Chengli Group's 2020 Annual Meeting: New 7-Billion Journey
The Chengli Group 2020 annual meeting was grandly held at the Country Garden Phoenix Hotel in Zengdu District, Suizhou City. Having achieved a total output value of RMB 6 billion in 2019, we are about to embark on a new journey toward RMB 7 billion in 2020. “The golden pig brings back spring; the wealth mouse brings good fortune.” On the afternoon of January 19, 2020, in Suizhou, the capital of China's special vehicles, the whole city was astir with excitement. Media outlets and more than 10,000 cadres and employees of Chengli Auto Group, full of pride and excitement, attended a grand and splendid annual meeting celebration, which was broadcast live and swept across screens. More than 30,000 viewers watched the online live broadcast across provinces nationwide, and the popularity of the Chengli brand soared once again. Highlights of the Chengli Group 2020 annual meeting — Chengli special vehicles begin a new 7-billion journey.

The list of the Top 100 Manufacturers of Chengli Auto Group records the solid footprints of the Chengli people who dare to strive, take responsibility, and march forward in pursuit of their dreams.
Cheng Daoguo, Chairman of Chengli Auto Group, and Cheng Aluo, General Manager, led the oath, leading the entire senior management team in a solemn pledge that the company would transform from a management-oriented team into a highly efficient service-oriented team.
Cheng Aluo, General Manager of Chengli Auto Group, delivered a keynote speech to the meeting and made a comprehensive deployment of the 2020 work plan.
The General Manager of Chengli Group reported to the annual meeting on the completion of work in 2019, as well as the main work tasks for 2020 and the relevant situation of the Group's "Fourth Five-Year" plan and its long-term plans.
He said that in the past year of 2019, Chengli faced the unfavorable situation of a sluggish auto market at home and abroad. United as one, the cadres and staff of the Group carried forward the spirit of tenacious struggle and enterprising progress, interpreted responsibility with hard work, and pressed forward with real effort, enabling the Group's production and operation to rise against the trend. The annual output value of Chengli special vehicles exceeded RMB 6 billion, up 20% year on year; export earnings reached USD 30.5 million; taxes paid reached RMB 64.68 million; chassis sales exceeded 20,000 units; and all the goals and tasks set at the beginning of the year were fully accomplished, maintaining a growth rate of over 20% for 14 consecutive years.
In 2019, the management level and overall strength of Chengli Group continued to improve: product innovation achieved remarkable results, with more than 500 new announcements upgraded from China V to China VI, and the proportion of new products launched on the market increased; heavy cranes won the Suizhou Science and Technology Innovation Award. Risk prevention and control capabilities were strengthened, maintaining a sound business environment. The Group's overall position was further enhanced: it was listed 442nd among China's Top 500 Private Enterprises and 260th among China's Top 500 Private Manufacturing Enterprises. It passed the acceptance of the secondary confidentiality qualification, and the Group obtained the five-star after-sales service certification. Remarkable achievements were made in the construction of spiritual civilization: the Ran Zuoyi work team won the honorary title of "National Worker Pioneer". General Manager Cheng Aluo was awarded the honorary title of "Outstanding Hubei Businessman" by the United Front Work Department of the Hubei Provincial Party Committee and the Provincial Federation of Industry and Commerce. These are the supreme honors of all Chengli people.

Highlights of the Chengli Group 2020 annual meeting — Chengli special vehicles begin a new 7-billion journey
In the list of the Top 100 Sales Teams of Chengli, this pair ranked among the top three, with happiness and pride beaming on their faces, unable to restrain their emotions. Chengli family members, please remember this wonderful moment.
In 2019, the construction of Phase III of the Chengli new plant was in full swing. The A8 and A9 workshops were put into use. The company invested more than RMB 30 million and, jointly with Wuhan University of Technology, designed and developed production lines for decoiling, tank fabrication and water sprinkler trucks, introducing intelligent manufacturing technology. The design scheme has been completed, and intelligent manufacturing equipment will arrive in succession. Chengli self-owned brand commercial vehicles have rolled off the production line one after another and been launched on the market, well received by customers. Commercial vehicles achieved an output value of RMB 176 million, and new-energy vehicles created an output value of RMB 86.51 million.
