Li Hejun, Chairman of Hanergy Holding Group, delivered a speech at the Beijing Jiaotong University alumni gathering

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On April 11, Mr. Li Hejun, Chairman of Hanergy Holding Group, returned to his alma mater to sign a strategic cooperation agreement. He also gave a speech titled “The Elements of Success” as the first guest speaker in the “Alumni Voices Series Lectures” held at the Red Orchard Celebrity Lecture Hall. Excerpts from the speech are as follows: Principal Chen, Gao **, dear teachers, and fellow students: Hello everyone! 10 years ago, I had a wish: if I were to give a speech, I would start with my alma mater, because it holds special feelings for me. “The character for “mother” represents a blood relationship, a familial bond. At the invitation of my alma mater, I felt it was my duty to accept; I thank the president for giving me this opportunity. Today, I will share with you my feelings over the years, and I hope everyone will offer some valuable suggestions. Jiaotong University has left me with wonderful memories; without my time there, I would not have achieved the growth I have today. School taught me how to face life and how to face society. First, my first foray into business began at Jiaotong University; I was in my second year of college at the time. I organized about 30 classmates to sell film in the university cafeteria for 3 days, and we made 12 yuan. These 12 pieces were eaten up in just one meal, which made me realize how hard it is to earn money. Secondly, my entrepreneurship also began at Jiaotong University; I borrowed the funds for my startup from a teacher. At that time, I had the courage to ask the teacher for those 50,000 yuan; it took courage on my part. But even greater courage was shown by the teacher, who actually dared to lend me those 50,000 yuan (laughter from the audience). My time at Jiaotong University will remain unforgettable for life. Next, I will share my personal insights on the elements of success through a few key words. I. What is a student? First of all, as a student, one must learn the basic skills of living and develop independence. Secondly, to learn the skills needed to survive, merely studying a major in university is far from enough. We also need to learn how to interact with people, how to cope with this complex society, and how to adjust our mindset in a chaotic world. Finally, as a student, I think the most important thing is to understand the meaning of life. There are three meanings to life: 1. To do something – to do something for oneself, for one’s family, and for society. Don’t ask what society can do for us; ask what we can do for society. The Chinese nation is characterized by diligence, bravery, and wisdom. When I was studying in Europe, I often saw young people there spending entire days sitting in cafes, wasting valuable time; in comparison, the diligence of the Chinese people is incomparable. This advantage is specifically manifested in the desire to do something. We run a business too, with the aim of doing something for society. 2. One needs a resume; human life is always relative. Everyone has experienced this: if you keep doing the same thing for a week, it seems like time passes very quickly, but if you do many different things in the same amount of time, it feels like time goes by slowly. This is because time is relative. A turtle that lies motionless in the sea for a thousand years – what is the difference between those thousand years and just one year? Therefore, we must constantly improve ourselves. Hanergy has a corporate motto: The process of growth is the process of overcoming difficulties. Overcoming small difficulties leads to small growth, while overcoming large difficulties leads to great growth. Therefore, when facing society, one should bravely try to do everything. 3. No Regrets. Paul in \"How the Steel Was Tempered\" said: One should not regret wasting one’s time. But you can’t wait until you’re 80 to figure out whether I’ve wasted my life. It will be too late then; we should constantly reflect on ourselves to see if we have wasted time or done nothing, and this is very important. II. Ideal. An ideal, I believe, can be understood as a rational dream. This ideal is rational, achievable, and attainable through effort; otherwise, it is called mere fantasy or delusion. Ideals are reflected in the real lives of each of us. Nietzsche once said, “One should rather pursue nothingness in life than have no pursuit at all.” ”Even if your ideals are too high or too low, you must have ideals. For example, as a farmer, your goal is to grow good crops. Without ideals, a person has no spiritual backbone and ends up doing nothing. To become strong, the people must have faith ； To be strong, one must have ideals. The same is true for businesses as well. A company’s strategic positioning is akin to a person’s ideals; Hanergy’s advantage lies in its accurate and forward-looking strategic positioning. The first thing students do when entering society