Hengchuan Instrument 2014 Work Summary and Next Year's Outlook

A brief review of work in 2014:
2014 was the seventh year of our company's establishment. Under the correct leadership of the board of directors and the joint efforts of all employees, we have completed the construction and relocation of the new factory area, overcome the practical difficulties of nearly three months of production stoppage caused by the relocation, and achieved good annual economic indicators and plans. We have achieved gratifying business results and work situation, laying a solid foundation for the long-term development of the company.

Completion status of major economic and technical indicators in 2014
1. The profit plan target is 20 million yuan, achieving a profit of 25 million yuan, an increase of 25% over the previous year;
2. The sales revenue plan target is 80 million yuan, achieving a sales revenue of 100 million yuan, an increase of 18% over the previous year;
3. The newly added order plan target is 30 million yuan, achieving a new order of 30 million yuan, an increase of 10% compared to the previous year;
4. The planned target for total industrial output value is 80 million yuan, achieving a total industrial output value of 100 million yuan, an increase of 10% over the previous year;
5. The target for the repayment plan is 20 million yuan, achieving a repayment of 1500 yuan, an increase of 0% compared to the previous year;
6. The average annual income per employee is 60000 yuan, an increase of 5% compared to the previous year.

The main work in 2015 can be summarized as the following eight prominent characteristics:
1、 Adjust organizational structure and improve internal management
In order to meet the requirements of social development and market competition, the company made some adjustments to its organizational structure in 2015. Since the beginning of the year, it has newly established a sales branch and two customer service departments in Shandong and Baotou, which have enriched a large number of employees to the front line of sales and after-sales service work, increased market development efforts, and established the company's marketing network; At the end of the year, the manufacturing and technology departments will be merged to make the coordination between technology and production closer; The establishment of the Technology Development Department under the Marketing Branch has laid the foundation for improving the company's research and development of new products and enhancing their market competitiveness.
Starting from management, we have strengthened institutional construction, improved a number of rules and regulations, standardized the work procedures of relevant departments, such as financial reimbursement system, procurement contract review system, personnel administrative system, etc., further standardized the company's operating procedures, and ensured that all work is carried out in an orderly manner.
2、 Strengthen employee training and increase the proportion of "should be based" talent reserves
Employee training is the foundation of a company's success. Employee training mainly manifests in two aspects: firstly, attaching importance to the training of frontline employees; The second is to attach importance to the training of management personnel. The company has attached great importance to employee training since this year, organizing six training programs including onboarding education, safety production, fire safety knowledge, processing skills, assembly skills, and technical knowledge. The average number of trainees is 32, and the employee satisfaction rate has reached 99%. Through training, the manufacturing department has trained more than ten apprentices who can operate independently, greatly alleviating the problem of insufficient technical workers. By recruiting fresh college graduates and professional technical workers, we have improved the age structure and professional level of the workforce, and prepared human resources for the company.

3、 Strengthen financial management and broaden financing channels
In order to solve the problems of tight working capital and insufficient production investment in enterprises, on the one hand, we need to tap the potential within the enterprise, strengthen cost accounting in financial management, balance income and expenditure, reduce occupation, and invest limited funds into production to maximize the progress requirements of sales contracts. On the other hand, in order to solve the problem of capital investment in the construction of the new factory area, we actively expanded financing channels and successively contacted major banks to obtain funds for the construction of the new factory area.
4、 Establish a sales branch and strengthen the construction of the sales network
Marketing work has always been an important part of the overall work of the company, playing a significant role. To strengthen marketing efforts, expand the market, and sign more first-hand contracts, the company has established a sales branch from the original marketing department. And the "Salary Assessment Method for Marketing Personnel" has been formulated, which has promoted the initiative and enthusiasm of marketing personnel and played a promoting role in opening up a new situation in sales work. In order to do a good job in market development and after-sales service, the company has established customer service departments in Shandong and Hunan regions, not only expanding information channels, but also improving customer satisfaction. It has brought our company closer to customers and the market,.
5、 Strengthen production organization work to ensure the smooth implementation of production plans
In 2015, the company faced a difficult situation in production organization work, including concentrated orders in the first half of the year, large production tasks, severe shortage of production cycles, and a severe shortage of production funds. In the face of these difficulties, we have broken through conventions internally, explored potential, improved production efficiency, linked up the progress of assembly operations, strengthened on-site services and guidance, and ensured quality control in our production organization. Widely search for outsourced manufacturers, help each other, establish reputation, and use limited funds to ensure that the necessary supporting parts for production are returned to the factory on time. This ensures the smooth production of equipment such as Inner Mongolia Dazhong Mining.
7、 Intensify technological transformation and enhance quality awareness
In order to enhance the quality awareness of the entire company and ensure that our company passes the supervision and audit of our quality management system operation by the certification company, the company has designated June as "Quality Month" and launched a quality month activity with the theme of "Standardization Work, Product Creation". Through training, employees will truly understand the relevance and importance of their work to product quality, as well as how to contribute to achieving quality goals. And by investigating problems and identifying hidden dangers, the workflow has been standardized and the product quality has been improved. In July, the company successfully passed the * supervision audit of our company's quality management system operation by the certification company.

While witnessing the company's development and achievements, we are also acutely aware of the existing problems. 1、 Insufficient technological and management innovation capabilities of enterprises; 2、 The company's high skilled talents, especially high-level R&D personnel, are insufficient to meet the needs of rapid development of the enterprise; 3、 The aging problem of technical workers is serious, and there is a shortage of frontline reserve forces; 4、 The shortage of working capital in enterprises seriously restricts the expansion and development of the company's production scale. These issues need to be improved through efforts in the new year.

Jiangsu Hengchuan Instrument and Meter Complete Set Factory - Planning Department

February 13, 2015