Category: Corporate News

To all employees of Chunhui Intelligent Control:

Dear colleagues, hello everyone!

Today, on behalf of the Board of Directors, I announce that we will designate the 2025-2030 period as the re-entrepreneurship phase of Chunhui Intelligent Control, and the company will fully introduce and learn from DanaherDBSfor improvement,CBSmanagement model, and establish according to the current situation and industry backgroundthe second growth curve, endogenous and external expansion in parallel, digitalization, intelligence, and internationalization...and other strategic plans. Chunhui Intelligent Control will officially upgrade and transform fromlean manufacturing-orientedCPM to a comprehensive, holistic, and systematic CBS management approach.！

Ourre-entrepreneurshipgoal is: to let everyone forget past successes, while reviewing and summarizing lessons learned, withopenness, perseverance, and progressSpirit, once again establishing outstanding and challenging goals, joining hands to create a better future together—Centennial Chunhui！

Therefore, in comprehensive implementationCBSBeforehand, we must clearly understand and recognize, under the current Chunhui Intelligent Control resources and capabilities, what is most suitable to do or which industries without advantages should be abandoned. The board has decided that in the re-entrepreneurship phase of 2025-2030, we will use the digital foundation and dual-carbon background goals as“Smart City& Green Energy”as the direction for industrial strategic development, choosing to focus on:Precision machinery, control valves& pumps, temperature and pressure sensing instruments & actuators, intelligent control systems & software…Operating in the vertical specialized niche markets where we are most skilled and resource allocation is most efficient as the company's business strategy, through efficient and innovative management, aiming to make each business becomethe largest and fastest-responding fish in its niche pond, as the execution path and business model for Chunhui Intelligent Control's medium and long-term strategy!

CBS(CHUNHUI Business System) is the lean manufacturing-based practice initiated by Chunhui Intelligent Control in 2012CPM (CHUNHUI Production Management) On this foundation, after successfully being listed on the Shenzhen Stock Exchange in 2021, as part of the 2030 re-entrepreneurship strategy to achieveEfficiency, vitality, valueExecution management model for the three-element objectives.

CBSOn one hand, execution will continue to focus on lean manufacturingCPMupgrading and improving on this foundation; on the other hand,DBSlearning and drawing on innovation and reconstruction, centering on the three core elements of efficiency, value, and vitality to achieve the ongoing management goals of endogenous business growth, extensive system development, and acquisition-driven integrated expansion advancing in parallel.

The re-entrepreneurship strategy will concentrate resources at headquarters, BU, vertical business units, and across various business horizontals for efficient, valuable, and dynamic management, expanding new channels, new products, and new markets. Focusing on the smart city & green energy industries, we strive for the “big fish in a small pond” strategy, aiming for leadership in multiple specialized niche markets.CBSWe will strive to achieve our goals and make them the gene of a century-old Chunhui through the execution path of

the re-entrepreneurship strategy!CBSBefore executingDBSI believe it is necessary to have a simple understanding of the

DBSmanagement model! (Danaher Business System) is a world-renowned lean management system created and successfully practiced by Danaher Corporation. It is not only Danaher’s core competency and the cornerstone of its sustained success, but also regarded as one of the global benchmarks for lean management.

DBSUnderlying business operating system principles:

DBSThe core logic and objectives of

1. can be summarized as follows:Customer-centric: The ultimate goal of all improvements is to better meet customer needs and create customer value. The voice of the customer (VOC) and market demand are the fundamental drivers of all DBS activities. Process improvement, quality enhancement, and cost reduction must ultimately aim to improve customer satisfaction and market competitiveness.
2. Eliminate waste(Muda): Drawing on the essence of the Toyota Production System, it considers all activities that do not directly create value for customers as waste (such as waiting, overproduction, transportation, defects, over-processing, inventory, unnecessary movements). Through systematic tools and methods (such as value stream mapping, 5S, standardized work, single-piece flow, pull system, quick changeover, mistake-proofing), continuously identify and eliminate waste at every stage of the process.
3. Continuous improvement(Kaizen): Treats improvement as a daily habit and culture, not a one-time project. Encourages all employees, from frontline operators to senior managers, to actively participate in discovering problems, analyzing root causes, and implementing solutions.PDCACycle-driven, strictly follows the Plan-Do-Check-Act cycle to ensure improvement measures are effective and standardized.

