Dialogue with the “Little Giant”: Zhou Sheng of Tongyou Intelligence—Breaking the Impasse in the Localization of High-Precision Electronic Components with the “Tongyou Way,” Aiming for an Annual Output Value of 10 Billion Yuan

Recently, Zhou Sheng, Chairman and General Manager of Tongyou Intelligent Equipment, was invited to participate in the 38th episode of the China Enterprise Confederation Training Committee’s program “Dialogue with ‘Little Giants.’” In the program, he shared in-depth insights into the company’s entrepreneurial journey—using a “large industry, small entry point” strategy to break through barriers in the localization of high-precision electronic components—as well as its technological breakthrough paths and future development blueprint. His remarks highlighted the pragmatic spirit and sense of responsibility demonstrated by “specialized, refined, distinctive, and innovative” enterprises as they remain firmly rooted in the real economy and courageously strive for excellence.

The name of Tongyou Intelligence embodies the company’s core DNA and business philosophy.

The philosophy of “Connecting industries, making tasks easy; fostering friendship, practicing integrity and doing good deeds” permeates the company’s entire development journey. “Connecting industries, making tasks easy” embodies the principle of pursuing excellence and strength through meticulous craftsmanship, while “fostering friendship, practicing integrity and doing good deeds” conveys the original aspiration of being friendly, trustworthy, and down-to-earth in both conduct and action—ultimately coalescing into the vision of “Everyone is a good friend,” one of mutual cooperation and win-win outcomes. Guided by the nation’s smart manufacturing strategy, the company has precisely set its sights on the goal of domesticating high-precision electronic components, choosing intelligent equipment as its entry point and gradually advancing its layout across the entire industrial chain, thus forging a unique path of development in the field of electronic information.

The strategic positioning of “large industry, small entry point” has given Tongyou Intelligence a differentiated competitive advantage.

During the program, Zhou Sheng pointed out that by focusing on the niche category of PIM integrated inductors, companies can foster positive interactions with competitors through equipment upgrades and technological collaborations, while also gaining deep insights into end-customer needs and achieving synergistic development. From 2017 to 2020, the company concentrated on breakthroughs in core technologies and used integrated solutions to gain entry into the doors of leading domestic enterprises. From 2021 to 2024, the company embarked on large-scale expansion across the entire industry chain, achieving a remarkable leap—from just two series comprising 20 products to over 20 series containing more than 2,000 product SKUs—in only three years. Sales soared from 300,000 to 300 million yuan, marking a transformative growth trajectory.

Technological innovation is the core driving force behind enterprise development.

Tongyou Intelligence adheres to a technology breakthrough strategy of “internal cohesion and external collaboration,” bringing together its own core technical talent while forging deep partnerships with research teams from institutions such as the Hangzhou Dianzi University Soft Magnetic Materials Research Institute, Sichuan University, and the University of Electronic Science and Technology of China. This collaborative approach breaks down vertical technological barriers across materials, equipment, and processes. The company has established a technology iteration system featuring “a mature generation, a reserve generation, and an R&D generation,” ensuring sustained innovation through forward-looking foresight. In 2020, the company delivered a complete set of equipment and technical solutions to Fenghua High-Tech, achieving a milestone in the commercialization of domestic technologies in this field with a deal valued at 5 million yuan. By signing a core-parameter guarantee agreement, the company completed technology implementation and team development within just over five months, setting a new industry benchmark. Since then, the company has innovated its business model by adopting measures such as equipment deposits and full-process on-site services, thereby reducing cooperation risks for overseas customers and accelerating the internationalization of its products. In the second half of 2023, the company launched its own brand, “Hua Cui Wei Gan,” which quickly gained entry into Xiaomi’s supplier ecosystem and, leveraging the resources of contract manufacturers, achieved comprehensive coverage of end-brand clients including Honor, Samsung, and Motorola.

Team building is the fundamental support for enterprise development.

Tongyou Intelligence has cultivated a “Three-Heart Spirit” centered on “confidence, craftsmanship, and sense of responsibility,” and places great emphasis on employees’ ability to think independently, thereby fostering a core team that is highly cohesive and exceptionally capable. From the early stages of its development, the company introduced an ERP system along with self-developed digital management modules, building a digital cockpit and computing power center that cover the entire “people, machines, materials, methods, and environment” spectrum. This enables end-to-end digital and intelligent management—from order scheduling and production planning to warehousing and inventory control. Zhou Sheng particularly stresses “controlling costs and boosting efficiency” rather than merely “cutting costs.” By proactively setting up its own photovoltaic power stations and energy storage facilities, the company has reduced electricity costs from 80 cents per kilowatt-hour to just over 40 cents per kilowatt-hour, achieving annual savings of over ten million yuan. By maintaining controllable costs while ensuring high gross margins, the company lays a solid foundation for sustained investment in R&D.

Speaking about the core elements of business operations, Zhou Sheng pointed out that capital, talent, and energy are the key pillars supporting the development of manufacturing. The company has already outlined an ambitious growth strategy, planning to achieve an annual output value of 10 billion yuan within five years. At the same time, adhering to the philosophy of “shared success and win-win cooperation,” Zhou Sheng pledged to unconditionally share brand customer resources with industry partners, calling on upstream and downstream industrial clusters to work together synergistically and help China’s electronic information industry go global.

From deepening expertise in niche markets to building out the entire industry chain, from technological breakthroughs to innovative business models—Tongyou Intelligent is writing a new chapter in the rise of domestically produced high-precision electronic components with its “Tongyou Way.” Looking ahead, the company will continue to uphold craftsmanship in pursuit of quality and embrace innovation for sustained growth. Amidst the tide of domestic substitution and global competition, Tongyou Intelligent remains firmly committed to its goal of becoming “the best inductor for Chinese consumers,” steadily moving forward and injecting even stronger momentum into the high-quality development of China’s intelligent manufacturing.