The key word from quantitative change to qualitative change: innovation

(Comprehensive report by Shanghai Securities News on April 7)　　

China Universal Asset Management Co-organized by China Universal Asset Management and Shanghai Securities News "Looking for the Listed Private Enterprises with Growth Potential" Tour of Sany Heavy Industry (600031)
The growth of Sany Group, with Sany Heavy Industry as the core, can be said to be a process of qualitative change from the accumulation of tens of billions of enterprise wealth to the accumulation of hundreds of billions of pupates into butterflies to build *5653 enterprises.
Focusing on this goal, a reform involving R&D, manufacturing and management has been drastically promoted within Sany, and on the basis of continuing to maintain the core competence of R&D and service, Sany is trying to build "manufacturing" into its third core competitiveness.

■Core technology guides R&D and innovation

In 2007, Sany achieved sales of more than 10 billion. In the history of growth, a number of new products such as the 66-meter world's longest boom pump truck, the "Asia's * 5656 crane" 900-ton crawler crane, China's first mass production of asphalt mortar trucks, and the first domestic all-rock roadheader have been recorded. These "*" and "*5656" show the role played by Sany in various fields of machinery manufacturing.
Since entering the field of construction machinery manufacturing in 1994, Liang Wengen, chairman of Sany Heavy Industry, has deeply realized that the key to the development of China's equipment manufacturing industry lies in the mastery of core technology.
As one of the 5,656 private enterprises that have entered the field of heavy industry, the "catfish effect" played by Sany Heavy Industry is self-evident. It is an indisputable fact that Sany has brought about changes in the entire construction machinery industry. Statistics show that in 1995, in the field of concrete pumps, foreign products accounted for more than 95% of the Chinese market, and now more than ten years later, the proportion of foreign products in concrete pumps is less than 5%. The "national" brand of the entire construction machinery industry has regained lost ground.
In this process, Sany Heavy Industry can be said to have made great contributions. Although it cannot be said that without Sany, there would be no machinery manufacturing industry in China today; But at least it can be said that the development of Sany has exacerbated the changes in the entire machinery manufacturing industry. One of the fundamental reasons why foreign products were able to occupy a monopoly position in China for a time is that the quality of China's local products is not up to standard, the innovation ability is poor, and the upgrading is slow, especially scientific and technological innovation.
In 1997, Sany had computer-controlled concrete pump assembly lines and roller assembly lines in 5656 domestic enterprises, thus becoming one of the 5656 concrete pump export enterprises in China. With innovation, Sany's independent intellectual property rights have set new records one after another. By the beginning of 2010, the cumulative number of patent applications of Sany Heavy Industry exceeded 1,600, and more than 800 patents were authorized, ranking first in the domestic construction machinery industry.
On December 18, 2002, the National High-tech Research and Development Program ("863" Program) "Intelligent Construction Machinery of the Machine Cluster" project acceptance meeting, Sany Heavy Industry undertook the new topic of domestic asphalt concrete pavement construction through the acceptance of the national "863" plan project acceptance group, Sany Heavy Industry proposed a new process of mechanized construction of asphalt concrete surface layer in China, which will make the construction quality of asphalt concrete pavement have a qualitative leap. Prior to this, it was rare for private enterprises in China to undertake special projects of major national scientific research plans. Dr. Zhang Zhiwen, one of the members of the acceptance team, believes that there is no distinction between private enterprises and state-owned enterprises in the field of science and technology research, and they all contribute to the country.
In September 2002, at the construction site of the International Finance Building in Hong Kong, Sany created a world record for the conveying height of the concrete pump, and the Sany concrete pump sent the concrete to the construction surface of 406 meters, which was nearly 100 meters higher than the world record of 308 meters created by the original foreign veteran enterprises! On December 10, 2007, Sany Pump once again set its own record in the Shanghai World Financial Center, with a single pump pumping concrete of 492 meters, winning the reputation of "China's Pump King". In September 2003, on the construction site of the third phase of the Three Gorges Project, the new generation of Sany three-stage concrete pump was successfully tested, making the three-stage concrete conveying a reality and filling another gap in the field of construction machinery at home and abroad. In November 2009, the 72-meter boom pump truck independently developed by Sany Heavy Industry * Dingguinness World Records achieved another leap forward in concrete pumping technology. With the spirit of innovation and technology, Sany Heavy Industry's high-pressure, ultra-length concrete pumping technology has been ranked at the forefront of the world, gaining a broad space in the field of construction machinery manufacturing, and guiding the development of the entire Chinese construction machinery industry.
Sany products can be seen in large-scale projects at home and abroad, such as the Qinghai-Tibet Railway, the South-to-North Water Diversion Construction Site, the Beijing-Zhuhai Expressway, and the Burj Khalifa in the United Arab Emirates. The scale of Sany has also achieved an annual growth rate of about 60%. In 2009, Sany's main business income exceeded 30 billion yuan.
"Innovation" is almost a must-mention word for manufacturing enterprises, how does Sany Heavy Industry understand "innovation"? Yi Xiaogang, executive president of Sany Heavy Industry and the first scientist, believes that imitation is not innovation, and it is not called innovation if it is not broken, and it is not called innovation if it is not broken. Sany's innovation is not only to create the world*5656, but more importantly, to focus on the development of "environmental protection and energy-saving" products, and to comply with the sustainable development of "resource-saving and environment-friendly". He took the excavator produced by Sany Heavy Industry as an example, in 2009, the market share of Sany excavator reached more than 6%, ranking first among domestic brands. Sany excavator saves energy by 10%, the excavation rate increases by 9%, and the operation rate increases by 8%, which is known as the world's most energy-saving excavator. In addition, energy-saving technology has also been promoted and applied to three series of products such as piling machinery, lifting machinery, and port machinery. Sany SY series concrete pump trucks and LTU series asphalt pavers and graders have been identified as energy-saving products in Changsha and are widely recommended. Among them, "Research and Application of Energy-saving Control Technology of Concrete Pump Truck and Paver" was listed as "Changsha Energy-saving Funding Project".
 

