NEWS

In June this year, the Linyi Gangtou Hydrogen Energy Industrial Base project, which took two years to build, completed its commissioning.
In this modern hydrogen energy industrial base, a key link that turns waste into valuable resources and restructures the value chain is being built by Yantai Dongde Industrial Co., Ltd. Through processes such as compression, purification, decarbonization, and cryogenic separation, coke oven gas—a byproduct of the upstream 1.16-million-ton coal dry distillation and comprehensive utilization project—can be converted into hydrogen feedstock for the hydrofining projects of multiple enterprises in the port‑adjacent chemical park. “The project includes eight diaphragm compressor units developed independently by us, with a hydrogen production capacity of 1,000 Nm³/h; these are core equipment for large‑scale hydrogen production,” said Xing Ziyi, Chairman of Dongde Industrial.
This is a nationally recognized “Little Giant” enterprise specializing in niche, specialized, and innovative fields. Anchored in Yantai’s Huangbohai New Area, the company has participated in national and provincial hydrogen energy demonstration projects that span the country—ranging from Hainan’s largest integrated energy refueling demonstration station and Guizhou’s first hydrogen-energy integrated station in Liupanshui, to the Southwest region’s first water electrolysis–based hydrogen refueling station, Xinjiang’s first integrated energy station, and Ningbo-Zhoushan Port’s inaugural integrated hydrogen energy station—woven into a nationwide network.
Xing Ziyi stated that compressors play a crucial role in every stage of the hydrogen energy industry chain, including hydrogen production, storage and transportation, refueling stations, end-use applications, and fuel cell vehicles. The company has made this a key area of technological breakthroughs, investing over RMB 20 million annually in R&D. It has successively broken foreign technology monopolies in areas such as air compressors and filling compressors, and now holds a global leading position in ion-liquid-sealed compressors. Over nearly eight years since its establishment, Dongde Industrial has filed more than 1,000 patent applications, becoming one of the first domestic hydrogen-energy enterprises to obtain certification under an intellectual property management system.
There are 18,000 specialized, refined, distinctive, and innovative SMEs, 1,163 “Little Giant” enterprises in this category, and 3,028 provincial gazelle enterprises. “By focusing on the tiered cultivation of high-quality SMEs and tapping their potential to strengthen foundations, Shandong has effectively promoted quality improvement and expansion across various types of such enterprises, with several key indicators ranking among the highest nationwide,” said Zhang Ning, Director of the SME Division (Innovation and Entrepreneurship Guidance Division) of the Provincial Department of Industry and Information Technology. In recent years, a number of high-quality SMEs in Shandong have continued to grow stronger, concentrating on niche markets and diligently honing core technologies, enabling these “small players” to unleash significant momentum.
How can a “small frame” unleash great energy? First and foremost, Shandong is committed to turning technological innovation—the “key variable”—into the “biggest driver” of growth for small and medium-sized enterprises.
Small and medium-sized enterprises (SMEs) have limited risk resilience and are more likely to fail in the “valley of death” of innovation. Shandong Province is promoting open access to basic innovation resources through a “sharing” approach. Taking scientific research instruments as an example, the resulting service network has brought over 15,000 pieces of equipment valued at more than RMB 300,000 each online. SMEs can leverage innovation service vouchers issued at both provincial and municipal levels to access advanced equipment at minimal cost, effectively accelerating their R&D processes. Meanwhile, Shandong continues to deepen connections between high-quality patent portfolios from universities and research institutes inside and outside the province and leading SMEs within the region. At the end of last year alone, a “seeding” initiative with the Chinese Academy of Sciences for specialized, refined, distinctive, and innovative enterprises made 44,000 patents slated for commercialization and over 3,200 licensed patents available to Shandong, providing SMEs with more scientific and technological achievements that are affordable, accessible, and effective.
Effective innovation depends on SMEs strengthening their market awareness and striking the right balance between cutting-edge technology and a deep understanding of market needs. Shandong Province focuses on key areas such as artificial intelligence, organizing promotional events for new technologies and products to help SMEs rapidly turn technological breakthroughs into marketable goods and secure stable market positions. For first‑of‑a‑kind equipment, initial batches of new materials, and inaugural versions of high‑end software, Shandong provides both policy incentives and practical application opportunities. Last year, more than 800 products received financial support, accelerating iterative upgrades through real‑world market testing. Among the newly certified provincial specialized, refined, distinctive, and innovative SMEs this year, the average R&D expenditure accounted for 5.5% of revenue, up 0.8 percentage points from the previous cohort; the average number of Class I intellectual property rights per enterprise reached 3.9, an increase of 0.9 over the prior group.
Stepping into the Seasoning Museum in Yang’an Town, Leling City, visitors are immediately struck by a powerful sensory experience—sight and smell combine to leave a lasting impression of this provincial-level specialized industrial cluster of small and medium-sized seasoning enterprises. Yang’an Town is home to more than 280 seasoning companies, with its compound spices commanding over 40% of the national market share. In the past, local SMEs often struggled with insufficient procurement funds due to high credit‑rating requirements and limited financing channels; today, by building robust supply‑chain finance infrastructure to channel capital, these firms can upgrade equipment, strengthen R&D, and deepen cooperation with central and state‑owned enterprises. Over the past three years, the cluster has added 40 innovative SMEs, while 26 seasoning companies—including Qianghao Food and Luzhong Food—have launched new projects and expanded production capacity. As a result, Yang’an Town has successfully been recognized as a National Strong Agricultural Industry Town.
Yang’an Town’s innovative supply-chain finance–based approach to supporting small and medium-sized enterprises (SMEs) exemplifies Shandong Province’s efforts to shift SMEs from operating in isolation to pursuing collaborative development. To date, Shandong has designated 171 provincial-level specialized industrial clusters in six batches and cultivated 23 national-level specialized industrial clusters for SMEs—ranking first nationwide for three consecutive years. These clusters bring together more than 150,000 enterprises and generate a total output value exceeding RMB 4 trillion.
“By nurturing high-quality SMEs at the ‘point’ level and strengthening development platforms for SMEs—represented by industrial clusters—at the ‘area’ level, Shandong has consistently worked to empower and upgrade its SME sector. This year, in response to new circumstances and developments, the province has further expanded its package of targeted policies in areas such as helping SMEs expand into overseas markets, guiding enterprises to pursue growth and strengthen their competitive tracks,” said Zhang Ning. He added that Shandong will this year draft a five-year action plan for high-quality SMEs, further bolstering confidence in the sector across the province.