Key Sources:
China Securities Journal "Shenyang Machine Tool: Net profit of 34.757 million yuan in 2023, a year-on-year increase of 34.95%" 2024.4.17
Xinhua News Agency, "China General Technology Group Reorganizes Shenyang Machine Tool Group and Shenyang Machinery Co., Ltd.", 2019.12.20
Shenyang Machine Tool Co., Ltd. official website "Company Profile" 2019
Douyin Encyclopedia "Shenyang Machine Tool Factory (Reference: Shenyang No. 1 Machine Official Website)"
A screenshot of the specific information is at the end of the article
Preface
Shenyang Machine Tool used to be China's first machine tool enterprise and was known as the "eldest son of the Republic of Industry".
In 2011, it achieved a machine tool sales revenue of 18 billion, surpassing Germany and Japan, ranking first in the world's machine tool industry, but in 2019, it was forced to restructure because of debts of up to 70 billion.
So, why did the former world number one declare bankruptcy and reorganization in just a few years?
China's first machine tool
As an important industrial force in the early stage of the development of New China, the northeast of the mainland made great contributions to the early industrial development of the mainland.
Shenyang, known as the "hometown of China's machine tools", has the first machine tool factory in Shenyang, which is known as the "head of the eighteen Arhats" of China's machine tool industry.
Shenyang No. 1 Machine Tool Factory was built in 1935, and during the first five-year period after liberation, it was listed as a key project of national development, so it has achieved rapid development.
Since the 60s of the last century, the first machine tool factory in Shenyang in mainland China is a famous brand machine tool at home and abroad.
Not only in the technology of lathes, drilling machines, milling machines, and boring machines, it is very advanced, and the first metal national emblem of New China is made by the machine tool of Shenyang No. 1 Machine Tool Factory, which has made great contributions to the development of the mainland.
After decades of development, Shenyang No. 1 Machine Tool Factory is getting bigger and bigger, from the nineties of the last century, after continuous technological transformation and innovation.
Shenyang No. 1 Machine Tool Factory has become the largest machine tool manufacturer in mainland China, and is also a national CNC machine tool research and development base.
In the decades since its establishment, it has provided more than 300,000 sets of metal cutting equipment for the mainland, and has a good reputation in the industry.
In 1993, the merger was officially announced by Shenyang No. 1 Machine Tool Factory, Sino-Czech Friendship Factory and Shenyang No. 3 Machine Tool Factory, after which Shenyang Machine Tool Co., Ltd. was formally established.
And successfully listed on the Shenzhen Stock Exchange in 1996.
It was originally the first in China's machine tool industry, and this time it was a strong combination, and the "Shenyang Airport Co., Ltd." was merged by a number of well-known machine tool factories, so its strength has been greatly increased.
Such a merger, it can be seen that Shenyang Machine Tool wants to impact the world, and wants to make Shenyang Machine Tool a world-class machine tool manufacturing company.
Therefore, after the strength of Shenyang machine tool has increased greatly, what is the level of strength?
Win the world
Since the merger of Shenyang Machine Tool, it has achieved rapid development.
In 1997 after the listing, Shenyang Machine Tool won a major project in the "Ninth Five-Year Key Scientific and Technological Research" CNC machine tool industrialization project.
Therefore, it has become a national key CNC machine tool production base, which is the glory of the local team and the strength of the merger of Shenyang machine tools.
In the same year, the CAK series of CNC machine tools produced by Shenyang Machine Tool became famous.
It was rated as a famous brand product of the machinery industry by the national machinery industry, and in that year, Shenyang Machine Tool completed the transition from ordinary lathes to CNC lathes.
Therefore, Shenyang Machine Tool, which has a forward-looking vision, has moved towards CNC machine tools early, and the total annual output value of CNC machine tools has exceeded 60%.
Since 2000, Shenyang Machine Tool has achieved seven consecutive years of rapid growth, which also represents the merger of Shenyang Machine Tool to achieve its own "cool drama" goal.
After the merger, Shenyang Machine Tool not only increased its sales revenue by 11 times, but also increased its output by 11 times, and its profit increased by 11 times!
It's like a 100-square-meter house that was suddenly replaced by a 1,100-square-meter mansion.
However, Shenyang machine tool has not expanded, and it is still developing steadily, after all, there is still some distance from the goal of "the world's first".
So in 2004, the annual sales of Shenyang machine tools exceeded 50,000 units, and the high-end product "CNC machine tools" in the machine tools sold more than 6,000 units.
Therefore, because of its super technology and high sales, Shenyang Machine Tool ranks first in the domestic machine tool industry all year round.
Later, due to the very advanced technology of Shenyang machine tool, it began to enter the core manufacturing field of mainland industry, not only for ordinary automobiles, but also for national defense and military industry, aerospace field to provide high-end CNC machine tools.
It is precisely because of the innovation in technology that it entered the field of CNC machine tools early.
More than 70% of the CNC machine tools in the core manufacturing areas of key industries in the mainland are provided by Shenyang Machine Tool.
Think that's good enough?
What's more, the track of the first Shanghai maglev train in the mainland is also provided by Shenyang Machine Tool for processing production lines.
You must know that participating in this world-class project of maglev train represents the R&D and manufacturing level of Shenyang Machine Tool in the field of machine tools, which has belonged to the world's advanced level.
And also successfully helped the mainland automotive industry to break the monopoly!
Shenyang Machine Tool provided Chery Automobile with China's first production line of four engine blocks and cylinder heads, successfully helping Continental Automobile break the ability of foreign countries to monopolize this technology.
This is the most core engine technology in the automotive industry, which has been successfully broken by Shenyang Machine Tool and Chery!
