As of 2009 Yutong Bus (600066.SH) arrogate 170 BRT Bus Rapid Transit project in Zhengzhou City, hit the "local protection" question, as the "Rise of Central China" Yutong Group benchmarking other companies under the core business - Zhengzhou Yutong Heavy Industries Limited ("Yutong Heavy Industries") has also been voices of doubt surrounded.
Supported by huge financial contracts in 2007, before entering the sanitation Yutong Heavy machinery industry, has made just three years on the status of the envy of the industry - Yutong Heavy Industries executives said in an interview: "garbage YUTONG sanitary landfill operating equipment, waste compression equipment has become the first brand. "
YUTONG development by the local media as "Yutong speed", but this been the rapid development of customers and consumers that are "non-normal."
It seems some people in the industry, this performance can be attributed to the Government's almost "municipal solid waste landfill" and "towns transfer station," "organic village garbage collection operation" with three items.
Public information: Yutong Heavy Industries of Henan Province in 2008 to obtain the Office of the Committee issued a document to support the three landfill orders, the contract amount of up to 167 million; 2009, also received 507 million yuan in Henan province's 874 towns garbage collection operation projects .
The huge success of the YUTONG orders in Henan Province, and even the domestic machinery industry, the market position of sanitation. In early 2010, the municipal government of Zhengzhou Yutong Heavy Industries in a report to the said sanitation machinery industry in the next three years, sales income of 20 billion yuan.
Government policy support to encourage business development, but also questioned the view that the administration file specifies a local government companies to buy products, not only the quality of products there will be insufficient, and or equipment will result in a considerable number of idle, resulting in waste of financial resources.
Since late October, to address the problem, "Business News" reporter to Henan to conduct field investigations.
Office of Procurement Committee issued a document three
Goes back to June 10, 2008, "Office of housing construction in Henan Province, Department of Finance, Development and Reform Commission on the centralized procurement of solid waste landfill operating equipment notice" (Yu Jian [2008] No. 102), said: "Province Government's decision to grant part of the funds (40% of the total price), to encourage cities and counties (cities) and a complete drag to purchase YUTONG Group landfill operating equipment. The remaining 60% directly from the procurement side of the city, county net financial transfer payment. "
The purchase price of the equipment Yutong Heavy Industries are: trash compactor 80 million, 310 thousand yuan loaders, wheeled bulldozers 426,000 yuan, 202,000 yuan of vacuum suction sewage truck, sprinkler disinfecting vehicles 176,000 yuan, from the dump trucks 166,000 yuan, the total 2.08 million yuan.
It is understood that the trash compactor, for example, Henan Province, a production of similar products in other companies offer for every 497,000 yuan, more than five fold or more after the price was 45.7 million.
"We not only have the price advantage, there are many patents, but the Government does not tender, and we have nominated a price advantage is also difficult." A local director of sales of similar businesses complained to reporters.
In order to expedite the process, the Office of housing construction in Henan Province July 16, 2008 Yu Jian recurrence [2008] No. 38 (the "No. 38") requires: "As of July 15, not with Yutong Heavy Industries or YTO Group has signed a procurement contract Zhongmou, Luanchuan, Yiyang, Anyang County, Xinyang City, and other 23 cities and counties to determine the supply unit as soon as possible and sign a contract, while delivery of equipment deposit, to ensure that equipment in place on July 30. then device configuration are not available for cities, counties, ministries and agencies will be criticized, and removed the capital subsidy arrangements. "
"City financial difficulties, do not get that part of their Loaning money and it did not buy." Zhoukou City, Henan Province, Sanitation Agency staff explain to the reporter that the reason named.
The Bulletin named after other cities and counties in Xinyang the equipment before being purchased. However, since there are counties that YUTONG design defects, lack of seepage design, improved YUTONG pay the price before the suspension.
However, the Henan Province Department of Finance Budget Department and Guo Kuchu coordination issued soon, "seize the payment of Henan Province, Department of Finance on the centralized procurement of solid waste landfill operation on equipment," which requires all cities and counties to pay for equipment on time, who do not press contract to pay for equipment, once verified, shown with the provincial fiscal transfer withholding support and criticism.
To this end, YUTONG specifically in the form of official documents to the Provincial Department of Finance wrote a letter: "In 2008, No. 38, issued in the provincial government's support, YUTONG market share has reached more than 85% , Lu Yu, deputy director of Henan Province, Department of Finance, Director of economic development and the relevant leaders at the Yue Shengli I know the practical difficulties, in the province to support the principles of enterprise development, coordination and Guo Kuchu Budget Office issued a "notice" requiring County to pay the remaining equipment shall be given ... ... of the Provincial Department of Finance in the development of our company support and help to express my sincere thanks! "
If you say that there are still a drag Group in 2008 to share the results of the procurement, then the solid waste transfer station in 2009, the township's construction and equipment supply projects, Yutong Heavy Industries has become the biggest winner.
