Development Plan of Yuchai Machinery Co.

On January 19, 2011, Yuchai Machinery's 2011 Marketing and Service Conference was grandly held in Xiamen. With the theme of Professionalism, Creation, Transcendence - New Height, New Beginning, the conference reviewed the Yuchai Miracle created during the 11th Five-Year Plan period in the fields of speed of development, scale of production and sales, technological advancement and product innovation. It also put forward Yuchai's 12th Five-Year Plan, as well as the overall idea, business policy and production and sales target for 2011, and deployed the marketing and service work of Yuchai machines in 2011, making every effort to create outstanding power for Yuchai machines. More than 1,400 Yuchai machine dealers, service providers, representatives of the YC Supplier Federation, and representatives of parts dealers from all over the country gathered together to **** discuss Yuchai machine marketing and service plans. Nearly 100 partners, including Commercial Vehicle Company of Dongfeng Motor Co., Ltd. and Commercial Vehicle Company of Anhui Jianghuai Automobile Co., Ltd. arrived at the conference and congratulated them.

The conference began with the release ceremony of the new logo of Yuchai machine. Mr. Yan Ping, Chairman of the Board of Directors of Yuchai Machinery Group Limited, Mr. Zhang Xiaoyu, Executive Vice President of China Machinery Industry Federation, and Mr. Yihui Eagle, Vice President of China Association for Quality*** pushed the push rod of the new logo together to launch the new logo of Yuchai machine, which unveiled a new chapter in the history of the Yuchai brand. During its 60 years of development, Yuchai has been committed to promoting the internationalization of the Yuchai brand. During the 11th Five-Year Plan period, Yuchai enhanced the core competitiveness of the Yuchai brand through scientific and technological innovation, quality improvement, cultural innovation, etc. The brand value rose from 4.682 billion yuan in 2006 to 8.009 billion yuan in 2010, and became the No. 1 power brand in China for many consecutive years. At the beginning of the Twelfth Five-Year Plan, Yuchai carries Yuchai's internationalization ideal on the basis of inheritance and gives the new logo a richer connotation:

The red color in the new logo of Yuchai machine represents passion and China, while the blue color represents science and technology and the world, and the color combination of China red and the world blue implies Yuchai's internationalization strategy of basing itself on China, going to the world, and passionately expanding the market space. The word "YC" in the "YC" icon is the first letter of "Yuchai" pinyin, and also the English abbreviation of "Yulin-China". It is also the abbreviation of "Yulin-China", symbolizing Yuchai's firm confidence in building an internationally renowned brand on behalf of China's national power. Diesel stands for "Yuchai Machine", which carries forward the innovative spirit of Diesel's invention of the first diesel engine, inheriting passion and driving excellence. It symbolizes Yuchai's commitment to internationalization and its sustainable development strategy of creating environmentally friendly, technologically advanced and excellent power and becoming a market leader.

During the 12th Five-Year Plan period, Yuchai will take passion, environmental protection, science and technology, and innovation as its positioning, and take Excellent power , globalize yuchai as its brand declaration, and continue to go beyond and continue to create products of greater value for users! At the same time, Yuchai will stand at a new height, plan to launch a series of high-end new products, promote the internationalization of the "Yuchai Machine" brand, build Yuchai into the main export base of China's own brand of diesel engines, and build a strong brand matrix to build a corporate brand, product brand and service brand rich in Yuchai characteristics.

In 2010, Yuchai Group's cumulative sales revenue including tax amounted to 36.838 billion yuan, up 35.45% year-on-year. This is the first time for Yuchai Group to enter the ranks of 30 billion yuan enterprises. Compared with 2005, the sales revenue developed from 12.138 billion yuan to 36.838 billion yuan, equivalent to recreating two Yuchai in five years. Among them, the cumulative sales volume of the engine segment was 749,671 units, an increase of 11.13% year-on-year; the cumulative sales revenue was 20.486 billion yuan, an increase of 27.62% year-on-year. The core enterprise Yuchai Machinery Co., Ltd. in the "Eleventh Five-Year" period to achieve the engine output of 2.06 million units, of which 551,596 units sold in 2010, for the first time the output exceeded 500,000 units, an increase of 17.89%; to achieve sales revenue of 19.103 billion yuan, an increase of 30.02%.

