Electric giant seeks higher profits

The decline in China's performance as the second-largest market does not seem to have brought too much pressure on the electric giant, the German Siemens Group.

On the morning of December 11th, in a conference room of the Siemens Group in Beijing, Siemens CEO of Northeast Asia and President and CEO of Siemens (China) Co., Ltd. Cheng Meixuan is checking out a report from Siemens (China) for the past year. Transcripts.

"Our performance in fiscal year 2012 is close to the highest level in the previous financial year, and this is achieved in the context of a slowdown in the macro economy," Cheng Meixi told the China Industry News reporter.

Revenue declined slightly

According to reports, Siemens China's new orders for fiscal year 2012 amounted to 6.04 billion euros, and revenues amounted to 6.35 billion euros, down 3% and 0.6% respectively from the previous fiscal year.

“The performance of FY2012 ranks the second place in the company's operations in China in 140 years. The Chinese market accounts for 8% of Siemens’ global revenue and is Siemens’ second largest overseas market outside of Germany,” Cheng said.

As a world-renowned company in the field of electronic and electrical engineering, Siemens' main business is concentrated in four major business areas: industry, energy, healthcare, infrastructure, and cities. The medical field is the most exciting for Cheng Meixi.

Benefiting from the new round of medical and health system reforms in China, Siemens has achieved remarkable results in the medical business field and achieved rapid growth in China. This year, the 1000th magnetic resonance system of Siemens in the world was rolled out to Shenzhen Siemens Magnetic Resonance Park and sold to Japan, further demonstrating China's important position in the profits of its global medical business. In the energy business area, it established a strategic alliance with Shanghai Electric and established two new joint ventures to further explore the Chinese wind power market.

The infrastructure and urban business areas that were established not long ago also cooperated with some cities in areas such as transportation, logistics, power supply, and energy conservation, targeting China’s urbanization market. The company has provided solutions for rail transit systems in cities such as Chongqing and Dongguan.

“The business of high-speed rail last year was not a small impact on us.” Cheng Meixi said, “We are waiting for the release of high-speed rail tenders in China and we will actively participate. We have confidence in the 2013 high-speed rail project.”

In a financial field that is not well known to the outside world. Siemens Finance Leasing Co., Ltd. has opened 18 offices in China to provide tailored financial services to local Chinese customers and become a useful complement to other businesses.

Create a local value chain

Cheng Meixi said that Siemens has contributed to the sustainable development of China by gradually building a complete value chain covering all aspects of product management, R&D, procurement, production, sales and service.

From fiscal year 2010 to fiscal 2013, Siemens invested more than 400 million euros in the expansion of production and office facilities.

In terms of R&D, as of the end of FY2012, Siemens has established an innovation network with more than 2,300 R&D personnel in China. Compared with two years ago, the number of R&D personnel has increased by 40%. Siemens has 17 R&D centers in China.

Siemens actively promotes S in China. M. A. R. T. (Easy to use, easy to maintain, affordable, reliable and durable, timely listing) innovation, and then in China launched a variety of high-competitive new products designed to meet the needs of local customers in emerging markets.

In the context of the sluggish economic environment, Siemens has further expanded its business presence in China. As of the end of fiscal 2012, Siemens had more than 30,000 employees in China and the number of operating companies rose from 65 last year to 73 this year.

At the same time, the production capacity of the operating companies continued to expand. For example, the new production workshop of Siemens Signal Co., Ltd. for the production of orbital signal equipment and systems was formally put into use in May this year. The new X-ray product building in the medical service field was also held this year. Breaking ground in Shanghai.

In addition, Siemens continuously enhances the overall customer service value and provides Chinese local customers with more value-added services.

It is worth mentioning that, in terms of local procurement, by the end of FY2012, nearly 90% of Siemens' total procurement of raw materials and semi-finished products were purchased locally in China, and this proportion is still increasing.

In Cheng Meikai’s view, to become a local Chinese company, the most important thing is to continuously develop the local value chain in China.

The new plan will increase the intensity of mergers and acquisitions

Cheng Meijun believes that the Chinese economy will continue to rebound steadily. Even 7.5% of GDP growth rate is also admirable compared to other countries. After experiencing difficulties for some time, recent statistics also indicate that China's economy has started to pick up.

It is reported that the President of Siemens Global recently proposed the "Company Plan 2014", which mainly includes reducing costs, strengthening core business, strengthening sales, simplifying processes, and optimizing the infrastructure.

Cheng Meixi said that the ultimate purpose of these measures is to speed up the response to the market, increase flexibility, and ultimately increase business profitability.

To this end, the Group’s China region has adopted “three axes”: playing a synergistic role in business; continuing to strengthen research and development; and increasing mergers and acquisitions. Specifically, the first is to play a synergistic role in several business areas, give full play to the overall advantages of Siemens, and then consolidate the core business, and deepen the localization of business responsibilities to make business decisions have greater flexibility; Second, continue to strengthen research and development, China will give full play to its advantages in talents and speed so as to maintain its innovative advantages and shorten its time to market. Third, it will seek new opportunities in the market and increase mergers and acquisitions to improve its business and achieve long-term development.

“The Chinese market is rejuvenated and we are full of confidence. We are also confident that in the new fiscal year, through effective implementation of established strategic measures, we will continue to strengthen our close support to Chinese customers and achieve a win-win situation. In the industrial sector, Siemens will continue The end-market expansion has led to the launch of an economical CNC controller specifically designed for the Chinese market,” Cheng Meixi said.