is to find their place in life. Some people took 20 years to find it, while I only needed three months. I graduated in 1988. At that time, graduates were assigned jobs, but I gave my allocation to someone else; the job assigned to me wasn’t suitable for me. I decided to start my own business – that was my decision for myself. My advice to you is: within 5 years after entering society, you should know what suits you and establish your own goals. And what enables ideals to be realized? One word: overambitious and underqualified. Having high aspirations means one must set lofty goals for themselves ； Having a low profile means working diligently and perseveringly to accomplish tasks, thereby realizing one’s ideals. III. Passion: If one wants to succeed, passion is essential. A motto of Hanergy goes: Working with passion is half the battle to success. Firstly, corporate growth requires innovation; what is the driving force behind innovation? It’s passion! Only those with passion can face life head-on, remain unfazed by any difficulties, and have the courage to confront and overcome them. Passion is the source of innovation; passion turns the impossible into possible – that is our culture! Let me share a case study on how Hanergy turned the impossible into possible. 6 years ago, I decided to pursue the hydropower project on the Jinsha River. At that time, everyone believed that a company of such scale could never undertake such a project; private enterprises simply wouldn’t be able to handle it. But Hanergy, as a leader among China’s private clean energy companies, is strong and professional in terms of technology, funding, and management. Most importantly, we have the passion and determination to overcome any obstacle. Through relentless effort, success was finally achieved! This marks Chinese private enterprises as having entered **monopolistic industries. We will become the world’s largest private hydroelectric power company, and this is where the company motto \"With Hanergy, nothing is impossible\" originated. IV. Cultivation: Everyone is born with personality flaws. The key to success lies in whether you keep working on improving yourself. The first aspect of self-improvement: stress resistance. In running a business, the most essential ability is the capacity to withstand pressure. As we can see from the media, entrepreneurs commit suicide every year. This is a lack of resilience to pressure – a kind of pressure that the students here present cannot even imagine. At school, you have teachers; at home, you have parents. It is only when you are in a leadership position that you come to understand what true pressure is. Zeng Guofan told a rather interesting story: Two porters met on either side of a narrow field path, and neither would yield their place to the other. What should they do? So everyone has to hold on; each person is carrying a load of 100 pounds, and it’s a race to see who can hold on the longest. In the end, those who can’t hold on any longer fall, and those who do manage to hold on go on. There is a saying: If the sky falls, use it as a blanket. It’s telling us that people should have a broad mind. Resilience is an essential quality for all entrepreneurs. Last year, on behalf of Chinese private entrepreneurs, I went to the United Nations headquarters in Geneva to attend a conference on \"The Role in Promoting Corporate Social Responsibility.\" Due to the highly formal setting, the speakers read from scripts, which did not yield good results. When I spoke, I did it entirely from memory, because I believed I should use this international platform to build my resilience under pressure. The eight-minute speech was met with warm applause from everyone. Why is it so effective? Because everyone feels there is interaction, so it’s not so boring. After his speech, Minister Hu Deping gave me a warm hug and said, “You truly bring honor to Chinese private entrepreneurs and to the Chinese people!” ”The Chinese ambassador to Geneva who hosted us that evening said, “So far, the first person here to dare to give a speech without preparing ahead of time was Prime Minister Zhou Enlai, and the second is you.” ”The purpose of sharing this example is to tell everyone to work on improving their stress resistance at all times. (Applause) The second point of cultivation: one must have perseverance. It is very difficult to maintain a firm and unwavering will over the long term, but this can also be achieved through cultivation. When I was learning English back then, I used my time after work to listen to English in the car; it took me 5 years, a total of 1,000 hours, and my listening skills improved dramatically – and this was made possible by perseverance. The process of perseverance is essentially a form of training, which brings one one step closer to success. While persevering, one must also resist temptations. In previous years, real estate developed rapidly and yielded high profits, prompting many companies to abandon their core businesses and invest in real estate instead. Hanergy