Focus, Stability, Moving Forward The 2025 Annual Operation Plan Conference of Sanhua Holding Group Concludes Successfully
On January 23, 2025, in a grand and warm atmosphere, the 2025 Annual Operation Plan Conference of Sanhua Holding Group was held in the conference hall of Sanhua Xinchang Industrial Park (Meizhu) Conference Center. The conference aimed to summarize the business management work of Sanhua Holding Group in 2024, communicate and deploy the 2025 business plan and key work requirements. Both offline participation and online live streaming were conducted simultaneously, with over 650 senior employees of Sanhua gathering together to share the grand event.
l The Beginning of the Conference
First of all, Zhang Yabo, Vice Chairman of the Board of Directors of Sanhua Holding Group, summarized the business management work of Sanhua Holding Group in 2024, analyzed problems, and proposed the 2025 business plan targets and key work requirements.
Vice Chairman Zhang pointed out that although the global economic environment in 2024 was complex and challenging, policy-driven initiatives, technological advancements, and market changes also brought new development opportunities. Against this backdrop, Sanhua Holding Group's sales revenue in 2024 reached 62.45 billion yuan, an increase of 8.0% year-on-year, with key operating indicators maintaining stable growth and the asset-liability ratio remaining at a safe level.
Despite facing severe challenges in the macroeconomic environment, the Group still achieved significant growth in niche markets such as household air conditioning control components. Continuous efforts in enhancing product strength, digital construction, advancing the factory evaluation system, process optimization, cost management reinforcement, and key talent introduction have ensured steady performance growth. In business areas such as bionic robots, sensors, data centers, industrial automation, and energy storage, continuous investment in innovative research and development has consistently consolidated and enhanced Sanhua’s market competitiveness and sustainable development capabilities.
Regarding the business operations for 2025, Mr. Zhang pointed out that the company will adhere to the business principles of "focus, stability, compliance, and low profile".
1. Centered on products, continuously deepen product strength enhancement, strengthen intellectual property protection, and promote the implementation of technology innovation strategies.
2. Respond swiftly to changes in domestic and international markets, strengthen risk management for customer operations, and take timely measures to ensure the stable operation of the company.
3. Firmly advance digitalization, emphasize the application of artificial intelligence, and improve management and operational efficiency across all sectors through the introduction of digital employees.
4. Persistently promote globalization, drive significant improvements in the operation and management quality of overseas factories.
5. Continuously promote the development of high-potential innovative businesses, increase resource and investment to achieve sustainable development of the company.
In various specific areas of work:
1. Ensure strict financial stability and continuously monitor cash flow; enhance the feasibility analysis of industrial investment, manage financial investment risks, and focus on industrial and strategic investments.
2. Strengthen the recruitment of key talents, cultivate digital and global talents, and promote the optimization of organizational structure and personnel.
3. Focus on the main business, expand the core market, explore new businesses, and enhance product strength.
4. Vigorously promote "optimal design and manufacturing", focusing on the development of key equipment and critical process technologies to enhance operational capabilities.
5. Strengthen the construction of legal compliance, improve operational compliance, and ensure the company's legal operations.
6. Adhere to a low-key style, avoid seeking fame, work diligently, and focus on doing our own work well.
7. Continuously promote the construction of key digital projects in every sector, deepen the application of AI, and vigorously advance the development of "digital employees".
8. Enhance direct and smooth information flow, optimize company processes and organizational structure to make the organization flatter, and reduce information transmission levels.
9. Strengthen cost management requirements, promote the standardization and full coverage of the cost management system, and advance cost refinement and digitalization.
10. Pragmatically advance the global layout, guided by flexibility and efficiency, and optimize capacity allocation in key regions.
Vice Chairman Zhang Yabo further pointed out:
Each business unit must respond quickly to market changes, focus on key customers and core products, continuously enhance product strength, and achieve dual improvements in quality and efficiency. Functional departments in headquarters should play the role as the director for building systems and processes within their functional scope, continuously promote process optimization, improve work efficiency, build a headquarter that strategically empowers the development of business units and departments.
Vice Chairman Zhang Yabo particularly maintained:
Since the advent of large models such as ChatGPT, there has been a global surge in AI exploration. With the emergence of humanoid robots and intelligent driving cars, AI is transitioning from virtual to reality, changing lifestyles, reshaping the global economic structure, and accelerating the era of AI symbiosis between humans and machines. Future market demands, customer preferences, and industry pain points may undergo fundamental changes, presenting countless opportunities. New industrial ecosystems and business models await our exploration. In the face of this transformation, we must not only be technologically prepared but also adjust our mindset, keep abreast of the latest developments in AI technology, actively introduce and apply AI technology, empower various corporate tasks, and seize the technological initiative to stand firm in this transformation.
