News, 2022-11-03
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- Restructuring, reform and innovative development of Sinotruk
Speech at the 4th Anniversary Conference
Mr. Tan
(August 30, 2022)
Comrades:
On September 1, 2018, Shandong Provincial Party Committee and
government made an important decision, and Jinan Municipal Party Committee and
government appointed me as the Party secretary and chairman of Sinotruk Group,
which started the strategic reorganization of Shandong Heavy Industry to
Sinotruk Group and created a new mode of "integration before
reorganization" in the reform of state-owned enterprises in our province. Strategic restructuring has greatly shaken the global heavy
commercial vehicle industry and changed the competition pattern of the global
heavy commercial vehicle. The restructuring made Sinotruk popular in the international
capital market. The stock price of the red-chip listed company quickly soared
from HK $10.88 to HK $23.15. The reorganization of Sinotruk quickly became the focus of
attention of the global commercial vehicle industry, we opened the new journey
of Sinotruk's second venture under the magnifying glass. In the first leadership meeting on the day of the appointment
announcement, I proposed that "I came to Sinotruk to build a world-class
full-series commercial vehicle group and become the first in China in 3-5
years".
Today, it is exactly four years since Shandong Heavy Industry
reorganized Sinotruk. In the past four years, the new management team has poured all
the passion and blood into the development of Sinotruk. We break out in the
pain of reform, change in independent innovation against time, and forge ahead
in the ups and downs of the industry. The correct decision and efficient implementation have allowed
us to finish the reform road of more than ten years in four years. In the first
half of this year, we have developed into the enterprise with the highest sales
volume, the fastest growth rate and the best benefit in the heavy truck
industry in China. We have once again pulled SinotruK from the brink of crisis onto
the train of high-speed development, polished the brand of SinotruK in the
world, with a bright report card to fulfill the promise of four years ago, this
is the honor of all SinoTRUK staff!
Over the past four years, we have achieved the following four
breakthroughs:
-- We achieved the best operating performance in our history and
made a significant leap to become a leading commercial vehicle company in China
In the three full years of 2019-2021 after restructuring,
Sinotruk accumulated operating revenue of 456.2 billion yuan, a year-on-year
increase of 56% compared with the previous three years; The cumulative profit reached 21.9 billion yuan, up 110%
compared with the previous three years. Total sales of 1.16 million vehicles, compared with the previous
three years of year-on-year growth of 59%. Among them, the market share of heavy trucks increased from
16.5% before the restructuring to 23.3% in the first half of this year, from
the third place in the domestic industry to the first; The diesel light truck market share rose from 12.5% before the
restructuring to 15% in the first half of this year, moving from the fourth
place in the domestic industry to the second place. Heavy truck exports, which account for 50 percent of the
industry's total exports, reached a record high of 48,300 units in the first
seven months of this year, up 46 percent year-on-year.
-- We have comprehensively deepened reform with a bold and
courageous spirit, and achieved a major leap toward an efficient
market-oriented operation mechanism
On January 24, 2019, the Staff Congress adopted the "Ten
Opinions on Deepening Reform of Sinotruk Group", which launched the
all-round synchronous reform of "sea, land and air", promoted the
marketization of Sinotruk mechanism, business core and lean management, and
paved the way for high-quality development.
First, the reform of the "three energy" mechanism has
enabled Sinotruk to "live". Quickly introduce the market-oriented "three energies"
mechanism of "cadres can go up and down, employees can go in and out, and
income can be high or low". The number of leading cadres decreased by 27%, the average age
decreased by 5.04 years, and the proportion of post-80s cadres increased from
27% to 68% through open and transparent competition. More than 6,800 middle and high-end talents have been recruited,
among which the number of PHDS has increased from 9 in 2018 to 136 now. The comprehensive promotion of market-oriented assessment with
high goals, high competition and high incentives has completely broken the
"big pot of food", and the performance of the hero has really opened
up the income gap. The monthly income gap of business personnel in the same
position is more than 30 times.
Second, the main and auxiliary separation reform let Sinotruk
"special" up. No distractions were left to focus on major businesses,
including real estate, hospitals, kindergartens, low-end spare parts and
components, or non-major businesses with equity stakes. A total of 89 companies
were withdrawn. Assets in non-major businesses realized a cash flow of 9
billion yuan, and the Group's asset-liability ratio dropped from 70.3% to
60.2%.
Third, the reform to reduce costs and increase efficiency has
made Trutruk "good". All the costs of centralized management, resolutely cut off the
chain of interests, the implementation of open and transparent bidding. Total procurement cost reduction contributed 25.1 billion yuan; Office expenses decreased from 75.18 million yuan in 2018 to 38
million yuan in 2021, a decrease of 49.5 percent, with a cumulative cost
reduction of 37.18 million yuan; Reception fees dropped by 78.7 percent from 70.59 million yuan
in 2018 to 15.03 million yuan in 2021, with a cumulative cost reduction of
55.56 million yuan.
-- We rebuilt the independent high-end heavy truck "Yellow
River" brand, and realized a significant leap to the industry's
first-class technology
To promote the historic transformation of Sinotruk from
introduction, imitation and following to independent positive research and
development, research and development investment increased from 1.3 billion
yuan in 2018 to 3.7 billion yuan in 2021, an increase of 185%, the cumulative
four years of more than 10 billion yuan, more than the sum of the previous ten
years of investment. Research and development staff has grown from 1,102 in 2018 to 3,561
today, an increase of 223%. Rebrand Yellow River and launch the world's first all-new
generation high-end Yellow River heavy truck with wind resistance coefficient
of 0.37, realizing the advancement to the world first-class level and realizing
the wish of generations of Chinese Truk people. Driverless electric collecting cards and hydrogen fuel cell
heavy cards have been applied in batches in multiple scenarios such as ports,
leading the industry. We have developed the world's first mobile nucleic acid
detection vehicle that checks 12,000 tubes per day, demonstrating the role of
state-owned enterprises in scientific and technological epidemic prevention.
-- We have built the Laiwu Green and Intelligent Manufacturing
Industry City in Jinan with high standards, and achieved a major leap in
replacing old growth drivers with new ones
On February 12, 2020, with the full support of the provincial
Party Committee and government, the construction of Shandong Heavy Industry
(Jinan Laiwu) Green and Intelligent Manufacturing Industry City was started,
taking the lead in the construction of major projects in the country. All the construction staff were closed at the construction site,
and the first phase of the project was officially put into operation on
November 19 of that year in only 280 days, creating a construction miracle of
"started in that year and put into operation in that year".
The Great Wall today - yesterday, upside down deeply done. These four years have been very long and fast. There have been
more successes and more bitter. Along the way, there have been many thrilling
and difficult steps. Party committees and governments at all levels have always been
our strongest backing, so that we have the courage and strength to overcome all
in the most difficult and painful time! For those comrades who have made "sacrifices" for the
future development of Sinotruk, Sinotruk will never forget you. The achievement belongs to all Sinotruk employees who pursue
their dreams, burn their passion and forget themselves.
Comrades! Let us join hands, overcome the current industry decline grim
situation, challenges into opportunities, go against the trend out of a high
quality development road, and then hand in a bright answer, to the Party's
twenty big gift!
Thank you very much.
