Jiangmen Jinling Group Co., Ltd., the first company that started washing machines in the domestic market with washing machines, has developed into a national first-class enterprise with strong technical and economic strength, 83 key large-scale enterprises in Guangdong Province, and Jiangmen after more than 20 years of development. One of the star enterprises in the city. “The household appliances market basically saturated after 1995. It is constantly relying on technological improvements to have a competitive advantage in the market.†As a traditional household electrical appliance company, Jin Ling has constantly changed in a complex international and domestic situation. In 2005, Jinling Group was involved in the television industry and put into production of LCD color TVs. In 2009, it entered the photovoltaic industry to produce and sell solar cell materials, solar cells, and solar cell modules. Recently, due to the influence of domestic and foreign markets, the PV industry has experienced significant fluctuations. What is the current status of development of the Jinling Group in the photovoltaic industry and LCD TV industry? Recently, Pan Maoxuan, chairman and general manager of Jiangmen Jinling Group Co., Ltd., received an exclusive interview.
Jiang Pan Jinling Group Co., Ltd. Chairman and General Manager Pan Yixuan 1 calls for more space for solar energy development Q: Pan Zong, Jinling Group's solar cell project has been officially put into production in 2009. Last year, the company plans to build on the original solar cell production line. On the other hand, a new production line was launched so that the two production lines can achieve an annual capacity of 60 MW. I do not know whether the second production line has been put into production? What is the company's future development plan for solar energy projects?
Pan Yuxi asked: At present, we only put into production a production line with an annual capacity of 30 megawatts. We have planned to build 10 production lines in 5 years and achieve a production capacity of 300 MW. It has become one of the largest solar manufacturers in the PRD. We are now working hard in this direction. To achieve this goal, we also need a healthy market environment; I hope the country will continue to increase support and give the solar photovoltaic industry greater room for development.
Question: As a representative of the National People's Congress, you have also been calling for more development space for the solar and wind power industry.
Pan Yuxi asked: At present, China's installed capacity of solar energy only accounts for 1% of the country's total installed capacity of electricity, wind power installed capacity accounts for 4%. With such a low installed capacity, most of our solar energy products are forced to export. This is not a normal phenomenon. Regardless of the diversity of energy supply or the national energy security, the market space for solar energy and wind power should be appropriately increased. In my opinion, photovoltaic power generation accounts for only 10% of the total installed capacity of the country's electricity. It is only reasonable that it will benefit the technological progress of the solar photovoltaic industry and contribute to the country's energy conservation and emission reduction.
The state can also use subsidies to encourage businesses and families to use solar photovoltaic power generation and encourage the State Grid to purchase electricity from photovoltaic systems until the solar photovoltaic industry is better developed.
Q: At present, how are the sales of solar cells produced by the company?
Pan Yuxi asked: The main markets for our products are in Europe and the Middle East. Due to the global financial crisis, the current export situation is not optimistic. Because at present in China, 90% of solar energy products are sold abroad, solar energy projects can only dig deep into the domestic market to help the industry continue its rapid development.
Q: As an appliance company, does Jinling consider the solarization of household appliances?
Pan Yuxi asked: The solarization of household appliances is a very broad area. I have been engaged in the home appliance industry for more than 30 years. The focus of the solar industry is to try to solarize home appliances. Today, the company has made the first solar-powered exhaust fans. However, it has not yet been mass-produced. Currently, it is doing research and promotion prior to launching the market, hoping to meet our expectations.
2 There is no question of "reshuffle" in the photovoltaic industry Q: In recent years, the development of new energy sources in the world has become extremely hot and the development of the global photovoltaic industry has been singing all the way. Entering 2011, this situation does not seem to be optimistic. The global photovoltaic industry has entered the adjustment period. Some media reports pointed out that before, the domestic investment in the solar photovoltaic industry rose into a surplus. At present, there has been an excess of production capacity. How do you view this issue?
Pan Yuxuan asked: The main reason for the photovoltaic industry entering the adjustment period is not the overcapacity in this industry. It is due to the impact of the European debt crisis. The demand in European countries has been reduced and the government has slowed the support to enterprises. Therefore, the foreign solar photovoltaic market is relatively calm, but this is only Temporary phenomenon.
Question: You mentioned just now that the international market for solar photovoltaic industry is relatively calm. So, what is the prospect of the development of this industry this year and will it be better?
Pan Yuxi asked: As far as the data we have, there are no signs of a rebound at the bottom. This year, the entire European economy is not very good, and the US economy has not significantly recovered. Therefore, the export situation this year is not clear. However, I think this is not the industry itself. It is due to the international financial crisis. It is only a temporary problem. After this period of crisis, the industry is still promising.
