Category: Corporate News

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

ISH China Heating Exhibition concluded successfully at the Beijing New International Expo Center. As one of the exhibitors, Chunhui Smart Control showcased its latest products, including the integrated zero-cold-water pump water control valve and the intelligent sterile fresh water heat exchange station, attracting a large number of professionals and companies for visits and consultations. It is understood that this exhibition attracted professionals and companies from all over the world, with exhibits covering multiple fields such as energy, water, and comfort, presenting the latest technologies and products.

Chunhui Smart Control's products, such as the integrated zero-cold-water pump water control valve and the intelligent sterile fresh water heat exchange station, received enthusiastic attention, demonstrating the company's leading technologies and solutions in intelligence and integration, and winning recognition and praise from many customers. This exhibition provided an excellent opportunity for the company to connect with global professionals and enterprises, understand market demands and trends, and also enhanced more people's understanding of the Chunhui Smart Control brand and products.

Looking to the future, Chunhui Smart Control will continue to focus on market demand, continuously innovate and improve product quality and performance, provide customers with more intelligent and integrated solutions, and jointly promote the development of the heating and air conditioning systems field.

Adhering to the concept of unlimited innovation, Chunhui Smart Control is committed to providing customers with the perfect crystallization of wisdom and hard work. The company's R&D journey never stops, and every showcase is a testament to continuous progress. Chunhui Smart Control will welcome every customer with full enthusiasm and professionalism, working together to create a better future!

Looking forward to better products, see you again in 2024!

From May 11 to 13, 2023, the ISH China Heating Exhibition will be held at the Beijing New International Exhibition Center. This grand event, themed “Energy,” “Water,” and “Comfort Life,” will bring together professionals and enterprises from around the world to jointly explore the challenges in the heating and air conditioning systems sector and promote industry development.

As an industry-leading expert in integrated waterway customization, Chunhui Smart Control will showcase its latest products at this event. We will present Chunhui Smart Control's newly launched integrated waterway control valve, featuring a compact structure and integrating cutting-edge technologies such as stepper motors, servo motors, and cold zero water pumps, providing customers with more intelligent and integrated solutions.

In addition, we will also display the intelligent sterile live water heat exchange station jointly developed with Yourui Smart. This product focuses on intelligent control for multiple energy sources and multiple terminals. The solution aims to provide systematic and intelligent overall solutions for healthy and comfortable residences, helping residential environments achieve quality, intelligence, and integration.

At this exhibition, Chunhui Smart Control will join professionals and enterprises from around the world to discuss how to better address the challenges faced in the heating and air conditioning systems sector, strengthen cooperation, and jointly promote industry development. We look forward to your arrival to witness the future development of the heating industry together.

On the afternoon of October 24, 2022, the company held the 13th meeting of the eighth Board of Directors, where the proposal on appointing the company's general manager was reviewed and approved. Mr. Liang Baisong, the former general manager, resigned from his position due to age reasons, but will continue to serve as the company's vice chairman, a member of the Board's Strategy and Development Committee, and a member of the Audit Committee; Mr. Yu Junbiao was appointed as the company's general manager.

Chairman Yang Guangyu first reviewed the company's operating conditions at various stages since its establishment, highly praised the achievements made under Liang Baisong's tenure as general manager, described in detail the future strategy, goals, and development path, and put forwardre-entrepreneurshipa firm determination, hoping that the management team, under the leadership of General Manager Yu Junbiao, will not fear challenges and achieve leapfrog development.

Subsequently, former General Manager Liang Baisong made a statement, summarizing the main business work of the past ten years, expressing hopes and requirements for the new management team, and looking forward to General Manager Yu Junbiao and the management team leading the company to create new milestones!

General Manager Yu Junbiao expressed his gratitude for the achievements made by former General Manager Liang Baisong in leading the company over the past ten years, and is also full of confidence in the company's future development. In the future, he will continue to uphold the corporate culture of “diligence as the foundation, sincerity in dealing with people,” adhere to the values of “value and sustainable development,” and focus on the management themes of “innovation and exploration, legal compliance, and systematic sustainability.” Through assessment and evaluation, he will self-correct and self-improve in cost optimization, innovation and exploration, legal compliance, and goal achievement, so as to achieve the entrepreneurial goal of each product line becoming “market leader, leading profitability, and unique competitive capability.” Realize the strategic transformation from “control valve expert” to “intelligent control & valve expert!”

Afterwards, Chairman Yang Guangyu held a brief and warm handover ceremony for Liang Baisong and Yu Junbiao.