Yuchai Group, through the adjustment of industrial layout, integration of industrial resources and optimization of industrial structure, has basically formed a large group industrial structure consisting of 29 holding and participating companies in six sectors, with a national layout and cross-field diversified development. The industrial layout has been extended to Xiamen, Fujian, Wuhu, Anhui, Jining, Shandong, Changzhou, Jiangsu, Ziyang, Sichuan and Zhuhai, Guangdong, etc., which creates the advantages of "two product chains", namely, the engine product chain and the construction machinery product chain. In the engine product chain further stretching at the same time, the rapid rise of other industrial segments, sales revenue and engine segment sales revenue synchronous growth, the overall quality of business greatly improved, and continued to enhance the viability. During the "11th Five-Year Plan" period, Yuchai's six major industrial segments with sales revenues exceeding 2.5 billion yuan rose from one engine segment to five major industrial segments, and the number of subsidiaries with sales revenues exceeding 1 billion yuan rose from two to eight.

In the face of the complex international and domestic economic environment during the 12th Five-Year Plan period, China's economy will gradually enter a period of balanced development and steady growth in the next few years. Yuchai Group's industrial positioning in the 12th Five-Year Plan is: "two product chains and multiple industrial clusters". The "two product chains" refer to the engine product chain and the construction machinery product chain. "Multiple industrial clusters" refers to the groups of Yuchai enterprises according to their industries, which are mainly formed on the basis of the current industrial structure and further expanded or entered into new fields. "During the 12th Five-Year Plan period, Yuchai will ensure the sustained, high-speed, healthy and coordinated development of its "two product chains and multiple industrial clusters", and strive to realize a sales income of more than 100 billion yuan by the end of the 12th Five-Year Plan period and enter the 100-billion-dollar group. Yuchai will ensure the sustained, high-speed, healthy and coordinated development of "two product chains and multiple industrial groups", and strive to achieve a sales revenue of over 100 billion yuan by the end of the "Twelfth Five-Year Plan", and enter into the 100-billion-dollar group, and realize the simultaneous growth of total profit and sales revenue.

Yuchai Machinery Co., Ltd.'s "Twelfth Five-Year Plan" includes four major parts: future mission and vision, strategic direction, strategic policy, and strategic goals. The company's mission is "to satisfy the public's power needs with excellence and leadership." The company's vision is "to become the world's best professional power supplier." The strategic direction is "focusing on one industry and expanding in depth: based on the local market and spreading globally". The strategic guideline is: "Build the operation platform by technological innovation; obtain the target support by guaranteeing the demand; create the growth space by expanding the market; cultivate the competitive advantage by strengthening the cost; construct the development power by the innovative mechanism; and raise the strategic funds by the capital market." The strategic objectives are "scale multiplication, status consolidation, strategic alliance, professional value-added, and harmonious *** win."

Focusing on the general strategy of the 12th Five-Year Plan, the overall idea of 2011 is to comprehensively plan and systematically lay out the "12th Five-Year Plan", grasp the opening year of 2011, and take the detailed market and close partnership as the basis, technological upgrading and lean manufacturing as the guarantee, and consistency, reliability, and specialization of products as the focus, and through the innovation of the operation and the professional plan to enhance brand influence and market competitiveness. Driven by innovative operations and specialized programs, the company will enhance its brand influence and market competitiveness, achieve the target of production and sales of 600,000 units, and continue to achieve new highs in performance.

Focusing on the overall idea of Yuchai in 2011, the marketing target of "ensuring 600,000 units and challenging 680,000 units" was put forward, as well as the key points of marketing construction. "During the 12th Five-Year Plan period, Yuchai will focus and specialize in engine R&D and manufacturing, focusing on the development of National 5 power, gas engine and hybrid power, expanding the market to heavy and light-duty, and focusing on breakthroughs in the fields of heavy-duty trucks, construction machinery, tractors, ship power, etc., in order to achieve annual engine sales of 600,000 units by the end of the 12th Five-Year Plan period. At the end of the "Twelfth Five-Year Plan", the company will realize the scale of annual engine sales of 1.6 million units! The company has put forward the service policy of "segmentation of demand, professional protection, value-added services, and transcendence of development" and nine marketing service items, including "strengthening network construction, upgrading management, upgrading training, strengthening overseas service work, spare parts protection, oil sales, carrying out special service activities, and adjusting service policies". "Yuchai's service has become the most competitive marketing and service brand.

At the meeting, Yuchai Machinery introduced the overall strategy of the 12th Five-Year Plan as well as the segmented market product planning and 2011 Yuchai key technology and product introduction, a variety of key new products including energy-saving version of heavy-duty machine 6M, the new 50 loader power, the second generation of heavy-duty machine YC6MK, the special engine for marine power YC6C, the upgraded version of the Chinese machine 6A-45, gas engine, excavator special engine etc.

