Tan Xuguang: Weichai Power has achieved new development in Shaanxi

On May 8, 2009, the "China Business Leaders' Annual Conference and Western Forum" jointly sponsored by the Shaanxi Provincial People's Government and the China Entrepreneur Magazine Association was held in Xi'an, the provincial capital of Shaanxi Province. The theme of the forum is “New Opportunities and Leap-forward Growth in the Western Region”. The following is the speech of Tan Xuguang, Chairman of Weichai Power Co., Ltd.

Tan Xuguang: Honorable governor, Donghua, leaders, friends, Good morning!

I am very pleased that the Shaanxi Provincial Government and the China Entrepreneur Magazine organize such a forum. I can speak in Xi'an.

In fact, we all know that I am a native of Shandong. I have become a Shaanxi native. 40% of my industry is in Xi'an, Shaanxi. The governor saw me just now. He did not know me. Later, Governor Yuan said Lao Tan. Governor Yuan said that he had a problem and asked the government. No problem needed to be found. I think this logic is very correct. Governor, we have worked very well and have developed very well. Therefore, I think the investment environment in Shaanxi is very good.

We made firewood from 500 million to 50 billion, from the industrial culture of a region, to the country and the whole world. We have unified the regional resources to achieve the unity and coordination of resources throughout the country and the world. In this development, we have received the support of local governments. Especially in Shaanxi, Shaanxi Automobile and Fast Transmission have become the most important enterprises in the country. Therefore, what I am talking about here is to thank the Shaanxi Provincial People's Government and the Xi'an Municipal People's Government, as well as the Governor of the King who worked in the development zone.

In fact, everyone has been discussing the issue of the financial crisis recently. In the financial tsunami and financial crisis, when I was thinking about this topic, I was thinking about a problem. Then what issue did I think about? The law of the world is the development of volatility. This is a correct law. There was no information age 50 years ago. Now it is an information age. After the advent of the financial crisis, we thank the media for creating some tsunami and crisis vocabulary that we can fully understand. However, at the same time, entrepreneurs do have a psychological bearing point. In this respect, I would like to talk about three points:

First, with the advent of the financial crisis, companies should adapt to the laws of economic development. We were listed in Hong Kong. In 2007, I bought newspapers on the street, and the old man who sold newspapers said how much money I made yesterday, how did the old man selling newspapers know how to invest money? He made money and the crisis came. In the course of the development of our Chinese industry, all our industries have realized huge profits, distorted their values, and the crisis has come. When I came to Hong Kong to listen to a friend, I was the owner of a real estate business. He said he didn't do real estate and went to buy stocks. I think the crisis is coming. In fact, the arrival of the crisis is normal, but this time the information age fully exposed our crisis.

I was doing international trade in the 1990s. I learned a lot of things in the Southeast Asian financial crisis. I was able to predict and realize the crisis during the crisis. I was able to recognize the arrival of the crisis at the peak of development and it was a very good company. This is my first experience.

Second, a successful response to the crisis is the touchstone for measuring whether the company can manage the overall situation. The crisis is fair to all of our companies. In fact, when the crisis comes, it mainly depends on whether the company can cope with it. When you do a business, you must think that there will be a crisis, you can be successful business. It is impossible that our economy will always be prosperous, and prosperity will be followed by depression. Therefore, in the crisis, we can best test the operational level of our company. In December 2007, our group issued an early warning to the entire group on the imminent arrival of the economic crisis in 2008. Since 2008, the company has stepped together and strengthened its internal control and investment risk assessment throughout the year. Therefore, it appeared in November and December of last year. At the time of the problem, all of our entire group's subsidiaries responded calmly to the crisis and successfully survived the three months of the crisis. At the most difficult time, all our companies did not experience losses, so responding to the crisis is very important.

Third, changing danger into a machine is the best manifestation of a company’s core competitiveness. When the crisis comes, we are a very good opportunity for a dominant company. We are an equipment manufacturing enterprise and a traditional enterprise. We have also studied the company's world-famous Volvo, including the general problems. They all integrate their crisis through their own experience, so when the crisis comes, we will Advantageous enterprises are a very rare opportunity. One is to quickly find new growth points in this crisis. Our correct investment, I think, is a decision made during the economic recession. We have always been this theory. When we see others making the most money, we must invest in it. We must be a loser. Whether it is the Shaanxi Fast and CNHTC, including the Weichai Power Headquarters, we have several large projects. Investment is entered at the low point of the industry. At the low point, we are well prepared. When the boom comes, our company has achieved very good results.

We have come to Shaanxi to get firewood, Shaanxi has provided us with a good culture and opportunities, so we are also looking for such an opportunity. Therefore, as an entrepreneur from Shandong, we have come to Shaanxi. This is also an opportunity for us to achieve new development.

We must seize the opportunity to integrate global resources. As for the financial crisis of this time, the biggest problems are large companies, and the true level of SME operations is relatively good, they will successfully overcome difficulties. In this crisis, I also hope that we have the advantage of the company to the global, but in the global integration of resources, we must know what their advantages are, to know what they need. Our Chinese companies do not need scale. Chinese companies do not need to go abroad for mergers and acquisitions and manufacturing. Chinese companies need technology, need networks, and need brands to grow. Thank you!