Behind The Major Strategic Adjustment Of The Double Star Group

Like 20 years ago, Wang Hai, President of the double star group, once again announced a major strategic pformation of the two stars in a high-profile manner.

About the rumors that binaries will divest the footwear business from its listed companies, it has been heard for a while. Wang Hai, a listed company of the Twin Star Group, Qingdao double star's shoe making business assets pfer project, has been confirmed after the end of the listing period of the Qingdao property exchange, and has made a detailed explanation in the face of more than 30 domestic media.

He said that the pferee of the footwear business of a pair of star listed companies is a famous industrial company belonging to the two star group.

Since then, double star will take the tire and machinery industry as the main direction of attack, and at the same time, the famous industry company as the carrier will further make the compulsory footwear industry.

In 1996, the double star of the footwear industry successfully listed the cold and sticky footwear business of high quality assets and maintained good performance in the market. Five times they raised funds and the strength of enterprises continued to grow, making the "double star" become the first national brand of China's footwear industry.

However, after private enterprises and foreign-funded enterprises have entered the shoemaking industry with labor intensive and low technology threshold, the further development of double stars is facing enormous pressure.

Against this background, the two stars have chosen a new investment direction. They will invest the listed funds together with the shoemaking industry in the tire industry of the rubber industry.

The shoemaking industry has been dued as "maternal industry" by double stars, and perhaps it is the deep feeling for the industry. Wang Hai called the tire "automobile shoes".

In the field of "car shoes", the speed of development of double stars, such as cars, is remarkable.

From 2002 to the present, only 5 years have passed. Double star has entered the top six of the national tire industry. Now it has formed three major tire production bases in Qingdao, Zhongyuan and Hubei. The products cover seven series and more than 600 varieties of all steel radial tire, semi steel car tire, truck bias tire, agricultural light truck tire, military tire, engineering tire, special tire, etc., and the annual production capacity of various tires is 10 million sets.

With the rapid development of tire industry, the double star machinery industry is also rising in China.

We have successfully developed the world's most efficient V molding line, China's largest rotary table shot blasting machine, as well as winning the bid for the "Chang'e" 2 moon rush project and developing the engine for the engine of the launch vehicle, so that both stars show strong strength in the domestic machinery industry.

The strong position of tyre and machinery industry has made the strategic pformation of double star a logical one.

As early as 2006, the share of dual star tires in double star listed companies has accounted for 90%, while footwear industry income has dropped to 10% of the total main business income, and tires have become an absolute main industry.

According to the relevant regulations of the state on listed companies, after the scale of enterprises is bigger and the industry is increasing, assets that are not the main position can be divestiture, and concentrate on strengthening and strengthening the main business and enhancing profitability.

As a result, the two star decided to pfer the assets of the listed company's shoemaking business and concentrate the main resources to develop the tire and machinery industry.

At the same time, the two stars also declared that making bigger and stronger tire and machinery industry would not mean abandoning the shoemaking industry. Wang Hai said that the shoemaking industry would become stronger if the shoe business was stripped from the listed companies. The reason is that the two stars will form a "fist" in the future.

Before the divestiture, double star shoe making business was divided into two companies, namely, the listed company is responsible for cold sticky shoes business, and the famous industrial company is in charge of the vulcanized shoes business.

An industry belongs to two companies. It violates the law of the mutual penetration of the footwear industry, and can not bring the advantages of scale and resources into full play. It is also difficult to eliminate related pactions and competition.

And the double star industry company will take the footwear business under the command of the shoe industry, so that the resource utilization of the footwear industry will be optimized, so as to achieve further leap.

Wang Hai said that after the important adjustment of the property right structure of the industry, the two stars will achieve a collectivization development in the three major industries of tire, machinery and shoemaking on the basis of a new attitude and clearer and more reasonable property rights and industrial structure.

Among them, the tire industry focuses on the development of all steel tire, and develops in the direction of scale and specialization. It plans to use 3 years to enter the top three industries of the whole country. The machinery industry takes the industrial chain group of casting machine, rubber machine, environmental protection and numerical control forging as the main body, drives the development of electrical appliances and forging equipment, and strives to build a double star mechanical satellite industrial chain group in 3 years. The shoemaking industry goes to the high-end market, and at the same time, it reintegrates the shoes and clothing market, and re organize the listing at the right time.

According to strategic planning, the 3 stars will build up three groups of tires, machinery and shoemaking in the next 5 to five years, and achieve the strategic goal of "making the two stars into China's comprehensive manufacturing and processing giant group".