The Spirit of Hangzhou Merchants

Power of Progress

 

 

On the fertile ground of Hangzhou’s private sector, generation after generation of entrepreneurs has charted a path of vigorous progress toward high-quality development through hard work and pragmatism, while also forging a distinctive Hangzhou business spirit.

The Fourth Plenary Session of the 20th CPC Central Committee called for, during the 15th Five-Year Plan period, “taking the promotion of high-quality development as the central theme” and “ensuring decisive progress toward the basic realization of socialist modernization.” In response, “Today’s Hangzhou Entrepreneurs” has launched the column “The Spirit of Hangzhou Entrepreneurs: A Driving Force for Progress,” featuring stories of Hangzhou business leaders, exploring the rich essence of the Hangzhou entrepreneurial spirit, and uncovering the inner strength that enables them to guide their enterprises toward high‑quality growth. This issue presents “Xu Zengfu: Upholding Steadfast Commitment to Business Success, Supporting Thousands of Families in a Small Town.”

 

 

In Chang’an Town, Fuyang, the name Xu Zengfu is virtually known to everyone. The Hangzhou Changming Battery Co., Ltd., which he leads (hereinafter referred to as “Changming Battery”), employs over 70 percent local residents; from frontline production to logistical support, the livelihoods of more than a thousand workers depend on this long-established township enterprise. For this very reason, every upswing or setback experienced by the company reverberates throughout the entire town.

 

The newly completed smart factory

 

In the 1990s, Changming batteries were the mainstay of Zhejiang’s battery market, with their share of shipments in the Hangzhou region once exceeding 80 percent. However, as the 21st century dawned, the influx of foreign brands and shifts in technological paradigms nearly wiped Changming batteries off store shelves. Today, with the completion of a smart factory and the installation of the first mercury-free, environmentally friendly new‑energy battery production line—now entering trial operations—the “Changming Battery” brand is making a comeback.

Facing the tumultuous journey of plummeting from the pinnacle to rock bottom and then rising again, Xu Zengfu spoke with remarkable composure: “Even at our most difficult moments, we never once considered giving up.” This unwavering resolve is precisely the essence of his management philosophy.

 

A Dual Breakthrough in Technology and the Market

 

At the new facility of Changming Battery, automated production lines are operating at full capacity. The “999” alkaline batteries rolling off the assembly line in bulk are being shipped to major supermarkets and neighborhood convenience stores across the province. The last time Changming Battery enjoyed such strong market demand was more than two decades ago.

What shattered the previously booming market was a sweeping reshuffle brought about by the massive entry of foreign‑invested and state‑owned capital. Alkaline batteries, with their longer service life and higher energy density, swiftly supplanted carbon‑zinc cells to become the industry standard. Coupled with intensive marketing campaigns by major brands, this left small and medium‑sized enterprises struggling to keep up. “Many considered upgrading their technology, but at the time, setting up a new alkaline battery production line cost over 40 million yuan—far beyond the reach of even a midsize battery manufacturer,” recalled Xu Zengfu. During that period, more than 90 percent of the nation’s roughly 200 battery manufacturers failed to survive.

Changming was also pushed to the brink, but Xu Zengfu clearly recognized that a head-on confrontation would lead only to ruin. In 1999, after the company completed its shareholding reform, he charted a differentiated strategy for breaking through: stratifying batteries by performance and price—positioning “999” in the high-end segment while focusing “HuaHong” on the mass‑market tier, thus sidestepping direct competition with industry giants. Starting in 2002, while maintaining its core carbon‑zinc battery business, the company took the lead in launching independent R&D and upgrading its production lines for mercury‑free, environmentally friendly batteries. This coordinated approach enabled Changming to weather the industry’s downturn. By 2015, annual output had rebounded to over one billion units, and its sales network had expanded to nearly 100,000 retail outlets nationwide.

The real leap forward has occurred over the past decade. Xu Zengfu revealed that the company has never ceased its efforts to master the core technologies of alkaline batteries. The enterprise has established a state-of-the-art battery laboratory and collaborated with numerous universities to advance research on cell materials, battery architecture, and electrolyte formulations. By reducing internal resistance, increasing capacity, and enhancing discharge power, the company has improved both the runtime and stability of its battery products.

 

Changming Battery’s newly developed next-generation “999” alkaline battery

 

Data show that the next-generation “999” alkaline battery, independently developed by Changming Battery, delivers a discharge duration in national‑standard tests that significantly exceeds the benchmark requirements and outperforms the flagship products of leading domestic and international brands. Moreover, this product boasts industry‑leading safety features, including explosion resistance, leak prevention, and reliable power retention.

