Dong Mingzhu: Yinlong will not reduce investment and is full of confidence in Yinlong

On July 31, Dong Mingzhu, chairman and president of Gree Electric Appliances, stated during the unveiling ceremony of the Gree Academician Work Station that Gree Electric Appliances' goal of achieving sales revenue of 200 billion yuan in 2018 remains unchanged.

Recently, Yinlong Nanjing Project was sued for arrears of project payment and was sealed by the court. In this regard, Dong Mingzhu said: "This incident will not affect the development of Yinlong. Yinlong will not reduce investment. I am full of confidence in (Yinlong's) prospects, because first of all, its energy storage technology is there."

At present, the capital chain of the new energy vehicle industry is very tight. The downstream is in arrears with payment for goods, and the upstream also has a lot of prepayments.

The reduction in government subsidies has also exacerbated the difficulties of the new energy vehicle industry. Yinlong's technology route is lithium titanate batteries, which are more difficult to obtain government subsidies because of their lower battery density.

With the reduction of subsidies, the profit margin of selling electric vehicles is small. At the same time, the huge initial R&D investment in new energy vehicles has also made companies overwhelmed.

The concentration of the new energy passenger car market is increasing, while the new energy bus market is shrinking, so the production capacity of new energy vehicles needs to be digested. It will take some time for new energy vehicle companies to catch their breath by collecting debts and receivables.

It is said that Yinlong New Energy, which has attracted much attention due to its capital chain problems, has recently reduced its staff on a large scale, with the number of employees dropping sharply from 18,000 to 10,000. Yinlong responded that the company is transforming and upgrading its automated factory, and the production efficiency has increased after the reduction of staff.

Since 2018, Yinlong has been committed to the transformation and upgrading of automated factories. In the first half of 2018, the company produced 2,293 new energy buses, ranking third in the industry, a year-on-year increase of 60%.

Whether Yinlong New Energy can survive and break through the siege remains to be tested by time.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.