Zhejiang Auto Parts Enterprises extend industrial chain in many ways

Trainee reporter Li Xin zhejiang is a large automobile parts manufacturing province, the province has a total of more than 7,000 auto parts manufacturing enterprises, in the number of enterprises, production value scale and employment number of the national leading level. However, more than 7,000 enterprises, the size of the auto parts manufacturers only 1670, more enterprises small scale, investment diversification, low concentration.　　In the past two years, the listed companies with benchmarking function in the industry have extended the integration of industrial chains through reorganization, mergers and acquisitions, issuing additional products and entering new energy sources to enhance the core competitiveness of enterprises. Recently, Zhejiang Province, 6 major auto parts manufacturers have announced interim results, the total income of 8.639 billion yuan to achieve business receipts, an increase of 53% per cent, total net profit of 666 million, year-on-year growth of 74%. Among them, the silver round share net profit growth fastest, the first half to achieve sales revenue of 728 million yuan, net profit of 60.31 million yuan, year-on-year growth of 77% and 256% respectively.　　Wanfeng, Wanxiang Qianchao, Ningbo Huaxiang and Asia-Pacific shares also good performance, operating income year-on-year growth of 71%, 71%, 16% and 53% respectively, the net profit year-on-year growth of 109%, 92%, 88% and 49%.　　Most of the company's semi-annual reports show that the main reason for the sharp increase in operating income and profits is the large growth in domestic car sales, which led to an increase in demand in the domestic market, on the other hand, the 2009 export base was low, with the recovery of the global economy in 2010, export orders rebounded. With the introduction of the subsidy scheme of new energy vehicles in domestic pilot cities, new energy vehicles are becoming the hot spot of market chasing. Zhejiang Auto Parts Companies have also launched projects related to new energy vehicles.　　At the same time, more and more parts enterprises in Zhejiang began to consider the way of reorganization or mergers and acquisitions, extend the industrial chain, form a supply system, and through the acquisition of international advanced technology into the International Model of the synchronous research and development system, in order to gain long-term competitive advantage. Taking the Qianchao as an example, the company's future products will revolve around new energy, where new investment projects must be all around the new energy vehicle components need to invest, where the existing products, do not meet the future needs of new energy vehicles, to be phased out.　　Ningbo Huaxiang also demonstrated the commitment to enter the new energy vehicle sector, the proposed investment in Shanghai Huaxiang Auto Parts Co., Ltd., so that the company has the conditions to grasp the latest trends in the new energy automotive industry, have more opportunities to participate in related product research, design development and production. The merger and reorganization aspect, Wanfeng Olympic plan holding Wanfengmo round, extends the business scope from the automobile aluminum alloy wheel field to the motorcycle aluminum alloy wheel field. Ningbo Huaxiang said that it would use the International auto parts industry mergers and acquisitions opportunities in Europe, the Americas to acquire international leading enterprises to complete the global layout. Bank shares, Asia-Pacific shares and Vinriyan are also on the basis of earlier products, actively invest in upstream and downstream related products.