Author: Zoomlion Source: Zoomlion 2008-11-25
--Interview assistant president and general manager of the overseas branch Chen Peiliang
What kind of impact did the recession of internationalized economy bring to Zoomlion? How will enterprises deal with the challenges? And what kind of opportunity will recent national increase of 4 trillion in infrastructure investment policy give Zoomlion? Zoomlion president and assistant general manager of the overseas branch Chen Peiliang accepted the special interview with the reporter.
As China's construction machinery industry leader, Zoomlion put forward a clear "no layoffs, a positive response, healthy operation" coping strategies to the recession for the situation of domestic market. After unified the idea of "in the 'danger' find 'opportunity'", Zoomlion further defined the three initiatives of "compressing" and "gathering", "refining".
"Compressing", that is appropriate to reduce the scale of technological transformation, compress stock and other expenses. If the investment technical compressed, clearly defined launched projects must be implemented to ensure; but at the same time we should pay attention to controlling the scale of investment, as well as input-output efficiency. "Gathering", that is to strengthen the sound business strategy. To focus on reducing risk and increasing capital returns, we should prudent expenditure. To create a customer credit system, we account receivable and inventory area to carry out effective control. Refining ", that is, strengthening internal management. Strengthen the corporate governance system; improve the management team unit, strengthen the sense of cultivating professional managers; and promote employees to further improve the quality. In addition, we must further improve technological innovation, quality management system, security system services and supply chain management.
People always refer to crises and opportunities in every crisis. Groundlessly said the opportunity, not a crisis, which has no conscience; said the opportunities outweigh the crisis, which is called a bureaucratic tone; but crisis contains the opportunity, this is the truth from facts.
With the economic slowdown, government and market make effort to participant in the stimulation of economic growth. Zoomlion which is in machinery and equipment manufacturing industries will be multiple benefited, because large-scale infrastructure construction will increase demand for machinery; the imminent implementation of the transformation of value-added tax bring real effects of tax cuts to the enterprises; especially measures of increasing the export tax rebate rate to stimulate economic growth. The recent national increase of 4 trillion in infrastructure investment policy is a major favorable policy.
Zoomlion mainly engaged in construction, energy engineering, traffic engineering, and other key national infrastructure projects in which we supply major high-tech research and development equipment manufacturers. The company, backed by major shareholder, has strong scientific and technological innovation strength, and has grown into a leading industry. Products in the industry are ranked in the forefront, such as the sets of concrete machinery equipments, engineering equipment, roads machinery, sanitation machinery, and non-excavation equipment.
China has strongly invested in infrastructure construction, as well as to relax various restrictions to stimulus on the real estate market. It is expected that in 2009 the domestic construction machinery market capacity will be over in 2008. In the first three quarters of this year Zoomlion profit is up 54%, amounting to 1,392,000,000RMB; sales growth of 61%, reaching 9,900,000,000RMB. This year, after acquired Shaanxi Huanggong Engineering, Hunan Axle, Foretire Heavy Industries, Italy CIFA and so on, Zoomlion has become "supplier of a full range of engineering machinery products", which will enjoy a more comprehensive benefit by the national investment policy in the next few years. For example, main product of concrete machinery, mechanical appliances, and earth machinery will be very promising in railway construction projects. In addition, Zoomlion will benefit by a full range of products in reconstruction projects.
At the same time, overseas markets are focused on expanding our current direction. On the domestic market, season affects the sales of construction machinery, forming a traditional low season and busy season. Focused on the global market, there will be no such limitations. India which is located in South Asia, can wholly meet the requirements of the construction. Moreover, snowy season of north and northeast China, and Africa located in southern hemisphere is in full swing of construction.
We expect that in 2009, Zoomlion will maintain sound and sustainable growth.
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