As the only auto parts enterprise group in China that has the three major industries of heavy truck powertrain ( engine , transmission, axle), commercial vehicles, and auto parts , Weichai Power achieved a leap-forward development with only a dozen or so year. What makes a once diesel engine manufacturing company on the verge of bankruptcy break the state-owned enterprises in such a short period of time and develop rapidly? What makes it a leading company in the full range of powertrains? What is the company's future development strategy? With these questions, the reporter conducted an in-depth dialogue with Mr. Dai Lixin, Secretary of the board of directors of Weichai Power Co., Ltd.
The Trinity System Reform Opens Weichai Power Growth Road
In 2002, Weichai Power Co., Ltd. (2338.HK; 000338.SZ) was established and successfully listed in Hong Kong and Shenzhen in 2004 and 2007 respectively. As of 2011, the company's operating income reached 60 billion, total assets reached 61.5 billion, and the total number of employees was 40,000. It is currently the largest and most powerful equipment manufacturing enterprise in China.
In 2000, Weichai Power conducted a classic reform of the three or three systems and divided corporate assets into three parts.
The first part consists of non-profit businesses such as non-core businesses, logistics services, and parts and components. It adopts a diversionary approach. The original management team initiates the establishment of a new company, and then injects the assets into the newly established company as a consideration. The company has formulated the "Three Principles", that is, the same quality, the same price, the same service priority to use the products and services of the reformed units.
The second part is to inject the high-speed engine business into the joint-stock company (ie, Weichai Power) and build it into China's largest universal power manufacturer with international standards in accordance with the requirements of modern corporate governance structure. The high-speed engine was in a period of growth at the time and it made the high-speed engine business a platform for H-share listing.
The third part is to leave the mid-speed machine business in the continuation part to realize the healthy and stable development of the mid-speed machine product segment. In 2007, Weichai reorganized Shandong Juli and injected the medium speed machine into Shandong Juli (now Weichai Heavy Machinery).
Diversified and internationalized shareholding designs provide stable and rapid development for the company
Dai Lixin stated that the stable and rapid development of Weichai Power is inextricably linked with its initial equity design. At the beginning of its establishment, Weichai Power paid great attention to the rationality of the equity structure, and paid particular attention to avoiding the following key issues: First, one dominance; second, inbreeding; and third, highly cultural similarities.
In designing the equity structure, Weichai Power boldly introduced domestic and foreign strategic investors, including Austrian and Hong Kong investors, and designed a concept of diversification. Such measures have enabled the company to have both state-owned and private components, as well as foreign-funded components; both the concept of venture capital and the concept of industry; the final ownership structure has maintained the relative holding status of state-owned shares and achieved the equity structure of the company. Diversification and internationalization have established a rationally structured and solid operation platform for the company's business development.
The scientific equity structure provides a good guarantee and support for the company's future development. The company currently has two stocks, one in Hong Kong and one in Shenzhen. In strict accordance with the regulatory rules of the two places, it has established three floors of the three associations, set up professional committees for the board of directors, and has always maintained an efficient operation.
Seize industrial development opportunities, rely on products and services to expand market share
According to Dai Lixin, Weichai Power's current business is mainly divided into three major sections: First, the vehicle segment, the second is the powertrain segment, and the third is the auto parts segment. The entire vehicle is mainly concentrated in Shaanxi, and the powertrain is distributed in Weifang and Shaanxi.
Parts and components are mainly concentrated in Zhuzhou area. Yangzhou and Chongqing also have some production bases.
In the past ten years, China's economy has developed rapidly, and the domestic logistics and transportation industry has also developed rapidly. This, coupled with the increasingly close relationship between urban and rural areas, has led to the development of the logistics industry with heavy trucks as the main means of transport.
At the same time, investment in the troika that drove the economy (investment, consumption, and exports) has dominated this decade. The continued rapid growth of investment has contributed to the rapid growth of the heavy truck and construction machinery industries.
While sharing the development achievements of the industry, Weichai Power has won a considerable market share with its high quality product quality and excellent after-sales service. As of 2011, the company's engine has a market share of 36% in the heavy-duty truck market of over 14 tons, the market share of the loader market of more than 5 tons reached 78%, the market for large-scale passenger cars accounts for 21%, and long-term and stable strategic partnerships have been established with customers. . [next]
Capitalizing on the capital market to create an ambitious corporate strategy layout
On the basis of ensuring the steady growth of the main business, Weichai Power actively carried out capital operations and helped the company's development and strategic layout with the aid of the capital market. In 2004, Weichai Power was successfully listed in Hong Kong and became the first company listed in the Chinese internal-combustion engine industry in Hong Kong. In 2007, Weichai Power successfully returned to A-shares and listed on the Shenzhen Stock Exchange through its share swap absorption and merger of the Hunan Torch. In 2009, Weichai Power acquired Baudouin and brought this century-old high-quality company into the bag.
Through a series of successful capital operations, Weichai Power has grown from a company that originally operated a single engine business to become the only car in the country that currently has three major industries: heavy-duty truck powertrains (engines, transmissions, axles), commercial vehicles, and auto parts. Parts Enterprise Group.
Technological R&D Achievements Leading Position of Enterprise
Dai Lixin introduced that Weichai Power can quickly become a leading company in the powertrain field, and it is inseparable from the company’s continuous emphasis on technology research and development.
The global R&D center established by Weichai Power will have forward-looking and cutting-edge technology development and technology reserves, and will be able to ensure that the R&D capability and technological innovation level of the technology center will be synchronized with the international one and realize the company’s products: “Production Generation, R&D Generation, and R&D Generation†"The global collaborative R & D structure has positively contributed to the sustainable development of the company's future.
At the same time, the company attaches great importance to the development and use of alternative energy technologies. The market share of Weichai Power's alternative energy engines is relatively high, especially in recent years, where the output has maintained a steady growth. The most obvious growth point is the gas engines for heavy trucks.
Weichai will become an important global equipment manufacturing industry
Talking about the future development direction of Weichai Power, Dai Lixin expressed with full confidence that the company’s vision is to create an international enterprise group that is driven by the whole machine and has the core technology of the powertrain and develop into a unique global equipment manufacturing industry. An important pole. The vision of the engine segment is to create a full-range, full-range engine supplier and become the world's first. The whole series refers to the risks brought about by the single product development through continuous expansion of the product line. The entire field is to expand the application range and market share of products in various industries and fields of the national economy. The world's first, not only the first production and sales, the core is the first in the world in overall strength. At present, the company's R&D capability ranks first in the domestic industry, and the next step is mainly how to lead the development of the industry and challenge the global strength of the first goal.
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