As for Lonking (Shanghai) Forklift Co., Ltd., a full-funded subsidiary of Lonking Holdings Limited (“Lonking”), the year 2010 was a crucial period, during which the sales amount of Lonking forklifts was up to 10468 sets, realizing a year-on-year increase of 103%. Based on such a great breakthrough, when making the development plan for the coming five year, Lonking decided to take the production base in Shanghai as the center to build another two large-sized subsidiaries for forklift manufacturing, and meanwhile to establish a sales company and a technological center, aiming at realizing the strategic target of selling 60,000 sets of forklifts by the year of 2015.

•Facing the Fast Growth

Now it came to June, 2011. From January to May, Lonking maintained a fast growth in terms of forklift sales, and the monthly average increasing rate was 110% higher than the same period of last year, soaring up towards the target of selling 20,000 sets of forklifts in the whole year.

From 10,468 to 20,000 sets, Lonking realized a double increase in one year. What a great courage and spirit!

As for this, Lonking (Shanghai) Forklift Co., Ltd. explained explicitly that it was circling around the everlasting theme—to whole-heartedly provide services for all the customers. At present, Lonking (Shanghai) Forklift Co., Ltd. possessed four series and more than two hundred of models including internal combustion forklift, battery forklift, port forklift and warehouse forklift, which was featured with high performance-price-ratio and could meet the various demands of different customers.

As the subsidiary of Lonking Holdings Limited (listed in Stock Exchange of Hong Kong Limited), Lonking (Shanghai) Forklift Co., Ltd. entered the forklift industry in 2006, since then the sales amount increased from the 102 sets at the beginning to 1125 sets in 2007, experiencing a large range. It was noticeable that since 2008, the increasing ratio showed out a leap-forward momentum, from the 2,623 sets in 2008 to 5,018 sets in 2009 and then to 10,468 sets in 2010. From these data as well as the words expressed by the Lonking people, Lonking is right now on the road of developing in a high rate.

Besides the high quality products, Lonking Forklift has been insisted on the principle of relying on talents, controlling the management, pursuing the quality, creating the brand to convince the customers and outstood among the competitors. With refined production equipment and powerful strength on the aspect of technological development research, Lonking (Shanghai) Forklift Co., Ltd. carried out an integrated operating mode in an all round way based on the in-time supply of competitive core parts self-developed and manufactured by the parent company, which added more strong force for the development of Lonking forklifts in the future.

In addition, Lonking Forklift persisted in building up the dealership and establishing a wide marketing and service network for Lonking forklifts in the whole China through strengthening the advantages embedded in product quality, timely service and high performance-price-ratio. It was informed that there were nearly 300 dealers and agents who were all ranked as the key units at the national level, practicing an integrated sales service system including forklift sales, maintenance service and parts supply. The company attached more importance on building the “one-hour sales and service club” so as to lay sound foundation for the Lonking brand. Meanwhile, Lonking established franchised shops for Lonking forklifts and were engaged in improving the marketing shares ratio through normalizing the sales and service network and upgrading the popularity of “Lonking” brand. All these measures would substantially ensure the smoothness of the sales channel as well as the sophistication of the after sales service. 

•More Drive for Uninterrupted development

The forklift industry in China had a development history exceeding 50 years. Especially after entering the new era, the whole industry witnessed a rapid growth and marched into a golden development period, during which the development environment was gradually improved with an enlarging production scale and a variety of product models while the quality of the forklift and service had also been sharply enhanced.

Since 2009, China has become the largest county of forklift manufacturing and sales in the world. However, behind the rapid increase, there still existed a number of problems that could not be ignored, including low level of quality and more fierce competition of the same kind of products, highly influencing the healthy and steady development of the whole industry.

As a star enterprise enjoying a fast development in the forklift industry, Lonking people held their own thoughts. Facing with the complicated market situation, Lonking said, the key of success lied in the correct decision of the leading team in the company and the right control of changes on the market. Aiming at this, Lonking paid more attention on the establishment of marketing channels, development of products, management of the company and the building-up of brand culture.

Lonking Forklift passed down the core values of Large Family, Broad-based Marketing, High Efficiency, realizing the sustainable development based on the company itself. In specific respects, “Large Family” concerned the whole industry chains and reached the goal of win-win; “High Efficiency” looked at the forklift industry with more emphasis on the social responsibility, taking the dedication to create refined logistics equipment as the final aim. As for the management of the company, Lonking kept the sense of “Broad-based Marketing” and cleared the concept that everything was for the sales, after the sales and serving the sales. Through continuous activities of quality improvement, Lonking never stopped the pace of enhancing the reliability of the products so as to establish “one-hour sales and service club” and build up Lonking Forklift brand.

