Development Strategy of Jiangsu Da Yue Group

Jiangsu Da Yue Textile Science and Technology Industrial Park "The East is not bright but the West is bright"-industries are diversified, supporting each other and sharing risks.

Da Yue Textile Science and Technology Industrial Park is the base of Da Yue textile industry, covering an area of 3,000 mu. Different from the situation that some textile enterprises in Jiangsu and Zhejiang are in suspension, semi-suspension or even closure, about 15% of the machines in Da Yue Textile Factory No.1 and No.3 have temporarily stopped running, and all the equipment is stepping up production. Especially the second textile mill, which produces high-grade fabrics, is running at full capacity. On the other side of the park, the construction of the third phase of the textile park did not stop because of the financial crisis. It is expected that the trial operation will be completed in March next year, and the production scale of the whole park will increase from the existing 250,000 spindles to 450,000 spindles. Tracing back to the trend of textiles in Da Yue, we can see that in addition to the normal sales channels, a large number of textiles from Da Yue have entered the world's large international supermarket chains such as Carrefour. Carrefour supermarkets and other retail enterprises are only an important part of Da Yue's diversification strategy. From the initial coal trade, Da Yue has been adhering to the diversification strategy for many years. Open Da Yue's "territory": automobiles, textiles, agricultural machinery, special vehicles, women's clothing, energy and minerals, expressway investment, modern service industry, modern agricultural industry demonstration park ... Da Yue's industry spans a lot. At the same time, the diversification of Da Yue promotes the accelerated layout of new industrialization in northern Jiangsu.

In the face of the financial crisis, the advantages of diversification began to appear. On the one hand, the "one-stop production and sales" of textile industry, retail industry and automobile industry has effectively extended the industrial chain of products and eased the pressure brought by the reduction of orders. On the other hand, affected by the financial crisis, the cash flow of some manufacturing enterprises is very tight. At this time, the stable cash flow brought by expressway's investment and coal and non-ferrous metals has effectively eased the financial pressure of other enterprises under the Group and provided support for their sustainable development. According to the current market price, the total value of roads, minerals and other resources in Da Yue currently exceeds 654.38+0.8 billion yuan. It is estimated that by 20 10, these industries will bring more than 3 billion yuan in cash flow to the group. In the special period of "cash is king", the further development of the enterprise is guaranteed.

"Don't make a fuss"-Large and high-end products usher in the spring of development

In 2003, when Da Yue entered the textile industry, it clearly aimed at the middle and high-end market, improved the scientific and technological content of products and took the road of differentiation. At present, Da Yue's high-grade yarn and high-grade home textile products are quite famous; Automobile decorative cloth has entered the high-end car market such as Mercedes-Benz and BMW. After the completion of the third phase, 1000 home textile wide looms will be formed, ranking first in Asia. With the sharp decrease in textile market demand, the demand for high-end products produced in Da Yue is not greatly affected, which also ensures that products can enter the huge sales channels of retailers such as Carrefour.

In other industries, Da Yue's products also have strong anti-risk ability. In the case of slowing sales growth this year, automobile sales still increased by 40%, thanks to the "national car" with small displacement and low price; The export of "Huanghai Jinma" high-powered tractors ranked first for five consecutive years; Special purpose vehicle for garbage has formed an annual output of 5,000 vehicles, ranking third in the country in terms of production and sales ... Now, every time Da Yue sets foot in an industry, it strives to be in a leading position in the industry.

"Competing with experts" —— Internationalizing, broadening sales channels and creating "Da Yue Department"

In the workshop of Yancheng International Women's Wear Co., Ltd., employees are still busy. Yancheng International Women's Wear Co., Ltd. is a joint venture between Da Yue and Triumph, a world-renowned lingerie brand. When the financial crisis struck, the company's orders continued to grow. Take a closer look at every industry involved in Da Yue's diversification. Automobile cooperates with Hyundai Kia, special purpose vehicle cooperates with Fuji Heavy Industries of Japan, retail cooperates with Carrefour of France, textile cooperates with Triumph and Avande of Germany, tractor cooperates with Mahindra of India ... Almost every industry cooperates with world-renowned enterprises in the industry. At present, Da Yue has established close joint ventures with 65,438+02 top companies in the world, including three Fortune 500 companies. This is rare in domestic enterprises. "Diversification must rely on internationalization and compete with masters." Hu Youlin said that the huge sales channels and rich marketing experience of multinational companies have ensured the steady growth of product sales in Da Yue. This role is particularly important during the global economic downturn. The core thing learned from world-class enterprises is how to manage and construct the diversified shareholding structure of large groups and build a "Da Yue system". Now, although Da Yue's structure is huge and its pace is fast, every step is steady.

