Cao Xiongzhi: "Little Bees"

**Summary:** After 1600 years of effort, mathematicians finally proved that bees are the most efficient builders in the world. The ancient Greek mathematician Pappus proposed the "cellular conjecture" in the fourth century, suggesting that the honeycomb's beautiful shape is the most effective form of labor in nature. Recently, Hil, a mathematician from the University of Michigan, declared he had solved the "cellular conjecture," proving that the honeycomb is an extremely sophisticated construction. Hebei Xiaobe Tools Group Co., Ltd. summarized the spirit of the little bee as diligence, hard work, unity, and pragmatism. On Yanzhao North Street in Zhengding County, Hebei Province, there is a modern building with a large red bee on top, representing Hebei Xiaobe Tools Group Co., Ltd. Founded in 1994, Hebei Xiaobe Tools Group Co., Ltd. began as a small factory and has since grown into a private joint-stock enterprise with over 1,000 employees, total assets of 300 million yuan, multiple subsidiaries, and operations across various industries. The company has earned numerous honors, including provincial-level technology centers, quality credit enterprises, and recognition for safety and integrity. Cao Xiongzhi, the chairman, has also received many awards, including model worker and leader in the diamond industry. **I. From "One Factory, Two Systems" to Private Shareholding Transformation** In September 1994, Cao Xiongzhi, then director of the Zhengding County Water Conservancy Metal Products Factory, initiated a bold reform by introducing a "special zone" within the factory, operating under a different system. This was the beginning of the "one factory, two systems" approach, which allowed both state-owned and private enterprises to coexist. This move made Cao the first to "eat the crab" in local reforms. The original water conservancy metal products factory was state-owned, producing aluminum alloy doors and windows. To achieve growth, they introduced foreign capital and developed diamond saw blades. The new company, Shijiazhuang Jinfeng Diamond Products Co., Ltd., operated alongside the old factory, creating a dual system. Employees later recalled how strange it was to see a separate area within the same yard, but this innovation led to significant progress. Cao balanced both roles, ensuring that state assets were protected while also safeguarding shareholder interests. Through this model, the company laid the foundation for future development. Despite difficult conditions, such as poor facilities and long hours, employees felt motivated and proud. By 2000, the company had expanded its shareholding structure, achieving rapid growth. In 2003, the state-owned factory merged with Jinfeng, marking a full transition to a private enterprise. This transformation helped the company evolve into a strong, diversified business. **II. From Single Production to Diversified Development** Cao Xiongzhi always sought new opportunities. While Jinfeng was successful in diamond products, he aimed for broader development. By 2002, the company had achieved high production volumes and market presence. Cao introduced a strategy of "high-tech-oriented, professional-driven diversification," setting ambitious goals for growth. Jinfeng expanded into new areas, such as ultra-fine stainless steel metal fibers, which became a major revenue source. They also developed advanced technologies like remote control systems for water management and automation. Additionally, the company ventured into agricultural industrialization by breeding geese and processing goose liver, boosting income significantly. In 2004, Jinfeng officially became Hebei Xiaobe Tools Group Co., Ltd., with multiple branches. The company continued to grow, reaching 50 million yuan in total revenue and 7 million yuan in profits and taxes by the end of the year. **III. From Trustworthy Products to Well-Known Trademarks** Hebei Xiaobe Tools Group has focused on quality and brand development. Their diamond circular saw blades were recognized as "Hebei SME Quality Trustworthy Products." The company implemented strict quality management systems, including 6S management, to improve efficiency and environment. They also invested in talent development, sending employees to top universities and offering regular training. With a strong focus on R&D, the company could quickly respond to market demands and develop new products rapidly. In 2001, they obtained ISO9001 certification, enabling international standards. Their "Little Bee" trademark gained national recognition, and the company was named a well-known brand in China. Over the years, the company has won numerous accolades, becoming a leader in the industry. **IV. From Industrial Upgrading to Leap-Front Development** As the diamond industry matured, Hebei Xiaobe Tools Group led efforts to improve standards and promote fair competition. They established the Hebei Diamond Industry Association, helping to reduce counterfeiting and improve industry practices. The company also engaged in cultural activities, forming a military orchestra and hosting events that brought together leaders and merchants. These efforts strengthened internal cohesion and external visibility. In 2011, the company launched the "Four-Five Plan" expansion project, investing 530 million yuan in a new facility. This project aimed to boost sales to 750 million yuan annually, further solidifying the company’s position in the market. Over 19 years, Hebei Xiaobe Tools Group has grown from a small factory into a respected corporate group, known for its integrity and innovation. Under Cao Xiongzhi’s leadership, the company continues to thrive, guided by the spirit of reform and dedication.

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