22 Years' Battery Customization

Will the new energy car market give Yinlong time to be "blown up" Yinlong

May 17, 2019   Pageview:814

In January 2018, Gongyingshangzhuhaisiqi's employees blocked the debt at the gate of Yinlong. Since then, Yinlong's rumors of arrears of nearly 1 billion dollars have continued to ferment; In May, Yinlong's parks in Handan and Chengdu, Hebei Province, were successively shut down by multiple production lines and a large number of employees left; In July, Nanjing Yinlong Industrial Park was seized by the Jiangsu Provincial Higher People's Court because of the dispute with the owner. The following came to the whirlpool that pushed Yinlong into question: Has the company been trapped in a crisis that can not be extricated? Or to see the appearance is instead.

There's a lesson to be learned. Wotema, another company with similar conditions, was ranked third in the power battery installed capacity in 2017. However, in the six months after the policy subsidy ebb tide, he was caught in a huge debt crisis and had to take a shutdown to limit production. The "holiday for all" measures at the headquarters. Living conditions "life is on the line."

Will Yin Lung follow suit?

From July to August, the reporter of "Chinese Entrepreneurs" visited Yinlong Chengdu and Handan Park. Yinlong in the eyes of the storm was unexpectedly "calm": Chengdu's two vehicle production lines were operating at full capacity -- the newly received 1,500 new car orders were to be completed in September; The Handan Park has just reached a strategic cooperation with a photovoltaic company for energy storage projects.

"People outside may not know about it, but insiders know how the factory works, so there's nothing to worry about. "An employee of Yinlong Chengdu Park said. It is said that some partners saw the report and deliberately came to the Chengdu factory to "explore the truth" and came to the field. Instead, they relieved their concerns.

There are problems.

It's a lot of long overdue accounts receivable, the previously mindless production by management, and the heavy inventory pressure, which has brought a lot of capital pressure. In an exclusive interview with the "Chinese Entrepreneurs" reporter, Laixinhua did not evade the current situation facing Yin Long.

He officially took over the position of President Yinlong at the end of March 2018. Prior to that, Yin Long's senior management made a series of personnel changes and established the full power of the "Gree Department" executives in Yinlong. Laixinhua is also a "old Gree" who has been responsible for production for more than ten years. At the end of June 2017, he went to Yinlong. Prior to this, he served as general manager of Gleidian Zhengzhou Company and operated the local factory. The color. But the mess inside Mr Yinlong is more than he can imagine -- a decade-old company growing up as savagely as a start-up.

"It's like carrying baggage, stepping on mud, and climbing constantly, and paying attention to the pits under your feet. "Laixinhua said that everyone felt pressure when they first arrived at Yinlong. A few days ago, Dongfeng, general manager of Chengdu Park, and the sales team watched "Death Crawl" and felt the same-when carrying a 160-pound person on his back, he did not know where his potential was.

They don't even know how far they're going.

"blown up" silver dragon

"It's a raise. "

With this in mind, Li Peng was delighted to have joined Yinlong in 2014. He had been engaged in civilian work until August 2017 and was responsible for the production of Yinlong Handan Park. That was the beginning of the large-scale personnel adjustment of Yinlong. Mr yin's staff has shrunk from 18000 at the peak to 8000, and his Handan campus alone has "cut" 4000.

There are those who have been dismissed and those who have left voluntarily-in the eyes of many people, Yin Long "has not been comfortable before."

Yinlong's growth miracle began in 2014, followed by an industry feast triggered by government subsidies. In that year, it was called China's "new energy car first year," and the sales of new energy vehicles exceeded 75,000 in that year -- more than twice the total output of the past five years; The "Great Leap Forward" is only the beginning. China's annual sales of new energy vehicles reached 330,000 in 2015. This momentum has made Internet companies who travel thousands of miles a day unable to resist and have joined the car construction team. The "new forces" such as Wei Lai, Singularity, and Xiaopeng all flooded into this period.

Yinlong, who had been dormant for six years, suddenly stood on the "wind mouth."

According to public data, Yinlong's revenue in 2014 was more than 1 billion yuan, and it will be nearly 4 billion yuan by 2015. In 2016, it will have jumped to more than 8 billion yuan. The grassroots employees are also full of energy. "The production line is all started and the production is booming. "One production line is not enough, open a new production line, one park can not be put down, and then open up the next park. Since 2013, Yinlong's industrial parks have begun to "bloom" everywhere. First, Zhuhai, Hebei Wu'an, Shijiazhuang Industrial Park, and then Tianjin, Nanjing, Chengdu, Lanzhou, and Luoyang.

