Financing New Product With the Profit Generated From the Old and Renovating Old Product With the Technology Absorbed From the New--An Effective Approach to Reform Old Factories Through Joint Venture

Shanghai-Ek Chor Motorcycle Company, Limited carried out technical reformation in increased profit/productivity at the same time with the policy of financing new product with the profit generated from old product and renovating its old product with the technology absorbed from new product. As a result, its productivity increased by 360% and brand new plants of world advanced technical level were constructed and put into operation in three and half years after joint venture. This superb management technique is highly appraised by relevant medial and newspapers, and the Company was selected one of the ten best joint venture in China in 1987. The author of this paper would, therefore, like to introduce this successful experience to share with the friends home and abroad who are running or ready to start joint ventures in China.