4.  Fact- and data-based decision making: Emphasizes speaking with data and facts, avoiding subjective assumptions. Uses various tools (such as statistical process control, root cause analysis) to collect and analyze data, accurately pinpointing the root cause of problems. Establishes key performance indicators to measure process performance and improvement effectiveness, ensuring the improvement direction is correct.

5.  Respect and empower employees: Firmly believes that those who best understand process problems and improvement opportunities are the employees directly involved in the work.DBSAims to create a safe environment that encourages employees to raise issues and improvement suggestions. Provides employees withDBStraining in tools and methods, empowering them with the authority and ability to identify, analyze, and solve problems.

6.  Standardization and flexibility: Establishes best practices, forms standardized work from proven effective methods to ensure stability of quality and efficiency, and provides a benchmark for continuous improvement.

DBSThe core objectives to be achieved

1.  Operational Excellence: Achieve world-class operational performance by eliminating waste, optimizing processes, and improving quality and efficiency. This is reflected in shorter delivery cycles, lower costs, higher quality (lower defect rates), higher production efficiency, better inventory turnover, and a safer working environment.

2.  Continuous Growth and Profitability Improvement: The efficiency improvements, cost savings, and quality enhancements brought by operational excellence directly translate into higher gross margins, profit margins, and cash flow. Higher efficiency and quality enable the company to offer more competitive prices and better products/services, thereby winning market share and supporting business growth. Therefore,DBSis the key driving force for Danaher to achieve outstanding financial performance.

3.  Building a Culture of Continuous Improvement: Internalize “continuous improvement” into the organization's DNA and into every employee's mindset and behavioral habits. The goal is to create a self-driven organization that continuously learns and proactively seeks progress. This culture itself becomes a sustainable competitive advantage that is difficult for competitors to imitate.

4.  Talent Development and Employee Engagement Enhancement: Through participation in improvement activities, receiving training, and being empowered to solve problems, employees' skills are enhanced and they gain a sense of achievement. When employees see their suggestions valued and implemented, and see the work environment continuously improving, their job satisfaction and engagement increase significantly. Employees become the main drivers of improvement rather than passive recipients.

5.  Supporting M&A Integration and Value Creation：DBSis the key to the success of Danaher’s “acquisition-integration-improvement” business model. After acquiring a new company, quickly introduceDBS, identify improvement opportunities, rapidly enhance the operational performance and profitability of the acquired company, and unlock synergy value.DBSprovides a strong integration framework and value creation engine.

DBSStarting from customer value, through full employee participation, using lean tools and methods, based on facts and data, continuously identifying and eliminating waste, pursuing operational excellence, and ultimately achieving sustainable business growth, profitability improvement, and competitive advantage. Its ultimate goal is to build an organization with a strong continuous improvement gene, highly engaged employees, and the ability to continuously self-renew and create outstanding value.

DBSThe success of lies in the fact that it is not just a set of tools, but a deeply ingrained management philosophy, mindset, and company culture. Danaher, throughDBSAchieved decades of sustained growth and outstanding shareholder returns, proving the strong vitality of this system.DBSIts successful implementation is by no means accidental; it relies on a set of structured best practice paths and methods that have been validated over decades, with a core focus on systematization, cultural integration, and continuous iteration. Its ongoing power to create greatness comes from proactive benchmarking, clear strategy, and adherence to common sense.

In view of this, Chunhui Smart ControlDBSdraws on and learns fromCBSWhether implementation can succeed will depend on the following key elements:

I.Top-level commitment and full participation are prerequisites: Without heartfelt, sustained, and visible commitment from top management and participation from all employees,CBSfailure is inevitable.

