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Sany xiangwenbo: the epidemic has delayed the market demand to restore the economic order as soon as possible

August 05, 2020

Recently, with the continuous progress of epidemic prevention and control, a number of major construction projects are also beginning to accelerate. Fight disease & throughout; Gunfire broke out.

On February 12, the standing committee of the political bureau of the communist party of China central committee held a meeting to point out that we need to focus on key areas, optimize the allocation of special local government bonds, make good use of central government budgetary investment, mobilize the enthusiasm of private investment, and accelerate the construction of a number of major projects.

Xiang wenbo, President of sany heavy industry, a Chinese high-end manufacturing enterprise and downstream enterprise of infrastructure construction, told the Beijing news in a recent interview that weak market demand due to the current outbreak is expected to have a significant impact on the first half of this year's performance.

President of sany heavy industry xiang wenbo

He said that because of low demand and temporary conditions for full resumption of work, the current production has not been fully resumed. Now it is only after the economic activities of the whole society are normalized that the production of enterprises can be normalized.

Xiang wenbo judged that the impact of the epidemic was more serious than during the SARS period. He believes that the impact of the epidemic will be phased. For sany, the total market demand will not decrease, but the demand will be delayed.

Same question and answer:

1. What is the biggest difficulty at present?

Xiang wenbo: our performance is mainly driven by the market. At present, the domestic market has not recovered. The operating rate is low and the demand for equipment is low.

2. What help and support are you most looking forward to?

Xiang wenbo: for us, the biggest help and support is to restore the normal economic order and economic activities as soon as possible, so that the production and operation of the enterprise can be on the right track. In addition, it is about the necessary protective supplies for the resumption of work. At present, the disinfectant, mask and thermometer for the resumption of work are needed by the enterprise and cannot be solved by any enterprise.

Text:

Beijing news: in recent years, sany has achieved very strong performance thanks to infrastructure investment and other factors. What is the impact of the current outbreak on sany? Can we achieve this year's goals?

Xiang wenbo: the impact of the epidemic is obvious. First of all, the economy is basically in a state of stagnation at present, which has an impact on our market, because the operating rate is very low, resulting in a small demand for equipment, or even if there is a demand for equipment, it is limited by the logistics, unable to ship. Our performance is mainly driven by the market, and the weak market demand makes it impossible for us to fully resume work now, or it is unnecessary for us to fully resume work, which is the biggest impact for us.

In addition, the return of staff has also been affected, in addition to the impact on our internationalization. At present, some countries restrict domestic exchanges and shipping, which has an impact on our exchanges and logistics with overseas personnel. In addition, because domestic production cannot recover well, our production of international products will also be affected.

For sany, the first half of the year is certain to have an impact, and the first quarter is expected to be down year on year, as the first quarter has been relatively clear at this point in time. As for how big the impact will be, I think it depends on the trend of the outbreak, and the sooner the outbreak is over, the smaller the impact will be.

Beijing news: how serious will the decline in market demand be?

Xiang wenbo: we think this is a phased impact. In terms of market demand, demand will not decrease, just lag. The government has also taken more aggressive measures to ensure growth and the achievement of this year's targets. We don't think it's going to have a big impact on aggregate demand, we just say it's delayed.

Now an enterprise is affected not only from the domestic, but also related to the international, many of our production and operations exist in the import needs. As mentioned before, the failure to restore domestic production capacity will affect the production of international products. Not every enterprise can complete modern large-scale production independently behind closed doors, but it is bound to be a large collaborative system. If there is no logistics and no cooperation between upstream and downstream enterprises, it is difficult to restore the global supply chain.

The global supply chain, a large production system, stops at the order of the day, but it does require complex systems to work together to recover. It is now up to the whole society to normalize its economic activities before business can normalize.

Beijing news: how is sany's current resumption of work?

Xiang wenbo: our r & d managers have basically resumed work since the sixth day of the 12th lunar month. One of the reasons why the production has not been fully resumed is that the conditions for full resumption of work are not available now. Many employees in the affected areas cannot be put in place, and the upstream and downstream enterprises have not been restored. In addition, the market is relatively depressed, and the demand has not fully recovered. At present, it is based on our objective and practical needs to actively promote the resumption of work, and there is no arrangement without the necessary resumption of work.

Xiang wenbo: at 17:00 every day, our chairman will hold a meeting at the group level. All the senior executives will attend the meeting and invite experts and scholars to discuss how to minimize the impact of the epidemic on our business.

During this period, we are still very busy. We are working hard to carry out tasks that we have no time to do. As a manufacturing enterprise, we cannot produce machines online or offline, but a lot of management and r&d work can be put online.

