Work report of the board of directors of the company in 2021
1、 Summary of the company's business (I) industry of the company during the reporting period
The company's main business belongs to the construction machinery industry. As the main part of the equipment manufacturing industry, construction machinery plays an important role in the manufacturing industry. According to the statistics of China Construction Machinery Industry Association, construction machinery includes shovel transportation machinery, excavation machinery, hoisting machinery, industrial vehicles, pavement construction and maintenance machinery, compaction machinery, piling machinery, etc. Construction machinery is widely used in construction, water conservancy, electric power, roads, mines, ports and other engineering fields. In addition, after the completion of the overall listing of the company, Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. will inject the production supporting assets of construction machinery, agricultural machinery, concrete machinery and construction machinery into the listed company as a whole. The main business of the listed company will further extend upstream and downstream and expand horizontally. In the future, the listed company will learn from the management experience of high-quality war investment to enhance its execution with the reformed mechanism, Further improve the profitability and asset scale of the underlying assets, provide a solid guarantee for the sustainable operation of listed companies, and further expand the development space of the company. At present, the construction machinery industry is highly mature and highly concentrated, and the competition between Chinese and foreign manufacturers is very fierce. During the reporting period, the main characteristics of the development of the industry are as follows: 1) the construction machinery industry generally continued to maintain stable growth, and the sales volume and commencement data of the industry continued to exceed expectations, but the demand showed a trend of high before and low after the year; (2) Scientific and technological innovation has become the key driving force for the high-quality development of the industry, and new technologies such as intelligence, industrial Internet, big data and 5g technology application have been gradually applied in the industry; (3) Green development presents a new situation. Electric construction machinery actively meets the construction needs of major national projects, stricter emission standards and accelerating the pace of equipment renewal; (4) The industrial basic capacity and the modernization level of the industrial chain have been effectively improved, the industrial structure and industrial layout have been further optimized and reasonable, and the high-quality development of the industry has been effectively supported; (5) The internationalization level of Chinese brands has been further improved, and overseas sales and market share have continued to increase. In addition, the overall development of non construction machinery is in a steady upward trend. The main characteristics of market development are as follows: (1) with the development of Agricultural Mechanization in the Asia Pacific region represented by China, the global agricultural machinery still shows an overall growth trend. Under the guidance of government policies, the manufacturers of agricultural machinery industry in the Chinese market are continuously integrated, the market concentration is improved and the competition pattern is continuously optimized. (2) In the field of construction machinery (prestress), with the stabilization of China's infrastructure investment, the industry is currently in a period of stable development. While posing more challenges to the timely adjustment and transformation of enterprises, it contains more opportunities for market segmentation. (II) main businesses of the company during the reporting period
There was no significant change in the company's main business, main products and business model during the reporting period. The company's main business is the R & D, production, sales and service of construction machinery and key parts. After nearly 30 years of development since listing, the company's main business has been greatly expanded. At the beginning of listing in 1993, the company was mainly engaged in the development, production, operation, maintenance and technical services of loaders, and the sales market was mainly oriented to China. Since 2000, the company's main business has gradually expanded into the R & D, production, sales, service, financial leasing business of construction machinery and accessories such as excavators, loaders, cranes, rollers, forklifts, graders, bulldozers, milling machines, pavers, skid loaders, excavation loaders, mining trucks, aerial work platforms, piling machinery, concrete machinery, as well as construction machinery (prestressed), agricultural machinery Tractors, etc. At present, Guangxi Liugong Machinery Co.Ltd(000528) has 20 manufacturing bases, more than 17000 employees, 5 R & D bases and 17 regional parts centers around the world, and is at the forefront of industry technology, production and supply logistics.
