Beiqi Foton Motor Co

Beiqi Foton Motor Co.,Ltd.

　　Beiqi Foton Motor Co., Ltd. (hereinafter referred to as Foton ) founded and invested jointly by 100 corporations in August 28th. 1996, was a public corporation of multi-industries over different regions, industries and ownerships. Headquarter of Foton locates in Changping district. Beijing City. The corporation possesses a total asset of 4 billion RMB and is staffed with about 15,000 personals. Industrial business scope of Foton covers four major industries relating to "traveling" and "housing", such as automobile, farm machinery, construction and finance, and its main products are automobile, engine, tractor, harvest machinery, economic light truck, chemical building material and equipment, and structural steel strut.

Mission: Striving for better life by means of human-oriented science and technology
Image: Leading the automobile and residential industries
Core Value Conception: Passion, Creation, Ever Forwarding
Operation Philosophy: Honesty, Achievement and Creation.
　　Right after spanning "Three Big Steps in four years" successfully from 1996 to 2000, Foton put forward its "New Three Steps" strategic target. By the end of 2002, Foton has already formed five production blocks locating across Beijing, Tianjin, Shandong, Liaoning, Hunan and other provinces or cities, which include 5 automobile plants, 2 engine plants, and 1 farm machinery production base. Total comprehensive annual productivity reaches 300,000 light trucks, 20,000 harvest machinery, 20,000 large or medium-sized tractors and 150,000 thousand engine. In the year of 2002, sales of automobile reached 170,000 units, which took over 80% of automobile sales in Beijing, exceeding the first target of "New Three Steps" strategy. Four automobile brands of "Auman", "View", "Aoling", and "Times" have been brought up by Foton, and development of Foton's automobile industry has covered all kinds of commercial vehicles except for passenger car. Thus a solid foundation has been laid for Foton in getting involved in the development of worldwide automobile industry of the 21 century. Foton is one of the 520 national prime enterprises; one of the 5 experimental units for enterprise reformation and the best out of excellent enterprises in Beijing to be primarily supported by the government. Foton is also the one of three major plates (the commercial vehicle plate) of automobile industry in Beijing. Ever since the founding, full support has been provided for Foton by the central government, Beijing government and other local government, and great concern were paid from time to time by the state Party leaders and state leaders, such as: Jiang Zemin, Li Peng, Zhu Rongji, Li Lanqing, Wu Yi, Jia Qinglin, and party secretary of Beijing Communist Party Committee, Liu Qi as well as many other party or governmental leaders. All above symbolize that Foton has stepped into a new development time.

The establishment of modern enterprise system has laid solid foundation for Foton in realizing modern enterprise plan successfully.
　　On Aug. 28th, 1996, Beiqi Foton Motor Co., Ltd got founded and registered legally in Beijing with registered capital of 144 million RMB. The 100 corporation shareholders of it are from 13 provinces, cities and autonomous regions all over China. Linking its suppliers and dealers closely with product and property right, Foton has formed a wide relationship of strategic alliance. Since the establishment of modern enterprise system has laid solid foundation for development of Foton; the diversification of investors and the perfect legal person managing system also paved a rapid, persistent, and healthy way for Foton.

By issuing shares in the market, combination between industrial capital and financial capital is realized so that adequate capital support for Foton's industrial expansion is ensured.
　　With support of Beijing government and BAIC in all aspects and thorough effective work over one year, China Securities Regularity Committee (CSRC) approved Foton to issue its listed stock in an amount of 500 million on Feb. 27th, 1998. And on May 11th, "Foton Motor Stock" was set on price and issued on the Internet. On June 2nd, Foton became a listed company in Shanghai Stock Exchange.

Undertaking strategic adjustment to create new competition advantage.
　　Series of strategic adjustments to create new competitive advantage was performed within Foton closely after entering into the stock market. Firstly, management area and production area were adjusted in order to set up a strategic development platform for the corporation. Before all, Foton formed its corporation center for decision-making and strategic management, and its production base for medium & heavy duty trucks, bus and engine in Beijing. And then, moved its plants of building materials and building material equipment from Shandong Province to Beijing so that a production and business operation base of building materials of Foton was built up. Afterwards, light truck plant was shifted to Shandong Province so as to maintain its competition superiority with its low cost advantage. More actions were implemented in establishing farm machinery production and business operation center in Weifang. Shandong Province; setting up an engineering vehicle production center in Changsha; and making successful establishment for Beiqi Foton Environmental Engine Co., Ltd through asset integration on large scale. Secondly, products were taken as carriers to adjust its industrial production structure, foster economy creative industry, and build up new competing advantages. Starting from 1999, Foton developed successfully series products of Times light truck, View van, Aoling pickup, and superior light truck with mini truck as the proper product to get into the auto industry. The truck product, among all these products, has been realized its full series development with over 30 categories in 1997, and up to near 300 categories till now. Especially, the medium and heavy duty truck products successfully developed in line with international technology, and based on own intellectual property rights, has formulated Foton's new competing advantage in the automobile industry.

Facing to new opportunity and greater challenge, Foton with lofty sentiment, has raised its "New Three Steps" strategic development target:
First Step: 2001-2002. Adjusting industrial structure. Compacting foundation for development. Improving industrial competition forces.
Optimizing industry locations, adjusting industrial and product structure, improving industrial culture, making solid management foundation, enhancing efficiency and the position of Foton by cultivating competition forces in new industry, and realizing continuous development.
Second Step: 2003-2004. Achieving global managing strategy in commodity and factor. Completely linking with the world in industrial and financial resources.
Fusing the Foton's auto industry into international auto field, establishing strategic partnership with famous auto and part manufactures in the world. Realizing global marketing strategy for farm machinery. Setting up subsidiary abroad. Forming up basic scale for construction industry. Maintaining advanced in domestic steel structured architecture system.
Third Step: 2005-2006. Forming up new competing superiority in auto, farm machinery, and construction industries. Internationalizing finance and capital resources.
Developing auto industry in full series, especially making entire truck series advanced at home, and significant breakthrough in passenger car field. Realizing No. 1 position of farm machinery in Asia. Building up construction industry as backbone industry, and the new architecture system as one of the largest enterprises in China. Achieving 36 billion yuan sale revenue of the whole corporation, and thus making Foton a transnational corporation with multi industrial business.
On September 8th, 2003, BAIC and DCAG signed a 《Strategic Cooperation Framework Agreement》, in which the overall commercial vehicle cooperation between Foton and DCAG it is a important content. This cooperation is an important measure to realize the "New Three Steps" strategic target of Foton.
To be innovative, self-surpassing, and pursue excellence. Foton is a company with great ambitions and firm to seek its targets. The past of Foton is a march, while the future of Foton is a symphony full of power and grandeur. In this new century, a new Foton corporation of struggling for every opportunity, being keen on innovation, promising enterprising shall present itself to all the people in the world.