The financial crisis led to a slump in the machinery industry, but Guangxi Liugong Group, by virtue of its unique physique, played a "double inflection point" in the first half of this year and outperformed the industry. When the reporter visited the group recently, it was learned that the Group not only ranked the top three major products in the first half of the Chinese industry in the first half of the year, but also the profit rate continued to rise. What is more worth looking forward to is that the group is planning for domestic and overseas mergers and acquisitions..... Liu Gong, is How to outperform the industry? How far can I run in the future? Two major growth drivers Although last year encountered the industry's most difficult black period, Liugong Group, which had just passed its 50th anniversary, achieved operating revenue of more than 10 billion yuan in 2008, and sales of all types of engineering machinery exceeded 38,000 units. In the first half of this year, Liugong achieved a sales revenue of 5.31 billion yuan and sales of nearly 20,000 units. Although the year-on-year decline, but in the case of a 35-40% decline in overall industry performance, Liugong still outperformed. Industry, and the market share of various products has further increased. When Liu Xiaohua, the chairman of Liugong Group, recently accepted an exclusive interview with this reporter, he frankly said: “Now people often ask Liu Gong to survive the crisis? I think that after the crisis comes, how companies respond is whether there is a good constitution and internal mechanism, and the market appears. Change is also an opportunity, and it is our biggest opportunity to seize market share. In the first half of this year, Liugong’s three major product exporters, loaders, excavators, and road rollers all ranked first in the Chinese industry.†“In September last year, Liugong began to tighten expenditures, reduce inventory, control investment, and make cash the king. Liu Gong is now trying to keep fit and internal control to a higher level. Because Liugong products have obvious advantages in terms of cost performance, The company's risk control regulations did not result in layoffs and pay cuts, nor did it happen that the purchase price did not come back.†Wang Xiaohua has full confidence in Liu Gong’s ability to respond to the crisis. Wang Xiaohua told reporters that Liugong was developed from a part of the Shanghai East China Metal Structure Plant in Liuzhou in 1958 and was also the first listed company in Guangxi and the industry. It can be said that the history of Liugong is a microcosm of the development history of China's engineering machinery and even China's equipment industry. Liugong believes that industrial management and capital operation are the two major driving forces for the growth of Liugong. Yang Yichuan, vice-president of Liugong Co., Ltd., believes that Liugong will make full use of the good opportunities in the capital market and effectively realize the leap-forward growth of strategic layout and operation scale through mergers, acquisitions, restructurings, joint ventures, etc., and achieve effective integration and rapid integration. It is precisely because of these accumulated Liugong's product lines that it has increased its ability to withstand market risks during the crisis. It is reported that Liugong currently has 23 holding subsidiaries and two shareholding companies. Among them, in 2000, through the acquisition and integration, Liugong established Jiangyin Liugong and entered the road roller industry. In 2008, the sales revenue was 250 million yuan, and the net profit was 19.33 million yuan. In 2003, Liugong was established in Zhenjiang, which mainly produced small projects. Machinery, sales revenue in 2008 was 540 million yuan. In 2007, Liugong forklift company was incorporated and entered the industrial motor vehicle industry. In 2008, sales revenue was 44.75 million yuan and net profit was 3.11 million yuan. Yang Yichuan stated that 2008 was an important year for Liugong to increase its capital operations. At the end of February, through the acquisition of crane crane company in Anhui Province, Liugong was set up to integrate into the crane industry and re-establish strategic plans, increase investment, build a new R & D and manufacturing base for Liugong gong crane, and in March, invest in Tianjin Liugong to build Liuzhou. North of the factory manufacturing base, the new plant has been completed and put into production; in March, Liugong (North America) Co., Ltd. was established in Houston, USA; Liugong (Hong Kong) Co., Ltd. was established in May; Liugong International Leasing Co., Ltd. was established in October to begin financial leasing. business. Three major steps in internationalization As early as 2003, Liugong took the lead in the industry to propose an internationalization strategy. It is one of the first companies in the construction machinery industry to propose an internationalization strategy. Since then, Liugong has been committed to the internationalization of talents, the internationalization of management, the internationalization of products, the internationalization of services, and the internationalization of brands, and has become a world-class enterprise in the process of internationalization. Wang Taiping, Minister of Strategic Development at Liugong stated that Liugong’s internationalization is divided into three phases: First, the overseas marketing stage, the second is the international manufacturing stage, and the third is the investment acquisition stage. Liugong is currently in the second stage, marked by the production of Indian companies. Huang Zhaohua, general manager of Liugong International Marketing Department, told reporters that although exports of Liugong products declined this year, the export market share of loaders increased from 17% in the same period last year to 24%, and the share of excavators increased from 8% to 18%. The share of road rollers increased by 24% from 12%. LiuGong gained market growth in some countries through the use of nonprofit agents and the extension of the Three Guarantees period. "Liugong's internationalization must be aligned with the industry giants. Liugong therefore introduced the talents of its Japanese counterpart Komatsu to create Liugong's parts service system. The competition in the international market is not only selling products but also selling service packages more importantly. , such as timely delivery of accessories, timely maintenance and repair of products, etc. Although LiuGong Internationalized the tuition, but at the same time forced the enterprise quality management and increased the profit of the brand value, so foreign construction, mining, cement and other industry giants Afterwards, Liu Gong was asked to provide global services and carry out financial leasing business. In the next step, Liugong will also introduce the overseas market service system into China at a proper time.†Huang Zhaohua said. Through years of efforts and overseas networks and brand building, Liugong’s overseas sales accounted for more than 15% of the total revenue in 2008, of which Liugong's 5-ton loader products accounted for more than 70% of the Indian market. Currently, Liugong has more than 70 first-tier international distributors in 80 overseas countries, 8 parts and accessories centers in the world, and established marketing companies in the international regions in Australia, the United States, Brazil, and India. Wang Taiping also said that Liugong will accelerate the pace of independent innovation and increase the development of core components. The Liugong International Industrial Park, with a total investment of 1.8 billion yuan, will build five major projects, including international logistics projects, international parts centers, and hydraulic parts manufacturing centers. A core development strategy Currently, Liugong has global leading product lines and independent innovation capabilities. Currently, the company's leading products are loaders, excavators, road rollers, forklifts, road machinery products, lifting machinery, bulldozers, and flexible and versatile small construction machinery product series such as slip. There are a total of 13 types of construction machinery products such as loaders and backhoe loaders. Among them, the sales revenue of Liugong brand loaders continued to be the first in the domestic industry for many years, the sales volume ranked second in the world, and the development of excavators in another core business was quite rapid. In just a few years, it entered the forefront of domestic national excavator brands. Liugong's development strategy is based on the absolute leadership of the loader and the strategic rise of strategic business. Through five initiatives including internationalization, in-depth marketing, technological innovation, management upgrade, and mergers and acquisitions, Liugong’s development strategy is based on a traditional construction machinery. The manufacturing-oriented company grows into a comprehensive company that is customer-oriented and provides comprehensive solutions. Future development goals: In 2012, sales revenue exceeded RMB 30 billion, and the company entered the top 15 in the global industry. By 2020, it will enter the top 5 in the global industry, with overseas sales accounting for one-third of the total. Air Hose,Industrial Air Hose,Industrial Air Fittings,Air Hose Rubber Hebei no one but god energy equipment co.,ltd , https://www.hbwsrubber.com