Putting offline business online will involve a lot of work, including the construction of technology platform, which we are accelerating; We also need a set of management methods suitable for online business, and we are working on them. The other thing that is needed is the skills of the staff to work online, and we are strengthening the training accordingly.

In addition, our five intelligent manufacturing “ Lighthouse factory ” Construction has not stopped for a moment.

Beijing news: as a manufacturing enterprise, has sany encountered any difficulties in the supply of raw materials, logistics, employment and capital? How did you deal with it?

Xiang wenbo: we have no problem with capital, our business is doing well and our cash flow is mature.

In terms of logistics, at present, logistics companies are not fully restarted due to personnel restrictions, and have not resumed normal operations. In some areas, transportation is still restricted, including international logistics and shipping.

In terms of supply chain, many upstream and downstream factories are still in the process of recovery, and not all of them have been recovered. For example, we have dozens of suppliers in hubei province, so it is unlikely that these enterprises can resume normal production at present, and the return of local employees in hubei province may not be realized immediately.

We are now looking at some of the longer term things, like internationalizing, investing in r&d and digital transformation, and hopefully when the economy recovers we will be more competitive, we will be more efficient, we will be more resilient, and that is all we are doing right now.

Beijing news: sany also experienced SARS. According to your judgment, which has a greater impact on the economy than SARS?

Xiang wenbo: I think there is a big difference between the two outbreaks. The SARS period I think we were relatively unscathed and quickly ended. This outbreak, I think, is still more severe than SARS. There was a national economic shutdown that we didn't have that year, and it lasted longer.

Beijing news: in response to the outbreak, what measures has sany taken to ensure the health of employees?

Xiang wenbo: on the fourth day of the first lunar month (January 28), I issued instructions to purchase epidemic prevention materials around the world to support the fight against the disease in hunan. As of February 14, sany had shipped back 1.8 million surgical masks, 110,000 protective suits, 410,000 gloves and 9,935 goggles. In order to ensure the logistics, we sent two special group planes from overseas to transport protective materials back to China, we are still working hard to do something we can do.

At the group level, we set up an epidemic prevention leading group during the Spring Festival to plan the company's epidemic prevention work in a comprehensive way. We held an epidemic prevention group meeting every day and formulated an epidemic prevention manual, which is good for staff's temperature detection, food delivery and entrance inspection.

In the rework of employees, our principle is safety, precision, scientific rework, everything to safety as the premise.

Beijing news: on February 12, you appealed on weibo that the epidemic would force the offline business to become online, and suggested that governments at all levels should make the offline business become online as an important transformation and upgrading project. Why this proposal?

Xiang wenbo: we believe that with the opportunities of the digital age, it is the trend of the future to push online. Employees may be more productive at home, work flexible hours, and communicate easily and efficiently online.

In addition, online office can reduce unnecessary travel and traffic pressure, energy saving and emission reduction; Realize resource sharing and reduce unnecessary investment.

If the outbreak can force white-collar and civil servants to work online, it will be an important achievement for China's economic development and transformation.

We, as a manufacturing industry, are pushing for digitization across the board, and have realized the linkage of things at the manufacturing level. In the future, the manufacturing industry can also be driven by digitalization after the full realization of unmanned.

Beijing news: many manufacturing companies, especially small and medium-sized ones, have been affected by the epidemic. As a manufacturing veteran, under the current situation, what advice do you have for your manufacturing peers?

Xiang wenbo: every enterprise is different. Generally speaking, cash flow is very important for all enterprises. It is recommended to open source and reduce expenditure, and try to have a bottom-line thinking, so as to manage cash flow well in case of possible difficulties.

In addition, we all talk about long-term thinking, and indeed we can use the present time planning to consider future strategic planning.

Although the industry is different, on the premise of ensuring health and safety, enterprises that can resume work can respond to the government's call to resume work as soon as possible, which is a help for epidemic prevention and China's economic development.

Beijing news: many manufacturing companies, especially small and medium-sized ones, have been affected by the epidemic. What are your Suggestions on the policy level? At present, local governments and industry associations are promoting the release of rent exemption and other policies. What is your comment?

Xiang wenbo: in the recent period of time, the enterprise production “ Dancing with the epidemic ” Enterprises should not rely on their own strength to solve the problem. The country should restore normal production capacity of masks and disinfectants as soon as possible to ensure supply. Downstream customers are financing mortgages, they hope to have financial support, to extend the repayment of customers, waive overdue penalties, etc., they did not start income will be greatly affected, the government to help them overcome the difficulties. Source: Beijing news

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