Shaanxi drum power, lifting weights lightly

The interview with Shaangu Power was conducted in Xi'an on the weekend night at the end of May. Chairman Yin Jian'an and General Manager Chen Dangmin of Shaangu Power both graduated from Xi'an Jiaotong University and started working in Shaangu as soon as they left the school. , like Wang Xiaoling, deputy secretary of the Shaangu Group Party Committee, "spent my whole life in Shaangu." They told reporters that Shaangu employees have great affection for the company, "many of them are dual workers, and even three generations of Shaangu family members are Shaangu people."

This kind of human resource composition is actually one of the common characteristics of state-owned enterprises. Shaangu, formerly a third-tier factory, is an old state-owned enterprise with a history. The fan industry itself is divided according to the Soviet industrial system. Such a heavy industry with obvious traces of a planned economy has inherent limitations in its market size. "But we don't set limits on ourselves, go beyond the boundaries, discover the market and lead the needs of customers." Chen Dangmin said.

Shaangu, a major equipment manufacturing company that broke through from a narrow industry structure, performed a light and graceful dance. From 2001 to 2009, the compound growth rate of operating income of Shaangu Power was 36%, and the compound growth rate of net profit was 39%. Its assets are getting lighter and lighter, and only more than 600 million of the total assets of more than 8 billion are fixed assets.

Shaangu Power ranks first among its peers with an annual sales revenue of 3.6 billion yuan, leveraging 650 million fixed assets, and its profits account for 60% of the total of the top five in the industry. The financial data supporting sales revenue is quite good. In 2009, the sales profit rate of the domestic fan industry was 7.72% (source: 2009 Fan Industry Statistical Yearbook), and the sales profit rate of Shaangu Power in 2009 was 14.91%. Compared with the industry benchmark MAN Turbine, it is not inferior.

From heavy to light: subtraction and addition

"Fixed assets should be invested in key links involving core technology and important technical performance and quality affecting products. Such manufacturing links are high value-added links. , strengthen capabilities in these links, other links are gradually abandoned, and personnel are transferred to other areas," Chen Dangmin said. Shaangu, a heavy industry manufacturing enterprise, has been "light" in this way.

Wang Xiaoling used to be the chief craftsman of Shaangu Power. She told reporters that, like all large and comprehensive state-owned enterprises in the past, Shaangu Power used to do the casting process by itself, "Our technology is still very good, and we have won castings. The highest award in the industry” can finally start from the whole enterprise, and this production link will be transformed into external collaboration. "The price of outsourcing collaboration was lower than the cost of Shaangu's own production, and the quality was good, so the foundry was closed, and more than 130 workers were all re-transferred to study." Although the transformation is painful, Shaangu Power alone can save a year. more than 10 million.

Chen Dangmin calculated an account for the reporter, "The overhaul and maintenance of machine tool equipment is inevitable in the production process. In the past, the equipment department was a maintenance team maintained by the enterprise. Now we professionally outsource it. In the past, we maintained 200 Many people spend more than 20 million a year, and now the cost of outsourcing is only 12 million. And our people turn to provide fan maintenance services to the market, and the benefits are different. ."

This stems from Indian's reflection on the traditional business model. The development model of Chinese manufacturing enterprises is largely based on the idea of "one old farmer per mu of land, one cow and ten old farmers", then, is there a model that can quickly meet market demand and earn income , Why not raise more cattle and hire more people? This seemingly whimsical idea in the traditional model has found a way out through model innovation, which is "asset-light operation".

Shaangu Power resolutely gave up low value-added links, and adopted virtual manufacturing as subtraction, but at the same time also added, "For the professional links we are familiar with, we do not need to invest too much, in fact, we found A new profit growth point." Chen Dangmin introduced, "Shaangu Power has gradually entered a period of rapid development since 2001. Thanks to the high growth of the national macro economy, it has stimulated the demand of the downstream market of Shaangu Power. In view of the opportunity, we will explore the business model of the company in time, do system integration and provide services, and at the same time as the market grows, we have also enlarged the market size, which has produced a superposition effect.”

