In 2012, affected by the macro-environment, the entire automotive industry ended the development trend of double-digit growth in previous years and gradually entered the era of “micro-growthâ€. Under such circumstances, what efforts have Dongfeng Automotive Components (Group) Co., Ltd. made in the first half of the year and what has been achieved? In the second half of the year, what kind of hard work will be carried out under the guidance of Dongfeng's 2012 mid-year work meeting? Recently, our reporter interviewed Weng Yunzhong, general manager of Dongfeng Auto Parts (Group) Co., Ltd. on these issues.
In 2012, in the face of the complex and volatile external situation, Dongfeng Components Company adhered to the management policy of “strengthening scientific and technological strength, enhancing overall efficiency, seizing opportunities for synergies, and accelerating business developmentâ€, with the theme of “Technology Yearâ€, and focusing on the three major issues. The mission is to effectively promote the seven tasks of the year and implement the combination of “open source and reduce expenditure, management, efficiency, market development, cost control, project promotion, and help for difficult enterprisesâ€. Through these effective efforts, in the first half of the year, Dongfeng Parts & Components achieved a net business income of RMB 4.062 billion, and operating profits exceeded the 26% target of the current period. The 8 KPIs that Dongfeng Limited has issued are the target of the current period, except for the main business net income.
"This is the hard-won result of the operation in the first half of the year when the external environment was unfavorable." Even if the performance is outstanding, Weng Yunzhong talks more about the situation and the countermeasures. The situation facing the development of Dongfeng Parts Company and the weakness of its own existence, Weng Yunzhong maintained a very sober understanding.
Weng Yunzhong said that it is expected that car sales will bottom out in the second half of the year, and the auto market will show a growth trend. The annual growth rate of the industry is about 7%, of which the passenger vehicle market will maintain a good growth trend, while the commercial vehicle market is still not optimistic.
According to the analysis of the current macro situation, it can be seen that the “micro-growth†of the domestic auto industry will be a major trend in the development of the Chinese auto industry. However, there are at least three major pressures on Dongfeng Parts Company itself:
First, the pressure of revenue growth: Due to the slowdown in the growth of the industry in the first half of the year, especially for commercial vehicles, the sales revenue of Dongfeng Parts Co., Ltd. for the first time declined for the first time in three years. This reflects that Dongfeng Parts Company still relied mainly on the industry in its growth mode. High growth, endogenous growth capacity and strategic growth capacity. Second, the pressure of cost control: In the first half of the year, although overall costs and expenses were well controlled, there was still a certain gap between the actual cost and sales cost and the target ratio. Third, the pressure of operating losses: In the first half of the year, affected by the market environment, 5 units of Dongfeng Parts and Components Co., Ltd. were in loss, and the loss area was expanded from 3 in the previous year to 5 in the previous year.
"These pressures and outstanding issues will be focused on and resolved in the second half of the year." Weng Yunzhong said, "Dongfeng Components Group has undergone years of market baptism and continuous improvement and improvement. Now it has five major advantages: owning Dongfeng Company. Advantages of technical resources and support; Advantages of Dongfeng's high-quality customer resources; Advantage of Dongfeng's limited advanced management resources; Advantages of Dongfeng Components Group with abundant financial resources and abundant product lines.â€
With advantageous resources, it is also necessary to use its own efforts to turn advantageous resources into cornerstones for the development of enterprises. Weng Yunzhong said, “Combining the spirit of Dongfeng Company's mid-year work meeting, we will focus on the five major battles of “guaranteeing goals, reducing costs, controlling risks, improving efficiency, and strengthening management†in the second half of the year to overcome market risks and maintain a steady development of our business.â€
“The “protection target†is the most important task in the second half of the year. We must work hard to find opportunities, carry out all-round market promotion work, expand sales revenue, make up for the first half of the income gap, and ensure the company’s annual business goals are achieved.†Weng Yunzhong "Protection Campaign" placed first in the second half of the year.
In the competitive downturn of the market, cost control and management improvement have become the key to firm solidity. Weng Yunzhong said that in the second half of the year, Dongfeng Components will continue to deepen procurement and reduce costs, reduce costs for technology, strictly control manufacturing, logistics, and energy costs, strengthen labor cost control, strictly control various expenses, and lay a good “cost control and control campaignâ€. Strengthen risk management, strengthen sales risk, investment risk, financial risk management and control, strengthen risk control that may occur at all stages of the value chain, effectively avoid business risks, and lay a good “risk management campaignâ€; strengthen on-site improvement and enhance on-site personnel and equipment Efficiency, vigorously promote JPMH management and “half the production cycle†activities, effectively improve manufacturing efficiency, and lay “site improvement campaignsâ€; promote management and promotion activities in a solid manner; strengthen “low net claims compensation, personnel cost control, and passenger vehiclesâ€. The promotion of major issues such as market development and product lightening will effectively resolve outstanding issues and weaknesses in management, increase overall management efficiency and operational control, and lay a good “management upgrade campaign.â€
Weng Yunzhong stated: “The difficulties are in front of us, and we will not retreat if we fail to advance. Dongfeng Components Company will face up to the difficulties in progress, strengthen our confidence, and maintain a forward-looking attitude. We will work together to overcome difficulties and overcome difficulties.â€
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