China's Capital Break Through &Nbsp, And Usher In A Major Turn In The Post Crisis Era.

　　 "When the financial crisis was disrupted. economic growth When the pace and market entered a downturn, we adopted a strategy of extension and expansion. In an interview with reporters, Zhang Jie, chairman of China's Heng Tian Group (hereinafter referred to as "Heng Tian"), said that in the post crisis era, Heng Tian ushered in its first major turning point in its development history.

　　 Using the capital market to carry out a series of mergers and acquisitions, Zhang Jie's "extension" revealed. One of the most recent mergers and acquisitions of Heng Tian is the largest international M & A in history. Textile machinery business It will become the number one in the world.

As the only central enterprise in the field of textile equipment, Heng Tian was born in 1998, and the Asian financial (market, information and Commentary) crisis was jointly formed by China Textile Machinery (Group) Co., Ltd., China Chemical Fiber Corporation and China Silk Industry Corporation. After 12 years of running in, we finally got better.

But an unavoidable fact is that the scale of China's textile machinery enterprises is generally small. Technical content Low. How can we make the core technology of textile machinery industry keep pace with the international pace? How can we resist the economic cycle and enhance the immunity of enterprises? In fact, China's textile equipment manufacturing enterprises are facing a major issue of how to transform.

There are various conjectures in the market for Heng Tian. Since Zhang Jie became chairman of Heng Tian Group in August 2008, Heng Tian has been increasingly appearing in public view. In 2005, Zhang Jie, 44 years old, stood out from 1207 senior executives from all over the world. He was selected by the SASAC as the source group CEO of China China (market, information, commentary) with 52 billion 700 million yuan assets. Huayuan was the largest pharmaceutical group in China and the largest textile group in China. Zhang Jie took the mission of "building a platform for central enterprises and medicine" and leading Huayuan to the transformation of the textile industry to the direction of biomedicine.

"Huayuan transformation process has an important experience, which is worth learning from" Heng Tian ". When Huayuan transformation failed, our external explanation was due to its high debt ratio and short debt. In fact, the essence of the failure of Huayuan transformation lies in its cash flow from traditional industries to support its transformation to new industries, and its traditional industries are not strong enough, so they can only rely on debt to achieve transformation. In this way, once the bank credit policy is adjusted, enterprises will soon have problems. Although for a variety of reasons, the central enterprise with textile, medicine and machinery plates has finally become the so-called "chicken ribs" in the market, but the lesson for Zhang Jie is real.

The transformation of Heng Tian obviously cannot rely on traditional textile machinery manufacturing, nor can it be expected of bank credit. Therefore, Zhang Jie's first step was to introduce diversified businesses such as trucks, new fiber materials, real estate and investment. In addition, Heng Tian still acts frequently in the capital market. Zhang Jie believes that in the global market acquisition costs relatively low, relatively easy negotiations after the crisis era, is the time to speed up the development of Heng Tian.

However, worries and doubts from the industry and even inside Heng Tian began to follow. Some analysts say that although the technology level of Heng Tian has reached the international standard, it was initially pieced together by more than 10 state-owned enterprises, which competed internally and did not perform well. At the same time, Southeast Asia's demand for textile machinery is positive. Should Heng Tian focus on its core industry instead of doing some unrelated diversification? In the meantime, when most spinning machinery enterprises are still seeking fierce breakthroughs in the fierce competition, how can we grasp and control risks in the capital market?

Headache technology short board

Compared with the higher entry threshold of most central enterprises, the textile machinery industry of Heng Tian is in a fully and fully competitive market environment.

"The main competitors of our spinning machinery now include two large blocks of foreign and domestic private enterprises. Compared with the top manufacturing industries in Germany, Italy, France, Japan and Switzerland, Heng Tian does not lose them in core technology. And the active private enterprises in Jiangsu and Zhejiang provinces are very small compared to a single one. We are much larger than they are, and most of the private enterprises in the textile machinery industry only make small products for each subdivision. However, in the industrial chain of the main industry of its spinning machine, there are still two technical short boards that make Zhang Jie headache: the printing and dyeing and weaving technology of Heng Tian has not been able to make a big breakthrough.

"At present, TOYOTA is the leader of the subdivision of weaving technology. From TOYOTA, its automobile industry has made a lot of money, and loom is just a product that TOYOTA started. As a spiritual product, its essence is not for profit, so it uses low price to occupy the market. Therefore, the domestic enterprises are unable to come up, and nearly one billion of them have been put in for nearly every year, almost every year, but for the sake of national industry, we must continue to explore.

