* ST Jialing bet special models will strive to lose the loss of insurance


Duan Wei, the managing director of *ST Jialing, who suffered losses for two consecutive years due to the industry downturn, stated at the annual general meeting held yesterday that the company has ensured making up losses and increasing profits as a top priority this year, and will take the opportunity to complete the relocation as a whole. Through vigorous product transformation and upgrading, the company will significantly reduce the output of ordinary small and medium-sized motorcycles, increase the proportion of high-value-added products such as military special vehicles, and strive to achieve loss-of-yield protection.


It is understood that, as a veteran listed company under the China Ordnance Equipment Group, the old factory district of *ST Jialing was established during the War of Resistance Period in 1938 and had a production capacity of 2 million motorcycles. It had won the title of "king of Chinese motorcycles". However, the company has recognized the limitations of traditional products, so the production capacity of motorcycles in the new plant area in Sheshan has been substantially reduced to 500,000 to 600,000 vehicles, and the large-displacement of 600cc and above has both "military and civilian integration." The main products are high value-added products, in order to increase product gross profit and reduce losses. Company secretary Zhou Yongqiang said that the new plant is expected to be officially put into production in October this year, when the logistics cost savings alone can reach tens of millions of dollars each year.


“Through years of accumulation, this year’s specialty vehicle business will become an important growth point for the company’s profit contribution.” According to Duan Wei, general manager of the company, the 4X4 and 8X8 light all-terrain vehicles and sleds currently owned by the company have entered volume During the production phase, this year is expected to lead the military to deliver 500 to 1,000 units. In the future, besides satisfying the needs of military equipment, it will also expand into related channels such as public security, armed police, border defense, and forest police. "The biggest problem at the moment is capacity constraints. Therefore, the new plant in Lushan plans to produce 50,000 vehicles per year. By then, the operating income of the company's special vehicle business will account for 1/3 of the total revenue, and the profit contribution will exceed. 70%."


In addition, *ST Jialing also reached a cooperation intention with Honda Motor, and this year will start trial production of light general machinery products targeting high-end agricultural mechanization and municipal city construction, including generator sets, water pumps, and construction machinery. According to the company's plan, the operating income of the general machinery industry will account for 1/3 of the total in the future, thus forming a benign pattern of “three-legged motorcycles, military special vehicles, and high-end machines”.


However, at the shareholders' meeting, the resolution of two related transactions of *ST Jialing was not passed because an individual shareholder from Anhui voted abstained.



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