Sanhua Holding Group Held 2017 Semi-annual Conference

On August 11, Sanhua Semi-annual Conference was held in Xinchang Meizhu Industry Park. which was hosted by group assistant president and HRD, Mr. Andrew Weng. In total of over 600 people attended the meeting.

The meeting is to summarize the business operation and achievements in the first half year of 2017, meanwhile, to prepare and do the job in the second half year on basis of macroeconomy and industry trends.

Mr. Zhang Yabo made a work report first which stated that the global economy has slowly recovered; international trade and investment recoveryed; major economies staged first synchronized recovery in seven years. Chinese economic recovery is beyond expect and industry environment is much better so that Sanhua production and sales thrive by taking market opportunities and ers, and it is well-behaved in business performance, marketing development, technology innovation and advanced management.

In the first half year, Sanhua earned 11.8 billion RMB with revenue increasing at a rate of 19%; 920 million RMB of total profits, increased by 40%; foreign sales totaled about 270 million RMB, increased by 5%.

Mr. Zhang Yabo elaborated four reasons why Sanhua got this achievement. First, group insisted on effective management of strategic plan and business annual plan; backing team building and talent training which provide guarantees for business performance. Second, Sanhua Intelligence Control obtained good sales performance and consolidated Sanhua advantage through quick response to market, ers, internal capacity improvement, business expanding and new products developement. Third, Sanhua Automotive realized mass production of strategic project to improve product line and market distribution. Besides, the restructuring of Sanhua Automotive asset Sanhua Intelligence Control promotes its developement better. Fouth, finance and capital investment business had a better track rec by risk control and healthy operations. The market cap of listed company is optimized owed to cooperation with main business. But the meantime, the weaknesses such as insufficient understanding of competitors, lack of concern for junior staff, lack of initiative etc. are exposed.

Then Mr. Zhang Yabo analyzed economic and industry situation in the second half of this year in which he thought that global economy would keep growing but at slow speed. China's economy will maintain growth of over 6.7% throughout the year by deepening reform and structural adjustment. Therefor, we should take quick action to market changes, opportunities and ers based on customer orientation; on the other hand, keep an eye on changes, especially future opportunities and potential risks. It is necessary to take ac new products devlopment to meet incoming requirment and stand firm on key products and technology innovation. Sanhua keeps optimizing organizational structure and implementing talent-oriented management innovation to gain its own competitive advantages.

At the end of his speech, Mr. Zhang Yabo put forward requirements for the next half year that Sanhua members shall aim at business targets and annual performance plan to reinforce group capabilities and human resource manmagement; make sure to achieve or even surpass annual objectives though optimizing and strengthening daily operation, informatization, finance, intellectual property and audit management.

Afterwards, heads of Sanhua eight business units made their reports to summarize operations in the first half year and set tasks in the next half year.

Mr. Zhang Daocai made an speech that deeply analyzed macroeconomy and industry situation and affirm Sanhua good achievements. Big changes happen everyday. Major innovations like AI, big data, mobile Internet, new energy, new materials and so on is widely used in our lives. The rapid development of new energy vehicles and smart cars lead to great demand for efficient thermal management system. At the same time, "Internet +" has become a trend because of information tools such as controller and sensor that brings intelligent appliance and smart home daily life. It can be concluded that a new era is upon us HVAC&R, home appliance and new engergy vehicle meet next major great opportunity.

The innovation shoud come first in the future, as Mr. Zhang claimed. Innovation and a key aspect to that is talents, which demand for a good platform, machanism and culture. Sanhua’s strategy focuses on thermal management in refrigeration, air conditioning, home appliance and automotive, which submits to energy saving, emmision reduction, enviromental protection and intelligent control. There's a lot of emphasis put on innovation of products and technology, as well as product line. Division and cooperation of supporting technology, manufacturing technique and system application shall also tend to do well.

For Sanhua strategic development, the following to be aware of is to emphasize intellectual property protection, product quality, robotic automation, lean production, informanization and modern management; to strengthen global market sales, manufacturing, logistics and R&D.

In the end, Mr. Zhang Daocai called on all of Sanhua members strive together to achieve annual sales goals and fight for a brilliant future.