In 2009, the Office of Henan Province, were built in the year to live May 18, June 26 firing of the Henan villages built [2009] No. 8 and 19, the text text: Henan provincial government decided that for the 874 towns of the province with construction of a garbage collection, compression, transfer and transport systems: a garbage collection, compression equipment, a garbage truck, two four-wheel electric garbage collection vehicles, cost 580,000 yuan.
8, above the text clearly states: "towns YUTONG People's Government signed with the service, the quality of three bags and other agreements."
Zhengzhou Yutong Heavy Industries in 2010 to a government report said the contract amounted to 507 million yuan, paid directly by the Financial Yutong Heavy Industries.
Yutong Heavy Industries in this report also recommended that: "the spirit of the purpose of supporting local business development, city districts only purchase their products in order to enjoy government subsidies; by the Zhengzhou Municipal Administration Bureau of the lead law enforcement authorities notify the municipal management district."
Shortly thereafter, Yutong Heavy Industries won the approval of this proposal.
Why YUTONG?
Yutong Heavy Industries, formerly known as Cheng Machinery Group, 2003, Yutong Group by private enterprise mergers and acquisitions, as its subsidiaries (Yutong Group holding 95.87%, 4.13% Anchi guarantee, which guarantees the shareholders Anchi Yutong Yutong Group 95% and 5%).
This means that Yutong Coach Manufacturing Group to get involved outside of a new main areas: construction machinery industry. Since then, a number of mergers and acquisitions YUTONG enterprises, and gradually form a mechanical shovel, road machinery, pile driving and special vehicles segment.
Involved in sanitation in 2007, after the machinery industry, Yutong Heavy Industries seems to find a rapid extension of the "Golden Road."
Public information, in the September 26, 2010 in Henan Province, rural solid waste collection operation formed the project tender, the successful candidate YUTONG again selected as the first "organic village in Henan Province garbage collection operation project" the four sections, a total of 1020 compressed garbage truck, for a total 286 million project.
In addition to Yutong Heavy Industries, the companies also participate in the bidding Lingyu Motors Set Luoyang, Luoyang Tractor Group, Fujian Ma, Changsha, China United, in the steam business.
Only the machinery industry, involved in a three-year sanitation Yutong Heavy Industries, why such a large order and to get government support?
Newspaper reporters to contact the above staff members participate in the bidding companies, which are, told reporters in 4 YUTONG bid tenders are valid within the highest bidder, this probability is almost impossible.
Was nominated in 2008 along with the landfill project's First Tractor Group in 2009 out a tender, the company an insider said: "It is not worse than our quality, but they (Yutong) government and strong public relations."
But the reporter field survey in Henan found that some villagers do not reflect YUTONG good use of the machines, some small problems are emerging, "You look at the flow of oil leakage in the ground floor of all." Guan Town district of Luoyang City, a Luolong name of environmental engineering master pointed to a device, told reporters.
In fact, in 2008 for the landfill project, there are customers on the quality of Yutong Heavy equipment concerns.
"At that time the Office of the Committee require the purchase of three, when everyone doubts, not previously produced YUTONG sanitation machinery, from the use of results, some of the equipment is also problematic." Xinyang City Sanitation Department, who asked not to be named told reporters, "wheeled bulldozers spent six months on the bend, the compactor cylinder spent 3 months on the bombing."
He said the equipment during the warranty period is a problem, called Yutong Heavy Industries engineers to repair, still receive materials, 过了保修期 light for a tire fee is 8,000 yuan.
In fact, the Office of housing construction in Henan Province are also aware of environmental engineering in advancing the garbage problem.
In the July 28, 2009 a public speech, Deputy Director of the Office at a work conference Shi Yingjun mentioned at (Yutong Heavy Industries) design flaws. Garbage compression and bottom both inside and outside the walls box without foundation seepage design; sewage collection tank seepage and outside the walls of design is not complete; sewage storage tank floors and walls of the outer wall of no seepage design.
He said YUTONG to further improve the quality of internal control system to ensure that construction in strict accordance with construction drawings and found that cutting corners and not according to the construction drawings during construction, must be re-rework, the intrinsic quality of life by the YUTONG responsible.
Equipment failure problem does not seem to affect the tender YUTONG. "2011 is about to tender the remaining 3 billion township project formed without opening can now assert that Yutong Heavy Industries won the bid, because the grading standards for township establishment is almost tailor-made for the Yutong Heavy Industries." Another bidding enterprise staff said.
