Rebuilding a Leap of Yuchai from "Made in China" to "Created in China" in Three Years

In 2008, it was a landmark year in the history of Yuchai. In this year, Yuchai Group endured all kinds of hardships and tests. With extraordinary perseverance and invincible "iron army" spirit, it composes the glory of 2008: Yuchai Group's sales revenue reached 20.84 billion yuan, again setting a new record. It symbolizes that Yuchai has entered a new era of rapid and high-quality development, and has taken a solid and important step toward the development vision of “building a world-renowned brand and achieving a large multinational enterprise group” and the development strategy of the next 10 years.

Green power, philosophy first

First, lay the foundation for a successful ideology - Yuchai established the "green development, harmony and win-win" core philosophy.

In December 2007, the concept of “Green Development, Harmony and Win-Win” won the protection of national copyright. Now, the new concept of corporate culture has blossomed in Yuchai. In 2007, Yuchai was awarded the title of “Chinese Cultural Management Demonstration Unit” by the Chinese Culture Management Society. In 2008, Yuchai was awarded “Excellent Enterprise Culture in the 30 Years of Reform and Opening-up”.

Second, hold high the banner of social responsibility and take responsibility for the development of green power - Yuchai Group joins the UN Global Compact.

On May 27th, 2008, Yuchai officially joined the world's largest corporate citizenship initiative - the Global Compact. On June 26 of the same year, Yuchai released the first "Green Development, Harmony and Win-win" - Yuchai Group's sustainable development in 2007. The report publishes its own initiative in assuming social responsibility and accepts social supervision. This is also the first social responsibility report for China's internal combustion engine industry and western China's enterprises, which has attracted widespread attention and won the relevant experts and the UN Global Compact. The office's praise. Yuchai Group also actively supports social welfare undertakings. Since 2005, the amount of funds supporting public welfare has reached more than 60 million yuan; after the Wenchuan earthquake, Yuchai has actively donated more than 15 million yuan.

Third, capital operation financing breaks ice - China Development Bank and Yuchai signed a strategic cooperation agreement.

On August 1, 2007, the China Development Bank signed a strategic cooperation agreement with Yuchai Group and promised a 4 billion yuan development loan. On December 7, the Guangxi Development Bank's first batch of loans to Yuchai reached 780 million yuan. This is a huge achievement that the company has transformed from its operating model to investment and financing management company since 2006.

4. Management continues to maintain its position as a benchmark for the industry – the company has been confirmed after 3 years through the National Quality Award.

On November 6th, 2008, the 2008 National Excellence Conference hosted by the China Quality Association was held in Beijing with the theme of "Quality Management - Core Competence". The meeting announced that 7 companies such as Yuchai Corporation have passed the national The confirmation of the quality award winning after 3 years indicates that Yuchai has maintained its industry benchmarking position in management since winning the National Quality Award in 2005 and has established a model of sustainable management for the nation’s organizations.

V. Brand Construction Enters the Fast Track – The value of Yuchai brand in 2008 rose to 6.358 billion yuan.

On June 2, 2008, the World Brand Lab released the "China's 500 Most Valuable Brand Rankings" in Beijing in 2008. Yuchai's brand value rose to 6.385 billion yuan, ranking No. 112 among China's 500 most valuable brands. It ranks first in the engine industry and ranks first in Guangxi's corporate brand value. This is the fourth time that Yuchai has been selected as a Top 500 Chinese Brand, marking Yuchai's brand building has reached a new level. Yuchai has taken another step toward realizing the goal of brand internationalization.

6. Build a high-quality team and forge a brave and brave "Iron Army" team.

Junping has been committed to building the entire Yuchai team since entering Yuchai in 2005. In February 2007, he proposed the team building concept of “a high-quality cadre team, a high-performance management team, and a creative workforce”. Effectively build a revolutionary, younger, knowledgeable and professional workforce. On September 22, 2008, the board of directors of Yuchai Machinery Group Co., Ltd. was formally established. The new business team was created. Fuping served as the chairman of the first board of directors of Yuchai Machinery Group Co., Ltd. The new president team was born, and Gu Tang was the president of Yuchai Machinery Group Co., Ltd. This is a milestone in the development history of Yuchai Group and plays an important role in promoting the development of Yuchai Group.

Promote the transition from "Made in China" to "Created in China" with independent innovation

First, the development of the R&D system went international: Yuchai Engineering Research Institute was established.

On July 20, 2007, the Yuchai Engineering Research Institute was established. Prof. Zhuo Bin, a diesel electronic control technology expert in China's famous internal combustion engine field, became the director of the Engineering Institute. This is the need for Yuchai’s strategic planning. It is Yuchai’s innovation in the corporate R&D system and R&D mechanism, and it is a milestone for Yuchai to move toward new glory.

2. Accelerated technological transformation and rapid increase in manufacturing capacity – The most advanced heavy-duty diesel engine test line in China has been completed and put into production.

On April 10, 2006, with the first batch of 50 heavy-duty engines successfully off the assembly line, it was announced that the current domestic heavy-duty diesel engine test line with advanced world level was officially completed and put into operation in Yuchai. On July 21st of the same year, Yuchai held a grand heavy batch production ceremony at the heavy machine loading test plant in the production plant, marking Yuchai's heavy diesel engine production entering a new stage of development and realizing Yuchai’s expansion of heavy machinery products. The market coverage, upgrading the level of China's heavy machinery development, and providing customers with years of dreams of more advanced, more reliable, more environmentally friendly international power.