The Hope of Driving the City —— In special times, local governments give a "green light"

In order to support the development of the automobile industry, the Yancheng Municipal Government has specially set up the "Automobile Office" to provide services and preferential treatment for automobile enterprises and related supporting enterprises, and constantly improve the automobile industry chain. China Automotive Electronics Research Institute has just settled in Yancheng recently. The strong support of local governments is the most powerful support for enterprises to cope with the financial crisis. Yancheng gave special care to Da Yue because of Da Yue's contribution to Yancheng over the years. In 2003, the second phase of Kia project was originally planned to be built in a city with developed economy and good investment environment in Jiangsu, and the local government gave the land transfer income free preferential conditions. At that time, Hu Youlin was diagnosed with liver cancer. Even though he needed surgery urgently, he insisted on postponing the operation and had arduous negotiations with the ROK. At the same time, Hu Youlin refused the "investment promotion reward" promised to him by other regions, and finally left this project which greatly boosted the local economy in Yancheng. In 2008 alone, Dongfeng Da Yue Kia paid more than 654.38 billion yuan in profits and taxes, and related supporting industries paid 765.438 billion yuan. After the production capacity of 450,000 vehicles is fully reached, it is estimated that only the automobile factory can realize sales income of 60-70 billion yuan per year, and the direct tax payment is about 4.5 billion yuan. Together with the upstream and downstream industrial chains, the sales revenue of automobile industry clusters will reach 240 billion yuan. Da Yue has many investment directions. If it is purely for profit, there is no reason to set foot in the automobile industry. But focusing on the overall situation of Yancheng's economic development, even if there is no advantage, it must be in the automobile project.

Cars are like this, and textiles are even more so. Yancheng is a big cotton-producing city and a big textile city, but it has a low starting point, short industrial chain and low added value. The launch of high-tech and high value-added textile projects in Da Yue has effectively promoted the development of the entire Yancheng textile industry and solved the employment problem of a large number of laborers. Over the past five years, Da Yue has paid nearly 8 billion yuan in local taxes, directly solving more than 30,000 jobs and indirectly providing more than 70,000 jobs for the society. These five years are five years of great and rapid development in Da Yue, five years of consolidation, adjustment and cultivation in Da Yue, and five years of diagnosis of liver cancer in Hu Youlin. In the past five years, Hu Youlin has never given up and retreated after suffering from cancer. He has undergone 7 interventional treatments, 6 chemotherapy treatments and/kloc-0 liver transplantation. He used his life to prove his desire to benefit the people in the old areas. Hu Youlin was also elected as the deputy director of the Standing Committee of Yancheng Municipal People's Congress, and was voted as "the first person who touched Yancheng" by Yancheng people.

How to Look at the Situation —— Seeking the Opportunity of Merger and Reorganization and Facing the Risk of Talent Shortage.

In the face of the financial crisis, Da Yue did not choose to be conservative, nor did it stop developing.

The financial crisis is both a challenge and an opportunity. When there are difficulties in the industry, it is precisely the best time to merge and reorganize the same industry. Jiangsu Da Yue Group has been looking for opportunities in the crisis. As long as there is enough cash flow, we will make an acquisition. Reserve strength and wait for the industry to recover. I believe that in a few years, this will not be a simple 1+ 1 effect, but a geometric effect.

It is understood that at present, Da Yue has reached preliminary acquisition agreements with two textile enterprises in Zhejiang and Jiangsu. Once the acquisition is successful, Da Yue will become the leader of Jiangsu textile industry. At the same time, in Shaanxi, Inner Mongolia, Gansu and other places, the acquisition of several coal mines and non-ferrous metal minerals is also actively promoted.

The shortage of talents will be the biggest risk faced by enterprises. At the same time of development, Jiangsu Da Yue Group has a clear understanding of risks. Da Yue's strategy of diversification and internationalization requires the diversification and internationalization of talents. If the talent team can't keep up with the development speed of the enterprise, the development road of the enterprise will come to an end.

In order to meet diversified needs, Da Yue has been recruiting and reserving talents in recent years. Jiangsu Da Yue Group is more open-minded than general state-owned enterprises in employing people, more standardized than private enterprises, and more humane than foreign enterprises. Always insist on retaining people with feelings, career and treatment. [2]