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Written Interview

Hou Jidong ( Haining Huaping). The Start is Both Bitter and Sweet

Anton Tscherne | 01 Sep 15:08
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HOU JIDONG Owner

HainingHuaping

TALKER

Moderator: Your degree of education is high, but the products you produce are very small, about half the size of a little finger. Tell us about the specific name of this product ? What kind of function does it have ?

HouJidong : The scientific name of this chip is adjustable optical attenuator which is used to adjust the size of the intensity of the optical signal and can be widely used in intelligent optical networks.

Moderator: For the general public, with such a small product, does this play a role in our daily life?

HouJidong : You can say that it plays a very important role in our daily life. Significant features of modern society include very smooth communication between people , thanks to a wireless communications coverage network. The wireless communication network is based on the technology of optical communication. A massive information transmission of optical communications is the principle in the simultaneous transmission of a single fiber in a few beams of light. One technique is to control the intensity of the signal light, that produces this product and is used for this link.

Moderator: Such a small thing, the market price is how much?

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HouJidong: This product is part of a very cutting-edge technology. Only two foreign manufacturers can produce the chip, and we are the only one in China. We entirely use domestic equipment, have complete independent intellectual property rights, and true localization. Honestly, regarding the unit price weight, it is more valuable than gold.

Moderator: Haining Hua Ping, founded in 2005, is a scientific research and production company for the past 4 years. Optical fiber communication and microelectronics technology are developing very fast, and a lot of technology, such as 3G have started to enter the daily life. According to the condition of the chips you produced now, how far do you expect to grow in respect of industrialization and the scale.

HouJidong: Technology is changing with each passing day, but sometimes it is not very easy to break through the key technology. As the chips we developed in 2000 as compared to the heat, the world has many manufacturers that are engaged in this production, but until now, the world production pattern has not seen big change, and still maintains two large enterprises as leaders. So we are considered to be a rising star, to break the foreign monopoly on this technology. We are going a completely independent path.

Moderator: Does independent development refer to the personal development, or do you have a team?

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HouJidong: It should be said that, my personal experience is more complex, in that I have done product testing, chip manufacturing, packaging. I have a grasp of the entire process, and this point, this is the big difference why we are different from other big companies.

"Do not abandon, do not give up“

Moderator: If you were a department of a large company, there would be benefits of the annual assessment, external pressure. Your company has a few people who give priority to focus on a target, for four years, but has not generated obvious benefits, won’t you be anxious?

HouJidong: The first two years were going steady, but a few years later the technology and the income pressure are big. The reason why we can become a big company is because I am interested in this business, and I have the confidence, on the other hand I also have survival pressure. If I do not persist, I will have wasted all the previous efforts. We have been adhering to the two factors "do not abandon, do not give up" faith, grit your teeth and go on now.

Moderator: Do you like to watch “Soldier Assault"?

HouJidong: Yes, I bought the “Soldiers Assault" CD, and watched it in a few days. Xu is a very interesting person, and also holds consistent judgment values similar to mine. The society has provided opportunities for us to labor and create. If you are gifted in some certain area, then you can go deep into it. From this TV drama, I found a lot of resonance, I can be entrepreneurial Sando.

Moderator: When you were working in a big company, how much was your annual income?

HouJidong: It was hundreds of thousands of yuan income per year, but the comfortable and stable life did not erase my passion for entrepreneurship. So four years of entrepreneurial didn't make me feel bitter.

Moderator: You have a very good educational background that can let you get a very good position in an international first-class company. But in four years of this business venture, your life is very difficult. What is the motive to support you to begin your business?

HouJidong: For me, I think this is a very promising career. In the long run, it will become a very important development direction of manufacturing industry. Applications of this industry is very extensive, I am very optimistic about the project in the application in the optical communication field.

Moderator: When did you come into contact with this technology?

HouJidong: When I worked in Silicon Valley in the United States, I had first contact with this technology.

Moderator: It was in Silicon Valley that you found the business direction. There are many technicians that share the same background with you in Silicon Valley. In the end the path of industrialization is to realize their own value and returns. Do you also have the same expectation?

HouJidong: The technicians in Silicon Valley were very impetuous at that time, and many technical staff like me, finally also failed to become millionaires. Because when we went to Silicon Valley, the bubble collapsed, and the whole economic situation made me feel that entrepreneurship was indeed very difficult.

Moderator: So you have felt the difficulties of entrepreneurship in Silicon Valley?

HouJidong: Yes, I had experienced so many ups and downs in Silicon Valley. Several companies I worked for eventually went bankrupt or did not make great achievement. I feel that the key to develop a product is not only in the technology, but also related to the operation of the company. Most of the time, some promising products disappeared with bankruptcy. All of these experiences make me to adhere to the development model of self-orientation and technology-orientation without external capital. Therefore I can tackle some technological problems and advance the products.

Moderator: If by external capital, you can find a more rapid development of the path, but only by virtue of its own strength, you may lose everything.

HouJidong: In the beginning I did not think so much. Sometimes things, looking back you will be surprised. Start at the beginning, and be aggressive. In the past few years this momentum inspired me. Now the technology has matured, and the process can be produced on a large scale, if external capital supports come then one can become bigger and stronger.

“If you do not die, it is the victory.“

Moderator: These past four years you have worked mainly by your own power, regardless of technology or funds or venture capital. How much of your own money you have put into the company?

HouJidong: we have been growing up to now, and in fact we have got support from many sources. We have mainly invested in the payment of wages, basically in the "first time to drink a little water, no water when thirsty hungry" state, in such difficult circumstances, we have gone through four years of entrepreneurial road.

Moderator: You did not see the result of your efforts for four years. External capital intervention can now provide a rapid development path for your company. Does that mean that you have gone through the most difficult road ?

HouJidong: Basically yes. For this product, I think it is already mature, and the next step is to expand the production scale. Before that we stayed at a low level.

The host: Now if Haining Hua Ping wants to achieve scale, industrialization of the state, what is the most needed to break through the bottleneck?

HouJidong: The first is to improve the company structure, second is the introduction of funds. Technically, I have brought the project to a more secure, stable position, and laid a good industrialization platform.

Moderator: Your education background is very brilliant, Xi'an Jiaotong University, and later you went to Beijing University to do a postdoctoral, then went to Germany Max-Planck-Institute to do research work, then went to Silicon Valley. Do you think that your outstanding achievements, are due to genetics and talent, or from your efforts?

HouJidong: I think both, the main factor is the education we have received, which is always more orthodox, meaning that only labor, only hard work, can succeed. This point is deeply rooted in our basic thinking.

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