China Business Network: Zhao Xiangzhang of Sany Heavy Industry: The competitiveness of pure market-oriented blood

Source: China Business Network

 
"So far, this 21-year-old company, with 50,000 employees, has an average age of 27 years old, and until now we have no retirees, and there is no retirement office or the like." Zhao Xiangzhang, vice president of Sany Heavy Industry Group, who is just 45 years old, told the "China Business Daily" reporter.

As Zhao Xiangzhang, who was first airborne and then trained, walked out of state-owned enterprises, and successively served as deputy general manager, chief financial officer, secretary of the board of directors and director of Sany Heavy Industry, Zhao Xiangzhang is also a first-hand witness of Sany Heavy Industry's equity division reform, and is responsible for the financial and capital operation of Sany Group.

■Competitiveness that grows through questioning

China Business News: The characteristics of enterprise competitiveness are different, some are in technology, some are in management, some are in channels, some are in resources, and some are in service. So, what are the salient features of Sany Heavy Industry*? How did such a characteristic come about?

Zhao Xiangzhang: Looking back on the entrepreneurial process of Sany Heavy Industry, at the beginning, we had no advantage in resources, no advantage in channels, and we were a private enterprise without any background. Sany Heavy Industry's competitiveness comes entirely from the market: from a fully competitive market and an industry that has been struggling to grow up in doubt. Sany Heavy Industry, which does not have a state-owned background and a foreign capital background, has a pure market pedigree, which also ensures that Sany Heavy Industry is more able to adapt to the challenges of the market.

China's construction machinery market has been occupied by Japan, South Korea, Europe and the United States, therefore, Sany Heavy Industry has chosen the slogan and development path of "import substitution". It is through technological innovation that we achieve transcendence, rather than starting with a price war, that we avoid repeating the mistakes of the home appliance industry.

China Business News: Technological innovation needs the support of talents. What is the talent structure of Sany Heavy Industry? What problems have been encountered in the introduction of high-end talents and talent training?

Zhao Xiangzhang: In China, especially in the engineering equipment manufacturing industry, the cheapest thing is talent. From a small number of entrepreneurial talents at the beginning of the year to large-scale self-cultivation of talents, the talent team has become an important part of the core competitiveness of Sany Heavy Industry. At present, Sany has more than 6,000 R&D personnel, and next year's plan is to exceed 12,000 people.

Now, Sany Heavy Industry's R&D talents, management talents, and even some technicians are also becoming potential targets in the same industry. However, Sany Heavy Industry is in an unconventional stage of development, so the lack of talents is also lacking, especially with the beginning of the internationalization strategy, the lack of high-quality talents such as discipline leaders and senior executives.

To this end, taking advantage of the international financial crisis, on the one hand, we have accelerated the pace of internationalization and built factories in Europe, America, India and even Africa and other countries; On the other hand, it also seizes the opportunity to introduce high-end talents in core technologies and key components to provide conditions for the next step of international operation.

■Everything possible for rapid growth

China Business News: Sany Heavy Industry's dividend in 2009 was 1.3 yuan for 10 shares and 11 shares, and at the same time, when acquiring the assets of Huqi and Sany Automobile earlier, it made a profit guarantee commitment for the next three years. What kind of judgment is such a commitment based on?

Zhao Xiangzhang: I just said that this industry has been growing in doubt, and some people think that this industry is a cyclical industry and belongs to a traditional industry, so they think that the market demand is saturated and there is overcapacity. But as of today, in fact, we have been plagued by a lack of production capacity, which mainly lies in China's opportunities, China's urbanization process and the need for infrastructure construction, such as China's airports, ports, water conservancy and hydropower equipment, natural gas pipelines, high-speed railways, intercity railways, etc. are far from enough, and it will take at least 20 years to reach a certain level. At the same time, infrastructure development, especially in western China, has just begun, which means more opportunities for our industry.

Based on this judgment, we have made a commitment to the future profit of the company. For example, excavators, last year we promised a profit of 400 million ~ 500 million yuan, in fact, this year will far exceed this number. Therefore, Sany Heavy Industry is currently in a period of high growth, and the company's acquisition of Huqi, Sany Automobile and other assets is aimed at completing the product line and opening up the industrial chain. In addition, including our previous overweights, the purpose is to be responsible for the capital market and send a signal to enhance investor confidence.

China Business News: It is reported that although the company has achieved good results, due to the fact that Sany Heavy Industry has enclosed a lot of land in recent years, the output efficiency per unit area is lower than that of other enterprises in the same industry. What are the considerations behind such a strategy?

Zhao Xiangzhang: This is a misreading of the company. Sany Group's goal this year is to achieve sales revenue of 50 billion yuan, and Sany Heavy Industry will exceed 30 billion yuan. Such performance is completely dependent on the rapid growth of the enterprise, and it also fully reflects the competitiveness of Sany Heavy Industry in the industry. However, in addition to Sany Heavy Industry Co., Ltd., the group also has Sany International,Port machinery, precision machine tools and other industries, these need land, need to be built. Land resources are also the needs of the strategic development of enterprises, and now most of the company's land is being built or is under construction, even so, it still cannot meet the needs of the existing market and production capacity.

China Business News: In the past two years, there is an important factor in the rapid growth of Sany Heavy Industry, which is the country's 4 trillion yuan investment. Some securities analysts believe that the macro-control of real estate and other industries is the risk of Sany Heavy Industry *5655 in the future, what do you think?

Zhao Xiangzhang: The rapid growth of the construction machinery industry in the past two years is closely related to the pull of 4 trillion yuan of investment, and the effect of 4 trillion yuan of investment has further promoted the rapid development of the industry.

We are optimistic about the long-term trend of this industry. Speaking of risks, the risk of *5655 is the fear of a recurrence of the "one-size-fits-all" approach of macroeconomic control in 2005. We believe that such a form of regulation should not be repeated.