Liugong group stepped up its overseas layout

Liugong group has stepped up its overseas layout during the crisis. "The construction machinery industry has been significantly affected by the global financial crisis. Since October last year, domestic and international sales of products have decreased significantly year-on-year." Liu Gong (000528, Guba) () chairman Wang Xiaohua told

Liugong's interim performance express shows that the operating revenue in the first half of the year decreased by 11.19% year-on-year, and the ending earnings per share decreased by 11.19% year-on-year. 1. The temperature control meter, timer and other functional parts on the control panel should not be used in the following places: the falling water decreased by 26.92%

"the demand of the three major economies of North America, Western Europe and Japan has declined rapidly, and emerging markets have been affected. It is expected that the global construction machinery market will decline by about 30% this year. Specifically, as for Liugong's core product loader, as of June this year, the cumulative sales volume of the industry has decreased by 31.6% year-on-year, and exports have decreased by 59.2% year-on-year." Wang Xiaohua revealed

although the industry is in a cold winter, it is the time for Liu Gong to show his strength

according to the data of the parent company Liugong group, the overall sales volume of loaders in this month was 14577 units, compared with 18320 units in the same period last year, with a year-on-year decrease of only 20.4%, which was significantly better than the overall level of the industry

the impact of the economic crisis hit the bottom

although the operating revenue decreased by 11.19% year-on-year, the operating profit of Liugong increased by 0.27% year-on-year

"this benefits from two aspects: first, the investment pull brought by the 4trillion economic stimulus plan; second, the decline in raw material prices." Liu Gong's secretary, Wang Zuguang, told him

Wang Zuguang said that the first half of last year was the best period for the construction machinery industry since the founding of the people's Republic of China. There was a huge reversal in the second half of the year. In the fourth quarter of last year and the first half of this year, the whole industry was greatly affected by the financial crisis. After the second quarter, the industry bottomed out and recovered. "In this case, it is very good that we can achieve such performance."

"China's economy has hit the bottom, and the speed of recovery depends on fiscal and monetary policies. But in general, the economic stimulus plan should last for two years. The peak season of the construction machinery industry is generally the second quarter, while the third quarter is the lightest, and the fourth quarter rebounded slightly from the third quarter. The main competitor, former OIC Secretary General Ekmeleddin ihsanolu, won 38.3% of the votes, but the off-season in the second half of the year may not be like before." Wang Zuguang judged

although the machinery industry has recovered, the economic crisis has exposed the problem of overcapacity caused by rapid growth in the past few years

according to the Research Report of Orient Securities, the contradiction between supply and demand in the loader industry was prominent in 2009. As of the end of 2008, 11 enterprises with a capacity of more than 10000 loaders, including Liugong, Longgong and Xiagong, had a total capacity of 225000 units, but their domestic sales were only 147000 units. Among them, Liugong has a production capacity of 38000 units, and the domestic sales volume in 2008 was only 29000 units

wangzuguang believes that overcapacity has become the norm in the loader industry

as for Liugong, there is no overcapacity. "Liugong's latest expansion of production capacity was in 2004, when the design capacity was 15000 units. In fact, Liugong's production capacity exceeded 30000 units, which was created by workers working overtime. The equipment utilization rate was 85%, and the labor utilization rate was 120%, which was the case for several consecutive years. This situation did not improve until last year."

Liugong's most popular product is loader, but with the continuous expansion of Liugong's product line, the impact of changes in the loader industry on Liugong has weakened. Among the 16 categories of construction machinery products, Liugong has involved 13 categories

"now loader is still our most important product and the main source of profit, followed by excavator. After several years of cultivation, excavator rises rapidly, and then maybe crane." Wang Zuguang said

the excavator and crane business of Liugong group grew quite well. The data showed that in this month, the excavator sales volume of the group was 146. If the injection speed was accelerated, the shrinkage rate was 2 sets smaller, with a year-on-year decrease of 3.8%, and the production crane was 672 sets, with a year-on-year increase of 18.5%

overseas layout

in 2008, the whole industry was hit by the economic crisis, but Liugong did not stop its overseas expansion

on July 8 this year, India Liugong was completed and officially opened, which is the first overseas manufacturing plant in the true sense of China's construction machinery industry. "When I entered India in 2002, I found that the infrastructure there was very poor, the experimental area was equipped with protective covers, and the market potential was very large, and high-quality customers such as iron ore and coal mines had great demand for construction machinery. Although caterpillar and JCB of the UK had also entered India, our products filled the gap in the Indian market, for example, the 5-ton loader market of Liugong in India had occupied more than 70% of the market." Huang Zhaohua, general manager of Liugong international marketing department, told

after several years of cultivation, Liugong found that Indian customers' demand for products was different from that of the domestic market, and it was necessary to build a factory in India to better meet the needs of customers. In 2007, Liugong sent personnel to India to investigate and set up an Indian Liugong factory. In July 2008, the Indian factory was completed and put into operation

entering overseas is a necessary step for China's construction machinery industry

"in the first half of this year, although the global construction machinery industry fell by about 30%, China's exports fell by about 60%, and even the exports of domestic enterprises fell by 90%. It can be seen that the foundation of China's construction machinery in overseas markets is very unstable." Huang Zhaohua told

in the first half of this year, the export decline of Liugong was basically the same as that of the global market, about 30%

"when facing the financial crisis, some construction machinery enterprises will first think of cutting down the spare parts center, which saves costs in the short term, but weakens the competitiveness of products in the long term." Huang Zhaohua analyzed

at present, Liugong has more than 70 first-class international dealers in 80 overseas countries, eight parts and accessories centers around the world, and has established international regional marketing companies in Australia, the United States, Brazil, India and other places. In the face of the economic crisis, although Liugong is also under pressure, it has adopted the strategy of sharing the joys and sorrows with global distributors

"during the financial crisis, we constantly adjusted the policies of overseas markets, mainly to take protective measures for overseas dealers and give them some concessions so that they can maintain normal operations." Huang Zhaohua revealed

overseas layout is related to whether Liugong's future strategic planning can be realized

"our future goal is that in 2012, the sales revenue will exceed 30billion yuan, and the company will enter the top 15 in the global industry, with overseas sales revenue accounting for 20%. By 2015, it will enter the top 10 in the global industry, with overseas sales accounting for 25%; by 2020, it will enter the top 5 in the global industry, with overseas sales revenue accounting for one third." Wang Xiaohua said