Over the past year, civil-military integration and the emergency industry developed rapidly. Batches of military special vehicles have been continuously delivered to the troops for use. In particular, 140 wrecker trucks were delivered on schedule, laying a solid foundation for completing one-off large orders. During the year, despite the suppression of foreign trade wars, the company's export trade maintained strong momentum. By developing the Southeast Asian "Belt and Road" and the "Maritime Silk Road", Chengli achieved excellent export earnings of USD 30.5 million. In the past year of 2019, the economic and social benefits of the enterprise continued to improve. The company paid RMB 64.68 million in taxes, paying nearly RMB 200,000 to the state on a daily basis. It provided employment for more than 10,000 people, providing a source of income for more than 10,000 families and easing social employment pressure.

During this year, the company's Party Committee and trade union, centering on economic construction, strengthened ideological and political education for Party members, and organized activities such as visits and assistance to workers in difficulty, employee education, on-the-job training and labor competitions. On the eve of July 1st, it organized Party cadres and members to visit Shaoshan, Hunan, to review the oath of joining the Party and receive red education, participate in the singing gala celebrating "July 1st" and the 10th anniversary of the establishment of the new Zengdu District, and carried out activities such as Party member learning days.
The company saw a large number of advanced individuals, outstanding Party members, labor models, craftsmen and sales elites emerge. Following the 5% evaluation for commending and modeling, the number of outstanding Party members and Chengli craftsmen reached 504. Dedicated to their duties, they actively played a pioneering and exemplary role in their daily work, uniting and leading colleagues around them to contribute to the development of the enterprise.
The year 2020 is the final year of the national "Thirteenth Five-Year" plan, the first year of the company's "Fourth Five-Year" plan, and a critical year for the company to break through the ten-billion mark and sprint toward higher goals. It is crucial to do all work well. Chengli's goals and tasks for 2020: an output value of RMB 7 billion, striving for RMB 7.5 billion; export earnings of USD 35 million; and taxes paid of RMB 80 million. We must seize the opportunities, firm up our confidence, forge ahead and rise with the momentum, and strive to promote Chengli's high-quality leapfrog development.
To accomplish the annual goals and tasks, Chengli Group will transform its management functions, with the company's senior management shifting from a management-oriented team to a service-oriented team. The Chairman and General Manager, leading the senior management service team, have taken a solemn oath before the meeting. Guided by the "Three Adherences" as the guiding ideology, it will implement the new 3×3 development strategy (the three parks of Chengli Old Plant, Chengli New Plant and Wuhan Heavy Industry × the directly affiliated plants, professional plants and member plants of the Group), be loyal to Chengli, fulfill duties, wholeheartedly serve the front-line production and sales, and jointly promote the development of the enterprise.
In 2020, first, we must adjust our business strategy, shifting from an extensive model to an economical model, from "eating from the same big pot" to refined cost accounting and assessment, and, with the economic responsibility system as the main line, implement assessments of profit, output value and output for each unit. We will fully leverage the role of two-level management, with company leaders undertaking multiple responsibilities under one post. All production modules (directly affiliated plants and professional plants) and business modules (such as the Chassis Business Division) will build a "profit center" system, centering everything on the dual indicators of "operating output value" and "operating profit", and ultimately form a professional manager compensation system that reflects team value orientation.
Second, we must adjust our sales strategy. With "channels are king, a pack of wolves fights a single tiger" as the core development idea, we will build a multi-model parallel sales network to steadily enhance Chengli Group's risk resistance in the face of future market changes. We will continuously optimize and increase the number of sales segments and sales teams, form Chengli's unique advantage of "a pack of wolves fighting a single tiger", expand the dealer and agency sales model overseas, and continue to intensify investment attraction efforts.
