As the financial crisis struck, the global economy has become cooler and hotter, and the impact of the domestic auto industry and construction machinery supporting industries has been particularly pronounced. However, as China's largest auto parts group and power supplier, Weichai Holding Group has not been greatly impacted in this financial crisis, and has continued to maintain a high growth rate in the industry.
The reporter learned from Weichai that as of the end of November, the group achieved a sales revenue of 47 billion yuan, a year-on-year increase of 28%, a total profit of 3.46 billion yuan, a year-on-year increase of 14%, and an export value of 730 million US dollars, a year-on-year increase of 55%.
Excellent companies can be keenly aware of the most subtle changes in the market, make early scientific judgments, and formulate response plans to prevent problems.
As early as December 4 last year, Weichai held a meeting of all leading cadres. Chairman Tan Xuguang sent a warning to the entire group about the imminent arrival of the global economic recession and carried out a holistic unity of thinking.
In January this year, Weichai specifically issued a notice to conduct a comprehensive “physical examination†on the strategic direction, cost management, cash flow management, and logistics management of each subsidiary within the group. Especially at the same time as the rapid growth of the industry in the first half of the year, the Group's companies simultaneously reduced costs, controlled inventory, strengthened the management of accounts receivable, etc., accumulated a large amount of cash reserves, and enhanced the ability of the company to resist wind and waves.
In this way, some simple incremental technological transformation projects that repeated the expansion of production were cancelled. Some investment plans that were not available were suspended, and some of the subsidiary's innovative development plans were not cooled.
The operational goal established by Weichai is to ensure that Weichai is the fastest growing and fastest-growing company in the industry during development; when the economy is depressed and declining, Weichai must be the company that does not decline or decline the least in the industry. In the most difficult times, we strive to maintain a healthy and stable business, maintain moderate growth, and never lose money.
In the face of the severe economic situation, Weichai selected technical, marketing, and financial professionals to form a special investigation team in September this year. It has successively traveled to the United States, Europe, Southeast Asia, and other countries and regions, to the international capital market, product markets, and talents. The market conducted a comprehensive survey and evaluation. At the same time, the Group successively held various forms of strategic seminars in Hong Kong, Shanghai and Beijing to conduct careful and detailed studies on the future trends of the industry in both domestic and overseas markets, and formulated a set of countermeasures for corporate operations.
Adequate cash flow is an important guarantee for responding to the crisis. Feng Gang, vice president of Weichai Power's sales, told reporters that the current capital recovery situation is good, and only the return funds reached 1.3 billion yuan last month. Weichai will strive to clear the “accounts receivable†item of the company by the end of this year.
At the same time, the successful capital operation of Weichai in recent years has enabled the company to have a good financing capability and ensure that the funds are running adequately. Weichai Power issued an announcement on November 28 that it will apply for the issuance of medium-term notes, with a scale of no more than RMB 2.7 billion, to supplement the interim operating liquidity, repay the borrowings, improve the debt structure and other expenses permitted by the provisions of the medium-term notes.
The crisis is a challenge for all companies, but good companies can find business opportunities that they do not have.
On July 1 of this year, China's heavy-duty truck industry implemented the National III emission standard, and the use of high-pressure common rail or EGR's national III technical route was scrambled to a large extent. Considering better performance and more fuel economy, Weichai has launched a series of high pressure common rail products. However, due to the one-time cost of 20,000 yuan higher than that of EGR products, the market did not show the expected enthusiasm. However, with the advent of the economic crisis, coupled with the country's upcoming fuel tax reforms, many companies pay more attention to product quality, which is an opportunity for Weichai.
At present, Weichai has sent several teams of men and women to visit the door to promote new products, conduct user training, do a good job of service, strengthen the brand, and build a market network. Weichai also introduced multi-power switches and introduced fuel-efficient “1+1†and other original designs in response to the characteristics of the National III products. With these devices, the fuel consumption of the National III products can be significantly lower than other similar products, resulting in more product performance. excellent. Moreover, due to the good performance of the State III products, the failure rate can also be greatly reduced. With comprehensive calculations, Weichai's National III products are worth the money. At present, the market share of this new product has steadily increased.
According to the person in charge of Weichai, the overall sales strategy of the Group in the domestic market next year will not undergo major changes. However, due to changes in the situation, there will be adjustments in the market segments. In the area of ​​heavy trucks and passenger cars, Weichai will extend its weight to focus on 7.5-litre, 5-liter truck power, and 8-meter to 11-meter bus power. The market is light, user companies do not need to be busy with production, and they have time to listen to the introduction of the promotion staff. Therefore, Weichai is poised to enter into fields that have not been involved before, such as rigs, excavators and other mobile machinery, and expand the applicable fields of products. Weichai will continue to reduce the proportion of power products for heavy trucks and 50 loaders, tap the potential of other market segments, optimize product structure, and increase risk resistance. In particular, the Wanpian marine engine project that Weichai has already established is speeding up the pace of transformation and transformation.
The global economy has cooled, especially foreign companies will reduce the number of newly purchased products, but at the same time, the number of maintenance products in the market will greatly increase, Weichai will dig deeper in this part of the service market. Weichai’s marketing department expects that in the foreign markets, the maintenance of spare parts will increase by 20 million yuan, while the income from replacement of the whole machine through maintenance service channels will increase by 10 million yuan.
Of course, repair and replacement is a very difficult and profitable "difficulties". Enterprises should, according to the response of foreign customers, look for the upstream suppliers or the upstream parts companies to allocate spare parts to the domestic procurement department and ship the goods. However, the subtleties of seeing the strength, repair replacement also precisely reflects the attitude of a company to treat products and treat customers. Over the years, China’s power products have been able to win only in the international market at a reasonable price, while the appreciation of the renminbi and the depreciation of the euro have reduced European product costs by about 30%. If Weichai products want to win, we must rely on high-quality services. The continuation and extension of high-quality services will establish a trust between the distributors and Weichai, which will increase the loyalty and reputation of the company's products and further expand its market share.
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