Inspired by a market opportunity and seeking to go the extra mile, Dennis Tung, an alumnus of PolyU, entered the world of entrepreneurship after years of gaining solid experience in engineering.

Tung spent about five years at PolyU in the 1990s. He completed a Diploma and Higher Diploma in Mechanical Engineering and an Associate degree. He also obtained a Master’s degree in 1996. After years of working, he returned to PolyU to pursue further study. He obtained his DBA in 2010, focusing on green service.

According to Tung, studying for these high-level and high-quality degrees not only enhanced his knowledge and broadened his network, but also furthered his career development.

With an engineering career spanning over 20 years, Tung was a company director by the age of 40. Seeking to further explore energy saving and bring value-added services to customers, he founded Sustainable Energy Limited (SustainE) in 2009 to start his life as an innovation-driven entrepreneur.

Tung’s company focuses on designing energy-efficient heating and cooling systems. It specializes in providing water-to-water heat pumps, air-to-water heat pumps, swimming pool heat pumps and air-conditioning units. These installations can heat indoor and outdoor swimming pools, dehumidify indoor swimming pool areas and moderate the temperature of public spaces. They can also be used in structures, such as stadiums, commercial buildings, private residential buildings, hotels, schools, theatres, and factories.

“What we do is try to constantly improve technology to recycle energy within the system to the utmost extent,” says Tung, adding that he wants the system to be sustainable and eco-friendly without sacrificing comfort and efficiency.

SustainE’s concept is undoubtedly good, but whether it is practical and user-friendly in reality must be tested by time. Although Tung is an experienced industry expert, his brand started without any track record. 

Tung admits that there were risks when he initially set up his business, as he needed to convince clients that the energy-saving equipment bought at a slightly higher cost would save money on electricity in the long run. His equipment’s payback time is around three to four years, according to Tung.

Over several years of use, Tung’s products gradually won a reputation among clients. He mentions that SustainE’s cooperation with Disneyland in 2010 was a milestone in the company’s growth. “We saw more and more customers buy into the concept gradually,” says Tung. 

Solving problems in various cases is another challenge for a start-up like Tung’s company. He says that the company aims to deal with problems as quickly as it can and pays attention to the values clients uphold.

Tung always pays attention to product differentiation to compete with other big brands. He says that as his business is innovation-driven, he focuses a lot on research and development (R&D) and provides products with tailored designs to maximize power efficiency and differentiate his products from those of big brand competitors.

Presently, SustainE has about five employees in the R&D department. Tung says the company’s R&D team is constantly upgrading products and technology. They are currently looking into introducing cloud management and data analytics, enabling users to remotely monitor the installation operation, analyse energy efficiency and adjust settings to achieve optimal energy performance.

He points out a shortage of talent in the R&D area in Hong Kong, especially in manufacturing. As there are few job vacancies for talent studying manufacturing and engineering, they tend to seek opportunities in other areas, such as finance and law, after graduation. He advises the Hong Kong SAR government to put more effort into supporting talent in the area.

In terms of support, the Hong Kong SAR government has been fostering the development of innovation and technology in the region, especially in recent years. With the vision of developing Hong Kong into a regional centre that generates both social and economic gain and the mission of facilitating knowledge exchange, connecting stakeholders and breeding talent, the Hong Kong Science and Technology Parks Corporation (HKSTP) was established in 2001. It is committed to stimulating the growth of 2019.

According to the latest Policy Address, the HKSTP will activate its second stage expansion plan to provide more space and equipment for innovative companies after its first-stage project is completed in the middle of this year.   

Tung’s office moved to the Science Park in 2018. Tung says he is excited to have joined the HKSTP league. As well as connecting with potential business partners, he believes that being a part of the ecosystem can help his company access a large pool of investors and talent to speed up its growth. In addition to an office in Hong Kong, he has a factory located in Foshan, Guangdong Province.

SustainE began in Hong Kong. Its market share in Hong Kong is currently over 50%. It has expanded to ASEAN countries, Macao and mainland China, and is maturing from being price-oriented to demanding quality. Tung says the pace of urbanization in Asia is picking up, with more skyscrapers being built, presenting a goldmine of opportunities. He notes that the ecosystem of the engineering sector in mainland China is also improving.

In the future, Tung plans to continuously improve the company’s technology to pursue production differentiation and further expand his business. Swimming pools are one of the areas that Tung currently focuses on, based on the rapid growth of urban swimming pools, which are now ubiquitous features of new building developments and are often added to existing developments during refurbishment to add value and enhance their image. His company has become a supplier for a range of developments and its devices are in great demand.

SustainE’s Heat Recovery Indoor Swimming Pool Heat Pump, which is equipped with reverse cycle technology, won a Silver Medal at the 47th International Exhibition of Inventions of Geneva in April 2019 where 13 companies at HKSTP took home a total of 17 awards.

Moreover, SustainE has filed a patent for its reverse cycle system, funded by the Patent Application Grant offered by the Innovation and Technology Commission of the Hong Kong government. The invention essentially comprises a two-way circulating control system with an outdoor air heat exchanger. The total energy heat pump produced by the company is listed on the government’s EMSD (Electrical and Mechanical Services Department) InnoPortal platform.

In terms of advice for starting a business, Tung believes that it is good to establish start-ups, but encourages young people to gain experience from companies in the industry first so that they can learn where the shoe pinches. However, he does not recommend starting a business too late in life, as entrepreneurship takes lots of time and energy.