■Full participation in manufacturing innovation
　　

It is Sany's dream to make "MADE IN CHINA" a product that represents the world's *5661 quality.
Since its establishment, R&D and service have become the core competitiveness of Sany and have made great contributions to the development of Sany. With the continuous expansion of the overall scale and the proposal of the goal of 100 billion yuan, manufacturing capacity is becoming more and more important. Chairman Liang Wengen believes that a strong country must be a country with strong manufacturing capacity, and a country with strong manufacturing capacity must be a country with strong economic strength.
After more than 50 years of development, China's construction machinery industry has become a pillar industry with a complete category and a considerable scale, but the absence of 5656 industrial reforms has made China's machinery manufacturing industry follow in the footsteps, and Chinese products were once regarded as synonymous with "inferior quality" by the world. The most important reason for this is the low level of manufacturing.
Sany people put forward "quality changes the world", the basic motivation is to change the inferior image of Chinese products in the world. Liang Wengen believes that although Sany's products have reached the world's advanced level in terms of technical performance, there is still a big gap in the production and manufacturing process compared with Europe, the United States, Japan and other construction machinery powers. At the Bauma Exhibition in Germany, the Las Vegas Exhibition in the United States, the Paris Exhibition in France and other international large-scale construction machinery exhibitions, Liang Wengen personally led the company's senior management and leaders of various business divisions to visit and study, and also climbed on some products to observe carefully.
The sudden arrival of the world financial crisis made Sany more deeply aware that in order to gain a firm foothold in the sluggish market, the only way to further practice internal skills, and to break through the growth limit of the enterprise and achieve the great goal of the world's top 500 enterprises, it is necessary to change the model and realize the transformation from extensive management to lean with a new mode of production. Tang Xiuguo, President of Sany Group, once said: "Sany's goal is not only to complete the leap of 100 billion, but also to contribute a great idea or a highly respected model. ”
As a result, "SPS-Sany Production Mode" was formally proposed in the planning of manufacturing core capacity building. A deep manufacturing revolution guided by lean thinking is accelerating. There is a consensus within Sany that learning organizations are good at acquiring, creating, and guided by new knowledge and new insights, and have the courage to revise their own behaviors and continuously improve, so as to achieve success.
Sany senior management took the lead in setting an example and promoting the creation of a learning organization. At present, in Sany, whether it is an executive or an ordinary employee, they must be ready to participate in the study and examination at any time, and they will be severely punished if they fail the examination. In the elevator hall of the Trinity Office Building, you will read Han Yu's "Persuasion Poems": "There are not many people who suffer from reading, who suffer from unclear thinking, who suffer enough and do not learn, and who cannot learn even if they are suffering", which has a profound meaning.
All staff learning makes Sany's manufacturing reform reflect the characteristics of full participation from the beginning.
The crane division can be said to be a typical case of Sany lean manufacturing reform, where the general manager smashed the unqualified crane baffle. With the advancement of manufacturing reform, the crane division took the lead in establishing *5656 lean production lines. Employees are self-involved in the improvement, so that the workshop will have surprising changes every day. Just recently, in the crane workshop, the first welding line designed and produced by front-line employees was promoted as a major achievement of lean manufacturing reform. After visiting the crane production line, some customers vividly described "this is a flowing scenery". As a result, the quality and efficiency of crane products have been greatly improved, and it has become the fastest growing business unit of the group. Nowadays, Sany crane has entered the top three domestic brands.
With the advancement of manufacturing reform, Sany's process equipment, standardized operation degree and process quality assurance ability have been greatly improved, and the production organization mode has become more scientific and reasonable. In the production process, any form of waste, such as overproduction, inventory, manufacturing defects, waiting, handling, processing, and manipulation, is constantly eliminated.
This kind of manufacturing reform guided by lean thinking and by means of continuous improvement has brought about the improvement of efficiency and the growth of business performance. In the adversity of the continuous spread of the financial crisis, Sany Group rose against the market in 2009, and its sales revenue increased by 46%, reaching 30.6 billion yuan.

