Editor's note: Knock on Zhong Cheng with a blue string and search up and down to know the distance. This is an interview program for core executives (including but not limited to the chairman and founder) of listed companies in the field of science and innovation. What are some of their lesser-known legendary experiences? How did their mentality change before and after the company went public? “Dialogue with Science and Technology Innovators” explores with you to look far into the future.

In this issue, the guest in the “Dialogue with Science and Technology Innovators” column was Ye Activity, Chairman and General Manager of Outstanding New Energy.

“The development of an enterprise is a systematic project. This is related to cost control, input-output effects, and competitiveness in the overall enterprise operation system, such as the advantages of the team, technology, capital, and commercial operation system.”

▍ Personal introduction

Ye Huan, 1971, native of Pingping County, Zhangzhou, engineer, senior economist, bio-liquid fuel science and technology engineering expert in the agricultural field of the Ministry of Science and Technology's “12th Five-Year Science and Technology Support Plan”, and deputy director of the Biomass Energy Special Committee of the Renewable Energy Society. He is currently the chairman and general manager of Excellent New Energy.

▍ First label

A pioneer in “turning waste into treasure” of waste oil

▍ Company Profile

Excellent New Energy is a resource recycling enterprise specializing in the R&D, production and sale of biodiesel, derivative industrial glycerol, bioester plasticizers, aqueous alkyd resins, etc. using waste oil (gutter oil, acidified oil, etc.). The products are used in fields such as clean power energy and bio-based green chemicals, so as to achieve harmless disposal and resource utilization of waste oils and fats. It is a leading enterprise with large production capacity, large export volume and strong innovation ability in China's biodiesel industry. The company was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange on November 21, 2019.

“Science and Technology Innovation Board Daily”, May 31 (Reporters Zeng Le, Yu Jiaxin) If waste oil is used efficiently, it can also build a bridge to renewable clean energy. Excellent new energy is a pioneer in the domestic layout of this business.

Established in 2001, Excellent New Energy is located in Longyan City, Fujian Province. It is worth mentioning that the company has set a number of “domestic highs”: the first domestic enterprise engaged in technology research and development to prepare biodiesel from waste oils and fats, and achieved industrial production; currently the manufacturer with the largest domestic biodiesel production, sales volume and export volume.

Biodiesel is a renewable energy produced from biomass such as waste oil. It has characteristics such as low sulfur and no aromatic hydrocarbons. It can be used as a blended component of automotive diesel, and is an internationally recognized green and clean fuel.

As the National Energy Administration issued the “Notice on Organizing and Carrying Out Pilot Demonstrations for the Promotion and Application of Biodiesel” on November 13, 2023, and publicizing the list of pilot units for biodiesel promotion and application across the country in April this year, the domestic biodiesel market is expected to accelerate development.

The “Science and Technology Innovation Board Daily” reporter previously exclusively learned that Excellent New Energy has participated in the Xiamen Biodiesel Promotion and Application Pilot Project organized and implemented by the Xiamen Municipal Development and Reform Commission. According to many industry insiders, “After the implementation of the pilot, it will be a landmark in the promotion and application of Chinese biodiesel products throughout the country.”

Recently, the Financial Services Association and the “Science and Technology Innovation Board Daily” New Quality Productivity Research Group visited Fujian Province and discovered outstanding new energy that has been around 23 years since its establishment. During this period, Ye Activity, Chairman and General Manager of Excellent New Energy, was interviewed by a reporter from the “Science and Technology Innovation Board Daily” and shared the story of how the company “turned waste into treasure”.

▍ “If you work hard, you win”: the entrepreneurial path of people in southern Fujian

Before the interview began, Ye Jiao had just finished his last meeting.

When Ye Jiao first walked into the conference room, she was wearing a white shirt, black pants, leather shoes... This is quite similar to what she wore when Outstanding New Energy landed on the Science and Technology Innovation Board in 2019. But the difference is that he seems to be in better shape now than he was in the photo back then.

The “Science and Technology Innovation Board Daily” reporter noticed that two calligraphy works, “Tiandao Reward Qin” and “Dao Nature,” were hanging on the wall of the conference room where this interview was held. Among them, “Daido Nature” is a title written by Ye in his early years. And these four words have almost always permeated his state of mind since starting his business.

Although Longyan is not Ye's hometown, it is his “entrepreneurial hotspot”: at the time, at the age of 18, he moved from southern Fujian to western Fujian, and embarked on this entrepreneurial path irrevocably. Then, in 2001, Ye Activity founded Excellent New Energy to fill the gap in the domestic biodiesel sector.

