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On August 7, SINOTRUK held the 3rd working conference of 2017 for mobilization and deployment centering on accelerating the transformation of old and new driving forces and realizing the reconstruction and development of SINOTRUK. Members of the SINOTRUK leading group, vice chief engineers, all departments and offices and responsible persons of secondary units in Jinan attended the conference, and other units outside Jinan attended the event via video link. Cai Dong, general manager of the group company, hosted the conference.
At the conference, Ma Chunji, Chairman and Secretary of the CPC Committee of the group company made an important speech. He announced that the “three-year innovation and upgrading action plan” had come to a successful conclusion, and the “grand project on reconstruction and development of SINOTRUK” would be officially launched from now on. Ma systematically summarized the work in the first half year, further cleared and defined the working objectives for the year, stated the significance of the reconstruction and development of SINOTRUK, clarified the main content of the grand project on reconstruction and development of SINOTRUK, and put forward the working requirements, thus setting clear directions for the development of the group company in the next five to ten years and describing a grand blueprint.
This year, the domestic economic operation has been in a good condition in an overall manner, and the heavy truck industry has achieved explosive growth. From January to July, SINOTRUK has produced and sold 174,000 finished vehicles, a year-on-year increase of 60.1%, of which there are 115,000 heavy trucks, up 76% compared with the same period last year, 56,000 medium and light-duty trucks, a year-on-year growth of 38.9% and an increase of 28% over the average growth rate in the industry. It has achieved sales revenue of 58.6 billion yuan, a year-on-year increase of 56%, with total profits and total pre-tax profits rising by 223% and 128% respectively, thus becoming one of the best enterprises in terms of quality and benefit in the industry.
This is mainly manifested in the following aspects. First, product structure adjustment has achieved obvious results. From January to June, sales volume of “MAN Technology” T/C products has increased by 170.7%. Based on the superiority of “MAN Technology” products, we have maintained the leading position in the industry of shop trucks, and at the same time, sales volume of motor tractors has risen sharply, sales volume of special vehicles has increased at a particular rate, the segment of light trucks has achieved significant development, and the development path of medium and light-duty trucks with SINOTRUK characteristics is being formed. Second, domestic marketing has made new progress. We have adhered to the market-centered and customer-oriented belief, energetically carried out quantity increase and the domestic sales volume has realized rapid growth. Third, the international market has maintained the leading position in the industry. Sales volume of traditional regional markets has achieved obvious growth, and emerging markets, especially those in developed countries and regions have begun to play their roles. From January to July, 18800 finished vehicles have been exported, a year-on-year growth of 32.6%; and 28600 heavy trucks have been exported, an increase of 51% compared to the same period last year, making new breakthroughs. Fourth, new achievements have been made in the research and development of product technology. MC09 engines have been started on trial, the first batch of them have been marketed with positive responses; the first domestic wharf motor tractor powered by hydrogen cell has been launched, which has caused strong reaction within the same domestic industry; range-extended electric vehicles by independent research and development have been highly recognized by customers; research and development of such pure electric passenger cars as the 18-meter electric power pure green double-source trolley buses have been proceeded in an orderly manner and had a positive impact on the industry. Intelligent products and intelligent trucks have been constantly promoted so as to strive for quantity production within the year. Fifth, enterprise operation and management have grown to a new level. We have set March of each year as the “Quality Month” of the group company, continuously carried out “looking back on quality problems”, created quality vehicle models and competitive projects, which have received positive responses on the market. Sixth, the financial segment has achieved favorable development. Seventh, foreign cooperation has taken new steps. We have insisted on self-directed development and win-win cooperation, promoted cooperation towards in-depth development, made new breakthroughs in the international cooperation of new energy and intelligence, which proves to be a significant attempt for transformation of SINOTRUK on its international path. Eighth, new progress has been made in enterprise reform and restructuring. Ninth, normalization and institutionalization of the learning and education of “Two Studies, One Action” have been promoted in an orderly manner.
