[Introduction] In 20 years, the income has increased by 380 times. Weichai Group has focused on the engine business, and used reform and innovation to create a miracle in industry development.
[Text] Zhang Jiyuan, who is now the vice president of Weichai Power, was one of the only two master students in Weichai 20 years ago. In 1998, the company’s losses were on the verge of bankruptcy. He once wanted to leave. What made him rekindle hope was the property reform of personnel, employment and payment, as well as the establishment of a new mechanism for management, employees and wages to rise and fall.
[Narration] Xu Xinyu, executive CEO of Weichai Power: If your thinking can't keep up with the pace of reform, you are going to be replaced. At that time, we had more than 500 middle-level management and more than 60 departments. The result of our reform was 30 departments with around 200 middle-level management.
[Text] In less than three years, Weichai realized a turnaround. Weichai further promoted the property reform, and separated one-third of the assets and employees from the main business to establish Weichai Power which focuses on high-speed engines. One-third of the business and employees for medium-speed engines remained in the group parent company, and the remaining one-third of non-core business was separated and reformed and returned to market-oriented operations.
[Narration] Dai Lixin, Vice President of Weichai Power: through the property reform, the business segments were 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 yuan, after disruptive mechanism reform, shareholding system reform and international mergers and acquisitions, Weichai completed the transformation from engine business only to the powertrain business, and the transformation from domestic development to global operations in 20 years.
[Narration] Tan Xuguang, Chairman of Weichai Group: we have always focused on the engine business and continued to improve. For the past 20 years, we have built an average of 37% compound annual growth, creating a Weichai speed and a Weichai miracle.