Weichai Power, "Three-three systems" to create "Miracles of Weichai"
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In the transportation equipment manufacturing industry, there is a saying that “the miracle of ignoring the firewoodâ€.
Weichai Power's sales revenue has quickly risen from less than 1.9 billion yuan at the time of its establishment to 33.1 billion yuan, and net profit has increased from 130 million yuan to about 2 billion yuan. Its development model has even been known as the " weldwood model."
Weichai's chairman summed up the rapid development of Weichai Power as "product innovation" and "capital innovation."
In terms of product innovation, taking heavy-duty trucks as an example, when the Chinese heavy-duty truck market emerged in 2002-2003, Weichai was the only power supplier that introduced the European heavy-duty truck engine technology to dominate the heavy truck market . At the end of 2008, Weichai developed the world's first “powertrain†product for system matching and R&D of engines, gears, and axles. A total of 19,751 heavy truck engines were sold during the year, an increase of 30.37% year-on-year, an increase of 19.29% over the growth rate of the industry.
In addition to focusing on product innovation, Weichai emphasized the diversification of investment subjects and the capitalization of operations in the capital operation. Weichai has grown from a simple diesel engine manufacturing plant to China's largest auto parts group today.
Ten years ago, the main and auxiliary businesses of Weichai Factory were undivided, and the property rights were monotonous and the direction of development was unknown. Under the leadership of Chairman Tan Xuguang, the newly appointed leadership team has creatively put forward the "three-three system" property rights reform under the guidance of Weichai and made Weichai embark on the road to a modern enterprise.
The so-called "three-three system" reform means that about one-third of the assets and employees of high-speed engines will be transformed into joint-stock companies, and will operate according to the modern corporate governance structure; one-third of the medium-speed engine business will remain in the parent company, seeking time to market. Another one-third of the professional parts factory, all separated and restructured.
The "three-three system" reform has activated the production factors and intrinsic motivation of traditional state-owned enterprises. The enterprises have been able to mount themselves lightly, not only achieving the maintenance and appreciation of state-owned assets, but also creating a win-win situation for the core assets, the surviving assets of the parent company, and the reformed enterprises. .
Next Weichai Hong Kong stock market, creatively implemented "HtoA" of the merger, the return of A-share market.
Weichai Power's board of directors has a highly educated background. Among the 18 members of Weichai Power's board of directors, members with a bachelor's degree or above account for one-half of the total. There are also several senior engineers and senior economists.
In addition, Weichai Power takes the “three-three†system reform as an opportunity to form a multi-regional, multi-cultural equity structure for domestic and foreign strategic partners, industry-leading customers, and senior management teams. In terms of corporate governance, Weichai formed the governance structure of the "three meetings, one floor," consisting of a general meeting of shareholders, a board of directors, a board of supervisors, and senior management.