managed to resist such temptations, which is an extraordinary achievement for private enterprises in China. As the saying goes: When God wants someone to die, He first makes them go mad. For private enterprises, the first thing they do in a reckless manner is to stop focusing on their core business. Many people might say that if it’s not bright in the east, it will be bright in the west, but I would say that the sun is like our main source of light – without the sun, nothing can be bright! I remember going to South Korea one year; after comparing it with Korean companies, I felt that the common feature of Chinese private enterprises is the lack of a clearly defined main business. Korean companies are highly specialized; for example, there are those that specialize in producing buttons, or others that focus on manufacturing shoe spikes – each has its own area of expertise. The third point of cultivation: breadth of mind. As an entrepreneur, one will achieve nothing without a broad mind. Hanergy once had an employee who would leave the company after working there for two or three years. This person was extremely talented; everyone tried to keep him, but he insisted on leaving. Half a year later, he suddenly asked to return. At that time, many people in the company thought it was inappropriate to rehire him, but I believed that talent should be given a chance, so I allowed him to return to the company. I think this is a kind of breadth of mind. At Hanergy, there are even employees who come in and out five times each – which shows the generosity of us Hanergy people. The fourth point of cultivation: judgment. To judge a matter, several factors need to be taken into account: 1. The information must be balanced; for any issue or decision, there are always positive and negative aspects. When there is only one positive or only one negative aspect to something, the information is clearly unbalanced, which indicates that you do not have a sufficient understanding of that matter. 2. You must know what the worst outcome would be; if you can tolerate that outcome, then you can make a decision. 3. The judgment of issues must be carried out in a systematic manner. The improvement of judgment is a continuous process; as your experience and background grow, your ability to judge will become stronger. Fifth, conscience. What is conscience? 1. One can do things that are beneficial to oneself, but not things that are harmful to others; adhering to this principle is a sign of a true conscience. 2. Either stay silent or tell the truth. Four years of university life is an important period for students to develop their ideological frameworks. From now on, you must establish the principle of honesty and integrity in your conduct, and cultivate a conscience. 3. What kind of conscience does an entrepreneur need? An entrepreneur’s conscience lies in running the business well, paying taxes, creating more job opportunities, and contributing to society – that is the greatest sense of conscience for our company. Speaking of conscience, there is one more thing to mention, and that is “faith”. In society, the most important foundation for success is \"trust\" – such as self-confidence, beliefs, and credibility. In the realm of private enterprises in China, Hanergy is a company with excellent credibility; over the years it has never owed a single penny to banks. To maintain this credibility, the company’s employees even paid off the bank loans out of their own pockets. The same is true in dealing with people; one must have \"trustworthiness\", which is the foundation for living in society. China has been reforming and opening up for 30 years, having accumulated a great deal of social wealth; at the same time, it will also face more changes. Huge opportunities and challenges await each of the students here. The current market economy system also provides favorable conditions for entrepreneurs. One final thing to say: we tend to overestimate the changes that occur over one to two years, and we tend to underestimate those that occur over five to ten years. I believe that in ten years, all of you here and our alma mater will have a bright future ahead. Ten years from now, everything will exceed everyone’s imagination! (Applause) Interactive question: Student: Hello, senior! As a college student who wants to start a business, I can’t figure out the right direction for it. So I would like to ask you, after college graduates enter society, how should we find our direction? Li Zhu*: First of all, I would like to say that I am not particularly in favor of university graduates starting their own businesses; entrepreneurship requires caution, and I have personal experience of this. Starting a business requires many conditions; first and foremost, there must be capital, just like the valuable 50,000 yuan that my teacher lent me back then. Second, it depends on whether you have foresight and decision-making skills, as well as the comprehensive qualities in this regard. Third, the best time to start a business