Third, remanufacturing ushered in the development of the spring - Yuchai Xi became one of the country's first batch of auto parts remanufactured pilot companies.

On March 2, 2008, the National Development and Reform Commission formally announced the list of the first batch of auto parts remanufactured pilot companies. Yuchai was listed on the list and obtained the national qualification for the first batch of auto parts remanufactured pilot enterprises, marking the acquisition of Yuchai’s remanufacturing business. Substantial progress has been made by the country. In December 2008, the National Development and Reform Commission approved the eighth batch of “National Resources Conservation and Environmental Protection Projects” funding support projects in 2008. The Yuchai remanufacturing project won support from the central budget with an investment of 10 million yuan. Yuchai’s success in applying for the remanufacturing of auto parts pilot companies has effectively promoted the rapid development of the Yuchai Engine remanufacturing project.

Fourth, independent innovation technology research and development to lead the development trend of the industry - China's first four national and five diesel engines in Yuchai.

On February 26th, 2006, at the Yuchai Annual Strategy and Marketing Service Conference, Yuchai launched the first China National Diesel Engine with independent intellectual property rights. On December 7, 2007, Yuchai launched another China’s first national five-diesel engine and the grand ceremony for the 1,000th National Third Engine off the assembly line. This indicates that Yuchai's engine green environmental protection technology has reached the leading domestic and international advanced level, and at the same time it has become China's first mass production company for Euro III engines.

Yuchai has spared no effort in researching and developing dynamic, energy-saving and environmental-friendly engines. It has been the leader in exhaust emission control technology. The emission standards of State II, State III, State IV, and State V products have been pushed into the market more than the state. The time is 2 to 5 years ahead of time. In 2007, the Beijing Bus International’s four-engine international competition, Yuchai as the only domestic company to participate in bidding, beat all foreign brands, received more than 2,000 orders from the State Fourth, Yuchai Guosi Power became the Olympic special vehicles. In October 2007, the city successfully developed a hybrid passenger car model. This is the first innovation in the development of the urban passenger car powertrain with the ISG (Single Axis Parallel) technology, leading the next generation of new power technology trends; successfully launched China's first diesel engine with independent intellectual property rights for YC4W passenger cars fills the gap in diesel engines for domestic passenger cars and becomes the only company in China with the capability to develop, produce, and supply engines for passenger cars; it masters the core technologies of clean fuel engines and has accumulated a great deal of experience. , Successfully developed the first CNG gas engine that meets China's four emission standards, and successfully approved the production of CNG and LNG gas engines, providing support for the country's vigorous use of natural gas as an alternative energy source. As an important piece of the Yuchai Group, the construction machinery successfully achieved the comprehensive upgrading of the Yc-8 excavator in 2008, which greatly improved the engineering company's core competitiveness.

Strive to create industrial clusters to enhance the company's core competitiveness

First, make every effort to build industrial clusters and enhance their core competitiveness.

Yuchai Group currently owns 33 wholly-owned, controlled, and share-owned subsidiaries, including six major segments including diesel engines, construction machinery, special vehicles, auto parts, automotive chemicals, and logistics and electromechanical. Among them, the diesel engine segment is the largest independent diesel engine production base in the world; the construction machinery segment is the largest production and export base for small and medium-sized construction machinery in China; the auto parts segment is the domestic advanced auto parts industry cluster and the largest domestic diesel engine component. Manufacturers and distributors; Automotive Chemicals is China's main production base for high-quality lubricants; Logistics is the first-class modern logistics base, branded auto sales center and information service platform.

Second, establish "excellent quality, international Yuchai" business ideas, and fully implement the international strategy.

Today, Yuchai extends its business to four continents: Asia, Europe, the United States, and Africa. It has established a forward position in the integration of marketing services, established six overseas offices, and has overseas distributors in more than 30 countries, more than 10 companies. The country has parts supply protection and after-sales service support, and 50 countries have registered Yuchai trademarks, forming a close overseas strategic relationship with domestic mainstream car manufacturers. Products have been exported to Japan, Cuba, Vietnam, Russia and other countries in bulk and started overseas. The market has taken root and won the recognition of global customers. Over the past three years, overseas sales have increased at an average rate of 154% per year, and the internationalization of Yuchai's brand has continued to accelerate. In 2008, the number of engines exported exceeded 37 7- Taiwan, an increase of more than 263% year-on-year, and the single order was the new record for exporting 20,000 units to Cuba.

Looking to the future, Yuchai people will be more clear about the Group’s development goals in the next decade and full of confidence: fully develop domestic and international joint ventures and cooperation, accelerate the introduction and application of new and high technologies, expand the industrial chain around the main business, and focus on the development of diesel engines and automobiles. The related industrial products such as parts and components, automotive chemicals, and logistics integrate technological advantages to build Yuchai Aircraft Carrier, further enhance the competitiveness of the international market, make Yuchai Machinery a world-renowned brand, and build Yuchai into a large multinational enterprise group!

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