Song Shiqiang's Insights - How to Maintain Growth During Economic Transformation

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Mr. Song Shiqiang at the 9th Electronic Industry Chain Resource Matchmaking Conference

Mr. Song Shiqiang is the founder and General Manager of Kinghelm Electronics (www.kinghelm.net [http://www.kinghelm.net/]) and Slkor Semiconductor (www.slkoric.com [http://www.slkoric.com/]). He is also a researcher at the State Council Development Research Center for Private and SMEs, a member of the China Association for Science and Technology's Electronics Expert Database, a lecturer for the China Electronics Society's expert group, an expert on Huaqiangbei business research, and a popular science columnist. He is recognized as the first cultural scholar to deeply research the "Huaqiangbei Spirit" and summarize "Huaqiangbei Culture," earning him the title "The Huaqiangbei Observer." His "Song Shiqiang's Insights" series of short videos and articles share years of learning, life, and entrepreneurial experience and insights, covering business, literature, art, philosophy, religion, aesthetics, macroeconomics, and more. This article originates from Mr. Song Shiqiang's keynote speech "How to Maintain Growth During Economic Transformation" delivered at the 2025 Dajiayuan Electronic Industry Chain Resource Matchmaking Summit. This was the first presentation topic of the summit, and the brilliant speech won enthusiastic applause and strong resonance from the audience, widely broadcast globally via live stream!

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Song Shiqiang's Keynote Speech: "How to Maintain Growth During Economic Transformation"

Hello everyone, today I am fortunate to once again participate in the resource matchmaking conference organized by "Sister Pomegranate" Xu Hong. Below are a few points from me, Song Shiqiang. Truly "coming from practice and going back to practice," they have helped Kinghelm [https://www.kinghelm.net/products.html] and Slkor progress steadily and go far. Revenue has maintained rapid growth for several consecutive years, key hidden operational management data has steadily improved, and the "Kinghelm" and "Slkor" brands have shone brilliantly within the industry and worldwide!

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973161047448625935481.png

Song Shiqiang said growth can solve many economic and social problems, but the transformation period is relatively painful. The main characteristic is "involution" (jun) - "finally managing to snatch someone else's meal, only to turn around and find our own pot has been taken away." For example, Chinese companies going global in sectors like PV modules, new energy vehicles, and energy storage are "involution-ing" internationally to an extreme. I am happy to tell you that the two companies I operate and manage - Kinghelm Electronics and Slkor Semiconductor - have achieved growth exceeding 80% for three consecutive years (2022-2024)! So, I, Song Shiqiang, am qualified to discuss growth with everyone. I hope everyone can achieve growth; at the very least, maintaining the status quo or declining less than competitors is also a kind of victory.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973161724961795139153.png

I. Phenomena of the Transformation Period

The transformation period means low or even negative economic growth, money is harder to earn, jobs are harder to find, and many people choose to "lie flat" (tngping), like the foreign "Ge You Slump" shown above. One phenomenon is corporate layoffs or even bankruptcies, employee unemployment, and ordinary people lacking money. The second is high debt risk, increased social disputes, heightened conflicts, and growing instability factors. The essence of economic activity is circulation; if one link has a problem, it induces more and bigger problems throughout the entire chain. People stop consuming, social investment willingness declines, the economy falls into a vicious cycle, the overall environment worsens, and then the third terrifying phenomenon appears - the "Death Spiral." Stock market investors know the "Davis Double Whammy": when the profitability of an invested company declines, earnings per share decrease, and the stock price falls accordingly, causing investors losses on both fronts. For example, if a company can't collect payments, it has no money to pay salaries or suppliers; employees may quit or cause trouble, suppliers cut off goods, production halts, customers have no money to pay, banks come to demand loans or cut credit, often accompanied by divorces, executive departures, etc. It's hard for such a company not to go bankrupt. Our Slkor recently opened a second shop in Huaqiangbei. It's said the transfer fee for this shop was 700,000 RMB a few years ago, but now it was rented to us without any fee. This shows the person who could afford 700,000 before has been "rolled to death" by the market. Private enterprises and SMEs are having a really tough time.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973162704058916561171.png

Slkor GM Song Shiqiang (first from left) interviewed by "Zhixin Su Ge" before the conference

We are now entering what the Japanese call the "Fourth Consumption Era," which emerged after Japan's economic bubble burst:A. Low consumption, low desire;B. Fewer marriages and births, love for flowers, birds, fish, insects, cats, dogs;C. Booming sharing/second-hand economy.Let me give examples. The cost of having and raising children is very high now. What to do with spare time? People fall in love with cats, dogs, birds, fish, and insects - hence the pet market booms. Look at another data point: my Lexus is 17 years old and hasn't even reached 90,000 km. It's mostly just me using it, so the private car utilization rate is just over 20%, a huge waste. Thus, sharing economies like Didi Chuxing (ride-hailing) emerged.

