LongyanTV Station: Lonking-Innovation driven and trend bucking
5 March 2015
In recent 2 years, influenced by turbulent international economic environment and domestic macro control, Lonking along with all the other construction machinery enterprises has experienced a sharp decrease in gross sales and accordingly an obvious drop in profit. However, Lonking assessed the situation and braved difficulties, propelling its’ growth in a sustainable and healthy way with innovation. In terms of sales revenue, net profit and operating cash flow, Lonking did much better than those of domestic industry peers, retaining its position in front row in global construction machinery industry. Last year, Lonking Longyan production base reached a 4.125 billion yuan in output value and turned in 305 million rmb tax, which increased 36.8% year-on-year, and surpassed 100 million dollars revenue in export.
The aboved achievements were very impressive compared to that of the industry peers, who were struggling and complaining about the difficulties to do business then.
Mr Qiu Debo told the reporter that Lonking senior executives had had a clear prediction of the domestic industry trendas early as 2011. In response, Lonking has taken a series of effective measures, which includes lessening fixed assets investment, reducing inventory of finished products, processing products and materials, strengthening force on payment collection and cutting expenditures to the lowest level but using limited capital in technology innovation, product R&D, channel maintenance and after sales service.
Innovation is always the source and power of Lonking to continuous development. Technically, it has combined with universities to establish R&D platform to enhance future development and improve its market competitiveness by its all efforts.It also aims to make a breakthrough in R&D and manufacturing for finished products and core parts. In terms of channels, it has stepped up more efforts to open up overseas market by selecting mature and stable products and directional delivering to improve its competitiveness and realize its healthy and sustainable development.