Implement the Leading Enterprise Cultivation Project to foster a group of leading enterprises with ecological dominance and core competitiveness. Promote small and medium-sized enterprises in enhancing their specialized strengths and cultivate “Little Giant” enterprises that are specialized, refined, distinctive, and innovative, as well as manufacturing single-champion enterprises.

— The 14th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Long-Range Objectives for 2035

Recently, Zhejiang Province issued the "Several Opinions on Vigorously Cultivating and Promoting the High-Quality Development of 'Specialized, Fine, Distinctive, and Innovative' SMEs," which clearly outlines measures in ten key areas: strengthening support for innovation, intensifying protection of intellectual property rights, bolstering efforts to attract and nurture talent, enhancing quality and brand building, increasing support for government procurement, expanding market reach, stepping up digital empowerment, amplifying financing support, reinforcing guarantees for key production factors, and improving targeted services. The document also calls for establishing and perfecting a tiered cultivation mechanism for "specialized, fine, distinctive, and innovative" SMEs, thereby providing solid support for building a global advanced manufacturing base and constructing a demonstration zone for high-quality development and common prosperity.

Since the Ministry of Industry and Information Technology first proposed “specialized, refined, distinctive, and innovative” (or “Zhuang Jing Te Xin”) as an important pathway for the upgrading and development of small and medium-sized enterprises in 2011, the term has repeatedly appeared as a hot topic in meetings of the Central Political Bureau and in the 14th Five-Year Plan, being elevated to the same level of importance as “strengthening industrial chains and addressing bottlenecks.” At this year’s Two Sessions, “specialized, refined, distinctive, and innovative” was included for the first time in the Government Work Report: “We will focus on fostering ‘specialized, refined, distinctive, and innovative’ enterprises and provide strong support in areas such as funding, talent recruitment, and the establishment of incubation platforms,” reflecting the nation’s high regard for these enterprises.

Over the years, Wanxiang has remained focused on its core business, pursued innovative development, upheld a culture of quality, and embodied the spirit of craftsmanship, continuously building its core competitiveness and fostering specialized, sophisticated, and innovative enterprises. In 2020, Wanxiang Tongda was selected as one of the second batch of national-level “Little Giant” enterprises specializing in specialization, sophistication, and innovation. In 2021, Dinais Tongda was included in the third batch of such national-level “Little Giant” enterprises, while companies like Qianchao Senwei and Qianchao Shanghai Systems were also recognized as provincial-level “Little Giant” enterprises specializing in specialization, sophistication, and innovation. At the end of 2021 and the beginning of 2022, additional enterprises were again selected as provincial-level “Little Giant” enterprises and hidden champions in niche segments of pillar industries, inspiring all of Wanxiang’s specialized companies to further enhance their innovation capabilities, strengthen their core competitiveness, and strive to take the lead in high-quality development.

The Zhejiang Provincial Department of Economy and Information Technology released the list of "Specialized, Fine, Distinctive, and New" SMEs in Zhejiang Province for 2021, and Wanxiang Qianchao Drive Shaft Co., Ltd. and Zhejiang Wanxiang Systems Co., Ltd. were included on the list.

The Transmission Shaft Company is currently the only domestic manufacturer integrating the R&D and production of transmission shafts and steering columns into one entity. It consistently ranks among the industry leaders in market share both domestically and internationally, and has maintained steady, rapid growth for many consecutive years, placing it at the forefront of the industry in terms of growth rate. The company adheres to a path of product R&D, technological innovation, and building core independent intellectual property rights, actively enhancing both the technological content and quality of its products, and continuously pursuing innovations in product technology and manufacturing processes. To achieve transmission shaft products that are “lightest in weight, most efficient, and of the highest quality,” the company continually optimizes its products according to the criteria of being “lighter, using fewer parts, smaller in size, and longer-lasting,” and persistently carries out technological upgrades aimed at reducing weight, minimizing the number of components, extending service life, and replacing larger parts with smaller ones.