“Life is just like this. Let everything go with the flow. Once you see it right, go ahead and do it. This is what we people in southern Fujian often say, 'If you fight, you win. '” Yeh Activity said with a smile.

On this path to starting a business, there are flowers and thorns. Looking back at 2023, the year was extremely challenging for the biodiesel industry.

According to incomplete statistics, in April 2023, ISCC initiated a review of Chinese biodiesel certified companies; on August 17 of the same year, the European Commission proposed an anti-circumvention investigation, mainly targeting Indonesian biodiesel produced from palm oil exported to the European market through China and the United Kingdom; in December of the same year, the European Commission opened an anti-dumping investigation against biodiesel products originating in China. Affected by this, Excellent New Energy's 2023 performance is under pressure.

“Soldiers will stop them, but we are still proactive in dealing with them.” Ye Jiao told the “Science and Technology Innovation Board Daily” reporter that Excellent New Energy has already undergone a two-week field investigation by the European Union and also applied for a hearing as soon as possible. “From being investigated to applying for a hearing, I did everything I needed to do, and I hope to get a good result.”

Looking at it from another perspective, Ye said, “European anti-evasion investigations have, to a certain extent, played a role in purifying the market.” He mentioned that this seems like a hindrance, which is also a good thing for the company. “Through last year's inspection, our entire team has grown. At the same time, we have a deeper understanding of international market rules, which plays an important role in accelerating the company's internationalization.”

Up to now, Excellent New Energy has formed an industrial layout based mainly on biodiesel, derived from deep-processed bio-based materials. The conversion rate of waste oil exceeds 99%, the yield of high-quality biodiesel that meets European standards exceeds 90%, and has established marketing platforms in the European Netherlands and Singapore.

▍ “Only with competition can progress”: Promoting the international layout of enterprises

Although the company has been around for more than 20 years, according to Ye Activity, excellent new energy is still a growing enterprise, and innovation and anticipation are still the keys to enterprise development.

According to information, at this stage, biodiesel is mainly used as clean energy in the field of road traffic. The EU is the world's largest biodiesel consumer market and import region, followed by the United States. Foreign countries have successively promoted the use of biodiesel in the fields of shipping, aviation, and power generation.

As a result, overseas markets became the focus of biodiesel companies' layout. “The future management of overseas information resources and the establishment of a supply network for raw materials resources are the keys to the sustainable development of the entire industry.” Leaf activity indicated.

According to Ye Activity, Excellent New Energy will start to deploy European companies and Singaporean companies at the end of 2022. “Last year, the two companies just started, which also enabled us to guarantee normal sales of our products even after being investigated against anti-evasion and anti-dumping last year. Next, we will develop overseas industrial layout one after another.”

Regarding layout choices for overseas markets, Ye Activity confessed, “We are all considering it now. Relatively speaking, we will choose countries and regions where superior resources can be integrated.”

Currently, the development of green shipping has become a global consensus. Among them, Europe officially incorporated the shipping industry into the EU ETS system on May 16, 2023. Starting in 2024, Europe will require ships entering European ports to use clean fuels such as biodiesel.

According to Ye Activity, “Singapore is the world's largest refueling site for ships, and it is expected that ship fuel will explode in the next 1 to 2 years.”

In the domestic market, regarding the progress of the biodiesel promotion and application pilot in Xiamen that the company has participated in, Ye Activity said, “The Xiamen company has now completed registration and will begin to apply for licenses. Overall, it is progressing steadily.”

Faced with the increasing number of new entrants in the biodiesel industry, Ye Activity responded with what people in southern Fujian often say “only progress can be achieved if there is competition”: “This is true of all industries. Competition isn't a bad thing for great teams. Without so many people competing, how can we promote industry progress and market development?”

However, at the same time, Ye said that in the midst of rapid development, the industry should also maintain rationality, avoid blind expansion, and follow the rules and logic at the bottom of the industry. “The development of an enterprise is a systematic project. This is related to cost control, input-output effects, and competitiveness in the overall enterprise operation system, such as the advantages of the team, technology, capital, and commercial operation system.”

According to Ye Activity, bioenergy plays an important role in the country's sustainable development, and industry development is also a reflection of new quality productivity. With the development of the biodiesel industry, it is expected to promote a green and low-carbon energy transition and help achieve the “dual carbon” goal.