From July 24 to 25, 2011, Zhejiang Xinchai Co., Ltd. held the annual suppliers conference in Xinchang Taitan International Hotel in Zhejiang Province, taking the theme— Scale Determining Space and Quality Determining Future to Build Most Excellent Supplying Chains in China. Nearly 400 people including the representatives of Xinchai’s suppliers in the nationwide, various media and superiors from Xinchai attended the conference.

The supplier representatives and the superiors of Xinchai Co., Ltd. made the thematic speeches and conducted communications with each other under the tenets of cooperation, win-win, quality, efficiency, scale and space. All the attendees actively discussed and exchanged the related information on the conference, covering the key issues and thematic reports such as supplying chains of products, quality and brands of products, high technologies, cooperation and win-win.

On July 24, the Chairman of the Board of Zhejiang Xinchai Co., Ltd. Zhang Defan firstly gave the speech on the conference. In the speech, he indicated that to cooperate and complement and to realize win-win was the target of Xinchai and all the suppliers that never changed. After experiencing the international financial crisis in these two years, Xinchai understood more clearly and deeply on the importance of developing together to realize a win-win situation. As 2011 was the beginning of the twelfth five-year plan when there would be more opportunities and challenges in the future, Xinchai would stick to the theme of improving the product quality and realizing stable increase to continuously enhance the capacity of developing new products and eliminate the gap between the developed countries in the field of engines. Xinchai expressed the hope that the company would cooperate with the suppliers in the future to build the best cooperating and supplying chains in China.

The Vice General Manger Du Shaopeng of Zhejiang Xinchai Co., Ltd. said in the report specialized in product quality and brand that this conference for suppliers provided a great communication platform for the company and suppliers, aiming at enhancing the mutual friendship, cooperation and understanding between the two parties so as to lay sound foundation for the partnership in the future. He conducted elaborate explanation on the four main issues such as purchasing system.

Then, the Vice General Manager Du Ming and Bei Yaming from Zhejiang Xinchai Co., Ltd. made reports specialized in the product quality, brands and technologies respectively.

“The coming tem years will be the golden ten years for manufacturing industry in China, and also the ten years to provide scaled marketing opportunities for Chinese enterprises to pursue higher quality taste and to realize internationalization. It will be the ten years to achieve restructuring of market,” the General Manager Bai Hongfa of Zhejiang Xinchai concluded in the report, “The strategy determines the success. Only clear and unified strategies can take more effective actions and grasp more developing opportunities. Besides, the scale determines the development space. Though the market has provided the scaled developing space, the enterprises shall systematically improve the productivity, enhance the capacity of product development and upgrade the systematic competence for marketing service, sales team, source integration and organization, rather than narrow-mindedly going forward by ourselves. We shall realize that the scale of our company will leave more developing space, and quality determines the future. As for quality, we mean the taste of the enterprise, the characteristics of the managers, morale of all the staff as well as the essence of the products. Only the quality is our force and our future. The execution capacity determines the efficiency, and the competition force for products made in China lies in the price-performance ratio, which in turn lies in the efficiency of an enterprise that is determined by the execution force. These three factors interact with each other, and are indispensable for every enterprise. Moreover, we shall pay more attention to the details of the design, which will determine the profits of the company in the future. We stay in such an industry that has little profit to earn. We are not allowed to have any mistake; otherwise the enterprise will undertake unanticipated loss. We need accumulate more profits to successfully restructure the enterprise, and the details lead the enterprise for greater and faster development in the future.”

In the concluding speech, Chairman of the Board Zhejiang of Xinchai Holding Group Co., Ltd. Zhu Guangwei expressed his gratefulness towards all the suppliers who came to this conference when they were busy with their operation to discuss with us on the development of the company in future. He said that now China stayed in a crucial period of transformation. Undergoing the financial crisis in 2008, the country adopted the policy to increase the sum of financial investment so as to push forward the fast growth of the economy. However, this also led to the dramatic increase in terms of the price of raw materials and the cost of human resources. Against such kind of situation, according to Mr. Zhu, the company was facing with a series of issues including the improvement of product quality and enhancement of the supply service of parts and accessories. “Undoubtedly, this need all of our suppliers to cooperate with us, discussing and solving problems together. We are marching towards the goal of establishing the most excellent supplying chains in China under the prerequisite of win-win and mutual development.”