Seize opportunities, pursue truth and pragmatism, and propel Haiyue Technology to new heights!

On February 15, 2019, Chairman Wu Haichao of Haiyue Technology Group delivered an important address at the New Year Work Mobilization Conference. During the meeting, the chairman conducted a thorough analysis of the company’s internal environment and the favorable policies and support measures offered by the national financial system to private enterprises. He also emphasized that, across all business segments and departments, work must be grounded in pragmatism, with rigorous implementation at every level and clear assignment of responsibility to individuals. His call was to strive to win the critical battles of 2019 for Haiyue Technology Group and to propel the company’s rapid growth and success.

We hereby publish the full text of Chairman Wu Haichao’s address delivered on February 15, 2019. All employees across the Group’s headquarters departments, the two major production bases, and the construction and real estate development divisions are urged to study it carefully and translate the spirit of the Chairman’s speech into concrete actions in both work and study. Each department is encouraged to strive for even greater achievements in 2019.

The following is the full text of Chairman Wu Haichao’s address.

Comrades, today is the first day of work in the New Year. We are convening this work mobilization meeting here to implement… Key priorities for 2019: 2019 is a pivotal year for Haiyue Technology’s development. Although both domestic and international economic conditions remain complex and highly volatile, this presents a significant opportunity for Haiyue. Why do I say that? Let me share my analysis with you.

Corporate Self-Analysis

  Through Over the four years from 2015 to 2018, the company has developed a clear vision, formulated comprehensive plans, set specific goals, and established a well‑structured implementation roadmap. It has also built the capacity to produce various types of automated parking systems and achieved a robust level of certification. With all cadres and employees working in unison, the organization is filled with hope and confidence for its future growth. It is crucial that every member of the team maintains strong motivation and unwavering confidence—after all, as the saying goes, “When hearts are united, even Mount Tai can be moved.” ！

Market

  Leaving the national picture aside for now, let’s focus on Guizhou Province. Demand for parking‑lot construction in Guizhou is steadily growing, and I expect a sharp surge in demand for multi‑storey parking facilities over the next three years. Addressing the parking shortage is a top priority for both society and residents; urban parking challenges have become a pressing issue, and governments at all levels are increasingly prioritizing this problem and striving to find effective solutions.

Recently, the People’s Government of Guizhou Province issued Order No. 190, which approved and promulgated the “Administrative Measures for Parking Lots in Guizhou Province,” effective March 1, 2019. This document is specifically aimed at addressing severe urban traffic congestion and parking difficulties, and cities and prefectures across the province are expected to follow suit—Zunyi has already released its own regulations. All localities are prioritizing the resolution of parking challenges as part of their work agendas. Consider this: in Guizhou alone, there are projects totaling tens of billions of yuan. Let us begin by rolling out these initiatives in several key provincial cities, such as Tongren, Liupanshui, Zunyi, and Guiyang. With the commencement of these projects, we will need to overhaul our production methods to meet the associated demands, resulting in exceptionally strong market demand—and implementation has already begun.

Policy

Governments at all levels attach great importance to this issue and are committed to addressing projects that improve people’s livelihoods. As for administrative policies, I will not dwell on them; the financial measures supporting parking‑lot construction are particularly robust. Just now, we reviewed the “Several Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Strengthening Financial Services for Private Enterprises,” which further underscores financial support for private firms and elevates it to a document issued directly by the CPC Central Committee and the State Council. Meanwhile, the China Banking Regulatory Commission has incorporated banks’ support for private enterprises into their annual performance assessments, meaning that banks—especially small and medium‑sized ones—must extend such loans. More than 50% of loans must be extended to private enterprises; otherwise, the banking regulator’s assessment will fail, and even the bank president may face accountability. Supporting the real economy, bolstering private enterprises, and promoting high‑tech manufacturing have been designated as political priorities. In other words, going forward, there is no need to worry at all about securing funding for parking‑equipment projects.

In 2019, amid numerous uncertainties in the economic outlook, top-level policymakers were concerned about a severe economic downturn and are likely to adopt a moderately accommodative monetary policy. The central bank may impose lending‑quota targets on banks at all levels, but such credit will be directed primarily toward sound, well‑performing real‑economy entities. For instance, this year, Haiyue Technology can expect more banks to proactively approach it seeking collaborative partnerships.