This change of leadership not only completed a major personnel arrangement for the company's new era of development, promoted the company's talent ladder plan and the reform of the executive retirement system, but also marked a major strategic adjustment focused on the future and safeguarding the company's long-term development. The new leadership team should fully play its core role, inherit and promote the company's core values, carry forward the “Dongshan responsibility and craftsmanship spirit,” lead all employees to overcome difficulties and forge ahead, and strive to achieve the company's “re-entrepreneurship” strategic development goals with an “open, resilient, and enterprising” spirit, working hard to realize the dream of “a century of Chunhui”!

诸For Chunhui Intelligent Control, this is a very important day! Chunhui Intelligent Control (300943.SZ) will acquire 51% of Shixin Shares (837997.NQ), officially joining the smart city industry layout (see the Shenzhen Stock Exchange announcement on October 18, 2021). After the completion of this acquisition, Chunhui Intelligent Control will integrate its own urban gas pressure regulating & metering cabinet (station) business, with the vision of becoming an “Expert in Intelligent Control & Valves”, deploying integrated services that provide urban natural gas safety pressure regulating and metering skid-mounted equipment, digital software computing technology, and fast intelligent monitoring and maintenance, dedicated to future-oriented smart city gas overall solutions.

After the acquisition is completed, we will welcome new colleagues from Shixin Software to join the Chunhui Intelligent Control family and are committed to creating the leader of China's smart city gas software! By integrating the knowledge and experience of both parties, our customers will be able to obtain unparalleled one-stop overall solution services and expertise. In the future, we will continue to invest heavily to consolidate our technological leadership and continuously launch new solutions to help customers improve safety operation and management efficiency, and strive to meet future needs through data analysis and early prediction!

For more than 20 years, Chunhui Intelligent Control (300943.SZ) has been providing high-quality pressure regulating and metering system skid-mounted solutions for the natural gas transmission and distribution pipeline industry, actively participating in the construction of gas operation projects in major cities across China. Using data and software to enhance the safety and reliability of gas networks, serving gas operators, and striving to become their leader is Chunhui Intelligent Control's strategic development goal for the future.

Shixin Shares focuses on digital monitoring and control products for natural gas pressure regulating stations, providing intelligent operation and maintenance solutions for pressure regulating stations and the natural gas transmission and distribution field. The smooth cooperation between the two companies will enable rapid growth in Chunhui Intelligent Control's smart gas business scale and software and service innovation capabilities. Chunhui Intelligent Control will deploy Shixin Shares' smart gas system modules in its mature pressure regulating and metering skid station sales network, and Shixin Shares will work with Chunhui Intelligent Control to serve gas operators and gas customers nationwide.

Chunhui Intelligent Control (300943.SZ) will continuously enhance its digitalization and intelligence in the fields of on-site data acquisition and remote transmission, safe operation and maintenance, and in-depth data analysis and prediction for urban gas engineering. We are pleased to be about to complete this major investment in Chunhui Intelligent Control's core business, so that we can perfectly utilize IoT and digital acquisition and remote transmission technology to better serve customers and partners from a holistic and systematic perspective. The strong businesses of the two companies are a perfect combination with a common solid foundation and innovative genes, and their integration will create countless new opportunities for China's smart city business strategy!

Thank you!

October 20, 2021

Dear colleagues, August 10 marks the half-year anniversary of Chunhui Intelligent Control's successful IPO on the Shenzhen Stock Exchange Growth Enterprise Market, and this year also marks the twentieth anniversary of the founding of the joint-stock company.

Twenty years of hard work and perseverance, it is precisely because all colleagues have always remembered our original mission, always practiced the “diligence and integrity” culture established by Chunhui's founder Mr. Yang Yanrong—“based on diligence, treat people with sincerity”—and the principle of courageous responsibility, always worked as a team to overcome obstacles and expand our territory, that we have come this far. For this, I sincerely thank everyone for your hard work on behalf of the board of directors! I also extend heartfelt thanks to all sectors of society for their attention and care!

Twenty years of flourishing growth, at this important moment, I would also like to address the post-listing operation principle of “harmony without uniformity”.Energy control, automotive electromechanical, heating technologyUnder the structure of three major industrial sectors, I would like to provide some explanation and clarification regarding the “re-entrepreneurship” strategy for the decade from 2021 to 2030!

Company culture:Based on diligence, treat people with sincerity! In work, be proactive; in conduct, be honest and respectful!

Vision and mission:Intelligent control & valve experts! Cooperate and share with employees, customers, and society through innovative and efficient management!

Centennial Chunhui:This dream means that the vision and breadth of managers determine the boundaries of our business growth! Establish a talent ladder program, cultivate team and organizational capabilities, aiming for high “efficiency” and strong “vitality”, to build a long-lasting enterprise that does not rely on individuals!