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II. Companies That Are Developing

In the Fourth Consumption Era, which companies are still developing in Japan and China? In Japan, one is Uniqlo, the other is Muji. Uniqlo is the brand famous in China for its "pa pa pa" (onomatopoeic, perhaps referring to fast fashion or simple packaging). Muji has no logo, simple and practical clothing costing two or three hundred RMB. During this period, Japanese companies like Panasonic, Sony, and Sharp shifted production overseas, but the Gross National Product (GNP) base created by these companies remains large.

Looking domestically, low-price platforms represented by Pinduoduo, and second-hand luxury/used goods platforms like Panghu and Xianyu are very popular. Consumption downgrading and using second-hand goods are ways to reduce living costs. Last year, Pinduoduo's market value surpassed Alibaba to become China's largest e-commerce company, indicating more poor people and many middle-class people falling back into poverty - this is also an economic phenomenon.

During this period, I observed three new pet chain hospitals opening around my residential area, offering specialized services like pet boarding, and found their business is very good.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973165279449488265362.png

III. Industry Growth Status

I used to be a contractor and was once the richest in the production team. I foresaw the construction industry would have no future in 10 years, so I chose to transform. Good news: the electronics information industry we are in is also growing. My two companies - Slkor and Kinghelm - are also growing. Kinghelm makes connectors and BDS (Beidou) antennas, competing with international connector giants like Amphenol, TE Connectivity, Molex, Hirose, Luxshare Precision, Foxconn (Hon Hai), Yazaki, JAE, and domestic players like Guizhou Aerospace Electric, Yonggui Electric, Lian Precision Technology, Yangtze River Connectors, Everwin Precision, Sunway Communication, Sunsea Communications, Huaxin Antenna, etc.

Let's look at three data points to see the potential in the electronics/semiconductor industry.

1. China imported 2.74 trillion RMB worth of integrated circuits in 2024, an increase of 11.7% from 2023, still the largest import category. For example, when I was born, the only household appliance was a flashlight. By ninth grade, the second appliance at home was an electric light - installing an 18W old-style fluorescent tube was considered very good back then. Just a few days ago, I bought a smart robot vacuum cleaner. So, our integrated circuit industry still has room to grow.

2. In the first half of 2025, China's integrated circuit exports grew by 20.3%, a pleasing increase. Many Chinese companies are going global, "involution-ing" outward. Our Kinghelm and Slkor are striving to go global, having already spent over 10 million RMB on overseas advertising.

3. From 2024 to 2032, China's PCBA exports are projected to grow from 300 billion USD to 1 trillion USD. This is a strongly correlated supporting data point for our integrated circuit industry.

All this fully confirms my first point - "Strong growth domestically and internationally."

Our Slkor's peer companies are also growing. I have a friend heading the R&D department at SG Micro (Sheng Bang Wei). He said SG Micro is growing strongly. Runshi Chairman Zhang Ming treated me to drinks in Huaqiangbei recently; he said Runshi is also growing this year. Also, LCSC Mall and JLCPCB, reportedly in 2024, JLCPCB achieved nearly 8 billion RMB in revenue and 998 million RMB in net profit, representing year-on-year growth of 18.55% and 35.19% respectively, both maintaining steady growth. So, well-run companies share three points: 1. Deep cultivation of the industry; 2. Building a good ecosystem chain; 3. A good business model.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973166090512395143507.png

Here comes the fourth advertisement - our ads are harder than the old "Family Planning" policy! Look - Kinghelm and Slkor, Slkor's H1 performance grew over 30%, Kinghelm's over 60%. Our Kinghelm and Slkor have maintained growth for three consecutive years. At this rate, we can go directly to the STAR Market in the next year or two. Next is Biaoxin Group. CEO Xie Pengbo visited our company in May. Biaoxin Group is transforming and also growing, indicating successful transformation. Also, Longway Business Software (Long Wei Shang Ruan) in Huaqiangbei, which makes ERP systems, is also growing! Brother Long, although in software, his quality is very solid. Brother Long often partners with me to tell jokes, ranking third behind me, Song Shiqiang, in Huaqiangbei.