The construction of multi-story parking facilities is currently… A project that both the government and enterprises are very eager to collaborate on.

There are many reasons, but due to time constraints, I won’t go into detail—anyway… 2019 was a year of great development opportunities for Haiyue. ， This is a pivotal year—a year to turn losses into profits. Ultimately, it all comes down to how each of us acts, how hard we work, and how relentlessly we strive. With such an excellent opportunity at hand, Haiyue must seize it firmly, act swiftly, and execute with precision.  

At the meeting, the Chairman assigned the following tasks:

I. Haiyue Manufacturing “Six Focus Areas”

Focus on production ： Primarily, it comes down to output and production value. In the near term, we’ll have to rely on in-house manufacturing; when orders come in, whether we can deliver on time, with consistent quality and sufficient volume, will be a major challenge. Therefore, we need to devise concrete strategies and measures, implementing a performance‑based compensation system that rewards higher output for frontline managers and employees. At the same time, we will promptly establish partnerships with subcontractors for semi‑finished and finished‑product processing. China’s high‑speed rail manufacturing model follows a similar approach: CRRC produces and assembles core components, while other parts are manufactured by partner firms. Production.

Focus on quality ： Quality is the lifeblood of an enterprise—everyone understands this, yet putting it into practice is far from easy. Why is that? Many people prioritize short-term gains over long-term planning. At Haiyue, we aspire to become a century-old brand and pursue steady, sustainable growth. When quality and profit clash, we always put quality first and let profit take a back seat. It makes perfect sense for our country to elevate quality improvement to a national strategy. Just look at the world’s leading powers—countries like the United States, Japan, and Germany all place tremendous emphasis on quality and intellectual property. Some colleagues, however, remain puzzled, wondering… “Is it contradictory to seek both higher output value and improved quality?” I replied that it is not. While the scale of output is indeed important, quality is even more so. Increasing production can help reshape the production mix, but we must never compromise on quality standards. Going forward, from top to bottom, performance assessments will encompass not only output volume but also quality, with bonuses tied directly to quality metrics.

Focus on innovation ： Only through continuous innovation and reform can the manufacturing sector maintain robust vitality and stay ahead of its peers. Haiyue Technology aims to rank among the top three nationwide within five years—this is our ambitious goal. We cannot merely pay lip service; we must become a true industry benchmark, standing out as a paragon in the field. To achieve this, we will invest heavily, take decisive action, endure a series of painful transitions, and significantly increase funding for innovation. We will expand our R&D and innovation teams, further refine and institutionalize our innovation strategies, and reward innovators generously—tailoring incentives on a case-by-case basis—to boost the compensation of our research and development personnel. Moreover, we will adopt a tolerant and inclusive policy toward our innovators, allowing them to make mistakes in their pursuit of breakthroughs, empowering them to think boldly, act decisively, and take risks. Through these efforts, Haiyue Technology’s products will grow increasingly intelligent, optimized, and upgraded, ultimately earning customer satisfaction, a stellar reputation, industry leadership, and widespread social recognition as a distinguished enterprise.

Focus on sales ： Currently, our sales rely entirely on direct sales by our company, so every member of the sales team must work hard. Sales staff should assess their own performance: if they fail to generate business for several months, they will be let go, and new talent will step in. Our current incentive structure is quite competitive—how you perform will determine your rewards; top performers can earn unlimited bonuses, with payouts reaching one or two million yuan. As the Haiyue brand gains recognition and market traction, commission‑based distribution will inevitably follow. At that point, our most capable sales leaders will be positioned to head regional sales operations, adopting a model similar to Moutai’s: each leader oversees a specific territory and assumes full responsibility, setting annual targets and receiving rewards based on performance. Higher sales volumes translate into larger bonuses, and premium pricing further boosts incentives. Given Haiyue’s current momentum, we could implement this plan within three years.