Q: It is reported by the media that last year, China's photovoltaic industry was affected by this, and some solar photovoltaic companies were shut down. In the next 2-3 years, the solar photovoltaic industry will have a “shuffleâ€. What do you think about this issue?
Pan Yuxi asked: I think there is no "shuffle" issue. The so-called "shuffle" means that the supply of products exceeds demand, the market is mature, market demand will not grow, and companies must compete in terms of costs, management, and technology. This led to the "shuffle." Currently, the application of solar photovoltaic products in the world is not widely used. The proportion of solar photovoltaic power generation in the world is very low, and it is less than 2% of the total power generation. Therefore, the photovoltaic industry does not have the problem of shuffling. The photovoltaic industry market is not yet mature. After this round of international financial crisis, the market will continue to develop.
3 The transformation and upgrading of traditional industries is an inevitable question: As a traditional household electrical appliance enterprise, how does Jinan Group view the upgrading and transformation of traditional industries?
Pan Yuxi asked: With the economic development of a company or region, there will inevitably be a situation in which the cost factor of productivity is incompatible with the original industry. It is therefore necessary to choose a new industry form. Therefore, the transformation and upgrading of traditional industries are inevitable. Not only is Jinling, all companies, and even the sunrise industry, in the competitive environment of the market, it will inevitably occur one day when market saturation occurs, and then the problem of industrial upgrading and transformation will be realized. This is an economic law. The home appliance industry was basically saturated after 1995, relying on continuous improvement in technology and a competitive advantage in the market.
Q: At present, what is the situation of Jinling Group's technological improvement?
Pan Yixuan asked: This year we have introduced frequency conversion technology in terms of technical improvement. Compared with non-inverter household electrical appliances, the province's energy consumption has reached 50%, which is in line with the needs of energy conservation and environmental protection. In addition, the frequency conversion technology can also promote the application of some new technologies, such as variable frequency compressors, and also bring about the development of new supply parts.
Q: Has the group's inverter technology matured? How much can these new products account for the total sales of the company?
Pan Yu-hsuan asked: We all have products that produce inverter technology, in addition to inverter washing machines, and inverter air conditioners. This year we hope that this new frequency conversion product will account for 50% of the company's total sales of home appliances.
4 Constantly pursuing the application of new technologies Q: Your company has already started producing LCD TVs in 2005. What is the current status of the development of LCD TVs?
Pan Ji-hyun asked: In terms of LCD flat-panel TVs, we are constantly making technical improvements. We are mainly producing backlight LCD TVs this year. In the future, LED TV backlighting systems will mainly use this technology and consume less energy. It turned out to be the LCD. Now it is mainly doing LED. This year, the output of LED TVs is planned to exceed half of our color TV production. The LCD will be slowly replaced by LEDs, which will save energy and improve the picture quality of LCD flat-panel TVs.
At present, the sales of our LED TVs are good, and orders for the first quarter of this year are almost full. Products are mainly exported, with markets in the Middle East, South America, Australia, and North America. LED TVs have completely replaced CRT's traditional fluorescent tube televisions and have great potential for development in foreign markets.
Q: In terms of LED color TV, can we support the expanding market share in staffing and technology investment?
Pan Yuxi asked: We are very focused on technical investment in this area, and we have a dedicated R&D department to complete this task. On the hardware side, we cooperate with our collaborative factories; on the software side, the R&D department designs the software we require, and then cooperates with related IC factories, constantly pursuing new technologies and applying them to our products.
5
Q: At present, the home appliance giants, Midea and Hisense, have invested in factories in Jiangmen, what impact will they have on Jiangmen’s home appliance industry?
Pan Yuxi asked: There are more related industries gathered in Jiangmen, which will have a cluster effect. First of all, it is possible to gather related facilities and logistics distribution through an industry. This will reduce the manufacturing costs of the entire industry. I think this is a good thing. Second, the gathering of industries brought in more talents, whether skilled workers or R&D personnel. It is of great benefit to improve Jiangmen's speed of development and scale of development in this industry. Once again, there is also a good sale of the product. The concentration of industries allows customers to have more choices in Jiangmen. Finally, the more industries there are, the better visibility of Jiangmen City has been.
Q: Just now you mentioned the gathering of talents. Hisense and Midea will need a large number of skilled workers in the initial stage of production. Are you worried about the loss of skilled workers or skilled personnel in your group?
Pan Yuxi asked: I am not worried about the company's talent being taken away by other companies in Jiangmen. Each company has its own advantages. There are many factors influencing the flow of talents, not only because of remuneration, but also the foundation of the company, the development space, and so on. I am not worried that because there are more companies in Jiangmen, our company’s talent will be lost.
In addition, in the short term, the formation of the cluster effect will have an impact on the loss of talent in the local industry in Jiangmen. However, in the long run, the impact should not be great. Because companies also continue to train, reserve talent, there will be no great loss. New skilled workers will continue to supplement.