II.Cultural transformation is the core: Shifting from “command and control” to “empowerment and improvement,” from “fear of mistakes” to “embracing problems.”

III.Patience and perseverance：CBSIt is a marathon, not a sprint. It takes years or even decades of continuous investment to see deep-rooted culture and significant returns. Danaher DBS itself has also undergone decades of evolution.

IV.Tailored Teaching According to Aptitude: Although DBS has a universal framework and tools, implementation must be adjusted, improved, and innovated based on our own industry, competitive position, industry cycle, scale, and cultural characteristics.

V.Focus on Customer Value: Improvement activities must ultimately aim to enhance customer satisfaction and market competitiveness.

VI.Results-Oriented: Continuously track financial and operational performance indicators (such as cash flow, gross margin, inventory turnover, quality cost, delivery cycle) to demonstrateCBSthe value brought.

Dear colleagues,CBSThe best practice path is essentially a systematic project driven by top management, evolving from pilot to full-scale, from tool application to cultural integration, and continuous iteration. Therefore, the board will establish anCBSExecutive Committee, and I will serve as theCBSExecutive Committee Director, toDBSlearn, digest, absorb, benchmark, apply, and deeply practice according to the six elements!

I solemnly request that the company's middle and senior management face up to this.CBSWe must unswervingly implement, ensure the active participation of all employees, and persist in the long term.Never look for excuses, never lower standards, never give up easily.！

Thank you all!

Zhejiang Chunhui Intelligent Control Co., Ltd.

Chairman Yang Guangyu  

July 28, 2025

2023年Social Responsibility Report

On July 4th, Xu Weiqiang, Deputy Secretary of the Party Committee and Deputy General Manager of Huaneng Group Shidaowan Nuclear Power Co., Ltd., and his delegation visited Chunhui Smart Control for an inspection. The purpose of this visit was to explore extensive cooperation opportunities between the two parties in the field of nuclear power equipment components.

The inspection team conducted on-site visits to the company's laboratory center and manufacturing base, focusing on understanding Chunhui Smart Control's specific performance in professional technical strength, quality control capabilities, and corporate credibility. Through the field inspection, the team members highly recognized Chunhui Smart Control's technical strength and rich experience in solenoid valve design, manufacturing, and quality assurance, and expressed high appreciation for its positioning as a “niche market leader” enterprise focusing on green energy and specializing in smart control & valves.

During this exchange and inspection, both parties agreed that there is great cooperation potential in the application of solenoid valves in the nuclear power field, jointly clarified specific product projects for subsequent cooperation, and signed a memorandum of cooperation.

This inspection and exchange laid a solid foundation for deep cooperation between Chunhui Smart Control and Shidaowan Nuclear Power Company in the field of nuclear power equipment. Both parties look forward to working closely together to jointly promote innovation and development of nuclear power technology and contribute to the development of China's nuclear power industry.

Shidaowan Nuclear Power Plant, also known as Huaneng Shidaowan High-Temperature Gas-Cooled Reactor Nuclear Power Plant, is the world's first demonstration project to successfully commercialize fourth-generation nuclear power technology and is also the first nuclear power project approved during China's “Twelfth Five-Year Plan” period. The project successfully completed a 168-hour continuous operation test in December 2023 and was officially put into commercial operation.

On June 28, 2024, the MES system jointly developed by Chunhui Smart Control's Smart Gas BU and Honeywell has, after years of iteration and operation, successfully achieved data integration with the ENN Gas Sunshine Easy Procurement Platform.

As a key link in intelligent manufacturing, the MES system can effectively enhance the optimization and upgrading of enterprise production processes, help enterprises achieve precise execution of production plans, real-time monitoring of production processes, and effective control of product quality, including modules such as order management, production scheduling, material management, quality management, and equipment management.

