[Preface] In 20 years, the income has increased by 380 times. Weichai Group has concentrated on the engine business, and stick to the main business and use innovation to create a miracle in the industry.
[Text] Zhang Jiyuan, who is now the vice president of Weichai Power, was one of the only two post-graduates in Weichai 20 years ago. In 1998, the company was on the verge of bankruptcy. He once wanted to leave. What made him rekindle hope is the reform of the three systems of the company, i.e. personnel, employment and distribution systems, and the establishment of a new mechanism for cadres to get on and off, employees to get in and out, and wages to rise and fall.
[Actual Sound] Xu Xinyu, CEO of Weichai Power: If your way of thinking can't keep up with the pace of reform, then you must replace it. At that time, we had more than 500 middle-level cadres and more than 60 management departments. Through reform we cut the figure to 30 management departments, and about 200 middle-level cadres.
[Text] In less than three years, Weichai realized a turnaround. Weichai further promoted the "three-three system" reform, that is: seperate one-third of the assets and employees from the main business of the high-speed machine to establish Weichai Power, with one-third of the medium-speed machine business and employees remained in the group parent company, and the remaining one-third of the non-main business was separated and returned to market-oriented operations.
[Actual Sound] Dai Lixin, Vice President of Weichai Power, through the "three-three system" reform, has enabled several assets to be effectively utilized and developed in accordance with market rules.
[Text] From a loss of 300 million yuan in 1998 to a current operating income of more than 220 billion, after a disruptive mechanism reform, a shareholding system reform and an international merger and acquisition, Weichai completed the leaping development from single engine business to the powertrain, from domestic development to global operations in just 20 years.
[Actual Sound] Tan Xuguang, Chairman of the Weichai Group: Weichai has always been based on the engine industry and has continued to strengthen. In the past 20 years, we have achieved an average compound annual growth of 37% , created a Weichai speed and a Weichai miracle.