In 2011, the Drive Shaft Company was recognized as a National High-Tech Enterprise. In 2016, it was selected as a Cultivation Enterprise for Manufacturing Single-Item Champions. In 2018, it was designated as a Zhejiang Provincial Patent Demonstration Enterprise. In 2020, it successfully obtained accreditation as a Zhejiang Provincial Enterprise Technology Center. In 2022, it was included in the list of Zhejiang Province’s Science and Technology-based SMEs. Through collaboration with universities, the company has assembled a team of experts who master cutting-edge international technologies and has conducted numerous fundamental research projects in the field of drive shaft product systems. The company continuously enhances its technological R&D and innovation capabilities, participating multiple times in the drafting of industry standards. The “Automotive Drive Shaft Assembly” Zhejiang Manufacturing Standard project, spearheaded by the company, was officially implemented on September 30, 2020. The “Heavy-Duty Automotive Drive Shaft Assembly” has been recognized by the Zhejiang Manufacturing International Certification Alliance—China Quality Certification Centre and has received the “Pin” certification mark.

The system company is committed to developing a series of high-tech automotive components, including lightweight projects and chassis braking systems. It continues to invest heavily in technological innovation and is one of the most advanced manufacturers of automotive chassis and braking system components in China. The company is recognized as a National High-Tech Enterprise and has established a provincial-level High-Tech Research and Development Center as well as the Zhejiang Provincial Enterprise Technology Center. Currently, technical personnel engaged in R&D and technological research account for 21% of the company’s total workforce. The company holds 144 patents, having filed 40 patent applications and been granted 20 patents in 2021 alone. It has also participated multiple times in drafting industry standard documents. In 2017, the company obtained certification under the Intellectual Property Management System; in 2019, it was designated as a National-Level Green Factory; in 2021, it received IATF16949 certification for automotive quality management systems; and in 2022, it was included in the list of Zhejiang Province’s Science and Technology-based SMEs.

Currently, the system company is focusing on developing high-difficulty, high-level, and high-tech projects such as lightweight projects, drum-type EPB projects, and brake zero-drift projects, and has achieved phased accomplishments: We proactively conducted R&D on drum-type EPB projects and submitted calibration prototypes in July 2021; we completed technical research and preliminary verification of the structural component road-spectrum test bench Block study and application by the end of June 2021. Among these achievements, the subframe assembly project won the Second Prize of the 2021 Zhejiang Mechanical Industry Science and Technology Award, and the quality management team received the First Prize for Outstanding Achievements in the 2021 National Mechanical Industry Quality Management Team Activities.

The Hubei Provincial Department of Economy and Information Technology released the list of provincial-level “Little Giant” enterprises specializing in niche fields for 2021, and Hubei Qianchao Precision Components Co., Ltd. was included on the list.

The Precision Components Company is a national high-tech enterprise specializing in the manufacture and sale of automotive components such as steel balls, roller bearings (sub-bearings), and needle rollers. Our products are primarily used in various types of automobiles, heavy machinery, aerospace bearings, axle drive systems, transmissions, and automotive wheel hubs. The company adheres to a specialized development strategy and has achieved remarkable results in R&D design, production manufacturing, marketing, and internal management. We place great emphasis on and implement a long-term development strategy; through standardized management, we have established a strong reputation, and our production technology, processes, and product quality performance are among the leading in China.

The company places great emphasis on technological innovation and product quality. Each year, it assesses the advanced nature and practicality of key technologies related to product development and process improvements. By benchmarking against leading companies and competitors, the company establishes task-force teams to implement targeted improvements, continuously enhancing its core technological competitiveness. Moreover, the company converts cutting-edge technologies developed during the early stages into patents, which are then applied to product development and manufacturing processes. For example, by optimizing and improving the machining methods for CNC lathes, the company successfully introduced these advancements into the processing of tool grinding wheels, significantly enhancing the quality of auxiliary tools. In 2017, the company was recognized as a Model Enterprise for Intellectual Property Development in Hubei Province and was included among the first batch of enterprises selected for cultivating “hidden champions” in specialized sub-sectors of Hubei’s pillar industries.

The company employs a variety of approaches to commercialize its science and technology innovation projects, having developed numerous new products, technologies, processes, materials, and equipment. For instance, by launching projects such as the long-life needle roller bearing, the Grade-I tapered roller bearing, and the G10 hub unit steel ball, these innovations have been directly translated into effective productivity, strengthening the company’s core competitiveness and ensuring sustained growth in profitability.

The Jiangsu Provincial Department of Industry and Information Technology has released the list of enterprises that have successfully passed the re-evaluation for the provincial-level “Little Giant” program for specialized, refined, distinctive, and innovative enterprises. Jiangsu Senwei Precision Forging Co., Ltd. has been included on the list. The company was first listed as a provincial-level “Little Giant” enterprise in 2015.