Q: For the new home appliance companies, has Jinling Group reassessed the home appliance industry in Jiangmen? In order to propose corresponding development strategies, for example, talents should make relevant reserves?
Pan Yuxi asked: Our company also regularly trains talents and establishes a mechanism for people to get opportunities for improvement. The market is open and the labor force is also mobile. As long as companies continue to develop and become competitive in the market, they can find suitable talents and skilled workers. To manage your own business is the most fundamental way to attract talent.
Jiang Pan Jinling Group Co., Ltd. Chairman and General Manager Pan Yixuan 1 calls for more space for solar energy development Q: Pan Zong, Jinling Group's solar cell project has been officially put into production in 2009. Last year, the company plans to build on the original solar cell production line. On the other hand, a new production line was launched so that the two production lines can achieve an annual capacity of 60 MW. I do not know whether the second production line has been put into production? What is the company's future development plan for solar energy projects?
Pan Yuxi asked: At present, we only put into production a production line with an annual capacity of 30 megawatts. We have planned to build 10 production lines in 5 years and achieve a production capacity of 300 MW. It has become one of the largest solar manufacturers in the PRD. We are now working hard in this direction. To achieve this goal, we also need a healthy market environment; I hope the country will continue to increase support and give the solar photovoltaic industry greater room for development.
Question: As a representative of the National People's Congress, you have also been calling for more development space for the solar and wind power industry.
Pan Yuxi asked: At present, China's installed capacity of solar energy only accounts for 1% of the country's total installed capacity of electricity, wind power installed capacity accounts for 4%. With such a low installed capacity, most of our solar energy products are forced to export. This is not a normal phenomenon. Regardless of the diversity of energy supply or the national energy security, the market space for solar energy and wind power should be appropriately increased. In my opinion, photovoltaic power generation accounts for only 10% of the total installed capacity of the country's electricity. It is only reasonable that it will benefit the technological progress of the solar photovoltaic industry and contribute to the country's energy conservation and emission reduction.
The state can also use subsidies to encourage businesses and families to use solar photovoltaic power generation and encourage the State Grid to purchase electricity from photovoltaic systems until the solar photovoltaic industry is better developed.
Q: At present, how are the sales of solar cells produced by the company?
Pan Yuxi asked: The main markets for our products are in Europe and the Middle East. Due to the global financial crisis, the current export situation is not optimistic. Because at present in China, 90% of solar energy products are sold abroad, solar energy projects can only dig deep into the domestic market to help the industry continue its rapid development.
Q: As an appliance company, does Jinling consider the solarization of household appliances?
Pan Yuxi asked: The solarization of household appliances is a very broad area. I have been engaged in the home appliance industry for more than 30 years. The focus of the solar industry is to try to solarize home appliances. Today, the company has made the first solar-powered exhaust fans. However, it has not yet been mass-produced. Currently, it is doing research and promotion prior to launching the market, hoping to meet our expectations.
2 There is no question of "reshuffle" in the photovoltaic industry Q: In recent years, the development of new energy sources in the world has become extremely hot and the development of the global photovoltaic industry has been singing all the way. Entering 2011, this situation does not seem to be optimistic. The global photovoltaic industry has entered the adjustment period. Some media reports pointed out that before, the domestic investment in the solar photovoltaic industry rose into a surplus. At present, there has been an excess of production capacity. How do you view this issue?
Pan Yuxuan asked: The main reason for the photovoltaic industry entering the adjustment period is not the overcapacity in this industry. It is due to the impact of the European debt crisis. The demand in European countries has been reduced and the government has slowed the support to enterprises. Therefore, the foreign solar photovoltaic market is relatively calm, but this is only Temporary phenomenon.
Question: You mentioned just now that the international market for solar photovoltaic industry is relatively calm. So, what is the prospect of the development of this industry this year and will it be better?
Pan Yuxi asked: As far as the data we have, there are no signs of a rebound at the bottom. This year, the entire European economy is not very good, and the US economy has not significantly recovered. Therefore, the export situation this year is not clear. However, I think this is not the industry itself. It is due to the international financial crisis. It is only a temporary problem. After this period of crisis, the industry is still promising.
Q: It is reported by the media that last year, China's photovoltaic industry was affected by this, and some solar photovoltaic companies were shut down. In the next 2-3 years, the solar photovoltaic industry will have a “shuffleâ€. What do you think about this issue?
Pan Yuxi asked: I think there is no "shuffle" issue. The so-called "shuffle" means that the supply of products exceeds demand, the market is mature, market demand will not grow, and companies must compete in terms of costs, management, and technology. This led to the "shuffle." Currently, the application of solar photovoltaic products in the world is not widely used. The proportion of solar photovoltaic power generation in the world is very low, and it is less than 2% of the total power generation. Therefore, the photovoltaic industry does not have the problem of shuffling. The photovoltaic industry market is not yet mature. After this round of international financial crisis, the market will continue to develop.