As one of the subsidiaries of the engine segment with the most development potential, Yuchai United Power Co., Ltd. introduced the world-class high-quality heavy truck power 6K series engine, which was developed independently on the basis of DD13/15, integrating the latest technological achievements in the world today, and possessing more than 30 technological invention patents. For the first time in the engine industry to use the reliability growth technology, a breakthrough in the reliability of China's manufacturing vulnerability; originality of the introduction of precise combustion and electronic control technology, engine reverse cross-flow cooling technology, high-strength materials and high-efficiency engine in-cylinder braking technology of the successful use of innovation, a substantial increase in engine service life, the emissions to meet the Euro VI standards, with the latest mass production of engines in Europe in 2012 The engine can meet the Euro VI standard in terms of emissions and has the technical level of the latest European mass-produced engines in 2012.

The conference also honored the dealers, service stations and advanced individuals who have made outstanding contributions to Yuchai's service system. Among them, 10 service stations, including Kaisheng Auto Sales Station, were awarded the "2010 Excellent Service Station"; 2 service stations, including Longnan Bingqiang Station, were awarded the "2010 Disaster Relief Service Special Award"; 2 service stations, including Longnan Bingqiang Station, were awarded the "2010 Disaster Relief Service Special Award"; and 2 service stations were awarded the "2010 Disaster Relief Service Special Award". 2010 Disaster Relief Service Special Award"; Shanghai Factory 17 Station and other 2 service stations were awarded "2010 World Expo Service Guarantee Special Award"; Guangzhou Donghuan Station and other 10 service stations were awarded "2010 Asian Games Service Guarantee Special Award"; Nanning Dongmao Station and other 10 service stations were awarded "2010 Asian Games Service Guarantee Special Award"; Nanning Dongmao Station and other 10 service stations were awarded "2010 Asian Games Service Guarantee Special Award". In 2010, 65 service stations, including Nanning Dongmao Station, were awarded "2010 Excellent Core Service Station"; 64 service stations, including Yuchai Hepu Station, were awarded "2010 Excellent Specialized Service Station"; 94 service stations, including Liuzhou Fangsheng Station, were awarded "2010 Excellent Core Service Station"; and 94 service stations, including Liuzhou Fangsheng Station, were awarded "2010 Excellent Specialized Service Station". service stations were honored as "2010 Advanced Core Service Stations"; 92 service stations, including Yizhou Hongyuan Station, were honored as "2010 Advanced Professional Service Stations"; and 39 service stations, including Guangxi Thousand Miles Station, were honored as "2010 Advanced Self-selling and Self-contracting Service Stations". Advanced Self-selling and Self-contracting Service Stations"; Shanxi Jietai Station and other 9 units were awarded the "2010 Service Pulling Special Award". Yu Mu and other 704 comrades were awarded the Asian Games Service Guarantee Advanced Individual Award, Outstanding Core Station Manager, Outstanding Professional Station Manager, Advanced Core Station Manager, Advanced Professional Station Manager, Outstanding Appraiser, Outstanding Informant, and Outstanding Electric Control Appraiser.

In addition, Dalateqi Kaisheng Automobile Sales Co., Ltd. and other 10 units won the "2010 accessories business special contribution award"; Shenzhen Yonglihan Automobile Repair Co. "Ltd. and other 30 units won the "2010 Parts Service Guarantee Excellence Award"; Yang Bo and other 89 comrades won the "2010 Parts Market Exploitation Award".

During the Twelfth Five-Year Plan period, as the state vigorously supports the development of strategic emerging industries and the adjustment and revitalization of key industries, and strictly regulates the scale of enterprises in high-energy-consumption, high-pollution and overcapacity industries, Yuchai will surely usher in a new era of green and environmentally-friendly power supply. Yuchai, which is responsible for providing green and environmentally friendly power, will surely usher in a new round of development opportunities. Standing on a new starting point, toward the grand goal of building 100 billion Yuchai, Yuchai will, as always, work with the majority of users, OEMs, dealers, service stations and suppliers for mutual benefit***win, and write a bright picture for the next five years of development.

2011 is the opening year for the implementation of Yuchai Group's 12th Five-Year Plan strategy, and also the year of celebrating Yuchai Group's 60th birthday. Yuchai will make every effort to build Yuchai's excellent power with the theme of "New Height, New Beginning - Specialization, Creation, Transcendence". Yuchai will not only specialize in "professionalism" and make new breakthroughs in "creation", but also realize new transcendence in "professionalism" and "creation". Moreover, it will realize new transcendence in "specialty" and "creation", make every effort to build Yuchai's world-famous brand, and achieve the strategic goal of Yuchai's large-scale multinational enterprise group.