The successful data integration between the company's MES system and the ENN platform enables rapid response to customer needs and precise control of the production process, helping the company and customers establish product information sharing, improve the timeliness of product data, track production progress in real time to ensure on-schedule delivery, understand the production status of orders and product inspection data in real time, enhance mutual trust, and improve customer satisfaction.

The comprehensive data integration between the company's MES system and the ENN platform is an important step for Chunhui Smart Control towards becoming a smart factory. Through data interconnection, not only can factory management be improved, but it also fully implements digital transformation, adapts more flexibly to market changes, and meets customer needs more efficiently.

ENN Energy Holdings Limited (02688.HK)is the flagship industry of ENN Group and one of the largest clean energy distributors in China, providing energy services to nearly 30 million household users and over 240,000 enterprises in 21 provinces nationwide, operating 259 city gas projects, covering a connected population of 140 million, with 82,000 kilometers of high and medium pressure pipelines. In 2023, it achieved a performance of over RMB 113.8 billion. Total assets exceed RMB 103.1 billion. There are more than 800 wholly-owned and holding company branches, with over 34,000 employees.

Chunhui Smart Controlwill be based on the global trends of digitalization and dual carbon development, and fully transform into aSmart City & Green Energyfocused enterprise! We believe that the successful application of this Smart Gas MES will fully boost the company's digital transformation strategy, continuously meeting customer needs with more efficient management!

Zhejiang Chunhui Intelligent Control Co., Ltd.
Notice on Jointly Maintaining and Establishing a Harmonious Online Environment

According to the requirements and spirit of the Central Cyberspace Administration and the guidance of the Cao'e Police Station of the Shangyu District Branch of Shaoxing Public Security Bureau, the company is organizing a one-week all-staff online security awareness training. Please take some time not only to study yourself, but also to require your family members to study together. Through learning, let us become qualified
citizens who do not create, spread, or believe in rumors.

Zhejiang Chunhui Intelligent Control Co., Ltd.

2024-06-20

Causes and Harms of Online Rumors

I. The main causes of online rumors include the following aspects:

1. Lack of real information or untimely release. When an event lacks sufficient information or information is released with delay, people may create false information based on their own understanding and speculation, thus generating rumors.

2. Deliberate fabrication of rumors. Some people may deliberately create and spread rumors to achieve personal goals, such as gaining fame, promoting products, satisfying malicious interests, or other benefits.

3. Ambiguous or overly technical information. Some information may be ambiguous or too technical, leading to misunderstandings during interpretation and thus the creation of false information.

4. Uncertainty in social life. The uncertainty of social life provides conditions for the generation and spread of rumors.

5. Lack of scientific knowledge. The lack of scientific knowledge makes it easier for people to misunderstand certain phenomena, thus creating and spreading rumors.

6. Lag in information management. The lag in social information management and inadequate supervision by government departments provide opportunities for the spread of rumors.

7. Personal issues and interest-driven motives. Personal problems, commercial interests, psychological darkness, weak legal awareness, and lack of moral consciousness are also motives for the generation of rumors.

8. Influence of network technology and media. The development of network technology and the influence of media also provide means and platforms for the spread of rumors.

9. Weak public discernment. Some members of the public have weak discernment and are easily convinced by and spread rumors.

II. The harms of online rumors include:

1. Disrupts people's thoughts, psychology, and behavior, especially when facing rumors related to personal interests, making it easy for people to lose reason and judgment, thus leading to inappropriate actions.

2. Damages the image and credibility of the Internet, affects the healthy development of the Internet, undermines the online environment, and disrupts online order.

3. Triggers social unrest, endangers public safety, harms public interests, and affects social stability.

4. Damages the reputation and prestige of individuals, organizations, or the country.

5. Consumes the positive energy that drives society forward and triggers a crisis of social trust.

6. Undermines government credibility and endangers national stability and unity.

7. Misleads public opinion, pollutes the online environment, and causes people to deviate from mainstream social ideology.

