Zhongtong Bus Grows Against the Sluggish Market Trend

Early this year, many experts in bus industry have predicted the unfavorable market environment. Against the sluggish trend, Zhongtong Bus stands out as the one which has seen the fast growth in both its production and sales volume as well as the improvement of its profitability. 

In 2013, Zhongtong Bus realized an earning per share (EPS) of 0.44 RMB. In the meantime, its return on assets (ROA) stood at 14.13%, which is nearly two times higher than its best historical records. 

How could Zhongtong Bus manage to make such a miracle? In early Jun., our reporter paid a special visit to the headquarter of the bus maker, Liaocheng, Shandong. 

Sun Qingmin, the company"s general manager revealed that its success can be chiefly attributed to its stratigic positioning, accurate knowledge of the market trend and victorious transitioning and upgrading. "Since many years ago, Zhongtong Bus has positioned itself as the leading brand in China"s bus manufacturing industry and it has been committed to developing energy-saving buses and new energy buses. Currently, 80% of the company"s profits are coming from its eco-friendly vehicles. The year of 2013 witnessed some adjustment in terms of subsidy policies for new energy vehicle. We made full preparations for the new change and thus successfully avoided the management risks. In the meantime, Zhongtong Bus sped up its restructuring and put its focus on technology, market, and management transition. Thanks to all these measures, the company has optimized its product line and seen its profitability improving gradually", Mr. Sun added. 

zhongtong"s General Manager at Interview

In 2013, Zhongtong sold 12,036 units of buses and saw an annual growth of 10%. Moreover, its profits went up by over 80%, way above the average growth rate of the industry, making it a new star in China"s bus manufacturing industry. 

In 2013, Zhongtong"s large-sized buses grew by over 57%, ranking the first among its counterparts. Thanks to the whopping growth of its business in this sector, the company further strengthened its profitability and promoted its brand image. 

In the same year, the sales volume of its new energy buses ranks the second in the industry, standing at about 1,100 units. It realized a sales income of about 800 million RMB, up by over 600% year on year. 

Also last year the company sold over 10,000 units of gas powered buses. Its clean energy powered buses also made new breakthroughs with a sales volume ranking the second in the industry. 

Zhongtong New Energy Bus production basement

In terms of its overseas market, Zhongtong exported 1,751 units of buses in 2013, up by 24.7% year on year. Its export income stood at 603 million RMB, up by 31.5% year on year, which is the highest growth rate in the industry. 

Last but not least, as one of the emerging markets, Zhongtong school buses grew steadily in 2013, ranking the third in the industry.