Ma said that in general, faced with the tasks and situation this year, such departments as sales, technology, production, management and logistical support had worked hard and made gratifying achievements. While affirming their achievements, we should also be aware of our own problems. First, in terms of ideological understanding and business position, we have still followed the industry as well as the national situation, and the real ability of self-improvement and self-reliance has not been achieved yet. The biggest problem of an enterprise is to be conceited and self-satisfied with the accomplishments. The impetus to innovation and opening is insufficient, the real innovative ability is not strong, the atmosphere for innovation is not intense, and the path of self-improvement and self-reliance has not been formed yet. Second, in terms of enterprise development, generally speaking, we are relatively passive. Our development is still been under the thumb of people, the industrial situation as well as the stimulation of national investment scale. Our abilities in independent development as well as independent market leading are insufficient. Third, our understanding of internationalization is relatively superficial for the reason that we have conventional thinking and always focus on customers and businesses that we are familiar with at home. As a result, we are unwilling to, or in other words, dare not go out and explore the international market fearlessly. Such systems as manufacturing, research and development, technology and supply think little and know little about the international market. Fourth, our understanding of domestic market segmentation is not enough. In the aspect of engineering vehicles, our enterprise has not made any breakthroughs in product lightweight for a long time, and our understanding of risks brought by laws and regulations and related solutions are lacking. Special urban vehicles have just been started with quite a large gap but at the same time great potential as well.
Ma said that currently the biggest downhill lied in our ideology, the largest backwardness rested on our standard, the fundamental problem was still centered on people, and to be conceited and self-satisfied was the downhill in ideology. We are still far from being proud, and I hope that each comrade and each leading cadre should be modest and prudent, and do all they can to catch up with the strategic concept on the future development of our enterprise. He also said that on July 26th, the CPC Committee of the group company held a conference, and all committee members unanimously approved the implementation of “accelerating the transformation of old and new driving forces and realizing the grand project on reconstruction and development of SINOTRUK”. The grand project on reconstruction and development of SINOTRUK: the first is to realize the project on upgrading, reconstruction and development of the existing industry; the second is to realize the project on reconstruction and development of SINOTRUK overseas; the third is to realize the project on reconstruction and development of the industry of new driving energy vehicles.
Strategic conception of the “grand project on reconstruction and development of SINOTRUK” is as follows:
Firstly, it is the project on upgrading, reconstruction and development of the existing industry. Main objectives are: first, we should accelerate the intelligent process of our enterprise, create quality vehicles, transform the existing products and technologies in an intelligent, light-weight and standardized manner, and do a good job in the aspect of hybrid electric vehicles; second, the sales volume of this year should be more than 85 billion yuan, we should do all we can to make it more than 100 billion next year, and we should make that doubled again on the existing basis in about five years; third, the domestic market share of heavy trucks should be increased by 1% each year, and the sector of heavy trucks will be stronger and maintain the leading position in the industry through the efforts in five years, light-duty trucks will gradually step into the first echelon, and passenger cars, vehicles for special purposes as well as special vehicles will also be developed to form a considerable scale; fourth, financial and the real estate sectors have become the foremost sample units within the same provincial industry, thus making qualitative breakthroughs.
Secondly, it is the project on reconstruction and development of SINOTRUK overseas. Main objectives are: in the next five to ten years, we will turn the existing advantages into strategic pattern. First, the overseas operation revenue of this year will reach up to 10 billion yuan, and it will reach 20 billion yuan within five years, self-support export occupation ratio will rise by more than 2% and all major indicators will be doubled; second, the controlled network will reach about 60%; third, the number of overseas assembly plants with control power will rise by five to ten; fourth, we will seek overseas partners, overseas research and development institutions with core technical control power as well as manufacturing enterprises with key products; fifth, we will make new breakthroughs in cooperation, and continue to discuss deeply the cooperation with large international enterprises so as to strive for new arrangement; sixth, the number of talents with certain management abilities and for international market development as well as overseas technology research and development should reach 100 to 300.
Thirdly, it is the project on reconstruction and development of the industry of new driving energy vehicles. Main objectives are: based on the construction of innovation center of hydrogen driving energy vehicles industry, we will build our talent team, enhance international and domestic cooperation, accelerate and promote industrialization layout to form industry scale. We should lead the industry at home, and keep pace with the world advanced level. After five years of hard work, we will form the characteristics and scale of SINOTRUK in the aspect of new driving energy industry, set a good example in our country, keep pace with advanced large automobile enterprises in the world and become one of the successful enterprises in the international automobile industry in the future.
