Full Chai tightly revolves around market demand to accelerate transformation, innovation and development

Since the beginning of this year, in face of the new characteristics of macroeconomics and development of the diesel engine industry, Quanchai Group has continued to develop around the market, closely grasped the favorable market conditions of multi-cylinder diesel engines for the first half of the year, accelerated transformation and innovation, and accelerated technological innovation and innovation. Product development, and actively promote the upgrading of product structure, enhance the market competitiveness of Quanchai. From January to June, Quanchai Group produced 127,926 sets of multi-cylinder diesel engines, completed 60.29% of the annual plan, an increase of 37.4%; and produced 3828 tons of body and cylinder head castings, and completed 76.5% of the annual plan, accumulatively achieving Its operating income was 836 million yuan, a year-on-year increase of 39.5%, total profit of 36.16 million yuan, and taxes of 37.62 million yuan. Among them, the production and sales of multi-cylinder diesel engines hit a record high in the same period of history, and gradually established the leading position of Quanchai in the domestic medium and small-diameter diesel engine industry.

In order to meet the stringent automobile emission standards of the country, and promote the further optimization and upgrading of Quanchai's product structure, and enhance the company's ability to adapt to market competition, Quanchai has continued to increase investment in scientific and technological R&D since the first half of this year, and strengthened independent innovation and foreign technical cooperation. The efforts to promote the successful development of the 4D18E, 4D22E, 4D25, and 4D26 series of three national aircrafts in the later stage, and the series models have passed environmental protection announcements at each host plant. The diesel engine series Euro III diesel engine was the first in China to develop and carry out the work smoothly, which enhanced the market competitiveness of Quanchai products, led to the growth of Quanchai's market share and supporting resources, and will compete for Quanchai in the future market. China has taken the initiative. At present, besides the original main supporting automobile enterprise system, well-known auto companies such as Nanqi, Second Automobile and Changan have recently been optimistic about the resources of Quanchai Three Engines and have come to the company to negotiate supporting matters. At the same time, in order to meet the implementation of the fourth automobile standard in 2010, Quanchai has successfully started the QC100E and QC25E Euro IV diesel engine project. At present, Quanchai is actively preparing for batch production of 4D18E, 4D22E, 4D25 and 4D26 series III models. It is estimated that in 2009 it will be able to produce 50,000 units of batch production capacity per year.

In order to further promote the upgrading of Quanchai's product structure, in August 2006, more than a dozen strategic investors in Quanchai United Nations launched the Tianli Engineering Machinery Diesel Engine Project. After more than one year of active implementation, the project has been successfully put into production. Tianli Power's main products QC4112, QC4112Z, QC4115, QC6112, QC6112Z, QC10Z and other series of four-cylinder, six-cylinder diesel engine, power range of 65 ~ 220kW, can be widely used in engineering vehicles, loaders, forklifts, air compressor units, Generator sets, tractors, harvesters, marine power, etc. At present, the products have been produced and sold in batches, of which QC4112T, QC4112G, QC4110G have been successfully matched with Futian Heavy Industry, Heli Forklift, Yancheng Huanghai Tractor Factory, Anshan Haihong Engineering Machinery Factory, Kaishan Air Compressor Factory, etc. Six-cylinder machines have also initially opened the market. . As the performance and quality of Tianli's power products are better than those of similar models in the market, and there is a clear competitive advantage in terms of price, the products have just been put into the market, and they are highly recognized by the OEMs and users.

Diesel engine body and cylinder head quality is an important guarantee for diesel engine quality. With the commencement of production of four-cylinder and six-cylinder diesel engines for Quanchai Tianli Construction Machinery, and the mass production of the third-generation products of the latter stage, the supply of high-quality castings for the body and cylinder heads has become the diesel engine for Quanchai Construction Machinery and the volume of the National Third-series diesel engines. The major bottleneck in production. In order to improve product performance and market competitiveness, the construction machinery diesel engine and Euro III series diesel engine can lay a solid foundation for mass production, and continue to promote the diversified development of Quanchai. Since the beginning of this year, Quanchai has launched Tianhe body and cylinder head casting projects through comprehensive market research. The project covers an area of ​​more than 290 acres and is expected to invest 420 million yuan, leading products 480,485,490,4102/105,4JR3, 4112,QC10Z and Euro III, Euro IV products cylinder block, cylinder head castings, the largest rigid body casting 250 Kg, the largest cylinder head castings 88 kilograms, after the completion of the project can be an annual output of 10 tons of castings, accounting for 450,000 sets of cylinder block, cylinder head production capacity.

Since the first half of the year, the continuous rise in the price of raw materials and the implementation of the new labor contract law have caused the continuous increase in the cost pressure of diesel engine manufacturing and reduced the profitability of enterprises.

In order to cope with increasing cost pressures and fierce market competition, Quanchai has also actively strengthened external coordination and internal management in addition to accelerating independent innovation based on products to enhance its own competitiveness. In the aspect of external coordination, Quanchai’s principle of cooperating with all the host companies to achieve win-win results requires that the price of the product be properly raised. In terms of internal management, production costs must be strictly controlled through lean production.

Through the above measures, Quanchai achieved sustained development in the first half of the year. In the second half of the year, Quanchai Group will continue to develop around the market and strive to complete the production and sales of 210,000 multi-cylinder diesel engines, sales revenue of 1.7 billion yuan and other business indicators.

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