Chen Hong: Chairman of the board

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    Windy
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    Chen Hong: Chairman of the board

    Post by Windy on Wed Jun 25, 2014 7:19 am


    Chen Hong opener to make up the short board technology


    June 19, Chen Hong for the first time in his capacity as chairman of the board attended SAIC ( quotes , interrogation ) Company Limited 2013 Annual General Meeting. Expectations, Chen Hong latest news for investors SAIC technological innovation.

    According to the plan, SAIC SAIC decided to open a Silicon Valley venture capital firms in the United States (the "Investment Company"), as SAIC in the United States a "window" in order to grasp the world's latest technological developments; while in China, SAIC plans to set up a prospective study hospital.

    SAIC new leadership Chih-Hsin Chen and Chen Hong, president of SAIC SAIC old children are. Chen Hong Chih-Hsin Chen, 53, and 55, in SAIC's career more than 30 years, SAIC has gone through the entire process from small to large, and during their mandate, SAIC has not faced big problems, but how stronger.

    Today, two men were questioned investors, SAIC nearly eight years to build its own brand, is still not profitable, SAIC in the high end is still not achieve a breakthrough. A joint venture enterprise mainly rely on, not a great company.

    "Enhance the core competitiveness of the core is to improve the innovation capacity." Chen Hong said. And through a series of technical field layout, Chen Hong is technically no longer wish to SAIC followers breaking technology to the essay as their own brands.

    Questioned the "daughter money, son deficit"

    Although SAIC last year hit a new high performance, for the first time to face investors, Chen Hong felt no pressure. Shareholders' meeting on June 19 in the beginning, Chen Hong has exposure to investors in torture.

    Investors that SAIC's stock is significantly undervalued, because although it is a good company SAIC, but not a great company, big but not strong, independent brands in particular, the development is not satisfactory that SAIC should have a sense of urgency and a sense of crisis .

    Price of less than $ 15 SAIC (600104) dividend per share last year up to 1.2 million, more than 9% dividend payout ratio, setting a record high. From the terms of the scale, nearly 67.3 billion last year, SAIC's sales revenue, Fortune 500 103, compared with a 27 before upgrading. And SAIC have reached the world automotive industry, the level of the top ten.

    But SAIC's competitive advantage is mainly reflected in several joint automobile companies. 2013, SAIC continued reelection passenger 500 sales over 5.1 million, but its own car brand in SAIC less than 5% of total sales.

    SAIC joint ventures and investors will own brand profits rainbow night situations, metaphor for "money by his daughter, his son was losing money."

    SAIC brand started late, investment is not small, and by virtue of differences in localization into the high-end market, the first five and a half SAIC brand quickly reach 200,000. However, the independent brand in 2007 and now has nearly eight years, but still a loss, and Chih-Hsin Chen had several plans put forward earnings, raised 10 million in 2012 and 2013 profit target raised 50 million profit target, eventually, with Profit Plan missed.

    In addition, SAIC's product mix is ​​also quite let investors worried. SAIC is currently focused on sales of 350 A-class car, in addition, including the Roewe 550,750,950 sales are not optimistic, and the higher up the more difficult to break.

    On the contrary, in recent years, Changan, GAC and other independent brands rising star, but the rapid rise, to catch up. Competitors already have issued gauntlet: Changan plans to reach 3.2 million in 2015, a market share of 16.67%. The Guangzhou Automobile Chi Chuan, listed since 2010, has begun to profit last year, GAC has also developed a plan to win this year plans to achieve 135,000, 15 years to reach 200,000, up 500,000 for 17 years, in 2020 amounted to 1,000,000 .

    "Do not own brands, sales and large did not." What hindered the development of SAIC? Investors have questioned SAIC incentive problems, hope SAIC exciting launch equity incentive and employee stock ownership management policy as soon as possible.

    "Elderly" encountered new problems

    Investors face torture, Chen Hong behaved very calm. In fact, SAIC officially took over as chairman less than a month, Chen Hong namely launched a U.S. tour. Chen Hong and Silicon Valley PE established contact, and met with several executives, including Fisker president of emerging industries, including, for the future, Chen Hong is an enlightened approach.

    Analysis of the current problems encountered by SAIC, Chen Hong aware of the challenges faced by growing their own brands. The first challenge comes from the industry itself. Haze, congestion - when these social problems will crop up on the car companies, more than just build cars so simple, but have higher requirements. Automotive companies must go to find alternative energy sources, the development of new energy vehicles; same time, to follow the trend of development of the Internet, to develop a new generation of smart cars, these traditional automotive industry, are serious challenges.

