Press our advantage and achieve our goals.

The first half of 2020 was nothing short of breathtaking: the global outbreak of COVID-19; nationwide lockdowns, business shutdowns, and a nationwide effort to prevent and combat the epidemic—all of which led to a global economic downturn and unpredictable shifts in market demand. Despite these extraordinarily challenging circumstances, our company actively resumed production and operations, remaining committed to serving our customers, maintaining market stability, and exploring new opportunities. During this period, we witnessed many touching stories of dedication and resilience, overcoming numerous difficulties and challenges along the way. As a result, we achieved remarkably encouraging results.

In the first half of the year, despite more than a month of production suspension due to epidemic prevention measures, thanks to the hard work of all our employees, the company achieved a 12.32% increase in sales revenue compared to the same period last year. Moreover, most key financial indicators—such as accounts receivable and gross profit margin—have turned from negative to positive, entering a growth trajectory. Even more commendable is that, during this challenging time, all employees demonstrated sincere unity and worked together with one heart to overcome difficulties. Everyone remained firmly confident, actively strived for success, and turned crises into opportunities, paving the way for the company to break through its current predicament and achieve this year’s goals and tasks.

In the second half of the year, we’ll build on our momentum and achieve our goals:

I. Deeply focus on the foundational groundwork and the dual-engine-driven core tasks:

1. Reengineering Systems and Processes: While some aspects should be innovated, others should be supplemented and refined, and most should remain largely unchanged. From a structural standpoint, this approach is perfectly acceptable. The real challenge lies in ensuring that innovation truly brings about meaningful change, that effective mechanisms are fully implemented, and that flawed ones are courageously altered and reengineered.

2. Dual-Drive—Breaking Through in Marketing

(1) Regional layout and a point-to-area approach: Establish a base area model to avoid launching multiple fronts simultaneously as much as possible. In the first half of the year, we basically expanded the market following this approach, but the results were mixed—some aspects were encouraging, while others left us somewhat concerned.

(2) Traditional, conventional products compete for market share; new and personalized products generate profits and build brands. The situation is similar to (1), but the segment of new products appears relatively weak.

(3) Promotion of best-selling products: The results were unsatisfactory, raising suspicions of manipulative practices.

3. Dual-wheel drive—breaking through with technology

(1) Optimize the product portfolio and establish a technology platform: There is an imbalance in development among different business segments, and overall depth is far from sufficient—this somewhat reverses the proper priorities.

(2) Develop high-quality products tailored to different product categories and build competitive advantages: There is an imbalance in development among various sectors, with significant gaps. We must focus on addressing our weak points.

(3) Regarding project initiation, the vetting and review of new materials and new products have made positive progress. A four-level collaborative mechanism has been established for major projects and quality issues, and this mechanism needs to be further promoted and refined.

II. Laying the Foundation—Putting People First

1. Strengthen the proper guidance of thoughts, concepts, habits, and behaviors, shifting the focus from mere assessment to greater emphasis on support and guidance.

2. Advocate the “80/20” principle: Focus 80% of your energy on 20% of the tasks, and use only 20% of your energy to tackle the remaining 80%. This helps you prioritize your work and significantly boost efficiency!

3. Face problems squarely, solve them promptly, provide timely feedback, and demonstrate strong execution!

4. Foster a “selfless mindset” throughout the entire company.

III. Dual-wheel drive, focusing on key breakthroughs—addressing our shortcomings.

1. Marketing Breakthrough: Addressing shortcomings such as insufficient new customer acquisition, lack of results despite visible efforts, absence of mainstream directions, and inadequate promotion of hit products.

2. Technological Breakthrough:

3. Strengthening the product system: Addressing shortcomings in areas such as high-quality product development, project management, quality improvement initiatives, and personnel allocation.

In a word, we must press our advantage, address our shortcomings, and work together wholeheartedly under the new people-centered philosophy. With hard work and determination, we will surely achieve our annual goals!