Ma noted that it was of great significance to implement the “grand project on reconstruction and development of SINOTRUK”. Implementation of the “grand project on reconstruction and development of SINOTRUK” is the great practice to carry out five development concepts during the new period; is the inevitable requirement for situation and tasks; is the successful experience of transnational corporations at home and abroad as well as the strategic conception facing the world and the future to realize innovative development by using their experience for reference; is the urge to seize important strategic opportunities in the next five to ten years; is the important preparation for enterprise reform and restructuring as well as realization of overall listing; is the strategic arrangement made by our enterprise under certain conditions that keeps up with the times. The “grand project on reconstruction and development of SINOTRUK” is improvement and extension of the four strategies of SINOTRUK of “technology leading, internationalization, high quality and low costs, regionalization”, we are fully qualified to overtake the corner and make new glorious achievements.
Ma stressed that in order to carry out the grand project on reconstruction and development of SINOTRUK in a comprehensive and better manner and to make our enterprise from large to strong, all leaders and employees should gain a profound understanding of the significance to implement the grand project. First, they must be highly unified in ideology and highly consistent in action. They should also actively promote and firmly carry out the deployment of the CPC Committee of the group company, and promote the implementation of the “grand project” together with one mind and one heart. Second, all of them must participate in the event in full strength. Propaganda and mobilization should be conducted in a proper and timely manner, and each of them should participate in the project without exception. All units should put forward their opinions for implementation in accordance with their working arrangement. Third, responsibilities must be fulfilled. The group company has set up the innovation team for new driving energy vehicles and the leading group for SINOTRUK overseas construction, and all departments concerned should actively work on the implementation according to their divisions of labor. The three-year innovation and upgrading action plan has ended in victory, and from now on, the “grand project on reconstruction and development of SINOTRUK” is officially launched. Fourth, we must free our mind and dare to take our responsibilities, be open and inclusive for positive teamwork, mobilize the initiative in all aspects and integrate various superior resources, broaden our mind and take in as many as talents. We should also adhere to enterprise-oriented operation and market-based promotion, have the courage to bring forth new ideas and explore new patterns bravely in the development process. We should focus on not only positive promotion, but also scientific analysis and strict process to control risks, and promote smooth progress of the “grand project” with practical actions.
Speaking of the work before the end of the year, Ma said that this year marked the beginning of the implementation of the “grand project on reconstruction and development of SINOTRUK” as well as the ending of the innovation and upgrading action plan, and the 19th National Congress of the Communist Party of China would also be held in this year. So we must make the transition from 2017 to 2018 with brilliant achievements. In consideration of the excellent situation of automobile industry, in order to further maintain and consolidate our market position, we have adjusted objectives and tasks of this year with creating advantages in quantity increase as the general requirement. We should sell at least 271,300 finished vehicles this year and strive for 296,000, of which we should sell at least 170,000 heavy trucks and strive for 180,000 with the market share increasing by more than 1% so as to maintain a dominant position in the industry; we should sell at least 102,500 medium and light-duty trucks and strive for 117,000; we should sell at least 2,300 passenger cars and strive for 2,500 with an order for 3,000. We should also ensure that the self-support export amount reaches up to 33,000 and strive for 35,000 with the overseas operation revenue achieving 10 billion yuan, and the sales revenue of the whole group company should reach at least 85 billion yuan. We should by no means stop, slack off or relax our efforts. Instead, we should take our courage in both hands and make even greater efforts to achieve new objectives and tasks at full stretch.
Ma required that all units should stand in the new height of reconstruction and development, make good arrangements for work tasks in the next five months of this year, focus on new objectives, make scientific plans, draw up measures in a timely manner and actively promote the implementation so as to get ready for development in the coming year.