Third, we must adhere to the green development concept that prioritizes environmental protection, continue to increase investment in environmental protection engineering and treatment, and build garden-style factories. We must strengthen risk awareness and do a good job in risk prevention, especially in the prevention and control of tax, export and other risks. We must accelerate project construction, fully complete the Phase III construction of the new plant, bring it into production as soon as possible, realize its benefits, and start the construction of emergency industry projects.
Fourth, we will continue to strengthen the construction of people-centered projects. "The hearts of employees are the roots of the enterprise." We will continue to care for and protect the vital interests of our workers, create a good learning, working and production environment for employees, improve the safeguard system for employees' physical safety and health, enhance workers' sense of gain and happiness, and strengthen corporate cohesion.
Chengli Auto Group Deputy Party Secretary and Executive Vice President Cheng Guoqiang delivered the work report.
Chengli's "Fourth Five-Year" plan covers 2020—2024, aiming for an output value of RMB 13 billion, including: RMB 8.5 billion for Chengli special vehicles, RMB 3 billion for Chengli auto, RMB 1 billion for Chengli heavy industry, and RMB 500 million for new energy. It will strive for the listing of the Chengli new energy segment on the science and technology innovation board or in Hong Kong. It targets RMB 350 million in profit and tax and USD 100 million in export earnings. It will strive to build a new Chengli within five years.
In the new year, the main construction content and scale of Chengli are: for Chengli special vehicles, further expand and beautify and achieve higher-quality development; for Chengli auto, complete the construction of the Phase IV emergency industry base project and achieve full production; for Chengli heavy industry, complete the construction of a 600-mu industrial park (that is, all the land behind the existing land) and achieve full production. In terms of products and output: by the end of the "Fourth Five-Year" plan, each subsidiary should benchmark against a local enterprise in the city and surpass the benchmark enterprise in output and quality, and all subsidiaries should achieve the goal of the highest comprehensive output in the country.
The highlight projects for growth during the "Fourth Five-Year" period are: commission modification, military products, chassis, foreign trade, new-energy vehicles, commercial vehicles, emergency vehicle manufacturing, on-board equipment manufacturing, high-end special manufacturing, and supporting parts manufacturing, with concentrated efforts in these ten major fields. By the end of the "Fourth Five-Year" plan, we must build a workforce that is "politically sound, highly skilled, courageous and loyal to the enterprise", make employees the beneficiaries of Chengli's development, and ensure that employees' income exceeds that of employees of comparable enterprises in Suizhou by more than 5%.
According to the Chairman's grand vision, the long-term goals of Chengli Group are "a century-old Chengli" and "a hundred-billion output value". To achieve these goals, we must, starting from now, build ten industrial clusters in a planned and step-by-step manner, namely commission modification, military products, chassis, special vehicles, new-energy vehicles, commercial vehicles, emergency vehicle manufacturing, on-board equipment manufacturing, high-end special manufacturing, and supporting parts manufacturing. We must unswervingly build a strong industrial zone, strive to create a distinctive industrial growth pole, and serve as the follow-up support for the Group's development.
At the meeting, a number of backbone members of the middle and senior management teams were also appointed, laying a solid foundation for the future development of the industrial clusters of Chengli Auto Group. The mission entrusted to us by the times is glorious and sacred, and the expectations placed on us by the people are earnest and weighty. In the new year, we must strengthen our confidence in the goals of a century-old Chengli and a hundred-billion output value, hold fast to our original aspiration and mission for development, strive to accomplish the annual goal and task of RMB 7.5 billion, and write a new chapter in the development of Chengli's "Fourth Five-Year" plan.
At the end of the work summary and the deployment of new-year work, General Manager Cheng Aluo, on behalf of Chengli Group, wished everyone a happy new year, good health, smooth work and all the best!
At the meeting, advanced collectives, individuals and advanced Party branches of various segments were commended. Amid the rich prize-drawing and performance sessions, wonderful programs featuring employees' own performances were interspersed, earning warm reviews and likes from live-stream viewers. The meeting concluded successfully in a warm, harmonious and epic ceremony, drawing the curtain down.