Make New Plans and Have a Fresh Start——Sanhua Holding Group held the 2022 Annual Operation and Management Conference and Award Ceremony

The early spring brings prosperity; the world welcomes new beginnings. On Jan.22, the 2022 Annual Operation and Management Conference and Award Ceremony was held in the meeting center of Sanhua Industrial Park in Xinchang, to summarize the work in previous years, plan for the future and award the outstanding employees excellent in operation and management. It motivates everyone in Sanhua to work with commitment and keep innovating.

The meeting was also held online simultaneously in major Chinese and overseas industrial parks which were located in Wuhu, Jiangxi, Zhongshan, Vietnam, North America, Europe, Japan and South Korea. The organization and participants were managed in strict accance with epidemic prevention and control measures.

2022 Annual Operation and Management Conference and Award Ceremony began with a speech delivered by vice board chairman, Zhang Yabo.

He gave a review of the progress in the last 5 years, published the strategic plans for the next 5-10 years. Also, he summarized the outcome of operation and management of Sanhua in 2021 and introduced the operation plans and tasks in 2022.

Make Business Thrive in a Competitive Market

From 2016 to 2020, the world witnessed great changes in global economy and industry. Sanhua achieved fruitful business growth: sales revenue increased by 1.8 times, of which overseas sales increased by 2.1 times, with fulfilment of all business targets set in previous planning period.

In NEV thermal management, Sanhua has made a great progress, as its R&D and innovation was highly appreciated by global car companies. Sanhua has contributed control parts, units and systematic solutions to the automotive industry and the application of Sanhua’s products and solutions has been trendy all over the world. In refrigeration and home appliance business, Sanhua Residential’s global leading position has been continuously consolidated. Sanhua Commercial quickly responded to the market and added value to Sanhua as a brand, to catch up with international industry giants. Sanhua Micro Channel has always maintained a dominant position in all segmented markets. Leaderway Electronics kept improving its own competitiveness in segmented fields.

“Technology Leadership” strategy has been effectively implemented. By the end of 2020, Sanhua applied for 5,480 patents, increasing by 2.5 times in comparison with 2015. Sanhua was granted 2836 patents, a three-fold increase since 2015. Sanhua Financial Investment Business has taken on a steady growth, and the market value of Sanhua Intelligent Controls raised day by day. Till the end of 2020, it was about 88.5 billion yuan, strongly positioned in the top 10% of A-shares, and was included authoritative indexes such as CSI 300 (2018), MSCI, FTSE Russell, and S&P Dow Jones (2019).

Overall, from 2021 to 2025, the cooperate strategy is:

- Adhere to strategy "Dedication, leadership, innovation, surpassing”, focus on thermal management in refrigeration, home appliance and NEV industry, take greater effort to research and develop strategic products and technology in a faster way;

- Stick to high-quality development route, continue to achieve better business performance by improving internal operation and management, learn from top enterprises in the industry, and utilize information technology to improve operational efficiency and corporate competitiveness;

- Expand the business globally, improve overseas operation efficiency and management capability, and enhance global operation ability;

-Set the goal of leading the industry worldwide, each business unit aims to be the global leader of all segmented industries, and main products to gain No.1 market share.

At the end of speech, Vice Chairman Zhang Yabo called on all staff to challenge themselves and become more self-disciplined in work, embrace changes and challenges with passion and motivation, infuse themselves with the enthusiasm in “re-starting a business”, aim at strategic goals and plans, and cooperate with each other to accomplish our great mission.

Next, the general managers from 9 business units reported on the achievements in the last 5 years and new strategic plans, as well as the 2021 summary and 2022 plan.

After the reports, Shi Chuliang, one of the board members, the general manager of Sanhua Automotive, announced Sanhua Holding Group’s Commendation of Operation and Management Award Winners. He congratulated all the winners and expressed the hope that everyone in Sanhua could learn from them, make bigger progress than award-winners, and work diligently, to achieve a greater goal and personal growth.

Zhang Daocai, Chairman of Sanhua Holding Group, delivered an important speech.