"In the past, production was not based on orders and market demand. It was based on production capacity. How bold people were and how productive they were. "An old employee of Yinlong said.

Yinlong was blown up like this. In an interview in October 2016, Yinlong's former chairman, Weiyincang, said: "At present, the annual production capacity of Yinlong New Energy Commercial Vehicles is 10,000, and it will reach 30,000 vehicles next year. By 2020, it will expand to 100,000 vehicles. Capacity. In fact, before July 2017, Yinlong's mass production of easy-to-produce cars and its inability to sell them, due to the lack of orders and the need to mobilize production capacity, became an idle inventory vehicle -- still a big burden.

This "wishful thinking" growth fantasy is ultimately vulnerable to reality.

Policy soon changed. The Notice on the Settlement of Subsidy Funds for New Energy Vehicles for 2016, issued at the beginning of 2017, states that the total mileage of new energy vehicles purchased by non-individual users must reach 30,000 kilometers(except for special vehicles). At present, new energy vehicles that do not meet the standard mileage should apply for subsidies after they meet the standards.

"In 2015 and 2016, cars are basically going to be subsidized. Many cars do not pay attention to quality. They are made to find customers who can pick up the car. Many customers do not have the ability to operate. This leads to a large number of cars without payables. And no progress payments, just waiting for the subsidy. " said Laixinhua. In the three years from 2014 to 2016, Zhuhai Yinlong declared new energy subsidies of 55.5 million yuan, 1.02 billion yuan, and 2.14 billion yuan, respectively. Under the new regulations, the expected subsidies are like "mirrors."

"This situation is very normal. The policy changes in one or two years, or even half a year. The depot subsidy can not be obtained, and naturally it will also affect the return of suppliers. "Lisonghua is one of Yinlong's suppliers and one of the" creditors. " "We are still supplying Yinlong. New energy is a new industry. The entire industry is like this and the funds are tight. "

The sudden tightening caused Yinlong to fall from the cloud of "false prosperity." It is said that the style of Yinlong has always been "rich and heavy", management in Zhuhai's restaurants to sign orders, executives travel by business class or first class.

"Not by market hematopoiesis, but by capital hematopoietic; The business is financed by capital operations and paid by bank loans. "A former Silver Long executive said.

Unaudited statements showed that as at 31 December 2017, Yinlong had total assets of $31.5 billion and total liabilities of $23.8 billion. In 2016, Gree commissioned a third party to evaluate Yinlong assets. The report showed that most of the land and factories of Yinlong and its subordinate companies are in a mortgage state. Since 2010, Yinlong has made seven capital increases, especially in 2015 and 2016. Frequent introduction of capital. The number of shareholders reached 20. As Moke, founder and president of True Lithium Research, put it, "Yinlong used to hold the technical concept of lithium titanate in the capital market. "

Until I met Dongmingzhu.

In December 2016, after the unsuccessful acquisition of Yinlong by Gree, Dongmingzhu announced that he would invest in Yinlong in his own name. "The company must have a problem, otherwise the founding team will not sell it. "In an interview with a reporter from China Entrepreneurs recently, Dongmingzhu said:" I also realized that there was a problem with the management of Yinlong, but I did not expect it to be so serious. "

Below the iceberg.

The problem of surface exposure is only the tip of the iceberg, and more management of the "black hole" is hidden.

Shenjianyang came to the Yinlong Handan Park in June 2018. The 3200-acre park was officially put into operation in August 2013. It gathered Yinlong's annual power and energy storage battery production line of 850 million Ants, and 3,000 vehicles per year. The vehicle production line of pure electric vehicle production capacity, As well as Yinlong's material business-Northern Titanium Nano Co., Ltd..

"I can't imagine a company this big not doing its basic security. " said Shenjianyang. After investigation, it was found that the management of materials was not standardized, and even there were many cases of self-theft. Some of them had already violated the law. "Security is the gate of the enterprise city. The gate is open. What about management? "

He came prepared. Handan Park is the last "Glyization" park in Yinlong. Prior to this, the management of other parks has been taken over by senior officials of the Gree Department. Laixinhua believes that the earliest and longest operating time of the Handan Park is also the "hard-hit area" of Yinlong's rectification. The problem of internal intermingling is not only beyond his and Dongmingzhu's expectations, but he must have even Wei Yincang was also kept in the dark.