The company has been deeply engaged in the automotive parts industry for 16 years and is a national high-tech enterprise. Its independently developed products—including flange shafts, star-shaped sleeves, and bell housings—have been certified by relevant testing and certification institutions as reaching domestically leading levels and are now being widely adopted and promoted. These products have significantly replaced imported alternatives and filled a domestic market gap.

Against the backdrop of innovative development, the company has established a holistic development model integrating market, technology, and quality, as well as a market-oriented technological innovation system that combines industry, academia, and research. The company has invested in and introduced cutting-edge 2,500-ton forging equipment and rotary forging equipment, setting up a nationally leading postdoctoral research workstation and a national enterprise technology center (sub-center). It has also jointly built industry-academia-research platforms with numerous universities and research institutes, attracting a group of innovative talents, including those under the “Provincial Hundred Talents Program,” the “Provincial Innovation and Entrepreneurship Talent Program,” and the “Provincial 333 High-Level Talent Program.” Through independent innovation and the introduction, digestion, absorption, and re-innovation of advanced technologies, the company’s core cold and warm precision forging technology has earned it 81 nationally authorized patents, including 33 invention patents. The company has received 10 Quality Forging Parts Awards issued by the Forging Association, 4 Honorable Mentions for Forged Parts, and 24 science and technology progress awards at the provincial, municipal, and district levels. Moreover, the company has spearheaded and participated in the formulation of 5 national standards and 4 industry standards. Its comprehensive strength has been recognized by international cold forging organizations, national industry associations, and the China Forging Association.

The company is deeply committed to research and development, leveraging new technologies and advanced processes to enhance its products and serve its customers. It has earned high recognition from key international strategic clients in terms of critical performance indicators, energy consumption metrics, and the core manufacturing processes and technologies underlying its products. Looking ahead, the company will continue to focus on strengthening its technological core competencies, refining its sales and service system, and developing even higher-quality products, striving to become a first-class provider of precision cold and warm forging services—leading in products, advanced in technology, world-class in management, and outstanding in profitability.

The Hubei Provincial Department of Economy and Information Technology has released a list of “Invisible Champion” enterprises in specialized sub-sectors of the province’s pillar industries. Wuhan Wanxiang Automotive Brake Co., Ltd. has been selected as one of the fifth batch of “Invisible Champion” enterprises being cultivated in specialized sub-sectors of Hubei’s pillar industries. Meanwhile, Wanxiang Tongda has successfully passed the re-evaluation as a “Tech Little Giant” enterprise among the second batch of “Invisible Champions” in specialized sub-sectors of Hubei’s pillar industries.

Wuhan Brake is a national high-tech enterprise dedicated to the R&D, production, sales, and service of automotive brakes. Over the past three years, its main product—the complete automotive brake assembly—has achieved an average market share of 18% in Hubei Province, ranking second in the province and supplying numerous major automobile OEMs. The key performance indicators and process levels of products such as EPB rear caliper assemblies and fixed caliper assemblies have consistently been among the industry leaders.

The company adheres to innovation-driven development and implements robust intellectual property protection across the entire value chain—from research and development and innovation to production and sales. It actively leverages the guiding role of intellectual property rights. Currently, the company holds 37 authorized patents, including one invention patent. By fully harnessing the originality of its intellectual property technologies, the company has effectively boosted its product market share through industrial implementation. In 2021, the company secured more than 10 new caliper projects from major OEMs, providing supporting equipment for 80,000 sets, and its core business revenue grew by over 30%.

At the end of 2018, Wanxiang Tongda was selected as one of the second batch of “Invisible Champions” and “Little Giant” technology enterprises in specialized sub-sectors of Hubei Province’s pillar industries. Over the past three years, guided by the development vision of "building ourselves into a smart manufacturing and green manufacturing enterprise with international competitiveness and sustained innovation capabilities," the company has accelerated the technological upgrading and industrialization of its flagship products—including automotive emission control systems and metal fuel tanks—and has steadily improved operational performance by vigorously promoting lean production and intelligent transformation.

To continuously consolidate its industry-leading edge, relying on the provincial-level enterprise technology center and the postdoctoral industrial base, Wanxiang Tongda has maintained a high level of annual R&D investment over the past three years, obtaining 27 patented technologies and participating in the drafting of six industry and national standards. By swiftly launching products that meet China’s Stage V and Stage VI emission standards, the company has continued to uphold its partnerships with 30 domestic and international OEMs. Its leading products continue to hold the number-one market share in Hubei Province and remain among the top performers nationwide. Over the past three years, Wanxiang Tongda has further strengthened its industry-leading position. In 2019, Wanxiang Tongda was recognized as a National High-Tech Enterprise; in 2020 and 2021, Wanxiang Tongda and Dinais Tongda respectively received recognition as “Little Giant” enterprises specializing in niche expertise and innovation—part of the second and third batches designated by China’s Ministry of Industry and Information Technology—thus making significant contributions to driving the development of the industry.