8. In addition, online rumors may also violate the law and infringe upon others' rights to reputation, privacy, personal information, and other legitimate rights and interests. Therefore, we should not create, spread, or believe rumors, and work together to maintain a healthy and harmonious online environment.

Publicity by Cao'e Police Station, Shangyu Branch, Shaoxing Public Security Bureau

From June 13 to 15, 2024, the Multi-Energy Comfort System Technology Seminar, organized by the Guangdong Gas Heating Water Heater Chamber of Commerce and co-organized by Zhejiang Chunhui Intelligent Control Co., Ltd. and Hangzhou Yourui Zhilian Technology Co., Ltd., was successfully held in Shangyu, Shaoxing.

Chamber of Commerce Executive President: Haydn Chairman Qiu Guoli, Vatti Heating and System Business Center Deputy General Manager Wang Zhuxiao, Vice President and Ruima General Manager Shi Yujun, Committee Chairman and Chunhui President Yu Junbiao, Chamber Secretary General Lou Ying, representatives from companies such as Dicen, Vanward, Macro, Hampton, Midea, Airuike, Huamei Junda, and specially invited agents Yourui Zhilian, Hangzhou Rixin, Zhongbo, Wenzhou Boyi, Zhejiang Zhongli, Nanhong Comfort Home, Jiangsu Mingzhu, Suzhou Wuheng, Anhui Qingtian Cooling & Heating, Wushu (Shanghai) HVAC, Vivaldi, and nearly 40 participants attended the meeting.

The morning session was hosted by Committee Chairman and Chunhui President Yu Junbiao. At the beginning of the meeting, President Yu warmly welcomed everyone and briefly introduced Chunhui's development history and business scope. President Yu stated that today's meeting invited upstream and downstream enterprises in the HVAC industry to communicate together, hoping everyone would speak freely, share experiences, exchange views, and jointly explore multi-energy comfort systems.

Yu Junbiao

Chamber Secretary General Lou Ying delivered a speech, expressing great pleasure to gather with HVAC leaders and elites in Shangyu, Zhejiang, and thanked Chunhui and Yourui Zhilian for providing the Chamber with a great opportunity to get to know everyone and communicate together, and briefly introduced the Chamber. Since its establishment in 2015, the Chamber has insisted on serving the wall-hung boiler industry chain, including compiling and applying standards to fill industry gaps and empowering downstream development. He hopes everyone can fully communicate and provide more valuable suggestions for manufacturers.

Lou Ying

Liu Lianjiang, General Manager of Suzhou Wuheng Zhijia Architectural Technology Co., Ltd. and senior HVAC expert, shared the future path of Wuheng.

Liu Lianjiang

Guo Zongjun, General Manager of Wushu (Shanghai) HVAC Technical Service Co., Ltd., shared the application of multi-energy complementary systems in passive houses.

Guo Zongjun

The afternoon session was hosted by Chamber Vice President and Ruima General Manager Shi Yujun.

Shi Yujun

Mao Lifeng, General Manager of Hangzhou Rixin Artificial Environment Engineering Co., Ltd., shared application cases of multi-energy terminal comfort systems.

Mao Lifeng

Zhang Haidong, Marketing Director of Hangzhou Yourui Zhilian Technology Co., Ltd., shared control strategies for household HVAC multi-energy complementary systems.

Zhang Haidong

The participating guests actively discussed around the two main themes of multi-energy and comfort systems.

Finally, the Executive President of the Chamber of Commerce and Chairman of Haidun, Mr. Qiu Guoli, gave the meeting summary. Mr. Qiu expressed his deep gratitude to the agents who traveled from afar. Through today's exchanges and sharing, much has been gained. In the future, we still need to continue listening to voices from all sectors, constantly optimize our product lines, make good products, and continuously enhance the influence and recognition of domestic brands.

