Sanhua Holding Group 2021 Held Annual Meeting By Sanhua News reporter
On Jan. 16th, 2021, Sanhua Holding Group held 2021 Annual Meeting with the theme of Focus on high-quality development and continuation to enhance core competitiveness at Xinchang Industrial Park as the main venue. The meeting also held virtually at the national and aboard major industrial parks. The organization and participants are managed in strict accance with pandemic prevention and control measures.
The purpose of the meeting is to summarize the operation management work in 2020 and states highly the operational keys in 2021.
Mr. Zhang Yabo, the Vice Chairman of the Board of Directors of Sanhua Holding Group, made a summary of operations for year 2020 and put forward key work objectives and requirements for year 2021. The report states:
In 2020, the coronavirus (COVID-19) brought the impact of the global market and the layout of supply chain, and the changes was extremely profound. The global economy was going downward, and China was the only major economy to achieve positive growth; the home appliance and auto market has generally declined, and the new energy vehicle market has declined first and then increased; the demand of public health and food safety have increased, driving the growth of the cold chain logistics market. Against this background, the Group and all business units seized the opportunity in crisis and worked hard, and the overall operation and condition were stable, the main operation indicators were generally great:
Operating income reached 32.7 billion yuan, maintaining a double-digit growth; total profits, paid tax and asset scale maintained good growth momentum.
In the context of a big decline in the global market, the Residential achieved both revenue and profit growth; Sanhua Automotive, especially the new energy vehicle business, achieved rapid growth; the Financial and Real Estate Business achieved good returns; the Commercial, Fuerda company, Sanhua Micro Channel, the Pipe and Accumulators business unit, Leaderway Electronics and etc.. actively responded to the market and achieved their own business and operation highlights.
The Group focused on operation and operational keys, continuous attention and promote key tasks specifically, and promoted high-quality development in 2020.
1. Quickly and effectively response to sudden outbreaks of Coronavirus.
2. Focus on strategic management and control, strengthen the souring and concentrate of company operational strategies.
3. Strengthen creation of product capabilities:
4. Strengthen quality management and digital construction
5. Promote automation transformation, globalization, and knowledge learning continuously.
As for the Issues still need to be improved in 2020:
In response to the requirements of high-quality development, the Group still has some places worthy of reflection and improvement in safety production and environmental protection, product quality, cost management, personnel training and IT construction. It is necessary to increase attention, strengthen awareness, set goals, innovate methods, strengthen execution, be result-oriented, be responsible for results, and continue to strengthen improvement.
The Holding Group must adhere to the high-quality development policy firmly, focus on strategic goals and key tasks, and work together to achieve higher quality and higher-level development.
1. Maintain continuous growth of major operating indicators.
2. Continue to strengthen the building of product capabilities.
3. Continue to strengthen the construction of execution.
4. Strengthen quality management and accelerate informatization construction
5. Strengthen the talent introduction and training, enhance the efficiency of international operations.
6. Strengthen supply chain management
Vice Chairman Zhang finally pointed out: In 2021 and for a period of time in the future, the external environment will be full of uncertainty. We must see the opportunities in risk and the risk in opportunities, always maintain long-term strategic determination, keep a high degree of attention and sensitively to the external environment, demand on self to higher standard, work together and take effort to achieve greater and brighter development.
Sum Sun, Director of Quality Management Committee of Sanhua Holding Group, made a review of the quality work in 2020, released the quality work promotion policy in 2021, launched the QCC team, and publicized and implemented the "thorough" quality improvement method.
The general managers from the Group nine business units and R&D unit made the theme reports respectively.
Mr. Shi Chuliang, General Manager of Sanhua Automotive, made a business report on the topic of "Quality, Management, and Benefit".
Mr. Gong Bin, General Manager of Fuerda, made a presentation on Fuerda's business theme "Globalization, Intelligentization and Capitalization".
Mr. Wang Dayong, General Manager of Residential BU, made a report on the theme of “Consolidation, Improvement, and Breakthrough.”