Lonking Forklift had strong sense of social responsibility and spared no effort to search for the opportunities to serve the society, feed back the society and support the development of education and talent cultivating cause. Lonking Forklift sponsored the Modern Logistics Skills Competition 2011 for vocational students groups in the National Vocational Students Skill Competition. When talking about this, the spokesman from Lonking Forklift told the media that it was a sign of Lonking’s dedication to serve and feed back the society and was a new try to consistently support the development of education and cultivation of more talents. 

It has been five years since Lonking started the forklift business. “We have walked steadily for every step and every decision. Although there is still a certain gap between us and the No.1 brands in the industry both at home and abroad, we never stopped our efforts to narrow down the distance,” a superior from Lonking Forklift said, “we believe in the decision capacity of own of our leading team. With the powerful support of Lonking Group, we will do everything better and make a more smooth way for Lonking Forklift Company to march further in a fast and steady way.”

•Looking Forward into the Management for Next Five Years

2011 is the first year of the Twelfth Five-Year plan. The new Twelfth Five-Year plan starts with transfer of developing ways and opening a new page for the scientific development, and requires pushing forward the technological innovation. This is significant in guiding the growth of Lonking Forklift in the future.

On January 1, 2011, Lonking Holdings Limited stated the working requirements to pay more attention on continuously developing, improving, passing down and reforming, pioneering and keeping forging forward. During the period of realizing these targets, Lonking highlight the needs of adjusting the industrial structure and strengthening the force of designing and developing new products, especially fastening the speed of developing the third generation small and medium-sized counterbalanced internal combustion engine forklift and third generation counterbalanced electric forklift, in order to really meet the demands of five-year development strategic plan as well as in a long term based on principles of providing reliable, economical and practical forklifts to present the characteristics of Lonking’s forklifts and to erect the image of Lonking brand. On the aspect of port cranes, Lonking said that the market in China would be considered at the same level of international market, and Lonking oriented on middle and high end products through putting the quality on a higher agenda during the performance design of forklifts, model choice of parts and planning of manufacturing techniques. The company also determined the key product series for research and development, including empty and loaded container stackers, heavy-duty forklifts and loaded container reach stackers; meanwhile, Lonking paid attention to the design of parity products and featured working mechanisms so as to meet the requirements of main markets and specified markets.

Based on the national Twelfth Five-Year plan and the requirements of Lonking Holding Limited, Lonking Forklift made their five-year plan of development. Combining with the second five-year strategic planning during the period of second phase enterprising of Lonking, Lonking Forklift settled down the strategic target of the second five-year planning for forklift manufacturing, and established subsidiary department specifically for forklifts. Besides establishing sales company and technological center, Lonking also established Zhengzhou manufacturing base in Henan Province on the basis of Lonking (Shanghai) Forklift Co., Ltd., and the forklift sales amount of 60,000 sets in five years.

In the same time, Lonking put forward management system of internal costs, starting from the product sources to choose and cultivate the supplier team for Lonking Forklift. The company uninterruptedly improved the quality of purchased parts and continued to promoting the task of quality enhancement in order to speed up the cause of completing the product category and solving the key issues fed back from the market.

In addition, in terms of product research and development, Lonking would have developed more main products—the third and fourth generation of forklifts that had brighter development perspective on the market and could support the company in a relatively long term. As for the making of talent team, Lonking built up a management team which was of high professionalism, enterprising spirit and strong responsibility, laying sound foundation for the fast development of Lonking Forklift.

About Lonking

Lonking Holdings Limited (“Lonking”) started its business in 1993. It has experienced a rapid growth rate (averagely 43%) for more than ten years and now become one of the largest manufacturers of construction machinery in China. Lonking has facilities located in Shanghai, Fujian, Jiangxi and Henan for developing and manufacturing of wheel loader, roller, excavator, forklift, motor grader, agricultural machinery and components. The main product – wheel loader has been awarded as “China Top Brand”. The company has ranked at the first place in the world in terms of sales quantity of wheel loader since 2006. In November 2005, the company got listed on the Main Board of the Stock Exchange of Hong Kong Limited. It is the first case of overseas listing in China’s construction machinery sector.