The company's main business model is to develop, produce and sell products and parts such as construction machinery, construction machinery and agricultural machinery, and provide guarantee services and value-added services to customers, so as to obtain business income and appropriate profits. According to the company's strategic planning, the company formulates annual business objectives and key work every year, forms business plans and budgets, and implements them. (III) analysis of core competitiveness
Since its establishment in 1958, Guangxi Liugong Machinery Co.Ltd(000528) has been deeply engaged in the field of construction machinery market for more than 60 years. The company has always adhered to the mission of "committed to providing customers with excellent construction machinery products and services", constantly explored and innovated in product line expansion, new technology research and development, core parts development, brand building, international operation, management team construction and other aspects, forming a unique core competitiveness of the enterprise.
1. Rich product lines of construction machinery: after 60 years of development and precipitation, the company has developed from a single loader product manufacturer to an international enterprise with nearly 30 product lines. The company has formed a complete product line of shoveling and transportation machinery, excavation machinery, hoisting machinery, high-altitude operation machinery, industrial vehicles, compaction machinery, pavement construction and maintenance machinery, piling machinery, forestry machinery, mining machinery, and supporting service systems such as financial leasing, accessories, services, remanufacturing, second mobile phones, business leasing, and has newly entered construction machinery (prestressed), concrete machinery, agricultural machinery Tractor and other fields. The company's rich product line and perfect supporting service system provide global customers with solutions under different working conditions, effectively supporting the implementation of the company's "comprehensive solution" strategy.
2. Excellent R & D and innovation ability: as a national innovative enterprise, the company has always adhered to strengthening core technology research, innovation and continuous investment, forming a perfect R & D system. Including: (1) having a unified and advanced Guangxi Liugong Machinery Co.Ltd(000528) new product R & D process system - LDP process to effectively improve R & D quality and efficiency; (2) With 24 research institutes, the company has built a number of integrated R & D institutions such as the company's global R & D center, product research institute, parts research institute and overseas research institute, and set up regional R & D institutions in the UK, the United States, Poland and India to form a R & D system of division of labor, cooperation and resource sharing between China and overseas countries; Based on the development trend of industry intelligence and electrification, establish big data & AI research institute and electric drive research institute to speed up the pace of product intelligence and new technology application Guangxi Liugong Machinery Co.Ltd(000528) Shenzhen Research Institute was established, opening a new chapter of Guangxi Liugong Machinery Co.Ltd(000528) intelligent innovation enclave pilot. (3) Solid R & D talent reserve. The company has more than 1000 R & D personnel. The top R & D personnel have senior overseas R & D background and working experience in the world's leading construction machinery manufacturers; (4) It has the only national engineering technology research center in the field of China's earth moving machinery, the "national earth moving machinery engineering technology research center", which provides support and services for the formulation of national standards for China's earth moving machinery; (5) It has two "national enterprise technology centers", "academician workstation", "national industrial design center", "national local joint Engineering Research Center for engineering construction intelligent equipment technology" and China National Conformity Assessment and Accreditation Commission (CNAs) testing center; (6) It has an internationally leading R & D and production base of prestressed professional cables and anchorages, and has participated in many super engineering projects such as large bridges, buildings and water conservancy at home and abroad.
3. Leading core parts products: in the process of development, the company has successively established joint ventures with ZF, Cummins and Wuling Automobile Industry Co., Ltd. to develop and produce transmission system products, diesel engine products and cab products with technical and quality advantages. The company's core parts system has been formed in the process of the whole value chain and is independent and controllable. It can provide a full set of power, transmission, hydraulic, control and execution system solutions for the whole machine products and ensure the safety of the industrial chain supply chain. At the same time, relying on the "national earthwork Machinery Engineering Technology Research Center", the company has the ability to optimize and match the whole machine with key parts, so that the company can always be ahead of competitors, launch more advanced technology and higher quality products, differentiate from competitors' products, and establish a good brand image of leading technology and reliable quality in the market.
