and gratefulness, behaving with moral integrity and responsibility””, “developing the habit of doing right one off, progress is nothing without quality and safety ensured”, “quality is the life of projects and faithfulness is the wealth of life”, which have been recognized and practiced by the employees of the Company. However complicated is the survival environment faced by the Company and whatever price is to be paid, the Company will never change its original intention and faith.
The Company is the first company in Yunnan Province to complete the national standard certification for the systems of quality, occupational safety and sanitation and environment, with the management reaching international standard, which not only reflects the pursuit of the Company for standardized management, but also reflects the great sense of social responsibility of the Company.
The pavement construction of the west runway of Kunming New Airport was responsible by YSRBC. With gaps with the east runway in natural quality of road trough and raw asphalt materials selection, it was required that the pavement quality be no lower than the east runway, which was another great challenge to YSRBC. Beginning with hand-over of the road trough, the Company controlled quality rigorously, upholding the idea that “progress is nothing without quality and safety ensured”, testing working procedures strictly without allowing the construction of the next working procedure before the previous one was qualified. In detection of the road trough of the west runway before pavement construction, it was found that part of the section didn’t meet the requirement for pavement construction; in particular, the section of 900m in the north end of the runway was unqualified in deflection settlement. As the trough construction was carried out by another enterprise which had passed the inspection by relevant organizations, the Company encountered great barriers in communicating with them and the project personnel of the Company bore great pressure. However, based on the attitude responsible for engineering quality and safety, the Company resisted the pressure from all parties, causing the unqualified section to be retreated and strictly tested to be qualified before continuing with the water stabilization layer construction. The treatment of the road trough delayed the construction term by nearly a month, but it reflected the spiritual connotation of “responsibility, honor and government” advocated by YSRBC.
“Every employee is a symbol of YSRBC and everyone represents the image of the People’s Republic of China; every single word and action of ours must show the demeanor of a big power and the bearing of a well-known enterprise. We not only have to fulfill the contract carefully and do well in our job, but also to do a little more and a little better than others.” That is the requirement proposed by President Xun Jiazheng for the employees when inspecting the project in Laos as well as the requirement for each employee of YSRBC.
During the construction of China-aided Nadui-Bameng Highway (North Section) Repairing & Improving Project, the Company not only successfully completed the construction tasks specified in the contract, but also did some good deeds convenient and beneficial for the people and villages along the line. On the Tomb-Sweeping Day of 2009, all the employees of construction technical team of Yunnan Sunny Road & Bridge Co., Ltd. swept the grave of the deceased. At the sight of the martyr cemetery desolate and covered with wild grass, they felt sad. In March 2010 the Construction Technical Team of YSRBC conducted protective renovation for Na Mor Chinese Martyr Cemetery and Muang Saen Chinese Martyr Cemetery. In March 2011, they conducted improved renovation for the two cemeteries, showing the employees’ respect to the old generation of people who aided Laos in building roads, realizing the aim to console the martyr spirit, their family and the team of 110,000 people aiding road building in those years. At the same time, it was also a reflection of the cultural philosophy of YSRBC of “being a group of moral integrity instead of a narrow-minded group of interests”.
Today’s YSRBC people, standing on the shoulders of the predecessors, absorbing the excellent character of several generations of highway practitioners and fruits of modernized science and technology, have been developed into an excellent team with hard-working spirit and great fighting ability. Today’s Yunnan Sunny Road & Bridge Co., Ltd., carrying out new system arrangement, strategy selection and cultural development while receiving the excellent tradition, is facing the world with confident eyes, embracing the challenges with a new posture and striding to the future with bold steps!