Sanhuan Group: Create "Carriage Carrier" for Auto Parts

“Some of our companies have gone back to working overtime and heating up,” said Yuan Hongliang, the deputy general manager of Hubei Sanhuan Group, a few days ago. “It's been a tough time, but we're managing to keep things running.”

Hubei Sanhuan Group is one of the largest manufacturing enterprises in Hubei Province, with its listed subsidiary "Three Rings" playing a key role in the automotive industry. Like many other companies, the group faced significant challenges during the global financial crisis. However, through perseverance and strategic planning, Sanhuan not only survived the storm but also found new opportunities for growth.

Confidence is the driving force behind success

Just ten years ago, Sanhuan was a small trading company under the Hubei Machinery Department. Today, it has evolved into a diversified industrial giant, operating in sectors such as special vehicles, military vehicles, auto parts, mechanical and electronic products, and real estate. The company has become a leader in the province’s machinery and automobile industries and has consistently ranked among China’s Top 500 Manufacturing Enterprises.

Yuan Hongliang emphasized that confidence played a crucial role in their journey. “We are confident in overcoming the financial crisis,” he told reporters. This confidence stems from both government policies aimed at stabilizing the economy and the internal culture of self-improvement that Sanhuan has cultivated over the years.

“Our development has always been about facing challenges head-on and pushing forward despite difficulties. This mindset has shaped our resilient and optimistic character. So, we don’t fear the crisis—we see it as an opportunity to grow even stronger.”

Rebuilding the capital chain

The financial crisis hit Sanhuan hard, especially in 2008. Sales dropped significantly in both domestic and international markets, creating a sharp contrast between the earlier boom and the subsequent downturn. In April of last year, monthly sales reached 1.05 billion yuan, but by the fourth quarter, that figure had fallen to around 500 million yuan—a drop of more than 50%.

For large enterprises, the most immediate impact of the crisis was the disruption of the capital chain, which can lead to insolvency. Many well-known American companies fell victim to this fate.

As soon as the crisis began, Sanhuan launched internal assessments and developed countermeasures. In October, the company adjusted its capital operations, enhanced cash flow management, and implemented centralized fund control. It also strengthened relationships with banks, issued medium- and long-term bonds, and introduced strategic investors to boost financing.

To prevent losses from bad debts, the company initiated a special campaign to collect outstanding receivables and protect its assets. “Many of our partners went bankrupt after the crisis,” said Yuan. “We acted early to clear arrears and minimize our losses.”

Even small details were taken seriously. For example, a senior executive once forgot to turn off the air conditioning and was fined 1,000 yuan the next day. “Saving every sheet of paper, every degree of electricity, and every drop of water” became part of the company’s daily discipline.

Protecting the market like a child

Sanhuan continues to focus on its core projects, particularly in the auto parts sector. On February 17, Hubei Governor Li Hongzhong visited the company and urged Sanhuan to become the “aircraft carrier” of the auto parts industry in the province.

Currently, Sanhuan provides auto parts to at least 10 major Chinese automakers. The company has also made significant breakthroughs in technological innovation, shifting from “manufacturing” to “innovation.” One of its key products is a hollow and sodium-filled engine valve, a high-end technology exclusive to China. It is used in luxury cars like FAW Audi and holds a monopoly in the domestic market.

Expanding into overseas markets has also become a key strategy. Sanhuan now exports components to emerging economies such as India, Iran, and Turkey, while actively developing markets in Africa and Russia.

“When we enter a new market with a product, it opens the door for related parts and components to follow,” Yuan said with confidence. “This helps us expand our presence globally.”

Industrial Aluminium Profile

Industrial Aluminium Profile,Aluminium Extrusion Profiles,aluminium curtain wall profiles,Industry Aluminum Alloy Profile

Foshan Modern Copper & Aluminum Extrusion Co.,Ltd. , https://www.fsmodernaluminium.com