Finally, Vice Chairman Zhang Yabo called on all employees: "We must have a sense of crisis that drives us to push ourselves, as well as the courage and confidence to tackle difficulties. Focus on process management, ensure the implementation of work goals, make good use of AI as the core of digital empowerment, and strive forward with entrepreneurial spirit, working hard to complete the company's annual business plan!"
l Thematic Reports by Business Units, Sanhua R&D Center, and Quality Management Committee
The second part of the meeting featured thematic reports from the main business units, R&D Center, and Quality Management Committee. These reports summarized the business performance for 2024 and proposed the business plans for 2025.
Wang Dayong, General Manager of Sanhua Household, delivered a thematic report focusing on "Market Consolidation and Enhancement, and Product Strength Building". He proposed an operational strategy centered on "improving efficiency, reducing costs, planning ahead, adjusting quickly, and ensuring the achievement of annual targets", summarizing and planning the work of Sanhua Household.
Chen Yuzhong, General Manager of Sanhua Commercial Refrigeration, delivered a thematic report summarizing the 2024 projects from the perspectives of "increasing revenue" and "cutting costs". He stated that they will consistently adhere to the business policy of "ensuring quality, building a brand, expanding the market, and promoting growth", continue to focus on new product development, enhance product strength, strengthen market expansion, and optimize internal management.
Ni Xiaoming, General Manager of Sanhua Micro Channel Heat Exchanger, delivered a thematic report summarizing the 2024 performance, focusing on "breaking growth bottlenecks and promoting the '3+2+X' strategy". He outlined the development theme for 2025 as "quick adjustments, continuous improvements, establish competitive advantages, and achieve stable growth".
Guo Baihong, General Manager of Sanhua Leaderway Electronics, delivered a thematic report summarizing the 2024 work from the aspects of marketing, product strength, and internal management. He proposed that the 2025 work should focus on "optimizing system process construction, managing the quality, process and cost control, strengthening the workforce, establishing a project initiation mechanism, enhancing implementation of KPI, and independent operation".
Sanhua Automotive’s General Manager Yin Bin delivered a thematic report, summarizing the 2024 work such as innovation of technology and product, quality management, operations management, and digital transformation. He proposed that 2025 would be a turning point for Sanhua Automotive, transitioning from rapid expansion to refined development, focusing on "customer-centricity, establishing competitive product advantages, and improving efficiency of management".
Mr. Gong Bin, on behalf of the General Manager of Fuerda, delivered a thematic report summarizing the outcome of financial, marketing, R&D, and production operations. He proposed the business guidelines for 2025 as "risk control, quality assurance, and efficiency improvement".
Dr. Shi Chuliang, Director of the Sanhua R&D Center, delivered a thematic report summarizing the 2024 work from four aspects: major project achievements, capacity building, R&D management, and internal management. He emphasized that the R&D team will concentrate on in-depth research on three major areas: industrial automation, sensors, and thermal management systems and modules, and they will invest more in the R&D of basic and common technology. He specifically noted the importance of learning from companies like Space-X in order to build Sanhua R&D Center into a top-tier "elite organization".
Sum Sun, Director of the Quality Management Committee, presented a thematic report highlighting three key quality improvement topics: "Safety First, Safety Priority", "Raw Materials/Components/Assemblies Quality Improvement", and "Quality Talent Development", and set requirements for each business unit.
Chen Jinyu, General Manager of the Finance & Investment Division, delivered a thematic report indicating that the division will actively respond to the current market situation, strengthen risk control, and ensure stable operations. Following this, GM Chen delivered a report on behalf of the director of the Real Estate Division, summarizing the progress of key real estate projects in 2024. He stated that in 2025, the division will adhere to craftsmanship, adapt to market changes, actively innovate, uphold higher standards, and repay consumers with high-quality products.
l Summary
Finally, Mr. Zhang Daocai, Chairman of the Board of Directors of the Sanhua Holding Group, delivered an important speech. He evaluated the operational work of 2024 and provided significant instructions on the company's strategic operational priorities for 2025.