The project is the tender document states: "The tender product has been completed in 2010 in Henan province after the garbage truck loaded compression results of operations, and provide documentary proof of 0.1 minutes per vehicle, maximum 10 points for this item. "This alone, YUTONG higher than the 7.9 points the other competitors.
Zhengzhou Patriotic Sanitation site, in 2009, Patriotic Sanitation has a single source by way of subscription to YUTONG "After 79 YUTONG garbage compression-loading vehicles." April 30, 2010, Yutong Heavy Industries delivered.
"First Order YUTONG through a single source product, but also huge in the next tender basis points, which is obviously not the market behavior, but also without an effective government procurement procedures. Even if the province to support the enterprises, but also should allow provinces fair competition within the factory. "previous case with the industry said.
Why was involved in sanitation in 2007 Yutong Heavy machinery industry, this reporter inquiries, the Office of housing construction in Henan Province, Department of Finance, Development and Reform Commission have maintained a silence.
Analysis of government documents may be found: "Yu Jian [2008] No. 102: According to expert opinion and with the delayed group YUTONG negotiations to determine the six categories of operating equipment, models and prices, are recommended to the cities and counties ( City) for the procurement option.
"Zheng Zheng [2010] No.4: municipal sanitation within the vehicle new or updated equipment, to give priority to use local products, the city government will give subsidies."
A study of China University of Political Science "Government tenders Law," "Government Procurement Law" professor told reporters YUTONG this case can not be regarded as a directional bidding.
In his view, orientation is a non-competitive tender bidding, there are very strict conditions apply. One is for professional, confidential demanding project; the second is for a national project and the provisions of bilateral loans to the lenders can only purchase the item.
"Such as urban sanitation projects, does not belong to any one of them, should be open bidding. Since 2006, China's urban sanitation projects in various provinces almost all of the open tender." He said.
Xinhua reported in July 2009, to further strengthen the monitoring the bidding behavior of non-local and sector industrial monopolies and regional blockades, the Henan provincial government issued a "Circular on Further Regulating the views of the bidding activities."
Who were the benefits?
November 22, with a value of more than 40 million allocated by the garbage collection trucks transport Mengjin County, Luoyang City, Township, bags often marks the ten towns Mengjin County township transportation facilities garbage collection configuration completed.
Henan Province, according to the Office of the Housing and Urban Planning, before the end of 2010, the province 1,889 towns all equipped with garbage transfer and transport equipment.
This is referred to as "garbage village in Henan Province formed Cargo" is the value of the project "to improve rural sanitation, rural living environment optimization." Value can be achieved remains to be seen, but so large YUTONG by their benefits.
"At the end of December 2008, Yutong sanitary landfill sold a package of 91 sets of equipment, accounting for 85% of the market in Henan Province. Among them, the package of device-quality products - trash compactor sales have exceeded 100 , more than the other domestic manufacturers of the total sales of garbage compactor, trash compactor ranked domestic brand position. "This is the six provinces in South Africa sanitation work in 2008 at the annual meeting of Yutong Group Vice President, Yutong Heavy Industries Wu Xiang Lin, general manager of the interview revealed.
Reporter from the Trade and Industry Bureau of Henan Province and obtained the relevant material YUTONG Show: "Yutong Heavy Industries in 2007 about 576 million in revenue and net profit of about 15,306,000 yuan."
The data in the Financial YUTONG surge in orders in 2008, operating income of Yutong Heavy Industries was 13.26 billion yuan, net profit of about 30,741,400 yuan, of which a large landfill alone contributed 167 million sales.
2009 YUTONG about 1.712 billion yuan in revenue, net profit of about 82,101,500 yuan, of which 874 towns project also contributed 507 million yuan sales.
Bright financial statements listed to start brewing YUTONG blueprint.
Zhongyuan District People's Government departments dynamic display website: "In early June 2010, Zhongyuan District, Bureau of Industry and Information on the preliminary meet the listing requirements of the relevant departments YUTONG be recommended to the city to declare."
Know idle equipment?
A phenomenon worth noting is that these funds purchase cost of equipment is not fully play its due role. According to reports from residents that many counties and cities in Henan Province, the existence of a considerable number of idle equipment.
Zhoukou City, Henan Province, 84 towns solid waste transfer station project was 25 November 2009 be completed, however, did not run after completion.
Bureau of Housing and Urban Local, a staff of anonymity, told reporters: "The key is the number of supporting policies, measures not in place, the running costs of a transfer station down to 12 million a year to 15 million, counties, particularly difficult to pay for this expenditure the township, the other, 'Village collection, rural transport, the county handle' operation mode is also wasteful and idle. "
November 17, this reporter Lingbao in Henan Province, the ancient letter next to the transfer station to see off area, new blue house empty, YUTONG sanitation equipment is not in use. And in county hospitals across the city transfer station, the use of the Green Paper is still the old garbage disposal equipment.