Shaangu Power’s asset-light strategy not only makes Shaangu Power has benefited from economic growth and has also withstood the test in the financial crisis. In 2007, the market economy situation was very good, and many companies had a lot of orders, but Shaangu Power still maintained the strategy of not increasing investment in fixed assets at will, and outsourcing if possible. "When the market declined, the orders we already had on hand were suspended, and the cancellations were cancelled. If it was traditional manufacturing, ten cattle and ten old farmers would be raised on ten acres of land, and the grain could not be sold, and these cattle had to be raised. These old farmers, but if only two cows and two old farmers are used for ten acres of land, under such circumstances, who has the greater ability to resist risks?" Chen Dangmin asked, the answer was self-evident. Affected by the financial crisis, although the sales revenue of Shaangu Power in 2009 decreased by 8.47% year-on-year, its net profit increased by 1.31% compared with that in 2008. Such a reverse growth is intriguing.

"The asset-light structure is in line with the development trend and direction of modern manufacturing." Chen Dangmin said.

How can it be light: core competitiveness

In 2002, Shaangu Power won the main engine order of more than 6 million yuan for Baosteel's TRT project (power generation using residual pressure of blast furnace gas). However, Yin Jianan found that Baosteel actually needed a package of engineering solutions, including the equipment, workshop, foundation and supporting services for the construction of peripheral facilities. Yin Jianan proposed the Shaangu power package to undertake this project. In this way, the output value of Shaangu Power in this project has expanded to more than 30 million yuan.

After some twists and turns and hard work, Shaangu Power won the project on the condition that it invested 15 million yuan in advance in Shaangu Power and was punished for delaying the completion of the project. The project was finally completed 40 days ahead of schedule. After completing the Baosteel TRT project general contracting project, Shaangu Power carried out a financial comparative analysis. We can clearly see that the final output value of the products produced by more than 2,000 people in the whole factory through a busy year and through multiple processes is only 600 yuan. More than 10,000 yuan; and the part that the deputy chief engineer leads several technical and management personnel to improve through system general contracting and project management, the output value generated is more than 30 million yuan. The management of Shaangu clearly sees that with the intensification of competition, the profit margin of the manufacturing industry will inevitably continue to decline, and the market will be saturated sooner or later, and new demands need to be found. The Baosteel project makes them realize the prospect of system integration.

In April 2010, Shaangu Power successfully listed on the A-share market. In 2007, when seven strategic investors including Lenovo and Fosun invested in shares, Liu Chuanzhi said that Lenovo's investment in Shaangu Power is not because of the profit margin before listing, but because of its long-term optimism for Shaangu Power, and its interest in this industry. Optimistic, and more importantly, optimistic about the management team. He praised the Shaangu Power management team headed by Yin Jian'an as "very remarkable".

Liu Chuanzhi believes that Yin Jian'an, "after taking full responsibility for the work, can immediately break through the previous business model and choose the path of innovation, which shows that he is an outstanding entrepreneur with innovative blood flowing".

It is this outstanding entrepreneur who wrote the "new recipe" of Shaangu Power - this also comes from Liu Chuanzhi's evaluation, which means that he can not only survive according to the industry's traditional menu, but also write new recipes (commercial model). In 2005, Yin Jian'an put forward the strategic goal of "promoting the 'two transformations' and building a world-class turbine enterprise" (turbine, turbine, is a machine that converts the energy contained in the fluid medium into mechanical work, and called turbine). Among them, the "two changes" refers to the "change from a single product supplier to a power complete equipment system solution provider and system service provider, and from product management to brand management". Yin Jian'an pointed out, "This is Shaangu Power's attempt and exploration to get out of the traditional manufacturing development model and seek to enter the modern manufacturing development model." Today's achievements of Shaangu Power are enough to show that Yin Jian'an and his team not only can "Write recipes", but also "cook".

