Report of the 2017 Summary and Commendation Conference

Good morning everyone!

Today, Haoyu Company grandly held the 2017 Annual Summary and Commendation Conference to rationally analyze and summarize the gains and losses of the past year, and make a good layout for the work of the 2018 New Year, which is of great significance. In the past extraordinary year, due to the high-pressure sanctions of national environmental protection and security, the ups and downs of upstream raw materials, and the impact of the financial crisis in Guangrao, everything has been difficult to survive in unexpected variables, like walking on thin ice. The once all-powerful companies in the Guangrao Tire Cluster have died and suffered injuries, and have endured an unprecedented test of life and death. As a Haoyu company, although it is also inevitable, fortunately, we won at the starting line and did not copy the brutal development model of our brothers. From the beginning of our business, we have been down-to-earth in quality, committed to going far and creating a brand, and the new era calls for "returning to the essence of business". The melody is in tune, the pace is the same, and the direction is in line. The faster the transformation of old and new kinetic energy, the faster the pace of enterprise transformation, and the more brutal the reshuffle of the industry will be. We catch up with this big opportunity and big era, which further proves Haoyu's far-sighted strategic positioning, strengthens our confidence and perseverance in creating a national brand, and inspires us to be an evergreen foundation with responsibility, feelings and patterns. Looking back on the past year, I have summarized three major changes to share with you.

In the market

Brand popularity has changed to reputation: starting a business, as a new enterprise growing in Guangrao, and a new brand positioning in the high-end quality and high-end market, it is difficult to break through the ceiling of "low quality and low price" in Guangrao industrial clusters. At that time, we could only choose to overtake on corners and create a difference. Invested huge sums of money to spread strongly in CCTV's prime time, relying on CCTV's credibility and influence to improve brand awareness, and to comprehensively deploy international and domestic channel networks. After several years of hard work, we insist on not OEM, interfere with market order, adhere to market norms, maintain the dignity of dealers, adhere to independent innovation and product upgrading, inject product vitality, insist on not participating in vicious competition, reshape high-end brand perception, adhere to the inheritance of ingenuity, and serve as a platform for domestic products. In 2017, our brand has become the brand with the highest voice over dealers and the largest profit. It has become a brand that dares to be compared with international brands. At the same time, it has proved to the world that Guangrao Industrial Cluster will no longer be labeled "low quality and low price".

In the industry

From cynicism to admiration: At the beginning of our establishment, it was a period of crazy and rapid expansion of the tire industry. At that time, the company, products, markets, brands, funds, and scale were all proud capital. Haoyu's new enterprise, however, took the road of differentiated brands alone, causing different eyes in the same industry, and even cynicism and mixed praise. However, we must jump out of the circle of vicious competition and take the road that others have not taken. The highest state of competition is not to participate in competition. In recent years, especially last year, the banks' loans and funds were broken, and the state's environmental protection was curbed, which made the big enterprises that once called for the wind and rain gradually disappear, the reshuffle tide of the big waves and sand torrents was coming, and the return of the commercial essence of the new era made a comeback. It is the best opportunity for us who have already transformed. The progress of the times has made many colleagues impressed, and even become a benchmark for them to learn and learn from.

In the ecological chain

The appeal of an enterprise has changed from vague to clear: the so-called appeal is the charm of adhering to a lofty vision and belief, being able to foresee the future and direction, and creating miracles. The business philosophy and long-term development concept advocated by Haoyu seem to outsiders only manifested in slogans, but as ourselves, and unswervingly implemented in action, opening the road in case of mountains, building bridges in case of water, persistently pursuing the dreams in our hearts, and practicing domestic products step by step. After the test and tempering of time, the product quality has been recognized and favored by customers across the country, and the corporate image and brand have occupied a high-end position in the country. Eight years of perseverance shows the charm of "leading the future of the industry". Behind this sense of force is a strong cohesion and centripetal force. Our upstream suppliers are proud of their cooperation with Haoyu. The invisible brand not only brings them word-of-mouth and value, but more importantly, they learn from each other through resource integration and establish strategic cooperative relations. From us, they have learned the passion for entrepreneurship reflected by responsibility, feelings, and patterns. Our employees come to work with a part-time mentality. At the beginning, the company was small and had no influence, and the company was proud of your arrival. Today, with the development and growth of the company and the improvement of its popularity, you will be very proud of the company. In recent years, the tire industry has been at a low ebb, and Haoyu's image in the society and the government has become taller. It is no longer because our company has weak competitiveness, and our foresight and lasting patience for the future have become the "coordinates and directions" for the successful transformation of Guangrao industrial clusters, and the "highlights" of the government's external publicity and exchanges.

