Two drivers of high growth
Although it encountered the most difficult black time in the industry last year, Liugong Group, which just celebrated its 50th birthday, still achieved an operating income of 654.38+0 billion yuan in 2008, and the sales of various construction machinery exceeded 38,000 units. In the first half of this year, Liugong achieved a sales income of 53 1 100 million yuan, and the sales of nearly 20,000 complete machines decreased year-on-year. However, despite the 35-40% decline in the performance of the whole industry, Liugong still outperformed the industry, and the market share of various products was further improved.
Wang Xiaohua, chairman of Liugong Group, said frankly in an exclusive interview with our reporter recently: "Now Liugong is often asked if he has survived the crisis. In my opinion, the key to how to deal with the crisis lies in whether there is a good constitution and internal mechanism. The change of the market is also an opportunity, which is the biggest opportunity for us to seize market share. In the first half of this year, Liugong's three main products, loaders, excavators and road rollers, were exported, ranking first in China industry. "
"In September last year, Liugong began to tighten spending, reduce inventory, control investment, and cash is king. What Liugong has to do now is to keep fit and improve internal control; Due to the obvious cost performance advantage of Liugong products, the company's risk control is standardized, there is no layoffs and salary cuts, and there is no situation in which the payment cannot be recovered. " Wang Xiaohua is full of confidence in Liugong's ability to cope with the crisis.
Wang Xiaohua told reporters that Liugong was moved to Liuzhou by a part of Shanghai Huadong Metal Structure Factory in 1958, and it was also the first listed company in Guangxi and the industry. It can be said that the history of Liugong is the epitome of the development history of China construction machinery and even China equipment industry.
Liugong believes that industrial operation and capital operation are the two major driving forces for Liugong's growth. Yang Yichuan, vice president of Liugong Co., Ltd. believes that Liugong has made full use of the good opportunities in the capital market, effectively realized the leap-forward growth of strategic layout and business scale through mergers and acquisitions, restructuring and joint ventures, and achieved effective and rapid integration. It is precisely because of these rich product lines that Liugong has increased its ability to resist market risks in times of crisis.
It is reported that Liugong currently has 23 holding subsidiaries and 2 shareholding companies. Among them, in 2000, Liugong established Jiangyin Liugong through acquisition and integration, and entered the roller industry. In 2008, the annual sales revenue was 250 million yuan and the net profit was19.33 million yuan. In 2003, Jiangsu Liugong was established in Zhenjiang, mainly producing small construction machinery, with a sales income of 540 million yuan in 2008; In 2007, Liugong Forklift Company was integrated and established, and entered the industrial motor vehicle industry. In 2008, the sales revenue was 44.75 million yuan and the net profit was 3 1 1 ten thousand yuan.
Yang Yichuan said that 2008 was an important year for Liugong to increase its capital operation. At the end of February, through the acquisition of Anhui Bengbu crane enterprise, Anhui Liugong was integrated and established to enter the crane industry in an all-round way, and strategic planning was re-formulated, investment was increased, and Liugong Bengbu crane R&D and manufacturing base were newly built; In March, Tianjin Liugong was invested to build Liugong North Manufacturing Base, and the new factory has been completed and put into operation; In March, Liugong (North America) Company was established in Houston, USA. In May, Liugong (Hong Kong) Company was established; On June+10, 5438, Liugong International Leasing Co., Ltd. was established and started financial leasing business.
Three steps of internationalization
As early as 2003, Liugong took the lead in putting forward the internationalization strategy and was one of the earliest enterprises in the construction machinery industry. Since then, Liugong has been committed to the internationalization of talents, management, products, services and brands, and has become a world-class enterprise in the process of internationalization.
Wang Taiping, Minister of Strategic Development of Liugong, said that Liugong's internationalization can be divided into three stages: first, overseas marketing; second, international manufacturing; and third, investment acquisition. Liugong is currently in the second stage, marked by the commissioning of Indian companies. Huang, general manager of Liugong International Marketing Division, told the reporter that although the export of Liugong products declined this year, the export market share of loaders increased from 17% in the same period last year to 24%, the share of excavators increased from 8% to 18%, and the share of road rollers increased from 12% to 24%. Liugong has gained market growth in some overseas countries by letting agents and extending the three-guarantee period.
"Liugong's internationalization should be in line with the industry giants, so Liugong introduced executives from Japanese colleague Komatsu to build a service system for Liugong's accessories. The competition in the international market is not only selling products, but also selling service packages, such as timely delivery of accessories and timely maintenance and repair of products. Although Liugong International paid the tuition fee, it forced the quality management of the enterprise to enhance the brand value and profit. Therefore, foreign giants such as construction, mining and cement have flocked to Liugong to provide global services. Huang said:
Through years of efforts and overseas network and brand building, Liugong's overseas sales revenue accounted for more than 65,438+05% in 2008, of which Liugong's 5-ton loader products accounted for more than 70% in the Indian market. At present, Liugong has more than 70 first-class international distributors in 80 overseas countries, 8 parts centers around the world, and established international marketing companies in Australia, the United States, Brazil, India and other regions.
Wang Taiping also said that Liugong will accelerate the pace of independent innovation and increase the research and development of core components. With a total investment of 654.38+0.8 billion yuan, Liugong International Industrial Park will build five major projects, including international logistics project, international parts center and hydraulic parts manufacturing center.
Core development strategy
At present, Liugong has world-leading product series and independent innovation ability. At present, the company's leading products are loaders, excavators, road rollers, forklifts, road machinery products, lifting machinery, bulldozers, skid loaders, backhoe loaders and other flexible multi-purpose small construction machinery products, accounting for 13 of the major categories of construction machinery products. Among them, the sales revenue of Liugong brand loaders has been the first in the domestic industry for many years, and the sales volume is the second in the world. Excavators, another core business, have developed rapidly and entered the forefront of domestic national excavator brands in just a few years.
Liugong's development strategy focuses on the absolute leading position of loaders and the rapid rise of strategic business. Through internationalization, in-depth marketing, technological innovation, management upgrading, merger and reorganization and other five measures, Liugong has grown from a traditional construction machinery manufacturing enterprise to a comprehensive enterprise that is customer-oriented and provides comprehensive solutions. Future development goal: the sales revenue will exceed 30 billion yuan in 20 12, and the company will rank among the top industries in the world 15. In 2020, it will rank among the top 5 in the global industry, with overseas sales revenue accounting for one third. .