Subsequently, the speed of development of Shenyang machine tool is beyond imagination.
As a local company, sales peaked in 2011, surpassing Japan and Germany and becoming the world's No. 1 in the machine tool industry.
Not only that, after entering the era of intelligence, Shenyang Machine Tool began to develop towards intelligent machine tools!
Everyone also knows that the development of an enterprise must be inseparable from people!
So, what is the reason why Shenyang machine tool is developing so fast?
Fight for the rise of technology
That is the absolute core of Shenyang machine tool "Guan Xiyou".
Guan Xiyou graduated from Tongji University in Shanghai in 1988, which is a 100% high-end talent!
But Guan Xiyou did not choose to find a relatively "comfortable" job.
Instead, he chose to become a "front-line technical employee" and strive to shine on the front line.
And the name of the factory he entered was "Sino-Czech Friendship Factory", that is, the factory that was to merge with Shenyang No. 1 Machine Tool Manufacturing Factory in a few years.
Guan Xiyou, who graduated in 1988, worked in the Sino-Czech Friendship Factory for five years.
The time came to 1993, when Shenyang No. 1 Machine Tool Factory, Sino-Czech Friendship Factory, and Shenyang No. 3 Machine Tool Factory officially announced their merger.
Guan Xiyou has been a very good front-line technical worker for five years, and when Shenyang Machine Tool was established, he was given the opportunity to go to Japan for training.
And this opportunity to go to Japan for training completely changed Guan Xiyou's fate!
Guan Xiyou and his colleagues, who went to Japan for training, were first shocked not by Japan's industrial technology at that time, but by the level of consumption!
Because of their limited spending power, they are struggling to pay for accommodation and breakfast in Japan.
However, after visiting the Japanese industrial lathe technology, Guan Xiyou felt the gap.
In fact, it is not that Japanese things are too expensive, but that China's consumption power in the 90s was much lagging behind that of Japan.
Not only the consumption capacity, in the technology of lathes, Japan's lathe technology can completely achieve a "dimensionality reduction blow" to the lathe technology of their factory!
Therefore, Guan Xiyou made up his mind that even if this training is hard and difficult, he must learn something to go back, and want to change the status quo of China's backward lathe technology!
After all, Guan Xiyou, who came back from training, is still just a front-line employee, so he can only do his job well.
But Guan Xiyou, who came back from his studies this time, used his experience and technology to easily solve a technical problem that he had never found before.
At this point, Guan Xiyou's fate gear began to turn, because of his excellent performance and his unremitting efforts, he has achieved the director of the Sino-Czech Friendship Factory under Shenyang Machine Tool at that time.
Later, in 2002, he became the general manager of Shenyang Machine Tool Group, so Guan Xiyou definitely vigorously restructured the current machine tool.
Increase the research and development of CNC machine tools, especially in precision CNC equipment and systems, not only to achieve the leading position in technology, but also to improve the treatment of employees while increasing sales.
After continuous efforts, Shenyang Machine Tool became the world's first in 2011!
Obviously a thriving state, why Shenyang Machine Tool announced bankruptcy reorganization in just a few years?
The fall of the world's first machine tool
In fact, this also has something to do with the "foresight" of Shenyang machine tool.
After Guan Xiyou returned from a visit abroad, he began to develop "intelligent machine tools".
Therefore, Guan Xiyou invested in an "intelligent machine tool research and development team" in Shanghai.
After receiving an investment of 1.15 billion, the team finally developed an intelligent machine tool in 2012, that is, the "I5 intelligent machine tool", which is known as "the machine tool of the world's industrial future".
Model I5m4
However, with the sales of Shenyang machine tools, there is no problem, but as the market becomes more and more intense, the profits of machine tools are getting lower and lower.
And with the development of the market, Guan Xiyou, who is a technician, may not be so good at management, and his control and distribution of funds may not keep up with the current rhythm of the market and the actual situation of his own company.
However, the intelligent machine tool must be developed and manufactured, and I wanted to rely on this I5 intelligent machine tool to get high returns.
However, the i5 was very low in use at the time, so it was difficult to recover the cost, so it was leased.
I5T3
However, the form of leasing cannot quickly return the funds, and if there is a problem on the customer's side, it is easy to have bad debts and dead debts.
In this way, it is equivalent to piling up the manufacturing cost to itself, and it is increasing the capital demand and financing pressure of Shenyang Machine Tool.
As a result, since 2012, Shenyang Machine Tool has been in a state of loss, facing the blow of the market and bank debts.
Although the revenue looked high before, the company's operating costs were also large, and then Shenyang had a series of problems in the financial summary.
It seems that the turnover and profit are not bad, but by 2019, the debt ratio has reached more than 78.9 billion.
It is already in a state of insolvency, and in 2019, after various liability statistics of Shenyang Machine Tool, Shenyang Machine Tool with total assets of about 18.5 billion yuan, but its liabilities are much higher than its own assets.
As a result, Shenyang Machine Tool announced its restructuring in 2019, and was later acquired by China General Technology.
Although the restructured Shenyang Machine Tool does not have the previous glory, the debt has also been reduced a lot.
According to the annual report released by Shenyang Machine Tool in 2023, the revenue in 2023 will be 1.5 billion yuan and the profit will be 34.76 million.
epilogue
Shenyang Machine Tool once became a supergiant in the machine tool industry, but under the influence of unfavorable business and market environment, it finally fell off the altar.
However, after the reorganization, Shenyang Machine Tool has also begun to transform and upgrade, developing new products such as industrial Internet, industrial robots, and industrial services to adapt to market changes and needs.
I hope that this former machine tool boss can regain its strength and create brilliance!