Sanhua Holding Group 2020 Semi-annual Meeting

Sanhua Holding Group 2020 semi-annual meeting was held in Xinchang Industry Park on August 13, and nearly 600 people attended in er to summarize business operations and achievements in the first half of 2020, and to prepare and carry out the work in the next half year. The principle theme of the meeting is to find new opportunities in crisis and changes.

First, President Zhang Yabo delivered a general report. President Zhang said, the external environment has been undergoing profound changes since the year of 2020, and we are facing very mixed pictures: tense China-US relations, rising reverse globalization trends, as well as the Covid-19 outbreak which has taken its roll on every aspect of global production and demand. And in this case, in the first half of this year, especially since the second quarter, each business unit has good operation results, especially Residential and Automotive are seeing growth in June revenue and profit. Overall, the group's operation results were much better than expected in the current complex market environment.

President Zhang also pointed out main problems and put emphasis on the following issues: the execution of work, the sense of crisis and the ability of self-awareness, the identification, training and appointment of personnel, as well as the purchasing management and supply chain management. the causes were analyzed and the improvement requirements were put forward.

Then President Zhang focused on the works in the next half year. The group and business units should pay close attention to external changes and response quickly. We should boost confidence, believe in what we are doing and do it a hundred percent. We should keep technology innovating and products developing, and sustainable value for our customers. We should continue the strategy plan and decompose the objectives organizational capacity and key performance indicators.

Each unit should pay attention to key works of market, ers and products. First, to ensure the market share; second, to do products development and technology upgrading. Further more, It is very important to comes down to persistent attention to quality, improve the level and ability of quality management, enhance production process management and build quality management team. At the same time, we should also pay attention to talents cultivation, budge management, front-line production management, on-site improvement, informatization construction, capital management etc.. We will keep operating globally in aspects of overseas production, research and sales.

Then, the heads of Sanhua’s eight business units, i.e. Sanhua Residential, Sanhua Automotive, Sanhua Micro-channel, Fuerda, Sanhua Commercial, Leaderway Electronics, R&D center and Sanhua financial investment made their business reports at the conference.

Chairman Zhang Daocai delivered a keynote speech. He gave positive evaluation for the hard work and achievement in the first half of 2020. During his speech, Chairman Zhang noted that we are facing more challenges as the world situation is more complicated and unexpected: the ongoing COVID-19 outbreak, the straining Sino-US relations and the emergence of an anti-globalization wave. Nonetheless, we must hold fast to “what is certain in the st of uncertainties”, and drive our global competitiveness with firm strategy objectives and focus. Chairman Zhang expound his views on how to find new opportunities in crisis, and how to find a new way in foggy jungle.

First, we should make a good strategy plan with the guideline of “high-quality development”. Second, we should transform strategic opportunities practical values by more targeted investment.Third, we should firmly promote the layout of globalization, and strengthen the construction of oversea factories in Mexico, Vietnam, Poland and Shaoxing, China, as well as optimal layout of oversea research, sales and manufacture. Fourth, we should attract, hire, retain and motivate exceptional employees and Sanhua career platform and fight together for a common vision.

Chairman Zhang finally shared his view on how the enterprise keep "forever young" . He said, though Sanhua is in its thirties as an enterprise, it is still dynamic and energetic because of growth mindset. We will always find the gap between us and the best and we will always climb the next mountain. Conversely, if we do not  compare with the first-class enterprises such as Tesla and Huawei but our own past, we will feel good about ourselves and won’t make progress. That is really aging. Therefore, we must always see the gaps and set new goals, improve management and technology, attract outstanding professionals, have mutual tolerance and learning. “Never satisfy with what has achieved, always full of curiosity and interest, always in the way of pursuing new goals” Chairman Zhang said, what we are striving for is a great cause, and it has no end. Each of us should work hard trying to maximize our value and make achievements.