■Resource integration runs through international innovation

"If there is no internationalization, Sany * is just a bigger self-employed person." Liang Wengen, chairman of Sany, once sighed. In the medium-term plan of Sany Group, in 2012, the sales volume will be 100 billion yuan, and the overseas market must account for more than 30%.
Although the international market is still in a dormant period, Sany Group has chosen to take the most challenging step on its growth path at this moment. On February 22, 2010, Sany Heavy Industry Co., Ltd. signed a memorandum of intent to invest US$200 million in São Paulo State, a large city of 5,656 in Brazil. This is Sany's fourth stop in the international market after investing in India, the United States and Germany, and it is also an overseas investment of the company's *5655 amount.
Xiang Wenbo, president of Sany Heavy Industry, expects that Sany will complete the land acquisition and site selection of the Brazilian base in March this year and put it into operation in the first half of next year. After completion, the main production of excavators, crawler cranes,Truck cranes。 These products will be sold in Brazil and will also be exported to the South American market. Turnover is expected to reach $500 million in the first five years and $2 billion in 10 years. In this way, Sany's strategic layout in Asia, South America, North America and Europe has begun to take shape. In addition, in the future, we will set up a factory in Africa, and all of Sany's five overseas bases will be completed.
Industry insiders believe that the single direct overseas investment is different from other construction machinery enterprises expansion mode, Sany is good at using its own superior resources to foreign countries to integrate other people's superior resources, with international resources to enhance their own internationalization. This unique approach to internationalization effectively avoids the pitfalls of culture, capacity rigidity, and labor law.
While maintaining the leading position in the domestic market, Sany has tasted the sweetness of the cake in the international market, and how to make this cake bigger and create a global brand image is the direction of Sany's unremitting efforts in the future.

■The growth history of Sany Heavy Industry (600031).

Sany Heavy Industry issued A shares on June 18, 2003 and went public on July 3, 2003.
The issue price was 15.56 yuan, and as of December 31, 2009, the closing price of A shares from the first day of issuance was 321.41 yuan. In the past 7 years, the stock price has increased by 1408.97%, and the cumulative dividend by the end of 2009 is more than 582 million yuan.
The growth history of Sany Heavy Industry can be traced back to 1989 in Lianyuan City, Hunan Province, Welding Materials Factory, on the basis of which Sany Heavy Industry Group Co., Ltd. was established in January 1995, and then changed to Sany Heavy Industry Co., Ltd. as a whole in December 2000. Sany Heavy Work is the core enterprise of Sany Group, listed on July 3, 2003, and is the first successful enterprise in China's equity division reform and full circulation.
In the past few years, Sany's sales revenue jumped from 390 million yuan in 2000 to 13.75 billion yuan at the end of 2008. Profit from sales increased from $181 million to $1.53 billion. The market value of Sany Heavy Industry has also grown from 3.7 billion yuan at the beginning of its listing on July 3, 2003 to an international large enterprise with a market value of more than 54 billion yuan at the end of 2009.
Sany's medium-term development goal is to exceed 100 billion yuan in sales in 2012 and enter the world's top 500. (Statistics from "Wonder Database")