Economic Observer: Sany Heavy Industry: Meritorious, Virtuous, Speech

Source: Economic Observer Author: Yu Meng
 

"Meritorious, moral and verbal is Sany's understanding of corporate social responsibility, and the first thing about corporate social responsibility is to do a good job in the enterprise." He Zhenlin, vice president of Sany Heavy Industry, told this newspaper on May 22.

In He Zhenlin's view, the ancient motto of "meritorious service, morality, and speech" has different interpretations at the enterprise level: meritorious service, that is, the enterprise should be effective; Lide, that is, poverty alleviation; Words, that is, to create a management model and cultural concept that is beneficial to the world.

In 2011, Sany Heavy Industry achieved an operating income of 50.776 billion yuan, a year-on-year increase of 49.54%, and an operating profit of 9.847 billion yuan, a year-on-year increase of 42.78%. At the same time, "Sany Heavy Industry implements the profit distribution plan and actively returns the majority of shareholders; rectify the business environment and standardize the supply process; Improve product quality and strengthen after-sales service; Adhere to independent innovation, promote energy conservation and emission reduction; Keen on social welfare, brave to assume social responsibility. ”

　　M&A enhances the connotation of responsibility

At the beginning of 2012, Sany Heavy Industry spent 324 million euros to acquire the world's leading concrete industry, the German manufacturer Putzmeister (also known as "Elephant"), accelerating the process of internationalization.

He Zhenlin told reporters that the transaction has been officially completed. He said that overseas mergers and acquisitions are also a manifestation of corporate social responsibility, which is the social responsibility of an international enterprise to the world. At a time when the European economy is weak, Sany's acquisition of Putzmeister can undoubtedly bring new vitality to the construction machinery industry and the macroeconomic environment. Through the M&A, Sany expects to broaden its internationalization while accelerating Putzmeister's growth.

With more than 50 years of history and more than 3,000 employees, the integration of cultures between companies after mergers and acquisitions is often a key factor in the success of a marriage. He Zhenlin said that at present, Sany has entrusted the current CEO of Putzmeister as the person in charge, and the board of directors only sent a senior assistant to the chairman as a special liaison, and promoted the CEO to the senior vice president of Sany Heavy Industry and entered the board of directors. At the same time, the preservation of the original brand of Putzmeister is also an important step in our internationalization.

He Zhenlin believes that there is no problem in the integration of the two companies, which is due to the mutual goodwill and trust of the senior management of the two companies. One detail illustrates the problem, during the contact between the two sides, Liang Wengen, chairman of Sany Heavy Industry, and Carl Schleissitt, chairman of Putzmeister, exchanged Rolex watches. Liang Wengen's watch was a *5,656 gift from his son after his work, while Carl's watch was a token given to him by his wife 25 years ago. He Zhenlin said that this incident reflects the great sincerity of both parties, and the two companies share a common vision and mission.

He Zhenlin told reporters that Putzmeister achieved profitability in 2011, so Sany does not need to inject cash flow into it, but will input a more complete industrial chain for it to further improve its competitiveness.

　A sense of responsibility in the industrial chain

From suppliers, customers to investors and employees, the social responsibility of a company lies first in its respect and maintenance of the interests of all subjects in the industrial chain. He Zhenlin believes that only the value of the partner can realize the value of Sany itself.

He Zhenlin said that Sany has protected the rights and interests of employees from four aspects. *5656, maintaining steady growth, Sany Heavy Industry is currently the world's sixth, China's *5656 construction machinery manufacturers. Since the reform of equity division in 2005, the compound annual growth rate of Sany Heavy Industry's revenue has reached 64.8%, and the average annual growth rate of net profit has reached 87.4%, which is far higher than the industry average.

Second, to protect shareholders' right to participate in decision-making, so that small and medium-sized investors can fully exercise their right to participate, and the number of shares voted by shareholders in shareholders' meetings in the past three years accounted for an average of 70.6% of the total share capital. Third, to protect the right to know information, listed for 9 years, Sany Heavy Industry information disclosure is timely, accurate and complete, no omissions, no violations, no errors, in 2011 by the China Securities Journal as the most trusted company by investors. Fourth, protect shareholders' right to investment income. Sany Heavy Industry is the first enterprise with a market value of more than 100 billion yuan in the domestic mechanical engineering industry, and it is also the first enterprise in China's mechanical engineering industry with a market value of the world's top 500 enterprises, ranking fifth in the world in terms of shareholder return and ranking 5656 among the world's construction machinery enterprises.

In April 2011, the company distributed 2010 profits (0.6 yuan for every 10 shares of 5 shares), a total of cash dividends of 303,748,245.50 yuan, and 2531235379 bonus shares. Since its listing, it has accumulated cash dividends of 1.456 billion yuan.

In terms of supplier relations, Sany pays suppliers in strict accordance with the contract, helps suppliers succeed through multiple channels, and seeks a win-win situation with suppliers. In 2011, Sany Heavy Industry Co., Ltd. established a "5+5" assistance model, set up five professional teams integrating technology, quality and management users, and conducted one-to-one assistance to five suppliers to create five high-quality projects. And by helping suppliers improve technology, improve product quality, organize supplier leaders to participate in training, provide financing guarantees, solve suppliers' capital flow difficulties, and help suppliers build factories around the industrial park to effectively solve various problems encountered by suppliers.

At the same time, Sany Heavy Industry will be the core values of the enterprise positioned on the "high quality", based on the production of high-quality products, to provide high-quality services, "the company regards quality as the starting point of enterprise value and dignity, is the most uncompromising thing, spend great efforts to promote lean manufacturing, build a sound quality system, and actively guide the development trend of industry services, and strive to create customer value." ”

Sany actively explores its own production mode - SPS to realize the transformation from extensive operation to lean. More than 30 people are hired to form an industry * 5660 user group to walk through the company's production workshop, diagnose the company's manufacturing status level, put forward existing problems, and make targeted improvements.

In terms of handling employee relations, Sany attaches great importance to people, respects people, cares for people, and creatively puts forward the concept of "helping employees succeed", and the relationship between enterprises and employees is no longer limited to employment relations, but has more warmth of "home". It provides employees with career development channels for two major sequences (management and professional) and 16 systems (cadres, R&D, manufacturing quality, business, etc.), and establishes a career management process for employees from both the organizational and individual levels.

In 2011, Sany Heavy Industry paid 4.58 billion yuan in taxes and fees, providing more than 30,000 employment opportunities. On May 9, 2011, a debris flow disaster occurred in the Guangkeng Quarry in Luojiang Village, Xianshui Township, Quanzhou County, Guilin City, Guangxi Province.

In March 2011, a 9.0 magnitude earthquake struck Japan, and the ensuing nuclear leakage crisis shocked the world. In understanding TEPCO's offer to buyPump trucksAfter the cooling needs of the nuclear power plant, Sany took the initiative to donate a 62-meter boom pump truck worth 1 million US dollars to support Japan and participate in the crisis relief of the Fukushima nuclear power plant.