For printing and dyeing technology, Zhang Jie's solution is the recent international merger and acquisition that has just been concluded. Although the dust has not yet been settled, Zhang Jie said that after the acquisition, the leading edge in printing and dyeing technology will make Heng Tian strong in the field.

"I am a sensitive and persistent person to technology." this investment has also been rewarded accordingly. The sales revenue of new products of the main industry of Heng Tian textile machinery reaches 1 billion 928 million yuan, accounting for 42.4% of the main business income, up 7.4 percentage points over the same period last year.

In order to maintain the overall competitiveness of the textile machinery business, Heng Tian has three "killer mace" that Zhang Jie is proud of. One is the socialization of general components. That is to say, those who are able to purchase through society should try their best to adopt social unified procurement, while Heng Tian only grasps the core technology, and the second is "patented special products". That is to say, there must be several core components in a machine, which are Heng Tian's patented technology, using these core components to optimize the resources of Heng Tian, and the third is "system control". Any set of devices has a control system. This control system must be specialized and personalized. The same thing should be controlled according to the personality of the product, including removing unnecessary functions and adding the most needed functions, including information system around the whole product structure.

Around these three principles, the automatic control rate of Heng Tian products has been adjusted to about 30% from the previous 70%. "The central enterprises must innovate in technology and make a difference in the product area." For the future, Zhang Jie gave himself 5 years to make up the short board of Heng Tian in the field of technology.

"Our position is the provider of the system plan for the entire textile machinery industry, not only to provide a set of equipment, but also to provide services from raw materials, yarn to fabric." The next step for Heng Tian is to provide all the technical equipment around the entire textile machinery industry.

However, for Heng Tian, the biggest problem facing all these companies is that as an old state-owned enterprise, the historical burden will lead to its continuous increase in operating costs. In order to maintain competitive advantage in the future global competition, it is very important to enhance the overall profitability of the group.

Investment supporting industry transformation

Although the average salary in the central enterprises is the lowest, the cost of 60 thousand employees per year is about 10 billion. The experience of Huayuan reminded Zhang Jie that if Heng Tian relied solely on the cash flow generated by its main textile industry to support its future business innovation and transformation, it would be like leading the enterprise to die.

"The cash flow generated from traditional industries is not realistic to support the transformation of new industries. After all, most of the traditional industries in enterprises themselves are more difficult. Heng Tian's strategy is investment, mainly in real estate and financial investment. We use real estate and financial profits to support the technological innovation and transformation costs of our traditional industries.

While enhancing the overall competitiveness of textile machinery, Heng Tian has successfully entered some industries with relatively strong profitability and relatively fast growth. Truck business and new fiber business are important growth points that Heng Tian nurtured.

In fact, the final decision to enter the field of heavy trucks, Zhang Jie's bottom line lies in the management of the equipment manufacturing industry and the basic team of Heng Tian, "the world's third largest truck company, after many Chinese companies, finally chose to cooperate with Heng Tian. Because they feel that our ability to understand and manage the equipment manufacturing industry can reach the capability of producing high level heavy trucks. "

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On the other hand, Heng Tian has also invested heavily in building new textile materials. Shenyang Zhong Heng new material Co., Ltd. is an important platform for Hengtian to develop new materials carbon fiber. "Carbon fiber is very important for upgrading the manufacturing level of our country, but until now, the gap between us and the international advanced level is still very large, because its demand for equipment manufacturing technology is very high. China has been exploring carbon fibers for 30 years, but has never produced qualified products. Next year, the carbon fiber of Heng Tian can be put into production. Although small scale can be done now, there is still a long way to go for large-scale, continuous, homogenized and high level production. "

Today, Heng Tian has set up 4 departments, including textile machinery, heavy industry, textile and new materials, and has initially established six strategic business units, such as textile machinery, textile trade, new materials, heavy industry, real estate and investment. In 2009, the main business revenue of Heng Tian was 14 billion 978 million yuan, an increase of 19.38% over the same period last year, and the total profit was 401 million yuan, an increase of 452.67% over the same period last year.

Of course, it is only an important transition for Zhang Jie to support the transformation of the traditional industries of Heng Tian through the profits generated by the fast growing industries such as real estate and finance. In the future, we will continue to expand and layout our machinery manufacturing industry.

According to Zhang Bin, an analyst with the textile industry of State Securities (600109), for Heng Tian, one of the biggest challenges in the future lies in how to achieve quality stability and brand benefit through internal integration and management, thereby contributing to the steady growth of its performance.

Capital line for addition

After the layout of traditional industries and emerging industries is becoming more and more popular, Heng Tian began to exert force on the capital market.