Focus on branding ： Enhancing Haiyue’s brand is a comprehensive, systematic undertaking. I touched on this issue at the year-end awards ceremony, and since it’s so important, I’d like to reiterate it today: in the era of big data, whether Haiyue can be considered a successful enterprise will no longer depend solely on empty boasts. With big data, everything—from product and service quality, corporate strength, corporate culture, management practices, to brand promotion—can be assessed clearly at a glance. The benefits that a strong brand delivers are beyond question, and its added value is substantial as well. Kweichow Moutai serves as an excellent example: the cost of producing each bottle does not exceed 300 yuan, yet the market price can reach… At 1,500 yuan per bottle, its added value is around 1,000 yuan—more than three times its cost—and it remains in such high demand that it’s hard to find. There are many such examples. Accordingly, every Haiyue employee should place great emphasis on building the company’s brand, with a plan to establish the Haiyue brand as a leading player in the industry within three to five years.

Focus on after-sales service ： In mechanical manufacturing, after-sales service—particularly for automated parking systems—is of paramount importance. As parking equipment is a consumable product, failure to provide timely maintenance, routine servicing, and repairs will inevitably lead to malfunctions; even the best initial work can be rendered futile. This year, Haiyue plans to introduce a Service Management Regulation that assigns responsibility for the maintenance and upkeep of each parking space not only to individual operators but also to team leaders and department heads, implementing a three-tier management system.

II. Real Estate

  Recouping capital from real estate is of paramount importance. Based on the current economic outlook, while the real estate market is expected to stabilize, excessive expansion should be avoided. At present, Haiyue Real Estate’s primary objective is to convert assets into cash—this point was already addressed at the meeting regarding Yushan Shouzuo, which also serves as a key avenue for raising funds. Jinsha. ·Haiyue·Modern City must not only expedite construction but also prioritize marketing and sales, aiming to sell units as quickly as possible through a strategy of low initial pricing followed by gradual increases, thereby accelerating cash recovery. Meanwhile, for other projects, a detailed schedule should be drawn up for finishing touches, with every effort made to complete the handover to property management in a timely manner.

III. Construction Industry

For several projects nearing completion, the legal department must pursue outstanding debts in a planned, systematic, and methodical manner, with the ultimate goal of recovering all outstanding payments.

Conclusion

     Comrades, The year 2019 presented a favorable opportunity for the development of Haiyue Group. We must seize these opportunities and focus on key priorities, adopting a work ethic characterized by urgency and unwavering dedication. With unity of purpose and a spirit of perseverance, we will forge ahead together. I urge all employees at every level to devote themselves wholeheartedly, embrace challenges, fulfill their duties to the best of their abilities, and assume full responsibility, ensuring that all tasks are carried out effectively and striving to make even greater contributions toward the early public listing of Haiyue Technology.

Only a life of striving can truly be called a happy one. Striving is arduous and fraught with hardship; it is through such trials that we are refined and made strong. Without hardship, there is no true striving. We must courageously purify our souls, temper our will, and fortify our confidence in the crucible of hard work and perseverance. With unwavering resolve to stay focused on our goals, we should cherish every opportunity and redouble our efforts, never relenting until success is achieved.

The dream lies ahead, and the path is under our feet. He who conquers himself is strong; he who is strong in self‑discipline prevails. 2019 presents a golden opportunity for Haiyue’s development. Together with all our employees, we will strive forward, overcome challenges, pursue excellence, and proactively seize the industry’s commanding heights, working tirelessly to help Haiyue become a “double‑hundred” enterprise.

Heaven rewards the diligent; with hard work and courage, the people of Haiyue will surely see their lives grow ever more prosperous. We are living in a great era, and our future is bound to be ever brighter.

At the very beginning of the New Year, all things are renewed. On the first day back to work after the Spring Festival, the Group convened this meeting—both a gathering to refocus and a kickoff for post‑holiday operations. I urge everyone to swiftly shift their mindset and energy into work, meticulously plan and deploy the tasks of your respective divisions and departments in line with your roles, and, with a spirit of bold vision, fearless initiative, and relentless determination, seize opportunities, pursue pragmatic innovation, and deliver solid results—setting a strong start and laying a firm foundation for the successful completion of this year’s objectives. As we embark on the new year, I wish you every success in your endeavors and a bright, shared future with Haiyue!