    Second, from the consumer challenge level. Changes in consumer demand, consumer car concept, with a car and transition from a one-stop travel solution. This means that the auto companies in addition to selling cars, consumers should consider car experience, and provides a one-stop travel experience to meet consumer-related services.

    The third challenge comes from cross-border. Google's driverless Apple Microsoft a lot of application software development, a number of IT companies have been trying to make cars, the future of the automotive industry who led the traditional car companies must consider and respond to.

    "SAIC brand long way to go." Chen Hong emotion. Sitting on the domestic auto companies "NO.1" position, SAIC have to consider these challenges from industry and targeted to early deployment, in order to continue to stay ahead. At the same time, SAIC will have to face the pressure of reality. Own brand squeezed more and more by the market a few years ago, a joint venture brands in order to maintain high profits, are generally introduced more than 10 million products, but now, international brands have entered the market to 10 million or less.

    SAIC president Chen Hong Chen Zhixin and had a history of previously served as general manager at Shanghai GM and Shanghai Volkswagen, fully appreciate, just eight years less than the history of independent brands, to the century-old GM and Volkswagen, as indeed have great difficulty . Especially in today's market environment.

    Starting from the technical innovation policy agenda

    How SAIC to develop next? Although facing difficulties, but apparently, Chen Hong is well prepared. "SAIC innovative reforms to create an internationally competitive and international influence of Transnational Automotive Group's goal still firm to go on." 陈虹坚 be said that, while inside, SAIC will determine its own brand as a top strategy for the sustainable development of SAIC .

    Before analyzing the path trodden own brand, Chen Hong think the key issue SAIC brand has not profitable enough to be a single product on a scale. Currently, SAIC Roewe, MG two brands have been across the board layout in the market segments, however, be recognized by consumers, can scale the amount of product is not much in the proportion of sales of SAIC's own brand, the higher up the more sales poor, SAIC Roewe, MG market advantage only in Class A and A0-class market, access to A + and B-class car market products, and sales did not meet expectations. Roewe 950,750 contribution to sales is minimal.

    "SAIC's high-end road bound to stick." Chen said. SAIC's line of high-end positioning is not wrong, if not start in high-end, SAIC brand now more precarious. However, the current SAIC brand brand influence is still relatively weak, and talk alone can not solve this problem, but also on live ammunition.

    "Technically, multinationals do not just own brand followers." Chen Hong said. Only to become the industry leader in technology, has the ability to compete with the core technology and innovation, in order to be considered for the strength of consumer brands, high-end road SAIC will go more smoothly.

    Silicon Valley is an important new global technology invention, the investment company SAIC is an important step to enhance technological innovation. In China, the forward-looking Institute established the next 8-10 years is the main research new technology research and development.

    SAIC Technology Center, SAIC will become technical support future development. Technically, SAIC plans a total investment of 45 billion yuan in the "Twelve Five". Among them, the technology center will play most all of the technology center, and also to speed up the establishment of forward-looking technology centers, research new technologies with future industry leadership.

    Meanwhile, SAIC will seize the future of new energy vehicles as a technical high ground opportunities. After the new energy vehicles onto the market, the next stage, SAIC new energy to achieve commercial operation, the upcoming new energy technologies configured to do different engines different product platforms. "Twelve Five", SAIC investment in new energy vehicles, will have invested 20 million yuan based on plans to cast six billion yuan.

    In vehicle networking technology, SAIC will continue to invest 200 million to 300 million yuan, to expand inkaNet3.0 platform, keeping the car networking lead. Chen Hong proposed to the Internet simultaneously thinking into the traditional automotive industry, so SAIC transition from one car manufacturer to a full range of automotive service provider.
    Source: http://finance.jrj.com.cn/people/2014/06/25004117478272.shtml
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    patpending

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    Re: Chen Hong: Chairman of the board

    Post by patpending on Wed Jun 25, 2014 3:03 pm

    Investors that SAIC's stock is significantly undervalued, because although it is a good company SAIC, but not a great company, big but not strong, independent brands in particular, the development is not satisfactory that SAIC should have a sense of urgency and a sense of crisis .

    Price of less than $ 15 SAIC (600104) dividend per share last year up to 1.2 million, more than 9% dividend payout ratio, setting a record high.

    Worrying again, these statements (not argued against) that SAIC is a mature business which should only be measured on its cash yield - as though it doesn't have much of a use for retained earnings and could not invest the money to achieve a return much above the risk-free rate.

    Countering this by concentrating now on EVs and Silicon Valley makes no sense (especially not while upping the dividend!).

    That way lie not the Toyota Prius and Casio FX-83 but the Sinclair C5 and Sinclair Cambridge. Wink

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