First of all, Chairman Zhang Daocai expressed sincere congratulations to outstanding individuals who won the Operation and Management Award. Afterwards, he hoped that all colleagues of the company to learn from the winners, encouraged them to challenge themselves, make progress every day, every month and every year, more achievements and fully realize their own value.

Chairman Zhang Daocai spoke highly of the management team who were excellent at strategic planning, overall controlling, and cooperated with diligence, practical mindset and inspiration. Under the challenging situation, they made sure that Sanhua demonstrated excellent business performance in 2021. What’s more, he put forward 2022’s challenging business plans and indicators and then congratulated and thanked the management team and all Sanhua employees for their hard work.

Chairman Zhang Daocai pointed out that: through strategic planning and continuous endeavors, Sanhua has taken a leading position and built its platform all over the world. However, competition entered a new phase, which means Sanhua must strengthen abilities of seizing opportunities and responding to changes. The core subject worth studying and taking measures for us in 2022 and the following years is, "How to maintain the enterprising spirit, find out opportunities and overcome challenges, respond quickly to changes and seize opportunities, focus on improvement of internal operation and management, lay a solid foundation, continuously increase the core competitiveness of Sanhua and realize high-quality development goals".

Chairman Zhang Daocai illustrated his ideas concerning three topics, including enterprising spirit, orientation of thermal management industry and training of talents.

He set forth that the core of enterprising spirit is to stay unsatisfied with the current situation and always set new goals. To make continuous progress and development, firstly, we should never stop thinking, always make progress; secondly, we should find out the right direction of development and prosperous and investable markets. We should work like we were reopening our business, let go of past glory, try our best to find opportunities, set challenging goals under the guide of higher vision and stricter disciplines. To progress towards high quality development, we need to analyze our own strengths and weaknesses comprehensively and pragmatically, pick out the key points, make up for our shortcomings and strengthen our advantages, work harder, constantly strengthen our competitive advantage.

Chairman Zhang Daocai said that: practically, it’s difficult for enterprises to find out a large new market and products with long life cycle. Bade on our experience, we were more likely to succeed “if we ed the prospective product out of a great many of unpopular products, the unpopular but high-potential product out of hot products”. These logics were implicit in our strategies and laid “the infrastructure for our strategies”.

Chairman Zhang Daocai further elaborated that the "thermal management" industry is very large, and related solutions and systems would be applied in various end-use industries such as automotive, aviation, marine industry. Those industries provided plenty of niches for Sanhua to grow its business with devotion. At present, we were only involved in the thermal management of new energy vehicles, refrigeration and household appliance. Therefore, we could strategically define Sanhua as a professional supplier of thermal management system solutions. What we should do is to “focus, focus and focus”, and to “innovate, innovate and innovate”. We were aiming at making Sanhua a top company and benefiting mankind by creating a green, beautiful and suitable living environment.

Chairman Zhang Daocai concluded: the development of enterprises depends on products and talents. The more excellent talents we have, the more achievements we get. The management teams of each business unit, especially the general manager, should pay more attention to training of talents, take "training of employees" as priority in daily work, treat the growth of talents as important as the development of products, and learn more from the successful cases of talents training and management in top enterprises. They should utilize the outstanding management system of Sanhua, empower young employees, ask the young to take more responsibilities and encourage those with international education background and professional technologies to make progress.

At last Chairman Zhang Daocai encouraged everyone: Sanhua is a platform for all employees. Everyone in Sanhua, especially the senior managers of Sanhua, should have a broader vision, wider mind, deeper thinking, more solid step, and devote ourselves to the great cause of creating and building a green and low-carbon world.

Following the conclusion of the chairman's speech, the conference closed successfully in a passionate atmosphere.

Sanhua has already embarked a new journey. In response to new technologies and industrial revolution, Sanhua has endeavored to catch up with market trends and achieve high-quality development goals, with technological innovation. It is on the way to realizing the vision that Sanhua will develop intelligent low-carbon economy and green and suitable living environment.

Sanhua welcomes 2022 with delight!