Going forward, Wuhan Brake and Wanxiang Tongda will firmly pursue a development path characterized by specialization, distinctiveness, and innovation. Grounded in market demands and committed to innovation-driven growth, we will dedicate ourselves to the R&D of products that are more scientific, more efficient, and more sophisticated. We will continue to refine, specialize, and strengthen our product offerings, and remain committed to providing customers with first-class products and highly professional services.

According to the definition provided by the Ministry of Industry and Information Technology, “specialized, refined, distinctive, and innovative” (or “Zhuangjing Texin”) refers to specialization, refinement, distinctiveness, and innovation. Specialized, refined, distinctive, and innovative enterprises hone their “unique skills” in specialized fields by focusing on their core businesses and strengthening innovation, thereby developing “flagship products.” Among these outstanding enterprises, those that stand out are known as “Little Giant” enterprises—pioneering companies that concentrate on niche markets, demonstrate strong innovation capabilities, enjoy high market shares, master critical core technologies, and deliver superior quality and efficiency.

Speaking of “specialization, refinement, uniqueness, and innovation,” we simply can’t help but mention the “Manufacturing Single-Item Champions.” A “Manufacturing Single-Item Champion” refers to an enterprise that has long been focused on specific niche segments of the manufacturing market, boasts internationally leading production technologies or processes, and ranks among the global leaders in market share for its single product.

The term “hidden champions” is an imported concept, first introduced by German management thinker Hermann Simon. Through his study of numerous outstanding small and medium-sized enterprises in Germany, Simon defined hidden champions as SMEs that hold an undisputed leading position in a specific niche market yet remain largely unknown to the public.

The three types of enterprises—specialized and innovative firms, manufacturing single-item champions, and hidden champions—are all crucial components of the high-quality enterprise development gradient system. They share a common essence and identical goals of excellence and strength: each is an industry leader distinguished by unique advantages, specialized expertise, and high quality. These enterprises play a vital role in fostering new drivers of economic growth, supporting the development of the real economy, and promoting China’s sustained economic growth. They share the following common characteristics—

Focused and dedicated. We have long-term commitment to our core products, staying true to our primary business, deeply immersed in research, meticulously cultivating our expertise, and refining our craftsmanship. As a result, we’ve established a strong brand presence in our niche segments and specialized markets, wielding absolute influence within the industry chain and fostering a mutually beneficial relationship with our target customer base.

Quality comes first. We firmly adhere to quality as our primary competitive advantage, taking quality enhancement as our intrinsic driving force and main focus. Our products boast high reliability, functionality, and stability, with an overall long service life, giving us a clear quality edge over similar products in the market.

The spirit of craftsmanship. These types of enterprises are seekers of quality awareness, practitioners of the spirit of craftsmanship, and birthplaces of entrepreneurial spirit. A corporate culture characterized by honesty, trustworthiness, and a people-oriented approach forms the foundation of their intrinsic quality strategy. Their management model—marked by focus and deep immersion—fully unleashes employees’ creativity and enthusiasm.

Continuous innovation is one of the cornerstones that enable these types of enterprises to maintain a leading position. They strike a balance between adhering to core principles and embracing innovation, ensuring substantial investment in R&D to enhance product added value and total-factor productivity through technological innovation. At the same time, by pursuing open and inclusive development, they drive market innovation, continuously expand their market reach, and become pioneers in global integration.