Chen Dangmin believes that asset-light operation has several important keys: correctly understand customer needs and market development trends; master integration technology and system technology; ability to integrate supply chain; investment and new manufacturing links; other manufacturing Links are done collaboratively. Shaangu Power has firmly grasped the key in these aspects.

Chen Dangmin especially emphasized that the core competitiveness of Shaangu Power is the ability to understand the market, "Any good product and service will have a boundary and saturation, and only based on the understanding of the market and the development trend of the industry A business model that adapts to market demands and industry development trends and is constantly innovating is the foundation for a long-term enterprise." Speaking of this, the general manager was deeply touched.

Behind the light, the heavy force

As a heavy state-owned enterprise, behind the successful implementation of the asset-light operation is the heavy force, the solid and perfect management mechanism and the strong execution force. Liu Chuanzhi praised, "Shaangu not only has a correct development strategy, but also has a strong executive force... The basis of executive force is corporate culture, and a good corporate culture can make employees strive for progress. During the inspection of Shaangu, I strongly felt When we arrive at Shaangu, the corporate culture of being realistic and grateful has played a huge role in the management and employees."

Indian Jian'an attaches great importance to corporate culture, and the corporate culture department of Shaangu belongs to the same department as the technical department. He said profoundly that "literature" is an idea, "transformation" is a practice, and "culture is not a retreat, but a creation."

The corporate culture of Shaangu can be glimpsed from the management itself. They mentioned that their company is full of emotion. Over the years, the company has a lot of pieces, and they can casually say the names and details of the employees involved. . They are strategic and conceptual, yet hardworking and pragmatic. Yin Jian'an's phrase "The people around you are your future" is printed on the signs of visitors. Wang Xiaoling explained that this is to encourage management and employees to learn from the people around you and grow together. The development of the drum should also be in line with the industry benchmark, and it must become a partner with the best companies to make progress together.

At present, Shaangu Power is divided into three business segments. The first is turbine products developed to meet the needs of large-scale, energy-saving and emission reduction, and new energy sources; the second is industrial system services related to turbines, including EPC (general engineering contracting) and system services; the third is turbine-related energy infrastructure Platform construction. One of the industrial gas projects that the funds raised from the listing are invested in is point-to-point professional outsourcing, that is, Shaangu Power provides industrial gas to a downstream customer, and in the future can provide a public facility service platform (including water and electricity) for a region, Change the status quo of separate construction of water and electricity, intensive construction, improved overall energy efficiency, and better emission reduction effect.

Chen Dangmin introduced that the revenue of the first business segment now accounts for 79% of Shaangu Power, the second business segment accounts for about 11%, and the third segment accounts for less than 10%. Shaangu Power's goal is to account for one-third of each of the three business segments by 2015. He said the goals set by management in 2005 are still "on the way". "The external market environment is constantly changing, the needs of customers are also changing, and competitors are also changing. Our business model and strategic goals are not static." But it will not change. Naturally, it is Shaangu's innovation, pragmatism and continuous transcendence. Self, beyond boundaries.

Shaangu is already an excellent enterprise, but their future is obviously more worth looking forward to.

After the interview, an executive of Shaangu Power sent the reporter back to the hotel. In recent years, Shaangu Power has introduced several senior talents from well-known enterprises such as IBM and Siemens, and he is also one of them. The executive is not from Shaanxi. He told reporters that there were companies in Beijing and Shanghai that had better treatment at the time and extended an olive branch to him at the same time. As for why he chose Shaangu in the end, because he "felt that Shaangu Power had the possibility to become a great enterprise".

Light assets strategy of Shaangu Power

1. The largest investment in the links involving core technology and quality control;

2. Rational use of external resources, the sales revenue created by the combined resources accounts for the total revenue A larger proportion;

3. Correctly judge the market trend and understand customer needs;

4. Have a high ability to integrate and control the industrial chain.