3 The transformation and upgrading of traditional industries is an inevitable question: As a traditional household electrical appliance enterprise, how does Jinan Group view the upgrading and transformation of traditional industries?
Pan Yuxi asked: With the economic development of a company or region, there will inevitably be a situation in which the cost factor of productivity is incompatible with the original industry. It is therefore necessary to choose a new industry form. Therefore, the transformation and upgrading of traditional industries are inevitable. Not only is Jinling, all companies, and even the sunrise industry, in the competitive environment of the market, it will inevitably occur one day when market saturation occurs, and then the problem of industrial upgrading and transformation will be realized. This is an economic law. The home appliance industry was basically saturated after 1995, relying on continuous improvement in technology and a competitive advantage in the market.
Q: At present, what is the situation of Jinling Group's technological improvement?
Pan Yixuan asked: This year we have introduced frequency conversion technology in terms of technical improvement. Compared with non-inverter household electrical appliances, the province's energy consumption has reached 50%, which is in line with the needs of energy conservation and environmental protection. In addition, the frequency conversion technology can also promote the application of some new technologies, such as variable frequency compressors, and also bring about the development of new supply parts.
Q: Has the group's inverter technology matured? How much can these new products account for the total sales of the company?
Pan Yu-hsuan asked: We all have products that produce inverter technology, in addition to inverter washing machines, and inverter air conditioners. This year we hope that this new frequency conversion product will account for 50% of the company's total sales of home appliances.
4 Constantly pursuing the application of new technologies Q: Your company has already started producing LCD TVs in 2005. What is the current status of the development of LCD TVs?
Pan Ji-hyun asked: In terms of LCD flat-panel TVs, we are constantly making technical improvements. We are mainly producing backlight LCD TVs this year. In the future, LED TV backlighting systems will mainly use this technology and consume less energy. It turned out to be the LCD. Now it is mainly doing LED. This year, the output of LED TVs is planned to exceed half of our color TV production. The LCD will be slowly replaced by LEDs, which will save energy and improve the picture quality of LCD flat-panel TVs.
At present, the sales of our LED TVs are good, and orders for the first quarter of this year are almost full. Products are mainly exported, with markets in the Middle East, South America, Australia, and North America. LED TVs have completely replaced CRT's traditional fluorescent tube televisions and have great potential for development in foreign markets.
Q: In terms of LED color TV, can we support the expanding market share in staffing and technology investment?
Pan Yuxi asked: We are very focused on technical investment in this area, and we have a dedicated R&D department to complete this task. On the hardware side, we cooperate with our collaborative factories; on the software side, the R&D department designs the software we require, and then cooperates with related IC factories, constantly pursuing new technologies and applying them to our products.
5
Q: At present, the home appliance giants, Midea and Hisense, have invested in factories in Jiangmen, what impact will they have on Jiangmen’s home appliance industry?
Pan Yuxi asked: There are more related industries gathered in Jiangmen, which will have a cluster effect. First of all, it is possible to gather related facilities and logistics distribution through an industry. This will reduce the manufacturing costs of the entire industry. I think this is a good thing. Second, the gathering of industries brought in more talents, whether skilled workers or R&D personnel. It is of great benefit to improve Jiangmen's speed of development and scale of development in this industry. Once again, there is also a good sale of the product. The concentration of industries allows customers to have more choices in Jiangmen. Finally, the more industries there are, the better visibility of Jiangmen City has been.
Q: Just now you mentioned the gathering of talents. Hisense and Midea will need a large number of skilled workers in the initial stage of production. Are you worried about the loss of skilled workers or skilled personnel in your group?
Pan Yuxi asked: I am not worried about the company's talent being taken away by other companies in Jiangmen. Each company has its own advantages. There are many factors influencing the flow of talents, not only because of remuneration, but also the foundation of the company, the development space, and so on. I am not worried that because there are more companies in Jiangmen, our company’s talent will be lost.
In addition, in the short term, the formation of the cluster effect will have an impact on the loss of talent in the local industry in Jiangmen. However, in the long run, the impact should not be great. Because companies also continue to train, reserve talent, there will be no great loss. New skilled workers will continue to supplement.
Q: For the new home appliance companies, has Jinling Group reassessed the home appliance industry in Jiangmen? In order to propose corresponding development strategies, for example, talents should make relevant reserves?
Pan Yuxi asked: Our company also regularly trains talents and establishes a mechanism for people to get opportunities for improvement. The market is open and the labor force is also mobile. As long as companies continue to develop and become competitive in the market, they can find suitable talents and skilled workers. To manage your own business is the most fundamental way to attract talent.
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