Look at the chart above. Kinghelm grew 38% month-on-month in March this year. Being strong in the off-season stems from long-term accumulation and continuous effort. Growth in June was 20%. The third picture is a celebration banquet - our company is a bit pretentious, we drink Wuliangye at celebrations. "Slkor" is also growing. See our supporting data:A. LCSC Mall SKUs increased by 1200;B. Advertising investment increased by 30%, R&D investment increased by 80%;C. Employees increased by 20, personnel efficiency improved by 35%;D. Official website upgraded (functions +50%, traffic +30%);E. ERP upgraded, SaaS upgraded;F. Overseas inquiries increased by 120%.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973167354798465337937.png

I, Song Shiqiang, believe we must focus on a virtuous cycle and healthy growth in business. For example, our SKUs on LCSC Mall increased by 1200 - these are "Healthy Label" SKUs totaling 1200+. We originally had over 6000, so this represents a year-on-year increase of about 20%, which definitely drives company growth. Advertising investment increased by 30%, R&D investment by 80%, employees increased by 20, personnel efficiency improved by 35% - these are our own statistics, relatively scientific. Also, our official website upgrade (various functions +50%, traffic +30%), plus Kinghelm and Slkor rely on "joke marketing" (duanzi yingxiao). We write good jokes while also making good products, so we are qualified to talk about growth here.

Innovation + Internet Marketing. Our company's four major official website matrices receive 200,000 daily visits. Our website retention rate is very high, over 4 minutes, because everyone likes reading the jokes. Our overseas inquiries have increased by 120%. Kinghelm and Slkor have spent over 10 million RMB on overseas ads. Here's another ad: Recently, Shenzhen Slkor Semiconductor Co., Ltd. achieved significant results in the field of corporate image intellectual property. The "AI Robot" mascot cartoon character image (Trademark Registration No.: 82550616) and its robot name "Power Boy" (Trademark Registration No.: 82550880) have been officially registered by the China National Intellectual Property Administration under Class 9 (International) goods. This marks a solid step forward for Slkor in brand building and intellectual property protection. The "Slkor AI Robot" is lively and cute, with a red background. Integrated circuit images are used as the mascot's eyes, highlighting the industry and product characteristics. It looks adorable and cheerful, symbolizing prosperous business and harmonious joy, representing a bright, optimistic, and lively team! Slkor will next develop a 3D version of the mascot and a series of small gifts, which will also serve as carriers for spreading Slkor's corporate culture and help international friends understand Slkor's culture, products, and management team in a fun and interesting way! You see, we not only succeeded in registration but also made Slkor's mascot very fun and interesting - that's creative innovation.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973168291955157702053.png

IV. Peer Case Studies

There is a rule in social development and change: it's not the strongest that survive, but the species or organizations that actively transform and renew themselves faster. For example, dinosaurs died out, but cockroaches survived. This principle also applies to the economic transformation period. Take Biaoxin Group: they originally did electronic component foreign trade. Now they are positioning themselves as a global leader in connector application solutions and supply chain services, committed to realizing the vision of "Enabling the World's Factories to Use Chinese-Made Connectors." They are now a global agent for our Kinghelm. Since the beginning of this year, Biaoxin Group has frequently reported successes: not only officially becoming the electronic component centralized procurement platform service provider for Rongdian Group, responsible for Rongdian's product design, PCBA boards, and electronic component procurement; but also successfully writing a new chapter of "securing agency rights for over 10 top international and domestic connector, inductor, and sensor brands within 3 months." Products are mainly applied in automotive, industrial control, AI intelligence, communications, low-altitude economy, and energy storage fields. Next, Kinghelm and Slkor will also establish strategic cooperation with Biaoxin Group. Thus, Biaoxin Group is a typical case of adapting to the rules and actively transforming successfully. The deep logic is innovation and seeking change. Their leaders have worked very hard in recent years. They were reborn in 2024 and broke through rapidly in 2025. So, to live with dignity, one must transform, strive constantly, and cultivate virtue to carry the world. Another example is Longway Business Software. They make ERP systems. Their original customers were mostly small traders in Huaqiangbei and some micro-enterprises, many of which have collapsed, causing problems with their customer base. What to do? I analyzed for them: either add value-added services to the original business, or explore new business areas, adopt "wolf-like" marketing to seize market share, and also build an ecosystem. Brother Long often invites me and friends to dinner - that's also part of building an ecosystem. Now Longway Business Software is developing very well.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973169289638902882266.png

V. Response Strategies

Appropriate response strategies are paramount. Adjusting strategy and mindset comes first.