"The first step in 2009 was the acquisition of Kama motors, which was a loss at the time, and has now become a rapid growth. Recently, we have just completed two major acquisitions in heavy trucks, and completed the acquisition of China Trust, which is now the first in the industry."

Why do we frequently launch in the capital market? Zhang Jie believes that the capital market is now in the low tide of capital market, and the capital market has provided many possibilities for the rapid growth of enterprises and the integration and merger of Heng Tian. And there are four listed companies under Jingtian banner, Jingwei Textile Machinery (666 S Z), Kama B (900953), Baoding Swan (000687) and S T middle clothing (000902). Heng Tian can obtain funds from these listed companies to support the development of the whole group.

Heng Tian also accelerated the pace of going out with the help of capital market. Today, Heng Tian can acquire overseas listed companies and use it as platform for international exploration. "The most important problem in internationalization is the talent team. The reason we haven't done it in the past is that I don't think we have such a talent." Now, Zhang Jie intends to develop the international market through the way of international mergers and acquisitions, using the mature team of the acquired companies.

"Personally, I am not very optimistic about the way in which Heng Tian has focused too much on the capital market." Heng Tian was originally a central enterprise composed of a number of enterprises, and its Baoding swans and other listed companies as restructured stocks, their performance is not yet able to be judged. " For Zhang Jie in the capital market, a series of actions, Zhang Bin told the "elite" reporter, as a central enterprise, the biggest challenge facing the future development of Heng Tian is still the management problem, and the current Heng Tian perhaps should rely on the opportunity of textile machine industry recovery to further strengthen internal management and integration.

Many people in the industry are skeptical about the bold March of capital in the capital market. As a new entrant, Heng Tian pole is likely to face the risk that the risk is greater than the outcome. However, for the concerns of the industry, Zhang Jie is emboldened. "Making use of the capital market to achieve rapid growth is actually a means for mature enterprises to learn to use. And I will ask myself anything in the operation of the capital market. If the whole project is lost, can you afford it? I will definitely list the worst possible and feel that I can afford to sell it. This is the principle, momentum, team, technology and product that I buy at the moment, and then risk, risk must be controllable.

In order to have a clear idea of how to control risks, Zhang Jie developed new industries by establishing joint ventures and holding shares with international advanced enterprises. "In the new industrial field, it is more difficult for you to start from scratch, and the risks are great. But our core industry is going to do the addition route, and we will add another piece to him on the basis of others' good fortune, so that we can avoid the risk of losing the risk. Today's Heng Tian has gained a lot in the capital market. To Zhang Jie's delight, orders on the market poured in, "textile industry is barometer." Bad in front of others, in front of others, at least I can say that this year and next year, the whole economic trend will not have any major problems. Because we are in short supply, orders are set for next year and the next year. Embarrassment of traditional manufacturing industry

Salary in the SASAC ranks the last

If we say that we will encounter difficulties in the future development of Heng Tian, what aspects do you think might be possible?

Zhang Jie: our biggest problem is talent. On the one hand, as a traditional manufacturing industry, it is difficult for us to attract excellent talents. On the other hand, the system designed by the SASAC is not enough to attract outstanding talents. Especially at the top level of the group, our current salary is the last in the SASAC.

How does this mechanism reflect the influence of Heng Tian?

Zhang Jie: our general manager has an annual salary of 4.5 million yuan. According to the provisions of the SASAC, the deputy general can only take the salary of 0.65 to 0.9 of the general manager's salary, and can not exceed the general manager. This salary is not attractive to some really powerful executives. For example, if we want to develop cars, we should hire a person who knows a lot of cars to be vice president, but you can not recruit.

How did this problem solve this problem?

Zhang Jie: now we are seriously hanging upside down, that is, the higher the wage is, the lower we get to the upper level. We can only recruit outstanding executives at the level of listed companies below the group, so that their remuneration is marketization. But from the point of view of the group, the ability of the top leaders is lower than that of the lower ones. How do you serve the people below? How can your group's capabilities be improved? This is not in line with the logic of development.

Do you have any suggestions on this?

Zhang Jie: we need to design a system to establish a system and rules with market awareness and regularity, and the system itself should be scientific and cohesive, so as to meet the needs of market competition.

What are your career plans for yourself?

　　 Zhang Jie: I have to complete my task and mission, and become a pilot and advocate of a new system. I will not retire. By the end of 2015, when I realized the goal of the development of Heng Tian, I was relegated to the second line, which is part of my system design. Leading cadres should have an exit mechanism. They must not go to retirement until they make mistakes. So I can only work for 9 years at the highest level and take the lead in implementing the new system.