 

The production workshop of Changming Battery

 

Alongside technological upgrades, capacity expansion is also advancing in tandem. According to the plan, the new Changming Battery plant will gradually ramp up production through a “build‑while‑producing” approach. By November this year, once the entire facility is fully operational, it will boast an annual production capacity of 5 billion “999” alkaline batteries, generating over RMB 2.8 billion in output value and enabling the company to rejoin the top tier of domestic battery manufacturers.

 

A Dual Narrative of Common Prosperity and Environmental Protection

 

 

In Chang’an Town, Xu Zengfu is well known for his unpretentiousness. He dresses plainly, eats in the canteen, and mingles effortlessly with the most grassroots employees. This low-key demeanor precisely reflects the defining trait of his character as an entrepreneur: he keeps people at heart and focuses intently on getting things done.

After graduating from high school in 1986, Xu Zengfu joined a collectively run battery factory as an assembly-line worker. In 1992, when the company ran into trouble, the 28-year-old stepped up to take on the role of factory director. Later, during the enterprise’s restructuring, he led his team and has remained at the helm ever since. Over several decades, the battery industry has experienced numerous ups and downs, yet he never left the field. When asked why he persevered, his answer was simple: most of the factory’s employees are local villagers; if the company were to collapse, it would jeopardize the livelihoods of hundreds—even thousands—of families.

For years, Changming Battery has consistently ranked among the top private enterprises in the region for its employee benefits. Many staff members have stayed with the company for over two decades, and some families even boast second- or third‑generation employees. Following the commissioning of the new plant, the company expects to create more than 500 additional jobs, bringing its total workforce to around 1,900. Meanwhile, in recent years, the company has successfully established the Changming Battery Targeted Recruitment Co‑Prosperity Workshop and the Guangheng Zinc Industry Disability‑Friendly Co‑Prosperity Workshop, providing flexible, local employment opportunities to over 500 residents from Chang’an Town and neighboring areas—among them more than 160 low-income farming households and over 85 individuals with disabilities. To help more low‑income residents secure jobs, Xu Zengfu has not only expanded production lines but also organized vocational skills training programs for several consecutive years, enabling villagers to enhance their employability. As a result, he has emerged as an exemplary “prosperity entrepreneur,” leading his community toward greater wealth and contributing to rural shared prosperity.

Beyond staying rooted in its local community and treating employees with care, Xu Zengfu has also pursued environmental sustainability with unwavering dedication. As early as 2002, Changming Battery took the lead in launching independent R&D on mercury‑free, environmentally friendly batteries. In 2019, the company’s “iron‑cased explosion‑proof mercury‑free battery” was granted a utility model patent. Over the following years, it secured numerous additional invention patents covering key technologies such as mercury‑free battery slurry preparation, cell materials, zinc canister design, and slurry‑layer paper. In 2024, an invention patent was awarded for a zinc–manganese battery manufacturing process that contains none of the three hazardous elements—mercury, lead, or cadmium. From mercury‑free to lead‑ and cadmium‑free, Changming Battery has gone further than industry standards in its commitment to environmental protection. In 2020, he participated in revising the mandatory national standard “Limit Requirements for Mercury, Cadmium, and Lead Content in Zinc‑Anode Primary Batteries,” translating the company’s accumulated technical expertise into industry‑wide guidelines. In 2025, the group standard “Guidelines for Carbon Footprint Assessment of Non‑Alkaline Zinc–Manganese Dioxide Battery Products,” which he helped draft, was officially released, extending the company’s environmental efforts from product harmlessness to carbon‑footprint management.

From steadfastly running a small, community‑run factory to achieving a rebirth as an intelligent manufacturing facility, Changming Battery has once again risen to the forefront of the industry after weathering numerous ups and downs. Looking ahead, Xu Zengfu’s vision is straightforward: to make batteries that last longer and are more environmentally friendly, bringing China‑made compact batteries into the homes of millions across more countries.

 

Ask

How should we understand the spirit of Hangzhou entrepreneurs in the new era?

In my view, the spirit of Hangzhou entrepreneurs is to take root in their hometown, cultivate their industries with dedication, serve the nation through real industry, and devote one’s entire life to mastering a single pursuit. Starting from the assembly line of a collectively‑owned factory, I have always believed that engaging in manufacturing brooks no carelessness: every battery we produce bears on it the reputation of Chinese manufacturing. We must strive for perfection, dare to innovate, and, above all, remain grateful for our origins, giving back to our hometown—creating employment opportunities right at our neighbors’ doorsteps and ensuring that vulnerable groups can live with dignity.

 

Source | Today’s Hangzhou Business Official Account

Editor | Dong Yiting

First Review | Li Yuejun

Second Instance | He Yingqun

Final Review | Wu Hongyun