1. Adopt Long-termism, Reject Windfall Profits: The era of "windfall profits" harvesting industries is over. Windfall profits make people arrogant and lose their normal mindset. Several brothers in Huaqiangbei who drove Rolls-Royces have quietly exited the scene. So, it's better to work steadily and stably.

2. Deeply Cultivate the Industry: Companies still developing steadily now are those with years of industry experience. They adhere to their company strategy, not seeking overnight riches or quick money.

3. Refine and Detail: In an era of thin profits, companies must seek efficiency from management. They must do fine-grained management, scrutinize details, and control costs well to make some profit.

4. Learn and Innovate: Our Kinghelm and Slkor companies are building learning organizations, cultivating learning employees, improving personnel efficiency, and promoting micro-innovations for significant management development. Making micro-innovations and micro-adjustments based on the existing foundation, using an internet mindset, can lead to success. In other words, Micro-innovation + Internet Marketing is feasible.

5. Accumulation is the Moat: I, Huaqiangbei's Song Shiqiang, believe the secret and underlying logic of corporate success lies in accumulation and persistent effort. For example, Kinghelm and Slkor's high-speed, steady growth results from practicing the people-oriented concept "Working well is for living well" for many years, along with building management systems and organizational behavior mechanisms. This ensures efficient business closed loops - from product R&D to cash collection - leading to high efficiency and generous profit sharing.

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Regarding Relative Competition, simply put, competition is relative; you just need to be slightly stronger than your competitors. I summarize six key points: Big beats Small, Fast beats Slow, Refined beats Crude, Calm beats Agitated, Simple beats Complex, High (understanding) beats Low. This can be understood as: In business competition, it's always the big fish eating the small fish, the fast fish eating the slow fish. As companies move towards refined management, they must abandon crude management. Calmness achieves great things; simplicity ensures longevity; efficiency is king. Competitors with a high-dimensional understanding of the industry and products will surpass those with only a superficial understanding. Our Kinghelm and Slkor are committed to creating a simple, harmonious, efficient, and enterprising work atmosphere, hoping employees work hard during office hours and enjoy life after work, benefiting their physical and mental health and long-term development.

Kinghelm and Slkor:

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Antenna connector [https://www.kinghelm.net/products/connector-plug-in-unit.html] products developed by Kinghelm

Kinghelm develops and produces BDS/GPS dual-mode antennas, Wi-Fi antennas, Bluetooth antennas, RF connectors, and RJ45 network interfaces widely used in new energy vehicles! "Kinghelm, Connecting the World." Over a decade ago, Kinghelm participated in the Beidou "Two Buses One Dangerous Goods" project, providing BDS/GPS antennas, signal connectors, and terminals for "Beidou Standard Machines." After over a decade of continuous cultivation in RF and microwave technology, Kinghelm now develops RF signal [https://www.kinghelm.net/products/rfseries.html] products including BDS Beidou antennas, GPS antennas, Bluetooth antennas, WiFi antennas, and 4G antennas. It also continuously develops board-to-board, board-to-wire connectors, board-mounted sockets/interfaces, terminals, signal switch supporting product series; and offers three main business segments: custom mold development for automotive wiring harnesses, medical equipment connecting wires, and high-speed rate connectors.

Image: https://www.kinghelm.net/Data/bds666/upload/image/20250802/6388973172414888394762650.png

Kinghelm and Slkor provide products and technical services to over 20,000 global customers! Recently, Slkor Semiconductor, to facilitate the use of new "Slkor" brand products by end customers and agents and strengthen supporting technical services for customers, launched corresponding DEMO boards. The model released this time is SL27517A. Slkor SL27517A is a 4A single-channel gate driver. When replacing TI's UCC27517DBVR (Texas Instruments), it offers significant advantages in performance compatibility, cost control, design flexibility, and supply stability. Slkor SL27517A provides 4A sink/source peak current (symmetrical drive) at VDD=12V, fully consistent with UCC27517's 4A source/sink current capability. It can efficiently drive power devices like MOSFETs and IGBTs, suitable for scenarios like switching power supplies and DC-DC converters. SL27517A also features a wider voltage range: 4.5V-20V, slightly better than TI's UCC27517 (4.5V-18V), offering stronger adaptability especially in low-voltage or battery-powered scenarios (like portable devices).

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