Mr. Chen Yuzhong, General Manager of Sanhua Commercial made the theme topic report on “Guaranteeing quality, building brand, expanding marketing, and promoting growth.”
Mr. Ni Xiaoming, General Manager of MCHE, made a business report on the topic of "Re-focusing, Zero-defect, and Breakthrough".
Mr. Zhang Shaobo, General Manager of Real Estate Business Division, delivered the theme report of financial investment and real estate business on "Risk Control and Business Focus"
Dr. Huang Lin-jie, Chief Scientist of Sanhua Holding Group, made a R&D report on the topic of "Doing well in technology and industry incubation for a century of Sanhua ".
Mr. Jack. Feng, General Manager of Leaderway Electronics Co., Ltd. delivered the theme report "Consolidating the Foundation and Going up Steps" for controller business.
Mr. Zhang Daocai, Chairman of Sanhua Holding Group Board of Directors delivered the important topic speech, evaluating the group operational management, and giving important instructions to the company’s strategic operation priorities in 2021.
Chairman Zhang Daocai first stated that each business unit maintained good business performance through the difficulties of the 2020 pandemic by seizing the opportunity to cultivate new strategic growth points, then he analyzed and stated that in the year of 2021, COVID-19 and the SINO-US relationship will be the biggest external challenge facing the business. China has strengthened international economic and trade cooperation, focusing on building a pattern of “double cycle” at home and abroad, aiming at high quality economic development.
Chairman Zhang Daocai emphasized that the key to high-quality development is to correctly judge the industry development direction in advance, highlight the close integration of technological innovation and customer needs, and obtain market entry opportunities through technological innovation. He also emphasized creating quality, cost, and efficiency advantages with lean and intelligent manufacturing and operation capabilities, and maintaining a leading position in the market as the company continues to reach new levels of development.
Chairman Zhang commented on the key business achievements of 2020 and business outlook in 2021.
As for the strategic development vision and goals of Sanhua in the next 5~10 years, Chairman Zhang stressed following points:
To maintain sustainable development, strategic thinking comes first for the company. The group and each business unit should fully prepare a new round of 5-year business plans and 10-year development plans for finalization upon the former research. Around the main line of high quality, the group and each business unit should summarize the prior 5-year business development plan experience with the aim of leading the segmented industry, and layout the 5-10 years products direction and key points in business management.
Chairman Zhang stated that green and energy-conservative technology is the company’s future. CO2, as an eco-friendly refrigerant, will have a promising future in auto thermal management, large refrigeration, and heat pump water heaters. The group will focus on the R&D of CO2 heat pump systems and promotion, by strengthening the investment, with strategic partners to push the new technology development and market expansion. If we can take the lead in achieving technological breakthroughs and promoting its industrial application, we will win new strategic opportunities.
Chairman Zhang stated that the development achievement depends on the people’s efforts. The core of high-quality development lies in the continuous improvement of personnel quality. We should continue to incentivize and award outstanding talents and a business platform for them. In 2021 the company will hold a new science and technology innovation conference. We have the timeline of "a small prize in five years, a grand prize in ten years." This year comes the grand prize. Chairman Zhang demanded that the group and business unit should promptly sort out the innovation and technology achievements list, award the team or the person that makes great achievement in market expansion for new products, new projects, new processes. At the same time, the group and business unit should also award the most outstanding personnel in line of market operation, quality management, operation management, and other lines.
In addition, he stated that the group will make a stock incentive to the outstanding personnel including senior management based on performance. He hopes all the staff are never satisfied with the status quo, keep working hard, and constantly improve competence.
Finally, Chairman Zhang stated that 2021 will also face complex and volatile situations. CHANGE is the most prominent theme, and ADAPTATION is the most important key w. High quality development is our guiding principle and direction
He hopes all Sanhua people constantly focus on the theme of how to and enhance Sanhua competitiveness, keep calm in the period of change, find out opportunities in the crisis, and value in the practice. Through our unremitting efforts, we will more and better high-quality development results in 2021!