4. One of the earliest international business expansion of Chinese companies in the 1990s. After the board of directors of the company put forward the strategy of "building an open and international Guangxi Liugong Machinery Co.Ltd(000528) " in 2002, Guangxi Liugong Machinery Co.Ltd(000528) began to carry out international business according to the strategic thinking of the trilogy of marketing network construction, R & D and manufacturing localization, investment and M & A. After nearly 20 years of overseas development and operation, the company has entered the stage of deep internationalization. The company has set up four manufacturing bases in India, Poland, Brazil and Indonesia and four overseas R & D institutions in India, Poland, the United States and the United Kingdom. At the same time, it has a number of marketing companies with complete machines, services, accessories and training capabilities, and provides sales and service support to overseas customers through more than 2700 outlets of more than 300 dealers Guangxi Liugong Machinery Co.Ltd(000528) overseas business basically one covers the one belt, one road strategy, most countries and regions, and matches the foreign development strategy of the country. In recent years, the company has won the "best Chinese investor Award" in Poland, the "best employer Award" in Poland, the "China India Model Award" in India, the "Asian Excellence Award" in Singapore's construction environment industry, the "Asian Quality Award" in Russia, the first "supplier of the year award" in the UK demolition industry, and participated in large-scale construction projects in Turkey, Egypt, Qatar and Singapore. It has effectively promoted the implementation of the "comprehensive internationalization" strategy, and Guangxi Liugong Machinery Co.Ltd(000528) brand continues to enhance its global influence.
5. Brand image recognized by global customers: the company adheres to the firm belief of independent brand and revitalizing the industry. After more than 60 years of development and innovation, from a single product manufacturer of Chinese loaders, the company has gradually developed into an international construction machinery enterprise with multiple product lines, forming Guangxi Liugong Machinery Co.Ltd(000528) unique brand advantages. Through the creation of excellent product and service quality, the introduction of international advanced management technology and the joint venture production of key parts with world-class enterprises, the company has created a world-class brand with excellent reputation, strengthened Guangxi Liugong Machinery Co.Ltd(000528) the leading position of in China's construction machinery and equipment manufacturers, and highly recognized the Guangxi Liugong Machinery Co.Ltd(000528) brand image of "high world, high equipment". 6. Experienced international management team: Guangxi Liugong Machinery Co.Ltd(000528) is the only "four good" leading group enterprise in the industry commended by the Organization Department of the CPC Central Committee and the SASAC of the State Council Guangxi Liugong Machinery Co.Ltd(000528) the main leaders of all dynasties have always adhered to independent operation and taken the revitalization of China's national equipment industry as their own responsibility, leading the development of China's construction machinery industry. With an open mind, the company continues to introduce top management talents in the industry at home and abroad, and continuously enrich key functions such as R & D, supply chain, marketing, post market and so on. The company has gathered a professional manager team with corporate governance concept, international vision, global work experience and global operation ability from core leaders and senior teams to a large number of middle and senior managers at home and abroad, which has laid a solid foundation for the company to face international development and build a "century old store". (IV) main business analysis 1. Overview 1. Overview
In 2021, China's GDP reached 114 trillion yuan, an increase of 8.1% over the previous year at constant prices and an average increase of 5.1% in two years (data source: National Bureau of Statistics). The whole year showed a trend of "first high and then low". During the reporting period, affected by the demand for equipment renewal in China, the upgrading of environmental emission standards and the market recovery brought about by the improvement of the global epidemic situation, the construction machinery industry as a whole was in a steady upward trend. With the joint efforts of all employees, the company has actively overcome the challenges of power shortage, rising raw material prices, insufficient logistics and global epidemic spread, and achieved a year-on-year increase of 10% in overall operating revenue, reaching a new record high. The total profit was 1.255 billion, a year-on-year decrease of 29.63%; The net profit attributable to the owners of the parent company was 995 million, a year-on-year decrease of 30.94%. The company's annual sales volume of earth moving machinery in China was 10 percentage points higher than that of the industry year on year. The market position of core products loaders and excavators was further improved. The share of loaders in China returned to the first in the industry, and the global sales volume remained the first in the world. The Chinese market share of other complete machine products continued to increase, further consolidating the position of the industry; Overseas business has better grasped the market opportunities and achieved excellent results in the year-on-year growth of 66% in overseas revenue and more than 40 percentage points higher than the industry in the sales of construction machinery products.
