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The 2021 Mid year Business Work Conference of Fucheng Group has come to a successful conclusion!
Time:2021-07-18

On 17 July 2021, the Fucheng Group's 2021 Mid-Year Management Work Conference was successfully held with the theme of "Against the Current, Follow the Trend"; affected by the epidemic, the conference was still held by video link, with a total of 91 participants, including 44 participants from the headquarters and 47 participants from subsidiaries.

 

The meeting started with the half-yearly operation work report. Each department summarised its performance in the first half of 2021, reviewed the shortcomings in the department, clarified its work priorities and work targets for the second half of 2021, and also elaborated on the planning of the department's top-level design.

 

In Q1 of this year, the domestic auto market showed a recovery growth trend of low base and high growth after the epidemic, and the OEMS gradually returned to a stable norm, with an overall stable trend compared to 2020. After Q2, due to the impact of the trade game between China and the United States, raw material prices generally rose and the chip supply gap was highlighted, domestic OEMs generally experienced a "chip supply crisis" and adjusted their production plans downwards, and based on the extent of market sales, co-ordinated chip deployment to ensure the supply of chips for best-selling models; The cost pressure on component companies is also increasing. Against this macro background, the Group missed its sales target in the first half of the year. Although the target was not reached, the efforts and dedication of all of us are worthy of recognition.

 

Finally, Ms. Huang Yaojun, Deputy Chairman of the Group, and Mr. Fang Yisheng, Chairman of the Group, concluded their speeches by affirming the work of various departments in the first half of the year, while also pointing out the shortcomings in the process of the first half of the year, explaining the strategic positioning and strategic initiatives of the Group in the next five years, as well as putting forward higher requirements and expectations for the second half of the year.

 

The industry generally expects the shortage of automotive chips, which will ease in the 4th quarter, to return to normal is not expected until mid-2022. Therefore, the tight supply of chips and rising raw materials in the second half of the year will continue to have a negative impact on the production and operation of enterprises and their efficiency.

 

But the difficulties are short-lived, after passive to inventory in the Q2 and Q3, as the chip problem eases in Q4, and OEMS will prepare for the inventory end of the year, production and sales are expected to gradually rise, and each plant needs to be fully prepared to deal with the market rebound.

 

Under the guidance of the national macro policy, the supply-side production capacity will be further released, and the reduction in production caused by the "lack of core" in 2021 will be compensated in 2022.

 

At present, what we need to do is to maintain our strategic determination, practice our internal skills, focus on cost and lean production, implement the “three present principles” (on-site, present-object and realistic), strengthen internal control management, and ensure that the process is controlled and the results are effective.


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