Caring for the Hometown and Focusing on People's Livelihood

----- Exploring Corporate Social Responsibility from the Perspective of Tiangong International

Tiangong International is an enterprise known for its "Strength", "High-end Positioning", and "Rapid Development". "Strength": It is the first enterprise in China listed on the Hong Kong Stock Exchange integrating high-speed steel and high-speed steel cutting tools. Its two core product categories (special steel and tools) lead the industry at home and abroad. "High-end Positioning": It owns more than 30 national patents and has hundreds of scientific and technological elites. "Rapid Development": It has grown from an obscure small hardware factory to a world-renowned enterprise in just over 20 years...

However, in the eyes of local people, the most commendable feature of this enterprise is its "affection" – affection for employees and families and affection for the hometown. It has been devoting itself to improving the well-being of the hometown people for more than 20 years. This enterprise is "Tiangong International" in Zhenjiang.

"Leading the Villagers to Become Prosperous Together Is a Kind of Happiness" – Barren Land "Producing" Wealth

"Leading the villagers to become prosperous together is a kind of happiness." Zhu Xiaokun, the "leader" of Tiangong, expressed his heartfelt feeling.

Twenty-eight years ago, in Qianxiang Village, Danyang, the village-run hardware factory was on the verge of bankruptcy. Zhu Xiaokun volunteered to take charge of the factory. Starting from making paper ropes, he tried small hardware, copper handles, plastic bottle caps, long-distance high-power antennas, electronic pianos... Until finally deciding to take twist drills as the core product, this village-run enterprise achieved a "rebirth like a phoenix rising from the ashes".

Once known as "a land of fish and rice without enough food", Qianxiang Village suffered greatly from barren land. In the autumn of 1988, Tiangong International allocated the first RMB 20,000 to launch large-scale land consolidation. In 1989, it allocated over RMB 50,000 to consolidate nearly 200 mu of land; in 1990, it invested RMB 60,000 to consolidate more than 200 mu of land; and in 1991, it consolidated 100 mu of land... From 1992 to 2000, the enterprise invested RMB 11 million in agriculture for the whole village, turning thousands of mu of land with large elevation differences into "flat plains". Land consolidation increased the village's cultivated land by 300 mu, and the per-mu yield rose from less than 500kg to over 900kg.

Tiangong also invested heavily in building 4 permanent ditches with a total length of 6,500 meters, a 1,000-meter cement road for grape planting, 5 electric irrigation stations, and 35 supporting buildings. It purchased agricultural machinery such as large tractors, combine harvesters, no-till planters, ditchers, drive harrows, seed drills, rotary tillers, and dryers, realizing full mechanization of farm work.

In 1996, Tiangong made a bold decision to take back all the villagers' contracted farmland and entrust it to professional households for large-scale modern agricultural operation. Professional households receive remuneration based on a fixed quota of grain delivery and share the profits from excess output, which not only stimulates their enthusiasm but also increases agricultural output. To support this decision, Tiangong implemented a series of supporting reforms, including providing free grain rations and liquefied gas to villagers since 1997. This has truly liberated the villagers from farm work and promoted the development of both industrial and agricultural productivity.

"Benefiting the Hometown People Is What Makes Me Worthy of My Conscience" – The Villagers' "Happiness Account"

"Benefiting the hometown people is what makes me worthy of my conscience." Zhu Xiaokun made a solemn commitment to the villagers: Tiangong will invest no less than RMB 3 million in Qianxiang Village every year! With Tiangong's feedback, the villagers' happiness index has been increasing year by year. The urban pursuit of "paying attention to fashion in clothing, nutrition in diet, and villas in housing" is no longer a dream for Qianxiang villagers.

Qianxiang Village is extremely beautiful, shaded by over 4,000 large trees and 40,000 square meters of green space. In 2000, Tiangong invested RMB 5 million in road construction, river improvement, and greening projects in the village. The three central ditches that once crisscrossed the village have been straightened, desilted, and now look like three beautiful ribbons. The wide green belts along the riverside roads are covered with beautiful grass and vines.

Tiangong has invested tens of millions of yuan to uniformly plan, design, and construct a new villa community and 13 high-rise residential buildings. Villagers who relocated receive a subsidy of RMB 80,000 to 100,000. Today, Qianxiang Village is filled with well-arranged villas, high-rise residential buildings, and staff apartments.

Tiangong also invested nearly RMB 5 million to build the first enterprise-run elderly apartment in Zhenjiang. With a construction area of 4,700 square meters, the apartment has 53 standard rooms. The three-story building is equipped with elevators for convenient access, as well as a medical room, an activity room, a library, a reading room, a chess room, a fitness room, a large dining hall, a small canteen, and a bathroom. There is also a swimming pool and a basketball court outdoors... Elderly villagers can live there for free.

The traditional concept of "saving grain for famine and raising children for old-age security" has become a thing of the past for Qianxiang villagers. According to Tiangong's regulations, female villagers aged 55 and above and male villagers aged 60 and above are entitled to pensions. For villagers who live to 100 years old, each of their immediate family members receives a RMB 5,000 reward. The bitterness of winter makes the warmth of spring all the more precious. Elderly villager Wang Xiudi said, "I am full of gratitude. Grain, liquefied gas, newspapers, magazines, and cable TV are all free. We also receive gifts during festivals, and the village organizes trips for us every year. More than 300 elderly people in the village –everyone have some savings. We really don't have a place to spend this monthly pension!"

Qianxiang Village has implemented free nine-year compulsory education for more than a decade. For students from Qianxiang Village: those admitted to key senior high schools receive a RMB 5,000 reward; those admitted to key classes of ordinary senior high schools receive RMB 3,000; those admitted to junior colleges receive RMB 1,000; those admitted to 4-year technical secondary schools receive RMB 1,000; those admitted to 5-year junior colleges receive RMB 2,000; those admitted to first-tier undergraduate universities receive RMB 10,000; those admitted to second-tier undergraduate universities receive RMB 5,000; those admitted to private undergraduate universities receive RMB 2,000; and those admitted to postgraduate programs receive RMB 20,000. Zhu Xiaokun said, "Encouraging education and helping more Qianxiang people improve their academic qualifications is the fundamental guarantee for the sustainable prosperity of Qianxiang."

In Qianxiang, every villager is covered by cooperative medical insurance, with the insurance premium fully paid by the village. The village allocates hundreds of thousands of yuan annually for medical subsidies. For minor illnesses, villagers can go to the village health center; for serious illnesses, they can go to the town hospital, and all medical expenses are reimbursed.

"Tiangong Huinong" – Micro-Credits "Empowering" the "Three Rural Issues"

If land consolidation, agricultural mechanization, and living security are like "blood transfusion" for the "three rural issues", then the micro-credit company established by Tiangong has essentially helped the "three rural issues" gain "blood-making" capabilities.

On July 22, 2008, "Tiangong Huinong", the first rural micro-credit company in Jiangsu Province, was officially launched with a registered capital of RMB 100 million. It was co-founded by Tiangong Group and four individual investors. Within less than one year, its total business volume exceeded RMB 400 million. Nearly 100 "three rural issues" projects have been successfully implemented, and a group of farmers have embarked on the road to prosperity.

Compared with traditional financing methods, "Tiangong Huinong" is faster, more flexible, and more effective. Its application procedures are simple and practical, with the whole process from application to loan disbursement usually taking only three days. The fees are low, covering only basic operating costs. No collateral is required for loans, and the interest rate is determined through negotiation between the two parties. In practice, the annual interest rate ranges from 7% to 17%, much lower than that of private lending and pawnbroking.