Brilliance Auto keen to build world-acknowledged brand
- Source: CE.cn
- [14:26 January 20 2011]
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Through brand innovation, Brilliance Auto constantly enhances its quality management philosophy, that is, "only the quality leader can take the lead" to build a brand platform with "Zhonghua" and "Jinbei" at the center. Through R&D innovation, it keeps developing new products, generating a product platform with production capacity as the foundation. Through capital innovation as well as the optimization and embedment of capital operation, it builds a financing platform to back its development. This way, the group has achieved benign interaction between capital, R&D and brands.
This year marks the end of China's 11th Five-year Plan period. To achieve rapid and stable development and build auto brands with international influence, Chinese auto makers still have a long and arduous way to go.
Recently, Qi Yumin, Board Chairman and President of Brilliance Auto, won the Award for Own-brand Enterprise President of the Year from China Automotive News. In merely several years, Mr. Qi pulled Brilliance Auto out of plight and put it on the fast track, triggering a heated discussion over the "Brilliance Pattern" in the industry.
As a leading automaker in Liaoning Province, currently Brilliance Auto is pooling 226 auto parts enterprises, and 130,000 people got job opportunities thanks to this group. Brilliance Auto's 35,000 employees have also benefited from it. In particular, its frontline staff received hefty pay rises.
On such basis, Brilliance Auto put forward the strategy of "quadrupling in two steps" for the 11th Five-year Plan period": In 2010, it will manufacture and sell 500,000 vehicles and 500,000 engines, and export 50,000 vehicles, with sales revenue of 60 billion yuan minimum, profits and tax of 6 billion yuan minimum.
Data show that in 2009 Brilliance Auto sold 348,000 vehicles, increasing 22.1 percent year on year; with sales revenue of 47.6 billion yuan, it turned in 5.17 billion yuan in profits and tax, up 31.7 percent year on year. What is especially worth mentioning is that for the early four years during the 11th Five-year Plan period, Brilliance Auto has been ranking among the top ten in China's automotive industry. In the first quarter of this year, Brilliance Auto sold 118,000 vehicles, with a year-on-year rise of 65.4 percent. It turned out that Brilliance Auto has become a leading own auto brand in China in only five years as planned by Mr. Qi. Zhonghua sedans cracked overseas markets, and Jinbei remains the No. 1 light bus brand in China.
While mapping out the blueprint for Brilliance Auto, Mr. Qi blended brands, R&D and capital, and established a development platform based on the "Brilliance Pattern".
Aspiring to build high-quality own brands since its incorporation, Brilliance Auto has long been raising funds in the domestic and overseas capital markets, realizing the direct driving to the industry by funds. Through a combination of industrial capital and financial capital, it acquires funds to bolster its development at low cost.
In 2009, by seizing the opportunity in the capital market, Qi Yumin led the management teams of the group and the Hong Kong-listed company and brought the value added and ROI of state-owned assets in Brilliance Auto to HK$5.6 billion, a move that cemented state-owned holding and dramatically boosted the investor confidence in Brilliance Auto.
According to Qi, in putting Zhonghua sedan business, which was a loss-maker for four years, directly under the group, Brilliance Auto aims to turn it into a powerful business with high competitiveness in 3 years. At the same time, with this kind of operation, it effectively reduced the abnormal cost of Zhonghua sedan business formed in the early period by 1.5 billion yuan. The cost of each sedan fell by more than 2,000 yuan. Not only did it improve the listed company's asset structure, it also paved the way for further capital operation.
