Shandong Heavy Industry Weichai Group has actively changed its development mode and achieved independent development through leapfrogging development. In just 10 years, from a single engine company, it has grown into an international enterprise group integrating engines, transmissions, axles and auto parts. In the context of the international financial crisis in 2009, the company’s consolidated operating income and profits tax increased by 6.4% and 51% respectively. In January-August 2010, total operating income was 60.9 billion yuan, a year-on-year increase of 89%; and profits and taxes 8.11 billion yuan, an increase of 106% year-on-year. Among them, the Group's listed company Weichai Power's earnings per share for the first half of the year reached 3.88 yuan, ranking first among all listed companies in China. The labor productivity of the engine plate in the first half of the year reached 1.18 million yuan per capita, which was more than 2 times the domestic average of the same industry. .

Chairman Tan Xuguang believes that innovation is the key to the successful development of Weichai Group. Since 1998, Weichai Group, a traditional state-owned enterprise, has carried out all-round and systematic innovation in the areas of operation system, business model, technology research and development, and internal management, and has embarked on an intrinsic development path relying on independent innovation. Through technological innovation, the company's product line has developed from medium-speed to medium- and high-speed development in an all-round way, which has transformed the product from a single market to a diversified market; high-speed machines have evolved from a single supporting heavy truck to ancillary Construction Machinery, large passenger cars, and ships. And power generation. Among them, high-speed machines entered the 50-loader market and realized the upgrading of China's engineering machinery power; with the successful matching of luxury passenger cars of 12 meters or more, the change of domestic luxury passenger cars from long-term dependence on imports to autonomous procurement was achieved; It changed the situation that the enterprise's ship power depends on the medium speed machine to hit the world.

Since the “Eleventh Five-Year Plan”, Weichai Group has cumulatively developed 37 new products and successively successfully developed high-power high-speed diesel engines with completely independent intellectual property rights that meet the national III, National IV and National V emission standards in China. The main technical indicators With the international advanced level. A total of 1,710 special accessory products were developed. The proportion of new product output value to total output value rose from 45% at the end of the “Tenth Five-year Plan” to the current 58%. He has hosted and participated in 10 national "863 projects" and scientific and technological research projects, obtained 577 patents for product and technology authorization, and completed 10 new product identifications above the provincial level. At the end of 2009, Weichai Group was honored by the China Enterprise Confederation as the first batch of “independent and innovative model enterprises” in China.

Over the past 10 years, Weichai Group has invested nearly 5 billion yuan in total and conducted continuous technological transformation. With the completion of the Weichai Power Industrial Park and the Foundry Industrial Park as its symbol, the company's technological and equipment levels have been significantly improved. The product assembly quality is in line with the world. The labor productivity, emission levels, and energy conservation and environmental protection of all employees have reached the leading domestic and international standards.

Weichai Group actively implemented the strategy of talent accumulation and established 7 R&D centers in Weifang, Hangzhou, Chongqing, Shanghai, Yangzhou, North America, and Europe, establishing a collaborative R&D platform, and implementing the strategy of “Strengthening Science and Technology” to open up scientific and technological personnel. A broad career development platform and entrepreneurial environment. At the same time, the company has introduced more than 1,800 talents of various types, including 18 doctors and 454 masters, and has established a postdoctoral workstation. It has established a dedicated product development team, process engineering team, mechanical development team, and technical management team to become an enterprise innovation. The backbone of development.

With the good momentum of development, Weichai Group has performed a series of large-scale operations in the capital market: Weichai Power has successfully listed in Hong Kong, and thereafter it absorbed the merger of the Hunan Torch, listed on the Shenzhen Stock Exchange, and then reorganized Shandong Giant. force. After a series of capital operations, the business of the Weichai Group has clearly evolved into three major segments – the vehicle segment, the powertrain segment and the auto parts segment. Among these three segments of Weichai, Shaanxi Heavy Duty Truck is the major manufacturer of domestic heavy trucks with more than 15 tons of weight; Weichai Group's engine has a 40% market share in heavy-duty engines with a gross weight of over 14 tons; Shaanxi Fast has Occupy 90% of the domestic heavy truck market; Hunan Torch Spark Plug is the world's largest spark plug company, accounting for more than 60% of the global market share. The new Weichai made up of these three major segments formed a complete industrial chain with excellent asset quality and huge potential for development in the domestic automobile industry, and the ability to resist risks and increase profitability was significantly enhanced.

Weichai Group also actively promoted management innovation and fully implemented the “4+2” management, namely the four modern management methods of comprehensive budget management, lean six sigma management, excellent performance management, and information construction, as well as two processes of early warning analysis and benchmarking. Management tools. By implementing comprehensive budget management, enterprise cost control has been lean. From 2006 to 2005, the annual cost reduction was 270 million yuan, 300 million yuan, 330 million yuan, and 760 million yuan respectively. This management achievement won the first prize of the “Twenty-first Shandong Province Enterprise Management Modernization Innovation Achievements and Outstanding Application Achievements”.

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