"We Would Rather Accept Losses Than Deliver a Failed Project"
- A Featured Report by the Zhejiang University Wuxi Alumni Association
Willing to take losses,
Never delivering a failed case
On May 19, 2025, Ms. Huang Liming, Secretary General of the Zhejiang University Wuxi Alumni Association and Director of Taihu Bay Private Board Club, together with business coach Xiao Ai and Mr. Yan Jinyu, Chairman of Ruiya Mixing and a fellow ZJU alumnus, visited Jiangsu LEEV Intelligent Equipment Co., Ltd.
In the spacious and minimalist office of Mr. Yang Wanguo, Chairman of LEEV Intelligent, the group shared tea and engaged in a two-hour in-depth conversation. Over the course of the discussion, this seasoned entrepreneur reflected on three decades of experience and revealed how LEEV has carved out a breakthrough path in the highly competitive field of intelligent furniture manufacturing equipment.
PART 01
From the Oujiang River to Taihu Lake:
Three Critical Decisions of a Technology-Driven Entrepreneur
In 1986, Mr. Yang Wanguo ranked among the top 50 students citywide in Chongqing in the senior high school entrance examination and was admitted to one of China's first technical secondary schools. After graduating in 1990, he was assigned to State-owned Factory 5087, directly affiliated with China North Industries Group.
While working full-time, Mr. Yang continued his studies through self-education programs, earning degrees in Chinese Language and Literature (supervised by Hangzhou University) and Law (supervised by Zhejiang University).
In 1995, driven by ambition, he resigned from a stable central state-owned enterprise position and moved to Wenzhou, a hub of China's private manufacturing economy. "Seeing local entrepreneurs generate millions in output with just a few machine tools completely changed my life," Mr. Yang recalled.
During 16 years in Wenzhou, he worked across electrical appliances, hardware locks, and furniture manufacturing, rising from workshop technician to factory director. Through hands-on experience, he developed a deep understanding of manufacturing fundamentals and eventually embarked on his own entrepreneurial journey.
The second major turning point came in 2011, amid China's industrial transformation. While Wenzhou's manufacturing sector was becoming increasingly homogeneous, the Yangtze River Delta was emerging as a center for intelligent manufacturing.
"Wenzhou focused mainly on light industry and lacked an automation and intelligent manufacturing ecosystem. An industrial chain is the foundation of technological progress," Mr. Yang explained.
This analysis led him to establish LEEV Intelligent in Wuxi, upgrading from logistics machinery to intelligent manufacturing equipment.
The third decisive moment arrived in 2021. Despite the pandemic and turbulence in the real estate sector, LEEV invested over RMB 200 million, acquiring 89 mu of industrial land and constructing more than 50,000 square meters of production facilities-now the largest manufacturing base in China's furniture automation industry.
"As a manufacturing company, production capability is always our core competitiveness. Trading can bring short-term profits, but it will never take you far," Mr. Yang stated.
PART 02
Finding Blue Oceans in a Red Sea:
The Breakthrough Logic of Smart Manufacturing
In a fiercely competitive furniture equipment market, how has LEEV maintained a 15–20% annual compound growth rate?
Mr. Yang's answer is direct:
"We are not equipment suppliers; we are designers of intelligent production solutions."
This positioning resulted from two key transformations. In 2015, while competitors focused on price wars, LEEV introduced industrial IoT technology, developing an intelligent control system capable of monitoring over 500 process parameters in real time.
"It's like installing a CT scanner on the equipment," Mr. Yang explained.
In 2018, LEEV launched modular production lines, enabling small and medium-sized furniture manufacturers to adopt automation progressively-"like building with LEGO blocks."
Inside Mr. Yang's office, shelves are lined with deep-blue corporate standard manuals.
"There were no standards for furniture automation," he noted, "so LEEV effectively became a standard setter."
To date, LEEV holds 15 authorized invention patents, with 24 more under publication, 56 software copyrights, and over 100 utility model patents. As Mr. Yang humorously added, "In many companies, the entrepreneur himself is the core competitiveness."
PART 03
Wisdom in Winter:
The Addition Behind Subtraction
"Today, it's no longer about who runs fastest, but who survives longest," Mr. Yang observed.
China's furniture automation penetration rate remains below 5%, compared to over 30% in Europe and the United States. Although the market holds enormous potential, it has faced cyclical challenges due to real estate fluctuations.
During this downturn, LEEV adopted a strategic "addition and subtraction" approach. The company discontinued six low-margin product models, while increasing R&D investment from 5% to 8% of revenue and forming an AI algorithm team.
"Like pruning a fruit tree, removing side branches allows nutrients to strengthen the trunk," Mr. Yang said.
This discipline stems from LEEV's management philosophy. Mr. Yang insists that "the boss must be the chief product manager", personally participating in technical reviews and testing new equipment.
Regarding digitalization, he emphasized:
"ERP is not a cure-all. We first spent three months identifying 278 key operational nodes, allowing the system to adapt to the business-not the other way around."
Despite tariff pressures, exports still account for around 20% of LEEV's business, with over 7% market share in North America, maintaining leadership in intelligent home furnishing manufacturing.
In talent development, LEEV's "Technical Partner Program" has incubated multiple innovation teams. Mr. Yang remains calm about having trained more than 20 industry executives or competitors, continuing to invest in people without hesitation.
PART 04
The Vision of a Successor:
Three Keys to the Industry's Future
As a veteran of China's manufacturing evolution, Mr. Yang offered three predictions:
- Intelligence will enhance human efficiency, not replace labor
- Customized production will reshape business models
- Data-driven manufacturing will become essential
These insights are already shaping LEEV's strategy. Its latest cloud platform has connected over 1,200 machines, using big data analytics to optimize customer processes.
On succession, the 56-year-old entrepreneur remains open-minded:
"I don't insist my children take over, but the leader must understand both Industry 4.0 and China's manufacturing reality."
To that end, LEEV has implemented a dual-mentor system, pairing future leaders with both technical and management mentors.
"Growing a company is difficult; sustaining it is easier. Training professional engineers is the most achievable task," he noted.
For young entrepreneurs, Mr. Yang summarized three closed loops:
- Technology iteration within 24 months
- Customer feedback directly reaching frontline engineers
- Cash flow covering six product cycles
"Focus on product lines, focus on business lines-be a professional LEEV contributor," he concluded.
PART 05
The Entrepreneur's Social Equation:
The Logic of Purpose-Driven Business
At the end of the interview, the discussion turned to social responsibility. Mr. Yang showed photos on his phone of a rural primary school in Guizhou supported by LEEV, where students were operating robots in a newly built "Smart Manufacturing Experience Center."
"True philanthropy is not donating money, but investing time to cultivate industrial talent," he said, revealing plans for a 'Craftsman Scholarship' to support vocational students in practical innovation projects.
As a board member of the Zhejiang University Alumni Association, Mr. Yang proposed a "value closed-loop" for alumni and private board organizations-using business models to sustain public welfare and forming a healthy ecosystem of shared knowledge.
As dusk fell, Mr. Yang guided the visitors through the seventh-generation intelligent production line under commissioning. Robotic arms traced elegant arcs of light, sketching a vision of China's intelligent manufacturing future.
"Pessimists see difficulties; optimists see opportunities," he said, starting the system. The data flashing on the screen recorded every step of a traditional manufacturing enterprise's transformation toward intelligence.
Upon leaving, the visitors noticed a newly added plaque at the entrance reading "Specialized, Sophisticated, Distinctive, and Innovative Enterprise."
In an ever-changing business world, enterprises that remain true to their values and committed to innovation will ultimately anchor their place in history.