On April 26, 2021, the general secretary of the CPC Central Committee, the president of the state and the chairman of the Central Military Commission Xi Jinping came to Guangxi Liugong Machinery Co.Ltd(000528) to inspect and deliver an important speech, and encouraged all Guangxi Liugong Machinery Co.Ltd(000528) people to continue to climb, "self-improvement and perfection", Guangxi Liugong Machinery Co.Ltd(000528) all cadres and workers were excited and encouraged. During the reporting period, Guangxi Liugong Machinery Co.Ltd(000528) under the guidance of the spirit of Xi Jinping inspection Guangxi Liugong Machinery Co.Ltd(000528) important speech, opened a new chapter of high-quality development, faced with new situations and opportunities, focused on the present and based on the long term, in order to accelerate the implementation of the strategy of Guangxi Liugong Machinery Co.Ltd(000528) comprehensive internationalization, comprehensive intelligence and comprehensive solutions, and promote the transformation of enterprises into international, intelligent and service-oriented manufacturing enterprises.
During the reporting period, the controlling shareholders of the company planned to implement the overall listing. The specific way is: the listed company issued shares to Guangxi Liugong Machinery Co.Ltd(000528) group, recruitment and service trade, Shuangbai fund, national manufacturing fund, Chengtong ICBC, CCB investment, Guangxi state-owned enterprise reform fund, Changzhou Jiayou and China Securities investment, absorbed and merged Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd Guangxi Liugong Machinery Co.Ltd(000528) shares obtained the reply of China Securities Regulatory Commission on approving Guangxi Liugong Machinery Co.Ltd(000528) to issue shares to Guangxi Guangxi Liugong Machinery Co.Ltd(000528) Group Co., Ltd. to absorb and merge Guangxi Guangxi Liugong Machinery Co.Ltd(000528) Group Machinery Co., Ltd. (zjxk [2021] No. 4021) on December 24, 2021; On December 30, Guangxi Liugong Machinery Co.Ltd(000528) shares and all shareholders of Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. formally signed the asset delivery agreement on absorbing and merging Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd; On March 4, 2022, the newly issued shares were listed The overall listing of Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. was successfully completed The mixed reform of Guangxi Liugong Machinery Co.Ltd(000528) group and the overall listing of Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. are another major reform of far-reaching strategic significance since the establishment of the plant in 1958, and also a major historical opportunity for all Guangxi Liugong Machinery Co.Ltd(000528) fighters.
Guangxi Liugong Machinery Co.Ltd(000528) group and seven strategic investors jointly built a new model of reform and development of state-owned enterprises in Guangxi, which is "advantages of central and local state-owned enterprises + market-oriented mechanism + coordination of strategic partners" Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. will work with new shareholders to build a more competitive industrial and capital alliance, deeply change Guangxi Liugong Machinery Co.Ltd(000528) the system and mechanism, and give new market vitality and development power to realize Guangxi Liugong Machinery Co.Ltd(000528) the vision of the world.
2021 is the first year of the 14th five year plan. The company reviewed the situation and issued the Guangxi Liugong Machinery Co.Ltd(000528) "14th five year plan" strategic development plan, determined the company's future development blueprint and strategic priorities, defined the overall strategic layout, long-term development objectives, formulated a series of business measures, and unswervingly promoted the implementation of the strategy, Guangxi Liugong Machinery Co.Ltd(000528) people implement the important spirit of Xi Jinping general secretary's inspection Guangxi Liugong Machinery Co.Ltd(000528) instruction with practical actions and excellent performance.
Throughout the year, focusing on the "six consistent adherence", the company has made great efforts in new technology and new product development, manufacturing technology innovation, marketing channel optimization, service capacity improvement, asset benefit improvement, talent team construction and global operation capacity improvement through deepening organizational and business changes, and achieved good results.