Qiu Guoli

On June 4, 2024, the highly anticipated2024 International Hydrogen and Fuel Cell Vehicle Congressand Exhibition grandly opened at the Shanghai Automobile Exhibition Center. This congress is co-hosted by the China Society of Automotive Engineers and the International Hydrogen Fuel Cell Association, and will last until June 6. The exhibition is themed “Focusing on Innovation, Empowering the Future with Hydrogen—Firmly Promoting High-Quality Development of Hydrogen and Fuel Cell Vehicles,” featuring one plenary session, seven themed summits, and five concurrent meetings, with over 150 keynote speeches and reports, attracting more than 300 domestic and international enterprises and brands to participate. As one of the important exhibitions in the hydrogen and fuel cell vehicle industry, the event aims to build an authoritative and professional international cooperation and exchange platform to promote the integration and development of hydrogen and fuel cell vehicle technologies.

A hydrogen-powered logistics light truck displayed at this congress is equipped with the company's self-developedstack inlet solenoid valve for hydrogen flow path switch control. This product has won recognition from participants and customers for its outstanding performance and reliability.

As an industry-leading control valve supplier focusing on green energy business scenarios, Chunhui Smart Control continues to invest and develop steadily in the hydrogen energy sector. At present, the company has established close business cooperation relationships withShanghai Shunhua、Zhengxing Hydrogen Power、Zhejiang Blue Energyand other well-known brands in the industry. In the future, Chunhui Smart Control will continue to be committed to technological innovation and R&D, contributing to the development of the hydrogen and fuel cell vehicle industry with high-quality products and services.

Today, the twelfth lesson of the sixth Elite Class of Chunhui Smart Control has started, and I am very honored to share with you the future 2027-2030 development strategy transformation plan of Chunhui Smart Control.re-entrepreneurshipThe success of Chunhui Smart Control's listing is the result of all employees uniting, being open, persevering, and forging ahead. Of course, we must also be soberly aware that Chunhui Smart Control, whether in scale or strength, is still a small company. We must avoid being complacent, arrogant, or stagnant in our operations, ensure smooth and rapid communication in management, be frugal and low-cost in expenditures, and be cautious in investments... As the chairman and actual controller of the company, I am also deeply aware of the extraordinary achievements and wholehearted dedication we have made in the fields of automotive electromechanics, heating technology, and energy control. However, in today's ever-changing era where standing still means falling behind, we must always keep up with development trends and bravely take steps toward reform. Starting from 2024, Chunhui Smart Control will be based on globaldigitalization和dual carbondevelopment trends, and fully transform into asmart city and green energyfocused enterprise! After in-depth market research and strategic analysis, our board of directors firmly believes that this strategic transformation will continue to bring Chunhui Smart Control broader development space and unlimited business opportunities.

Chunhui Smart Control 2027-2030 re-entrepreneurshipaims to let everyone forget past successes, while also reviewing and summarizing lessons, in order toopenness, perseverance, and progressSpirit, once again establishing outstanding and challenging goals, joining hands to create a better future together—Centennial Chunhui！
    In short,re-entrepreneurshipthe logic and execution route of the strategy ultimately is: from our core team to middle management and all employees, we must proactivelybreak throughthe constraints of old and outdated concepts, and also keep pace with the times toliberatethe previously effective but now outdated and inappropriate ideas. In specific business management tactics, this means that we need toReconstructionFuture-oriented organizational forms and management models, definitely not just patchwork! By once againClarifying和DefiningStrategic consensus, delegating authority and responsibility to the four strategic business units (Business Unit) with an open mindset, truly practicing“”Unity in diversity"Strategic principles that align with the professional characteristics of the industry, making independent, innovative, standardized, dynamic, and fast decision-making management efforts to enhanceBUCompetitiveness and sustainable development capabilities, stimulating vitality, unleashing potential, and striving forward, thereby achieving Chunhui Smart Control's 2027-2030 strategic goals of market leadership, leading profitability, and unique competitive capabilities!

May 31, 2024