is three to five years after graduation. Why is that? The students are still young; it’s better to have a company bear the cost of these three to five years of education, for example, Hanergy could take care of that. (Applause from the audience) It’s better to start a business once you’re well-prepared. Student: Hello, senior! You kept mentioning the company’s strategic decisions earlier – were these decisions made by you alone, or were they developed together with your team? Li Zhu*: This student asked a very good question. I once said, “There are three things I need to do: first, formulate a strategy; second, lead the team.” Third, “public relations”. So the strategy you just mentioned. I was basically the one who decided it. (Laughter and applause from the audience) Student: As a company grows, when conflicts of interest arise and team members disagree, how do you manage your team? Li Zhu*: This is an excellent question; it seems that the students at Jiaotong University are all highly competent. Teams are very important for the development of a company. Hanergy has a corporate motto: First, it relies on people; second, it relies on people; third, it still relies on people. These are the exact words from our company’s training program, as well as Hanergy’s unique understanding of team spirit throughout its development. There are three reasons why the Hanergy team is able to maintain a high level of combat effectiveness over the long term: First, it has a modern corporate management system ； Secondly, it is the recognition of my personal character; I approach my tasks with generosity, always being magnanimous, focusing on matters rather than individuals ； Third, Hanergy’s culture values integrity; Hanergy’s team is a highly honest one, and those who engage in unethical behavior have no place there. A strong corporate culture brings together such an excellent team. Student: Hello, senior. Which company decision has taught you the most lessons? Furthermore, during your 20-year career, which event left the deepest impression on you? Thank you. Li Zhu*: The most important lesson is that I was initially determined to secure those 6 hydropower projects in the middle reaches of the Jinsha River (laughter from the audience); it didn’t work out, and in the end we only managed to get one of those projects. It seems now that my decision back then was indeed a bit idealistic. Regarding the second question, the decision to enter the clean energy industry is what impressed me the most. Student: Hello, senior. I’m also from the School of Mechanical and Electrical Engineering; I’m in my first year and am facing the decision of changing my major. Today I am proud to see such a successful senior, but I am also confused, as your business seems to have nothing to do with your major. I hope you can explain the relationship between one’s major and future success. If you had the opportunity when you were in college, would you have switched to a school of management or economics as well? President Li*: This question might need to be asked of the president, but President Chen also shared an important piece of information with me – that those who graduate from the School of Mechanical and Electrical Engineering are the most successful (applause). So I suggest that you not change your major lightly. I was just joking earlier. Seriously, if you’re not interested, I suggest you change your major. There used to be a saying: Interest is the guide to learning; without it, it’s hard to do well in anything. My suggestion is: if you’re not interested, just move on; of course, it depends on whether Principal Chen agrees. Student: You mentioned competition with state-owned power companies. From a strategic perspective, what kind of landscape will the Chinese power industry take on in the next ten or twenty years? What do you think is Hanergy’s greatest advantage? Li Zhu*: This is a very insightful question. Personally, I believe Hanergy’s prospects in the future will exceed everyone’s imagination. Firstly, Hanergy has a very clear strategic orientation and well-defined goals; by adhering to the path of clean energy development, it ensures the sustainable growth of the company. Meanwhile, the greatest advantage of private enterprises lies in their management systems. Therefore, I believe that private power companies in China will have great room for growth in the future, and may even surpass state-owned enterprises. Student: Did the international financial crisis have any impact on your company? What kind of countermeasures will Hanergy adopt? Li Zhu*: The financial crisis is currently affecting the whole world, but since Hanergy deals in clean energy and its raw material costs are zero, this financial crisis has not had any impact on us. On the contrary, this crisis represents a valuable opportunity for companies with stable cash flows like Hanergy. Since investment costs, interest rates, and financing costs are low during this period, Hanergy will seize the opportunity to expand in a reverse direction.