"In fact, Wei often came to the park in the past and managed it fine: a lithium titanate battery has a few grams. Can you drop it again? This will be handled. But still: the following people do not dare to speak the truth, always good news does not report bad news. "Li Peng said.

Yinlong, which was established in 2008, has unwittingly infected with the "big business disease." The local parks that are far from the headquarters are like "information islands." Not only do the parks never have the resources to communicate with each other -- there is no plan to deploy them. New energy vehicles, Crucially, much of the information could not be realistically conveyed to Headquarters. In the end, the general manager stationed in various parks became a local prince -- a big deal to the size of the park. This regulatory framework has become a breeding ground for corruption and chaos, and normative and serious quality management is out of the question.

"Employees do not have quality management awareness, and companies do not have quality management systems. In August 2017, when Yuanliangming came to the Chengdu Park in Yinlong to take charge of car production and technical technology, he even felt that he could not start. There was no quality control process for vehicle production. Before the factory director's production and quality inspection, he took care of it. The referee and player-the vehicle is directly handed over to the customer. Of these, 70 have large and small problems, resulting in high after-sales costs and feedback from the market. The situation in other regions is also similar. From time to time, the vehicles delivered to Zhuhai Bus in 2015 and 2016 have problems, causing dissatisfaction among the citizens and bus companies. These voices have also reached Dongmingzhu's ears.

The former Yinlong executives said that Wei Yincang and Li Dongmingzhu are still very different in the business philosophy. The former focuses on capital, while the latter focuses on products and quality. This disagreement of ideas eventually led the two partners who had "sympathized with each other" to part ways. According to a person close to Dongmingzhu, he told reporters. "Dong also recognized Wei's serious and desperate attitude before, but later The impression of the latter changed. "

A scene in CCTV's "Dialogue" program aired in June 2017 seemed to reveal some clues. At that time, Dongmingzhu asked Wei Yincang to change the common problem in the automotive industry as soon as possible. Wei Yincang replied, "Do your best." But Dongmingzhu immediately returned: "What do you mean by doing the best you can? As the head of the company, it must be(competent). Unless you're not in position. In his position, to seek governance, you must ask your team with the utmost vision. "

In this kind of quiet wrestling, Dongmingzhu has apparently won the recognition of more investors. At that time, a shareholder of Yinlong said in an interview with Caijing that Wei Yincang founded Yinlong and achieved a process from 0 to 1, and from 1 to 100, Dongmingzhu will play a greater role.

Yinlong's internal forces are slowly dividing and the power plate is also being redeployed.

Shortly after the above program was broadcast, Weiyincang resigned as chairman of Yinlong at the end of July 2017 -- and it began at this time. Gree's forces began to slowly take over Yinlong-4 of the 7 vice presidents in the headquarters have Geli background-in addition to Laixinhua, vice president in charge of production and technology, vice president in charge of procurement business, finance, and quality All were replaced by former Gree executives. At the same time, the old forces in the local area are also loosening. Under the new organizational structure, in addition to the flat territorial management within the park, various business lines must also be connected to the headquarters. Production board, marketing board, procurement board and so on must accept the vertical management of the vice president of the headquarters.

For example, for material procurement, the general manager of the park signed the word and must report it to the headquarters collection department. After the latter approves, the park can place an order. In the past, this was a matter that the director of the park could decide. "So some of the factory directors also left because they were in power before and were not only responsible for procurement but also responsible for infrastructure. Now, these conditions will not be met. "This is also what Laixinhua hopes to achieve: When the company is institutionalized and the process is reformed, many people who want to" do things "have no" soil "and will actively leave.

"A person needs to strengthen his muscles, discard fat, and remove tumors. So does a company. He needs to resolutely and quickly cut off harmful tumors. Some fats need to be slowly consumed so that this organism is healthy. "Laixinhua said that after formally taking over the president, he was able to make a comprehensive adjustment, but he still faced great resistance." After all, many old people left behind. "

"A lot of employees feel like they lost his life, they don't understand it, they rebel against it, they even denigrate the company, and I think that's what corporate reform is all about. "Lai Xinhua likens this process to the company's" scraping and healing "and" taking off a layer of skin every day. "

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Shen Jianyang mentioned a small matter. Once he had a physical examination in Zhuhai, he reported the name of Yinlong. The other party listened to him and asked him if he came from Geli. He jokingly told reporters, is there a label on the Gree?