Chairman Zhang pointed out that the macroeconomic situation in 2024 was complex and challenging. Under the strong leadership of Sanhua Holding Group's management team, and through the hard work of the team from business units, the overall operation remained stable and positive. On behalf of the Board of Directors of Sanhua Holding Group, Chairman Zhang expressed his full recognition and warm congratulations to the management team and all Sanhua employees for their efforts and achievements.
Chairman Zhang Daocai analyzed that despite the increasingly severe external environment, the company has maintained sustainable growth. This growth is primarily attributed to the rapid development of the new energy vehicle industry both domestically and internationally. Additionally, Sanhua has expanded new business in the refrigeration and air-conditioning control components sector, enhancing its competitiveness and achieving high business performance and a strong global market position. Through the long-term R&D planning, Sanhua has gradually developed into a leader in high-value-added core control components, electronic control, and system integration, consistently maintaining a dominant position in the industry.
For the Group's development, Chairman Zhang Daocai proposed several key issues:
Fundamentally, industry puts pressure on companies to build enterprises of specialization, refinement, distinctiveness and innovation. Through specialized operations, we create a competitive advantage in mass production, occupying a major market position. We continuously iterate and optimize our products and technology, striving for excellence in niche markets. Over the past year, Sanhua Household has meticulously cultivated and enhanced its competitiveness in fully competitive mature markets, achieving record-high revenue and profits. Leaderway Electronics has achieved significant profitability through the adjustments and efforts of the management team. Sanhua Commercial Refrigeration, Micro Channel, and Sitong Electrical and Mechanical have continuously improved product competitiveness and explored new market opportunities. In the current situation, we must further deepen the "pursuit of excellence" team spirit of Sanhua, embody the "quick response, immediate action" style of Sanhua, and pursue "daily progress, monthly advancements, and yearly breakthroughs". We will leverage the advantage of "large-scale production and continuous automation improvement" to consolidate and enhance our global market share, further improving our market competitiveness and ensuring stable industrial development.
In 2024, the thermal management industry for new energy vehicles also achieved growth, and Sanhua Automotive faces a series of challenges in development. We must focus more on key customers and product projects, strengthen intensive operations and management, and make scientific plans for the global manufacturing layout to highlight scale benefits. We need to continue to enhance technological innovation, product development, and market promotion in the thermal management of new energy vehicles, especially in adapting to changes in customer demands and technological routes to bring value to customers. The company is increasing the planning and construction of Sanhua R&D Center to provide technical research and development capabilities for automotive parts. This is crucial for the development of automotive parts and is our advantage and guarantee to lead the segmented industry in the world.
Strategic technology and product development represent the future of the company, and we must maintain investments and increase input. The focus of Sanhua R&D Center lies in the development and research of intelligent drive system projects for key components and sensors of humanoid robots in the field of artificial intelligence. Our team needs to concentrate and focus, deploying core talents and resources for this area, strengthening investment efforts, accelerating the introduction and cultivation of top talents in the industry, speeding up new technological innovation breakthroughs and external cooperation, and accelerating the construction of an intellectual property protection system. With the entrepreneurial and innovative spirit of "turning the impossible into possible", we will strive to achieve breakthroughs in technology, marketing, and customers by 2025, realizing industry-leading development and providing strong support for sustainable development in 2026 and the coming years.
Regarding the issue of the company's "reducing cost", Chairman Zhang Daocai emphasized once again that the current macroeconomic and competitive environment is becoming increasingly challenging. "tightening, slimming down, and living frugally" is the keynote of our development. We must have a sense of crisis in this aspect and make further efforts in personnel scale control, comprehensive management capability enhancement, and the construction and application of informatization and digitization.
Chairman Zhang Daocai concluded with a message to everyone: The achievements of Sanhua's stable operations are hard-won. All Sanhua’s managers and employees must cherish opportunities and the platform provided by the company, adhere to the business principles and work requirements of "focus, stability, compliance, and low profile," and strive and progress together to achieve the 2025 annual business plan targets and key tasks!
The conference concluded successfully in an atmosphere of enthusiasm.
l Looking back at the Past, Ushering in the Future.
Each year's business conference is a milestone and a beacon for Sanhua's development and progress. In 2025, Sanhua will adhere the philosophy developed in its rich history, make entrepreneurial efforts, gather strength, and climb new peaks again!
Focus on main business, innovate to surpass. The road is underfoot, and the dream is ahead; strive to usher in the future!