  These three major changes will be deeply touched by every employee working in Haoyu, especially the earthquake of the survival of the fittest in the tire industry last year. Even the big companies that used to work around us have withdrawn from the stage of history, and the former brilliance has disappeared. Why did Haoyu escape the catastrophe? It is because of our wise choice, humiliating hard work, and obsessive perseverance that we have achieved today's extraordinary performance. It won the title of "National Advanced Quality Credit Enterprise" issued by China Product Quality Inspection and Evaluation Center, was recognized as "National High-tech Enterprise" by the Ministry of Science and Technology, and successfully passed the government's acceptance of "four ratings and one evaluation" for chemical enterprises.

Entering 2018, the general trend of the tire industry will be more cruel, and the situation of industry reshuffle will be more severe. How can we not be eliminated by the times, only by doing a good job of ourselves and improving ourselves, we will not only win at the starting line, but more importantly, win at the running line and constantly surpass ourselves. In the new year, we will pay close attention to internal strength to tap potential and expand sales in the market. Closely around the overall strategic layout of "one center: economic benefit as the center, two innovations: distribution system innovation and management system innovation, three upgrades: brand value upgrade, product quality upgrade, employee satisfaction upgrade", further improve brand perception, consolidate the hematopoietic function of enterprises, cultivate the core competitiveness of enterprises, enhance the ability of enterprises to resist risks, and do the following work:

Marketing innovation

The ups and downs of the industry will inevitably lead to confusion and melee among downstream customers. The price war of overcapacity is reducing customers' vested profits all the time. We must maintain the dignity of customers, from the buying and selling relationship to the emotional level, not only to maximize profits for customers, but more importantly, to send warmth, care, and feel Haoyu's feelings. Increase market norms and resist low-price dumping, and maintain Haoyu's status as a high-end brand. Advocate end point partners to gather together for warmth, work with one heart and one heart, and fight together. Guide dealers to rely on service value-added and user experience to be deeply rooted in the hearts of the people. We will also enter the field of supporting facilities and government procurement, expand market space, maximize sales, and escort enterprises to operate at full capacity and improve efficiency.

Brand innovation

Although we have been committed to the creation of branding impression and influence for several years, and have been recognized by the industry and the market at the same time, with the changes of the times and the impact of the Internet economy, the life of enterprises, product production cycles, and time to compete for users are all unprecedented. The speed is shortening, and the market has entered a transition period of "consumption upgrading and demand upgrading". In the past, people moved with things, but now things follow people's hearts. The culture, innovation, experience and feelings of the enterprise are the brand life implanted in the soul. Therefore, in 2018, the investment 5 million to build 1,500 end point image stores across the country, further enhance the sense of sanctity and honor of end point partners, increase the activities of market promotion brand communication and landing roadshows, and enterprises and businesspeople will do a good job in the market.

Technological innovation

Tire is a special industrial consumer product, which is a common thing for standard parts. The low-quality homogenization of the original industry is being upgraded and transformed, and technological breakthroughs and innovations are more important. On the basis of the good foundation that the existing mining tires, truck tires and vacuum truck tires have been widely recognized by the market, more importantly, we have gone out in the renewal of patterns, the application of new materials, and intelligent manufacturing, and have mostly cooperated with well-known material manufacturers. Cooperate with the platform of the automotive back market, continuously realize technological breakthroughs and product upgrades, and create markets, create demand, lead the market, and guide consumption with personalized functions and super-excellent quality. Especially China has entered an era of customization and personalization, and niche consumption is becoming more and more obvious. Take our listing as a national high-tech enterprise as an opportunity to participate in a higher and broader stage competition, and technological innovation will always go first.

Management innovation

The biggest challenge for today's enterprises is to face the future, not to inherit the past. Because along the old map, there must be no new continent. In 2018, we proposed that management system innovation and distribution system innovation are in line with the new era, resolutely implement the amoeba management mechanism, and realize organizational transformation. From one person has the final say to everyone has the final say, establish a performance distribution system with goals and standards, stimulate employees to be the masters of the factory as the home, and realize the value of high income. The transformation from organization-driven to market-driven, everyone corresponds to the market rather than leadership, so that enterprises will have a stronger ability to adapt to the market and serve the market. Build a table, create a brand, the highest level is to achieve a group of children. The innovation of the management system is to allow those who follow Haoyu to obtain a greater sense of gain and happiness!

   Comrades: China's economy has transformed from high-speed growth to high-quality development, and the industry trend has returned from extensive expansion to industrial transformation. Haoyu Company has entered a period of development and harvest from a difficult startup stage. In this round of the most turbulent changes, we have positioned, deployed, and acted early, accumulated and formed our own experience and advantages. I believe we have the confidence, ability, and pattern to overcome all challenges and meet a wonderful era that belongs to Haoyu people!