Jinxiang Company: Tapping the Potential in Development


Jinxiang Company: Tapping the Potential in Development


On March 5 this year, I saw in Zhongxiang Jinxiang Auto Half-shaft Company: two large trucks from Hunan Car and Sedan Factory were waiting for pick-up, and the new product EQ140N half-shaft sent to Gucheng Axle Factory had been loaded and ready for shipment, and there was a busy scene inside and outside the workshop .........
This town-run small factory with only 54 people, which started with 2 million in 1993, has developed into a "leader" in the same industry in just six years, with total assets of 21.995 million yuan, working capital of 7 million yuan, producing 102,000 auto half-shafts and 91,500 supporting parts in 1999, achieving sales revenue of 11.25 In 1999, the company produced 102,000 automobile half-shafts and 91,500 supporting parts, achieving sales revenue of 11.25 million yuan and handing over 253,000 yuan to the state. Jinxiang rely on what "green cloud straight up"? "In the adjustment in the development, in the development of potential, self-accumulation, rolling growth". Company manager Dai Zixiang said in one word the reason.
At the beginning of the factory, Jinxiang was engaged in the "single", holding the 140 half-shafts "to eat", and the annual output was only 10,000. In 1995, the company established the idea of "adjusting the development and optimizing the structure In 1995, the company established the idea of "adjusting the development and optimizing the structure", and strived to achieve "people have what I have, people have what I have first". They keenly seized the business opportunity of Dongqi's production of three-ton light trucks and quickly developed EQ1060 and EQ1061 half-shafts, which were successfully matched with Hunan Axle Factory and Henan Xiangdong Machinery Factory. Having tasted the sweetness of adjusting the development, Jinyang extended the development "tentacles" to non-automotive industry, producing half-shafts for loaders and harvesters. At present, there are four series of 13 kinds of products with six enterprises supporting. The director of the Hunan Axle Factory said: "There is no new product that Jinxiang can't get for my factory. This is the strength.
"Last year, we invested 1,500 yuan to implement the forging process transformation, which can save 150,000 degrees of electricity per year, reduce die consumption by 20,000 yuan, save 1,080 hours of work, and increase the direct benefits of nearly 200,000 yuan." In the forging workshop, deputy production manager Liu Jiafu pointed to the red burning forgings, breaking his fingers to count one by one. He told the author: now the production of a half shaft than in 1995 to reduce costs 6.35 yuan, if production and then increase by 30%-40%, the benefits are more obvious, and at least 500,000 yuan a year to save. Jinxiang based on tapping potential and reducing consumption, to achieve "small investment, big income", so that the product unit cost has dropped significantly, the competitiveness is greatly enhanced. At present, they have set up direct sales network in 25 provinces, cities and autonomous regions.

Originally published in China Automotive News, March 13, 2000, seventh edition