Sanhua Holding Group’s Management Conference of First Half of 2016

○ Mr. Zhang Yabo, CEO of Sanhua Holding Group gave a conference report. President Zhang Daocai made important speech. Main officials of eight business units reported the operating in the first half year.

○ In the first half of 2016, Sanhua Holding Group sales income is 9.4 billion yuan, up 11% from a year earlier. Profit is 600 million yuan, up 6.3%. Overseas sales are 2.11 billion yuan, up 8.8% from a year earlier.

On August 10th, Sanhua Holding Group held a management conference of first half of 2016 in Sanhua Meizhu Industry Park in Xinchang, The board members of Sanhua holding group, the board of supervisors, members of standing committee, members of management, managers of all department of Group, class 3 and above personnels of central institute, cadres of party committee, trade unions, youth league and all subsidiaries of more than 600 persons attended the conference. The conference was presided over by Mr. Wang Dayong, vice president of Sanhua Holding Group.

Mr. Zhang Yabo gave a report on behalf of standing committee. In the first half of 2016, Sanhua Holding Group sales income is 9.4 billion yuan, up 11% from a year earlier. Profit is 600 million yuan, up 6.3%. Overseas sales are 2.11 billion yuan, up 8.8% from a year earlier, which bucked the trend with good performance.

The guiding ideology of Sanhua Holding Group in the second half year is stabilization and innovation which practices internal capacity and grasps key point. Management requirement is goal-oriented fulfilment of annual management plan. The emphasises are human resources management ability improvement, financial informatization construction, monthly management key decisions tracking, improvement of service, coordination and management of each business unit, products’ development of vehicle thermal management system, inverter controller and Aweco, as well as science and technology innovation conference.

Mr. Zhang Daocai, President of the Board made important speech when main officials of eight business units finished their reports.

President Zhang made analysis and judgement on the future macro-economy and market competition. He said that science and technology innovation has greater importance, and environment and energy crisis becomes increasingly serious. China should rely on scientific and technological innovation in order to take the lead in the world in terms of energy conservation and emission reduction after Paris Agreement was signed. Sanhua has got a head start in the field of new energy vehicle thermal management system and core control components. Sanhua has made great achievements in the field of home appliance thermal management system, micro-channel heat exchanger, commercial and residential HVAC&R control components, inverter controller, and Aweco home appliance control components. Sanhua has made breakthrough in technology and new products. Mr. Zhang told that we should be bold and practical about innovation. We should forcast, prevent, control and dissolve all risks. We should be cautious about that Sanhua exclusively supplies large quantities of new energy avehicle components as required by international famous enterprises. Sanhua wants competitor for competition is better than monopoly. To customer who reqiures Sanhua supplies exclusively indeed, products quality must be ensured hundred percent.

Besides, we should develop innovation ability and bring initiative into play of all Sanhua staff. Sanhua Holding Group will grasp capital allocation which favors distribution on technician, salesman, management cadre and front-line employees to motivate their enthusiasm, creativity and subjective initiative. All Sanhua members share Sanhua’s achievements and realize their own progress, contribution and value and dream.

Finnaly, president Zhang mentioned that Sanhua inheritance evergreen is all Sanhua staff’s pursuit and ideal. The business task in the second half is still grim. He hopes all unite as one with new leadership of management team, and strive to make greater success!