Firstly, we should stand in the new height of reconstruction and development, explore and carry out domestic marketing well. We should take the increase of market share as the first priority of our marketing system so as to guarantee the realization of the new objective of quantity increase. Secondly, we should stand in the new height of reconstruction and development, and continue to promote the “Quality Month” activity as well as lean management. We should focus on three aspects. First, we should continue to make great efforts in quality vehicle models and competitive projects according to the arrangements of “Quality Month”. Second, all units and departments should continue to fully implement the lean management improvement project on the basis of arrangements. Third, intelligent production line transformation should be fully implemented. Thirdly, we should stand in the new height of reconstruction and development, carefully study and draw up plans for industrial development in a scientific manner. The planning department should take the lead and cooperate with the office of intelligence as well as the international department, and make good plans on the upgrading of the existing industry, the development of new-energy automobile industry as well as the construction of SINOTRUK overseas together. Fourthly, we should stand in the new height of reconstruction and development and do a good job in new industrial patterns and new units. All units should work on job progressions as well as innovation and upgrading. Fifthly, we should stand in the new height of reconstruction and development and further work well on reform and restructuring. Sixthly, we should stand in the new height of reconstruction and development and promote technological innovation. We should center on “MAN Technology + Intelligence”, especially the improvement of products in terms of their intelligence, lightweight and reliability level, and study the serialization of MAN products facing both the international and the domestic markets. Seventhly, we should stand in the new height of reconstruction and development and continue to promote normalization and institutionalization of the learning and education of “Two Studies, One Action” so as to be prepared in public opinion and ideology for holding the 19th National Congress of the Communist Party of China.
All members of the group company should stand in the new height of reconstruction and development and discuss our work. All departments and units should study new problems with new concepts and make every effort to create new glories. Such units as finance, real estate and logistical support should make in-depth research on market demand, transform their current work based on the “four news”, make bold innovations in the aspects of products and services on the basis of such new technologies and new industrial patterns as intelligence and big data so as to realize driving energy transformation.
In order to carry out the spirit of this conference and fully implement the reconstruction and development of SINOTRUK, Cai Dong required that all departments and secondary units should carefully pass on, learn and implement the important speech of Mr. Ma. Firstly, we should be united in ideology and deepen their level of understanding, take “accelerating the transformation of old and new driving forces and realizing the grand project on reconstruction and development of SINOTRUK” as the general guiding ideology and program of action of all reform and development work of SINOTRUK for the coming period, stand in the new historic starting point as well as the new height of reconstruction and development of SINOTRUK, and make good arrangements for all their work. Secondly, we should conscientiously do well in propaganda and mobilization, take serious measures for implementation, pass on the spirit of the conference to all the employees to make them get actively involved in the project of reconstruction and development, stimulate their working passion and innovation vitality to make greater contributions to the development of our enterprise in their practical work. Thirdly, the leading cadres should take actions first to set a good example, make elaborate plans, play an active role in mobilization and deployment, and make careful research on how to carry out the project of reconstruction and development in accordance with requirements of the CPC Committee of the group company as well as their practical work.
In consideration of production and operation in the next five months of this year, Cai stressed that all main units should make scientific plans, constantly innovate the marketing service mode, implement the marketing of “three full services”, continuously expand the pilot program of “no parking service” and full life circle service; endeavor to eliminate blank network areas and constantly carry out marketing in the third and fourth-tier cities; spare no efforts to promote the realization of market share ranking and carry in relatively vulnerable areas as well as the realization of sustainable growth of sales volume in more developed areas. The import and export system should catch the new opportunities for international market development brought by the strategic layout of “the Belt and Road”, make scientific plans, focus on key points and energetically promote production capacity cooperation among international community. All manufacturing units should spare no efforts in market supply, insist on market and customer demand orientation, organize production in a scientific manner, overcome the problem of tight capacity, value quality as the top priority, make every effort to meet customer needs, further improve the technology system to reach the intelligent level, steadily push forward the new product development plan of 2017, fully implement intelligent strategies, and do a good job in the development of new products and the improvement of adaptability centering on “high reliability, energy conservation and environment protection, lightweight”. All financial units should continue to conduct the automobile finance business of the whole industry chain as well as the supply chain financing business on the premise of risk prevention to make greater contribution to the development of our group company. Such units as the real estate, hospitals, property management and passenger transport should all take actions and spare no efforts to do well in their work with the annual tasks for reference.Wang Mingyang