Values: Adhere to values of valuable and sustainable development, with professional subsidiaries (business units) under a flat organizational structure, aiming to achieve leadership in the industry; leading profitability among peers; three unique management goals with distinctive competitive capabilities! Based on a long-term business philosophy, we need to transform from traditional mechanical, processing and assembly diversified industries to intelligent control IoT and precision electromechanical related industries, and from traditional full production chain manufacturing to a flat, digital, flexible intelligent manufacturing management model!

We are already a publicly listed company, so please be sure to manage according to the spirit of the rule of law and the principle of respecting employee dignity. “The spirit of the rule of law” means managing with the awareness that “company systems and processes are more important than the boss or leaders!” and strictly implementing this at the middle and grassroots levels! A key distinction between rule of law and rule of man is that managers must strictly fulfill their duties and act under the guidance of systems and process norms. Rule of law means that every manager, regardless of authority, should first be responsible for their own duties, not just to their leaders. Managers must cultivate this spirit of rule of law and professional ethics, and be able to consciously perform supervisory and supervised functions under lawful governance, to effectively avoid company bureaucracy, inefficiency, small interest groups, and rigid stagnation.

Chunhui lean manufacturing management model(CPM, CHUNHUI Production Management, is a management model that draws on and learns from Japan's lean philosophy and the American innovation system, integrating them into management practices within the Chinese environment). Based on a long-term business perspective, we will continue to adopt the Chunhui lean manufacturing management model to achieve the strategic goal of improving management levels while also enabling technological upgrades and industrial transformation.

We should aim forHigh-qualityproducts and employees,High-efficiencyoperations and decision-making,Humanizedmanagement and environment as our goal, reducing costs, lowering inventory, decreasing accounts receivable, streamlining positions that do not create value, cutting unnecessary red tape and processes, and eliminating all unnecessary waste...

High-quality, we often say in public that Chunhui Smart Control produces two types of products: one is high-quality products for market customers, which is the foundation for the survival and development of the enterprise. The other is high-quality employees for society, which is the company's responsibility as a social organization. We firmly believe that as long as CPM is continuously implemented, high quality and low cost can be achieved.

High-efficiency, shareholders entrust funds, equipment, land, factories, etc. to the management team, but why do some enterprises thrive for generations while others are on the verge of collapse? The most critical reason lies in whether the management's operations and decisions are “efficient”! We believe that asset-light and fast turnover, lean and flexible manufacturing, being industry No.1, innovation and pioneering, teamwork, unique core competencies, growth in per capita output, return on investment, total asset turnover, delivery capability growth, and revenue growth... these are all open quantitative and qualitative indicators that reflect high efficiency!

Humanized, all employees of Chunhui Smart Control are the main body of CPM, and the goal of management is to bring outemployees'creativity and potential. Therefore, adopting humanized management and cultivating a humanized working environment can first enhance employees' work enthusiasm and initiative, and at the same time stimulate their creativity and willpower. In a humanized team, company, and society, personal goals are highly aligned with company goals, and personal interests are highly consistent with company interests and social responsibility! Therefore, humanization should be one of the purposes and goals of implementing CPM.

3x Speed Plan (X³) I believe that the two fastest ways for Chinese private enterprises to fail are: first, blindly and unrealistically pursuing large scale, thus creating a “false, big, and empty” management atmosphere; second, having too many management layers leading to bureaucracy and excessive diversification, resulting in inefficient management operations, scattered resources, slow response, and stagnation. Therefore, we will establish team spirit, self-renewal genes, and growth resilience to enhance the company'svitalitythrough a special management action plan that doubles the speed of response and improvement, doubles the intensity of collaborative innovation, and doubles the breadth of risk prevention, thereby proactively breaking the shackles of layer-by-layer innovation and various barriers to self-development! Compared with quantifiable “efficiency,” the most obvious impression of “vitality” is that it cannot be touched but can be truly felt, just like air is to humans and water is to fish. The vitality index, composed of teamwork, self-renewal, and growth resilience, in fact also belongs to the category of the company's business atmosphere, legal environment, and corporate culture background. With the accumulation of time and management experience, these will gradually evolve into the company's genes and have a positive impact on improving the company's operational efficiency and management capabilities!

Teamwork is the organizational spirit manifested by a positive and open humanized cooperative atmosphere such as team cohesion, smooth information flow, and honest communication. Teamwork first respects individual personality and specific division of labor, pays attention to and actively encourages the development of their potential and creativity; at the same time, as a team organization, it should further unify goals, integrate resources, and establish strategies and action plans through cooperation based on division of labor to form consensus. Although the spirit of teamwork in an organization cannot be quantified with specific numbers, we can indeed “see” it in three aspects of internal team cooperation: whether morale and cohesion are high, whether internal and external information flows freely, and whether communication among members is smooth!