Idle problem on the device, deputy director of the city of Lingbao in a telephone interview with this reporter is not clear, said: "These are the township waste disposal equipment (2009 towns project) with the, we, is not this one. "
Solid waste transfer station operations in a typical town - of Benton City Southern town, leading to the village of the asphalt Feng, a marked "township sanitation project in Henan Province," the green room is located in a simple flat-panel display "a bargain" in within the compound.
Nearby residents told reporters: "Some people never see the garbage shipped out." Field staff explained that the operation of electrical equipment among the bad, and was discharged to go repaired. And supporting the garbage truck is parked in another compound, just like, or a new car, not used at the scene.
In the "key city (county-level cities) Solid Waste Landfill" has learned that the landfill was completed last year, opening the second half of the staff in shifts 24 hours a day, the registration of the passing cars one by one, "so far , no one (garbage) trucks come from the township, are the urban garbage. "
Xinxiang County, south of the ancient solid Zhaizhen building materials market, the reporter saw a road about 300 meters of garbage, while the new Yutong garbage truck yard in the town government has been parked within half a year, but not put into use. 600 meters from the town government's Beverly area at the entrance there is a built of solid waste transfer station, which empty. "Already completed, never used." Nearby residents told reporters.
A material master reporter, as of June 30, 2010, a total of 67 towns in Xinyang City solid waste transfer station, 15 is not running, idle rate of 22.34%.
One reason is the operation of the idle funds lacking. Ming Town, Xinyang City sanitation Pingqiao District staff told reporters that a year at least 12 million rely on fees to maintain the operation of garbage collection is not enough, a great gap.
However, as the more developed the economy out of Henan Province town, "township environmental engineering" or gives them a life of convenience. The staff said: "We here are typical, completed last August, September to put into use, check all provinces and cities to see us here."
Guard against the "new paternalism"
Requests to the government regarding the procurement of products and equipment YUTONG idle problems, "First Financial Daily" reporters call and fax the Office of Housing and Urban Henan Development and Reform Commission, Ministry of Finance, YUTONG asked for an interview, were turned down .
November 26, Henan Provincial Party Committee Propaganda Department of the Information Services Department said that involved interviews with a number of sanitation industry and government agencies, the Information Services Department can not give a direct answer, the interview outline have been reported to the leadership of the Information Services Department will try to coordinate with various departments to give a reply, But as of this writing, not to respond to these institutions.
Contact this reporter was removed to a senior technical staff YUTONG, he played from April 2007 the whole project in a garbage compactor. He said that for the machinery industry involved in environmental sanitation, Yutong Heavy Industries in February 2007 established a research group.
The survey was concluded that the national government to support the development of environmental protection, promoting environmental consciousness, even as a local government requirements in terms of some performance, industry prospects are very broad, approaching the peak demand.
"Yutong Heavy Industries, the business plan for sanitation is still very forward-looking, but just want to seize the market, we can not specify the purchase by way of red tape." Control of Chinese Academy of Social Economics Institute of Finance, told this newspaper that an expert Zhou Ziheng.
He said the current government to energy saving, environmental protection and other items to the local corporate finance, policy of subsidies is a more common phenomenon, with the last local state-owned enterprises of the "paternalism" similar, if liquidity in the case of the Government to give a small amount of capital subsidy understandable, But in the current demolition, medical and educational fields has not yet surplus funds, will arrange to buy huge amounts of money specified in the behavior of enterprise products, apparently easy to stimulate enterprises, and even social conflicts.
In his view, YUTONG this case, but the Government take the lead and give them subsidies, extensive use of the county, the township's financial capital. Cities and counties had to choose manufacturers, product rights, but can not be achieved due to administrative intervention, and purchased with taxpayer money a considerable number of waste disposal equipment idle, so that the use of huge amounts of money nor efficient.
Zhou Ziheng proposal, similar to the case YUTONG this fiscal, policy-subsidization in various more or less in urgent need from the central level, the introduction of strict norms, such subsidies are not able to separate to a company, to set fair and impartial assessment criteria, and use the results with the pre-project linking, out of the question to the Responsibility.
"Yutong this case to us described a great energy in the local private enterprise." Law and Economics of China University of Political Science, Professor Liu Jipeng Research Center believes that it was able to breach the "Government tenders Law", to get a huge financial subsidies, as designated to purchase products, which is a typical "local lords economy", engaging in unfair competition.