In fact, veterans such as Laixinhua and Shen Jianyang who have been exposed to Geli culture for more than ten years do have an obvious Geli brand, just as Ali defined the qualifications of the staff as "one year incense, three years alcohol, and five years Chen". In a company "brewing" to a certain period of time, the corporate culture has infiltrated these people's speech and behavior.

After Gree executives gained more and more managerial authority, Yinlong also had more changes: The production park began to set up screening plants and publicized the president's ban -- these followed Geli's experience; Such as "quality is produced, not tested," the Glycated slogan has increasingly penetrated into Yinlong's corporate language system; In the first month of Shenjianyang's visit to the Handan Park, he started internal military training. Yangejilv and Yin Long became prudent from the previous extravagance, from the office to the canteen to the staff quarters, and cleaned up a large number of former leading cadres. The "special treatment" enjoyed.

"Many manufacturing concepts and approaches are interlinked. "Laixinhua said, such as quality control, personnel management. This is also a reassuring point for Lisonghua. He often goes to the production parks around Yinlong to see. "To tell the truth, anyone who has debts will be a bit uneasy, but they see that they are really seriously cooperating with the new standards to improve and make products. I thought the company would make it. "

In fact, back 20 years ago, Gree was in a similar situation to Yin Long.

In 1994, when Dongmingzhu was in danger of becoming Geli's operating minister, he faced a "mess": the sales team resigned collectively, the inventory backlog was serious, the "triangular debt" problem was prominent, and the company relied heavily on bank lending. After she took office, she also put the company back on track through team reorganization, system restructuring, and strengthening quality control.

"There is still an essential difference between the two. At that time, Gree's internal management was still good, and most importantly, the external market grew rapidly(since 1995, Gree has become the first in the air-conditioning field), giving internal adjustment and digestion. space. "If the market can not guarantee, the contradiction will be magnified," Dongmingzhu said. "

Yinlong's next priority is to overcome the market problem.

In Moko's view, Yinlong's lithium titanate battery can be said to be one of the best in China and the world. However, this technology itself has application bottlenecks and is only applicable to niche markets. This market does not support Yinlong's current production capacity..

At present, Yinlong's main business is new energy passenger cars. According to data from the China Passenger Car Statistics Information Network, from January to July 2018, Yinlong's market share was 8.15 <UNK>, and it was still quite far from the first Yutong 24.62 <UNK>. gap; However, after the adjustment, Yinlong grew rapidly in July, and sales soared to 927.27 to 565 vehicles, which is a slight difference from the first BYD 578 vehicles(all pure electric buses).

However, even a breakthrough in this segment would not completely improve the market's predicament. Yutong, which ranks first in the field of new energy passenger cars, also faces profit pressure. According to its April announcement, it received the second batch of subsidies for the promotion of new energy vehicles in 2016 from the Zhengzhou Municipal Bureau of Finance. That is far higher than its full-year profit of $4.04 BN in 2016 -- and policy subsidies that have receded or even disappeared altogether will make it harder for companies to survive.

"On the one hand, we must continue to reduce costs and ensure that we can make profits without subsidies; On the one hand, get more new orders and reduce dependence on a single customer and a single business. "Laixinhua told China Entrepreneurs that the most important thing for Yinlong at the moment is to open up sources and economize. At present, Yinlong has formed a new energy industry chain of materials, batteries, energy storage, vehicles, and even charging around passenger cars.

"Dongmingzhu and Gree culture will bring some new weather to Yinlong, but it is not enough to just start with management, but also to make strategic adjustments. "Merko believes that what Yinlong needs to do is not to bind all resources to lithium titanate technology. It should also allocate R&D and production resources to mainstream market technologies such as ternary lithium to occupy a place in the market.

This may still be a too far proposition for the current Yin Long. "For a long time, we have been solving historical problems. We really have to slow down. Now it is a process to ensure that normal orders flow, remove inventory, and return companies to normal development. "Laixinhua told" Chinese Entrepreneurs. "

After all, this is a company that is recovering from a major illness, or Xiangshenjianyang said, and now it is only a transfer out of ICU(intensive care). The recovery situation remains to be seen. "It is true that it is getting better every day. If we can't do it well, it will be difficult for anyone to do it. "

Will the new energy car market give yinlong time?

The page contains the contents of the machine translation.

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