HGLaser and Hand Join Forces to Build SAP S/4HANA Digital New Infrastructure, Empowering the “Digital Laser” Strategic Upgrade

Wuhan Huagong Laser Engineering Co., Ltd. (referred to as “HGLaser”) and Hand Information Technology jointly announced that after 245 days of hard work and overcoming difficulties, they have successfully completed the implementation of the SAP S/4HANA system and officially launched it. The project, by constructing a unified basic information management platform, has achieved the full-chain integration of core data such as procurement, sales, supply, and manufacturing technology, making the ERP system the core hub for the company’s efficient operation and laying a solid foundation for HGLaser to build an integrated finance and business enterprise.

Project Milestones and Strategic Value

Project Background
As a core subsidiary of Huagong Technology (stock code: 000988), Huagong Laser has faced dual challenges of domestic policy adjustments and intensified market competition in recent years. Although it achieved integration of business and finance in 2019, the existing system could no longer support the expansion of its business scale. Therefore, the company’s decision-making layer designated the upgrade to SAP S/4HANA as a “top-priority project,” led by senior executives including General Manager Mr. Deng and CFO Mr. Luo, in collaboration with a team led by Hand’s Senior Vice President, Chen Zhijun.

Project Milestones
Requirement Analysis and Blueprint Design: Completed in 81 days, involving over 30 key users from core departments such as sales, production, and procurement. Finalized 24 system interfaces and over 130 development tasks.
System Configuration, Testing, and User Training: Completed in 86 days.
Smooth Data Migration and Successful Go-Live: Achieved smooth migration of over 70,000 master data records on October 5, 2024, and completed the first monthly closing on November 19, 2024, demonstrating a seamless go-live capability.

Core Achievements and Industry Innovations
1. Enhanced Integration of Business and Finance:
Implemented a full-process drive from order to production based on the SAP MTO model, with business data generating financial vouchers in real time, reducing manual accounting work by 30%.
Established a unified accounting framework with a multi-dimensional auxiliary accounting system to meet the requirements of group-wide control.

2. Breakthrough in Production and Supply Synergy:
After deep integration with the E-Center and CRM systems, data re-entry was reduced by 40%, and the accuracy of material requirement predictions was increased to 92% through optimized MRP algorithms. The delivery cycle for a cutting equipment order was shortened by 15 days as a result.

3. Construction of a Digital Decision-Making Hub:
– Established a monitoring system covering 120 business indicators, and through the data platform, increased the utilization rate of production equipment to 85% and reduced the fluctuation of quality rates by 6 percentage points. The decision-making response time for management was shortened to within 48 hours.

Strategic Significance and Future Outlook
This collaboration not only propelled Huagong Laser into the “Top 50 of China’s Intelligent Manufacturing in 2024” but also validated the adaptability of SAP S/4HANA in the high-precision manufacturing field. As a global authority in laser processing solutions, Huagong Laser is continuously leading the “Industry 4.0” track through innovative practices such as “digital twins + AI quality inspection.” Hand Information Technology has expressed its commitment to continue using ERP as the digital foundation to help Huagong Laser achieve a leapfrog development from “equipment manufacturing” to “intelligent manufacturing.”