Reset and start again, setting sail for the future!

Recently, Huading Co., Ltd. held the 2024 annual work summary and performance report meeting at its headquarters building. The meeting systematically summarized the completion of various work tasks for 2024, deeply analyzed experiences, identified existing shortcomings, and comprehensively deployed the work for 2025, detailing measures and strategies to promote the achievement of various work goals in the new year. The company's chairman, Zheng Qizhong, attended the meeting and delivered a summary speech. He fully acknowledged the impressive achievements of the company in 2024 and emphasized that Huading's new vision is to become the champion in the nylon filament sub-market. The company will concentrate its resource advantages to excel in the sub-market, create a high gross profit level in the sub-market, steadily advance the 'three-step' business strategy, and require employees at all levels in 2025 to continue to enhance their capabilities, deeply integrate with the company culture, work together with the company to overcome challenges, and continuously strive for great victories!

The annual summary and work report meeting was hosted by the company's vice president, Wang Xiqiao. Group leaders and heads of relevant departments, as well as heads of related systems, centers, branch factories, or subsidiaries, and the human resources and administration line heads of branch factories or subsidiaries attended the meeting.

First, the conference will enter the summary and work report session, where 14 leaders from relevant systems, centers, subsidiaries, and branch factories of the company will take the stage one by one to present their work summaries and reports for the year 2024.

In the summary and performance reports, each presenter combined the actual work carried out and completed in their respective areas of responsibility for the year, focusing on six major aspects: the completion of the 2024 KPI and work summary, the main values and contributions created, existing problems, cause analysis and improvement measures, assessment indicators for 2025, key measures for achieving the 2025 completion indicators, and the progress of the key work plan for 2025. They highlighted key points and provided a comprehensive overview, summarizing the completion status of the 2024 KPI indicators and goals, analyzing current issues, and proposing improvement measures, with a focus on the performance assessment indicators for 2025, suggesting relevant key measures for completion and the progress of key work plans.

After the work report and performance review, the company's general manager Fu Zhanjie conducted a work summary and deployment.

2024 is a fruitful year, the result of all employees working hand in hand and striving hard together. However, achievements do not equate to success; we must maintain a clear mind and deeply reflect on our shortcomings.

In the speech, the general manager pointed out that by 2025, the company aims to establish a comprehensive performance incentive-oriented mechanism, which specifically includes - breaking the one-size-fits-all approach: implementing tiered assessments based on departmental performance contributions and job value evaluations; performance assessment formulation: indicators should be innovative, challenging, and of high standards; four principles of non-incentivization: no quantification, no incentivization; no benchmarking, no incentivization; no incremental growth, no incentivization; no contribution, no incentivization; incentive distribution orientation: combining departmental and job value contribution performance with individual compensation, using contribution value results as the evaluation coefficient for compensation performance incentive distribution, allowing the capable to earn more, while the incapable earn less or even nothing, and so on.

What strategies will we have in 2025?

In 2025, there are many uncertainties. We should enhance the team's combat effectiveness and improve the optimization of processes and systems. All employees of the company should respond to market uncertainties with core competency certainty.

The phenomenon of internal competition in the industry is a common issue, usually stemming from overcapacity, lack of innovation, and companies being at the lowest end of the industry value chain. In response, we need to focus on new products, markets, and brands, actively confront internal competition, and adopt an olive-shaped business model to break free from this cycle.

In the context of intense competition and declining prices, it is essential to manage the entire process effectively through market, channel, product, and operations management. This includes contributing to securing market share through sales, creating value through procurement, reducing costs in production, and providing strong support from backend operations, all to ensure the achievement of profit targets.

The year 2025 is the company's year of management breakthroughs, focusing on two core operational capabilities: first, lean management across the entire process, using LTC and ITR as key processes to identify gaps and address shortcomings throughout the entire workflow, enhancing the high quality of products and work; second, digital transformation across the entire process, promoting comprehensive digitization and specialization, focusing on a single yarn, linking the entire industrial chain of petroleum, slicing, nylon filament, and fabric clothing, making nylon filament larger, stronger, and more refined, achieving the new vision of 'Nylon Filament Global Leader.'

Next, the company's director Zheng Yang will conduct an annual work review and summary.

He pointed out that Huading achieved significant and gratifying results in 2024, thanks to the company's three major advantages: ample cash flow, clear and firm business objectives, and an excellent management team, which provided solid support for the realization of the company's vision.

To truly achieve the position of global leader in nylon filament, our management team needs to work hard in various aspects such as marketing, production, management, and digitalization, continuously optimizing business operation processes and management models, enhancing core competitiveness, and driving business development through innovation.

The market competition in 2025 will still be severe. We need to strengthen internal management while also refining and enhancing the core competitive elements of the company, increasing corporate promotion, and continuously enhancing the influence of the Huading brand.

Finally, the chairman of the company, Zheng Qizhong, will deliver a concluding speech at the conference.

First of all, he expressed that in 2024, the company achieved outstanding business performance and sincerely thanked all employees for their hard work and relentless efforts.

In his speech, the chairman emphasized that Huading has set the vision of becoming the 'global leader in nylon filament', aiming to be the champion in this niche market. Moving forward, the company will concentrate its resource advantages to excel in this segment, benchmark against industry data, and create a high gross profit level in the niche market.

We need to proceed steadily and methodically. After completing the 'cost leadership' strategy, we will implement the 'full-process lean management' and then promote the 'three-step' business strategy of 'digital system management'. At the same time, we should actively carry out digital applications: after learning from excellent digital enterprises, management personnel should shift their innovative thinking, fully tap potential and accelerate progress, and effectively achieve 'process integration, process simplification, and level simplification'.

The chairman stated, 'We must establish the awareness that systems are the primary productive force.' A reasonable system is essential to ensure the optimal allocation of resources and efficient collaboration among personnel, motivating employees to actively engage in exploration and innovation. We need to cultivate a culture that confronts problems directly, emphasizing the identification and resolution of issues, and encouraging employees to keenly observe problems in their work and actively seek effective solutions; at the same time, we should foster a benchmarking culture, advocating for using outstanding enterprises, branches, and departments as benchmarks, identifying our shortcomings through comparative analysis, and thereby enhancing improvement and achieving self-transcendence.

In the concluding remarks, the chairman requested: In 2025, I hope everyone will continue to work hard to enhance their own abilities, deeply integrate with the company culture, and work together with the company to overcome challenges and achieve a resounding victory!