Chairman of SYS, Ge Jing

Recently, Ge Jing, the chairman of SYS, accepted an exclusive interview with Shanghai Securities News reporters, sharing the growth, transformation, efforts, and dreams of SYS.

Continuous Innovation Treating industry standards as the minimum requirement

In recent years, China has been adhering to a comprehensive plan for water resource protection, water environment management, and water ecological restoration, continuously and intensively fighting the battle for clear waters. The quality of the water ecological environment has been steadily improving. This progress cannot be separated from a group of experienced, powerful, technologically advanced, and highly capable comprehensive service providers in water environment management.

During the interview, Ge Jing also posed a question to the reporters: "Which do you think is more difficult: hunting in a zoo, in a protected area, or in the wild mountains and ridges?" The answer is obvious, but behind this question lies SYS's initial predicament in the industry. How did SYS manage to stand out in fierce competition? What is their winning strategy?

"We don’t follow; we lead. Continuous innovation is the only rule for the sustainability of a company's vitality," Ge Jing told reporters. For many years, he has insisted on personally leading the R&D department and has set a standard for technology that is far above industry norms, aiming to achieve a leading level domestically.

Over twenty years ago, Ge Jing chose to devote himself to the burgeoning water environment management market, working quietly and exploring diligently. He authored several national standards in related fields and contributed to multiple group standards. Throughout this journey, his technical demands have escalated, and his understanding of the industry has deepened significantly.

As a state-level high-tech enterprise, SYS has successively overcome technical challenges in ultra-limit nitrogen removal, ultra-limit phosphorus removal, low-temperature wastewater biological treatment, sludge source reduction, and bio-treatment of micro-polluted water. Through independent research and development, the company has formed two main core technologies: rapid-partition biological treatment technology and spore transfer technology. These technologies hold comparative advantages in "improving effluent quality," "extending the service life of core materials," and "shortening construction periods" among other areas of technological innovative development.

Even when judged by the strictest standards, the application results of SYS's core technologies are second to none.

Ge Jing explained that in April 2020, Kunming city issued the strictest local standards for wastewater discharge in the country, titled "Discharge Limits for Main Water Pollutants in Urban Wastewater Treatment Plants." The standards set a total phosphorus discharge limit of 0.05mg/L, one-tenth of the Class A standard discharge limit for wastewater treatment plant effluent, and a total nitrogen discharge limit of 5mg/L. Several projects implemented by SYS meet these stringent requirements.

In the field of recycled water business, where SYS originated, the company has been steadily advancing. Over the years, SYS has established numerous benchmark projects, with its recycled water services extending to famous domestic buildings such as the Bird's Nest, Water Cube, and National Grand Theater. SYS has also played a significant role in comprehensive water environment management projects, such as those in the Kunming Dianchi Basin and the treatment of polluted and foul-smelling pits and ponds in the Angangxi District of Qiqihar City.

Currently, in areas such as watershed planning and management, construction and upgrading of urban and industrial park wastewater treatment facilities, improvement of river and lake landscape water quality, treatment of black and odorous water bodies, rural wastewater management, and recycled water system treatment, SYS possesses strong market competitiveness.

Integrating the industrial chain User needs dictate the direction of evolution

With various levels of government continuously heightening their focus on water environment management, the marketization of domestic wastewater treatment is also steadily improving. The industry has set higher standards for water environment management companies in terms of technical levels, project experience, and capabilities in construction and operation.

Ge Jing told reporters that while good technology is essential, its impact on controlling project costs is still limited. The question he has been pondering for many years is how to provide 'exceptional value' to clients, which is also the direction for SYS's continuous evolution.

'Business models are as important as core technology. We need to stand from the client's perspective, studying their entire decision-making process, the demands at every key point, and the characteristics of their previous partners. Only by understanding these and offering 'exceptional value' can we seize business opportunities,' said Ge Jing.

Now, SYS, based on its core technologies and relying on water treatment products, can meet the scaled, centralized demands for water environment management. The company can offer all-in-one services, including the design of project management plans, supply and installation of water treatment products, and post-sale maintenance, achieving further expansion in market scale. Simultaneously, they optimize cost control throughout the entire process, enhancing efficiency and taking a leading role in niche markets.

SYS's water treatment product clients primarily include state-owned enterprises, government departments, and public institutions, known for their large scale, strong capabilities, and good reputation. By the end of 2022, SYS had a wealth of orders on hand, amounting to approximately 580 million yuan, accounting for 132% of the revenue for 2022, laying a solid foundation for the company's business growth with a sufficient backlog of orders.

"The policies introduced in recent years reflect unprecedented national support for private enterprises," Ge Jing stated. Companies have felt tangible benefits, whether in terms of the speed of payment receipts, the strength of loan support, or the preferential systems that local governments have implemented for private enterprises.

"Our country has elevated the construction of an ecological civilization to an unprecedented strategic level," Ge Jing expressed. The state has made "new progress in ecological civilization construction" one of the primary goals for economic and social development during the "14th Five-Year Plan" and included "a fundamental improvement in the ecological environment, and the basic realization of building a beautiful China" in its 2035 vision. Moving forward, SYS will continue to uphold its mission of "treating water management as its own responsibility," committed to creating an industry platform centered on energy conservation, environmental protection, low carbon, and ecology in line with the "dual carbon" goals, contributing to the construction of a beautiful China and global ecological security.

(This article is reprinted from Shanghai Securities News)