The “Three-Year Action Plan for Promoting Integrated Development of Large, Medium, and Small Enterprises,” jointly issued in 2018 by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and other agencies, clearly states: “Among the ‘specialized, refined, distinctive, and innovative’ SMEs recognized locally, we will cultivate those with prominent core businesses, strong competitiveness, good growth potential, a focus on niche markets, and a certain capacity for innovation—enabling them to sustainably develop into ‘Little Giant’ enterprises that are specialized, refined, distinctive, and innovative—and guide them toward becoming single-item champions in manufacturing.” The 14th Five-Year Plan explicitly emphasizes: “Implement a project to nurture leading enterprises, fostering a group of flagship companies with ecosystem leadership and core competitiveness. Promote SMEs to enhance their specialized advantages and cultivate ‘Little Giant’ enterprises that are specialized, refined, distinctive, and innovative, as well as single-item champion enterprises in manufacturing.” From this, it is evident that at the apex of China’s vast corporate “pyramid,” there exists a clear path for fostering innovative development—from domestically leading ‘Little Giant’ enterprises that are specialized, refined, distinctive, and innovative, to internationally renowned single-item champion enterprises in manufacturing, ultimately culminating in the emergence of leading enterprises that boast outstanding core businesses, robust overall strength, and global competitiveness. In a sense, ‘specialized, refined, distinctive, and innovative’ Little Giant enterprises represent an earlier stage in the journey toward becoming single-item champions and hidden champions in manufacturing. Indeed, single-item champions and hidden champions can be viewed as enhanced, upgraded versions of ‘Little Giant’ enterprises under the backdrop of economic globalization, industrial structural transformation and upgrading, and supply-side reform.

After 10 years of exploration and practice following its establishment, Wanxiang adjusted its industrial structure in 1979, abandoning "diversified operations" and focusing exclusively on universal joints for imported automobiles. This marked the beginning of its path toward specialized development. In the 1980s, Wanxiang became the country's leading manufacturer of universal joints and started exporting its products to the "Kingdom of Cars"—the United States. In the 1990s, building on its expertise in universal joints, Wanxiang continuously expanded its product line—from individual parts to components and then to system integration—achieving specialized production, serialized products, and modular supply. These efforts cemented Wanxiang's position as a leader in China's automotive parts industry. In 2016, the Ministry of Industry and Information Technology released the first list of Single-Item Champion Enterprises in manufacturing, and three Wanxiang companies made the cut: Wanxiang Qianchao, whose main business is complete universal joint assemblies for automobiles, was named a Demonstration Enterprise for Manufacturing Single-Item Champions; Transmission Shaft Company, whose primary product is drive shafts, and Wanxiang Jinggong, whose main product is automotive hub bearing units, were both designated as Cultivation Enterprises for Manufacturing Single-Item Champions. After another five years of dedicated effort, Wanxiang Jinggong successfully "elevated" itself in 2021 to become a Demonstration Enterprise for Manufacturing Single-Item Champions. Meanwhile, Wanxiang also owns two national-level "Little Giant" enterprises—Wanxiang Tongda and Dinaistongda—as well as numerous provincial-level "Little Giant" enterprises and "Hidden Champions."

In 1999, Wanxiang began developing the new-energy industry. After more than 20 years of persistent effort and investment, it has established a global R&D system and holds a global patent for its third-generation super-nano lithium iron phosphate. Its low-voltage battery products currently hold a leading position worldwide, and the company is also a pioneer in global battery energy storage solutions. The 48V lithium-ion micro-hybrid power battery system was recognized as a “Zhejiang Manufacturing Boutique” for 2021.

These achievements are the result of decades of focused dedication and deep cultivation by Wanxiang in its core business. They also inspire Wanxiang employees to keep pace with the times and strive for even more “champion” enterprises and “flagship” products.

General Secretary Xi Jinping emphasized the need to harness both entrepreneurial spirit and the spirit of craftsmanship, promoting deep integration between the internet, big data, and artificial intelligence with various industries, and accelerating the cultivation of a group of specialized, refined, distinctive, and innovative small and medium-sized enterprises as well as single-champion enterprises in manufacturing. At present, China’s economy has shifted from a stage of high-speed growth to one of high-quality development. We must adhere to the principle of quality first and efficiency priority, taking supply-side structural reform as the main line, and drive transformative changes in economic development—changes in quality, efficiency, and growth drivers. Wanxiang will, as always, remain focused on its core business, driven by innovation and placing technology at the forefront. We will vigorously advance digitalization and intelligentization. Building on our continued success in strengthening our existing “champion” enterprises and “flagship” products, we will keep deepening our expertise in clean energy and intelligent motion control, and make concerted efforts to overcome bottlenecks in areas such as bearings, chassis systems, control systems, and energy storage. We are committed to mastering critical technologies, seizing industry-leading positions, and achieving excellence in every enterprise, thus forming a matrix of single-champion and specialized, refined, and innovative enterprises. In doing so, we will make our due contribution to the in-depth implementation of the strategy of building China into a manufacturing powerhouse and relentlessly strive to enhance China’s position in the global industrial value chain!