Self-renewal It refers to the team organizational gene composed of management awareness or habits of innovation, continuous learning, and transformation and upgrading, which is the potential for team organizational development. From potential to actual capability, carrying excellent chromosomes of innovation and self-improvement means the vitality of this organizational life form is continuously enhanced, and thus the time and space of organizational life will also be constantly expanded and extended.

Growth under pressure refers to the company's management team improving profitability, growth and expansion, and optimizing personnel structure through its own growth, and more broadly, proactively preventing various risks to reduce the company's financial, legal, customer, supply chain, and social responsibility risk pressures. This self-growth ability mostly depends on the management experience of employees and teams; a fast-growing management team means enhanced management strength and the ability to resist internal and external risks.

We will continue to adhere toCPM和3Double speedAs a lever, we will proactively embrace the arrival of the irreversible new era of “digitalization, platformization, and IoT technology”!

Tiered Talent Program(Elite Team Project) is Chunhui Smart Control's self-renewal strategic system for planned, purposeful, organized, and systematic talent selection, cultivation, and appointment, aimed at the dream of “Centennial Chunhui.” We all know that employees are the most expensive resource in a company, and managers even more so, and they are also the fastest depreciating and most frequently needing replenishment. Achieving the “Centennial Chunhui” dream requires building a tiered management team, which takes years of accumulation and significant resource investment, but it may not take much effort to completely collapse it. Whether the company's goals can be achieved depends on the quality of management by managers, and also on how managers are managed. Moreover, how a company manages its employees and their work mainly depends on the management by managers and how managers are managed. The attitude of company employees primarily reflects the attitude of its management!

As managers“ character continuously improves, the company will keep developing. In other words: ”The operation of the company depends on the capacity of its managers.“ No matter how much you subjectively want to grow and improve the company, ”a crab only digs a hole according to the size of its shell," the level of enterprise development depends on the character of the operator, that is, the size of the operator's capacity! The greatest ability of a person is the ability to overcome oneself. To overcome oneself requires strong willpower. When evaluating the abilities of newcomers, the company should take willpower into account. Weak willpower, avoiding self-struggle, and always choosing comfort, such people's abilities are considered inferior. No matter how many good principles you have read or heard, it is meaningless without personal practice.

The tiered talent program is a strategy to build capabilities from individuals to teams and then to organizations. In the management cycle of rapid growth and expansion from 2021 to 2030, what restricts us from achieving our goals will not be capital, but high-quality, high-caliber managers and teams deeply versed in Chunhui's culture and strategy. It is they who build a dynamic organization, and this organizational capability will become our core unique competitive advantage. Therefore, the execution of the tiered talent program in implementation is extremely important!

As mentioned above, the breadth and vision of a leader determine the boundaries of career growth.。The elite team represented by tiered talents should become the main force to shoulder the dream of “Centennial Chunhui.” In the next decade, with innovation, expansion, acquisitions, and mergers as the main means of growth, these warriors and commanders will be the main force to conquer new territories and create greater value; they are a bridge to the other shore!

In order to continuously achieve performance growth, team development, and business expansion goals, we will next focus our management improvement efforts onCapability enhancement和Investment in innovationAbove. On one hand, we will focus onPeople and organization、Product and service、Vitality and innovationThree capabilities.

On the other hand, we will achievetechnological innovation、and investment integrationto achieve growth, development, and expansion. Although we have successfully gone public, our responsibilities and pressures have increased. We will face more shareholders and social responsibilities, and all decisions and actions must be legal, transparent, and open. Therefore, regarding how to use money, or in other words, invest, we should establish an open and cautious investment policy. Generally speaking, the targets and purposes of investment must comply with the following principles:

A.Enhanceour own competitive capabilities,These capabilities include R&D technology, manufacturing and production, sales development, and customer service. Therefore, we can invest in equipment and instruments, talent acquisition, market expansion, and lean management to improve these comparable advantages.

B.Consolidateour competitive advantages,In industries where we already have advantages, although we are leading, the gap is not large. Therefore, we will continue to make expansionary investments in R&D innovation, new markets, new regions, and new management in this field, to set higher standards and build moats, thereby widening the gap with competitors and maintaining our leading edge.

C.RelevantlyExtensionExpansion,As a function of the capital market, its greatest benefit is the ability to consolidate a leading position and expand advantageous industries through joint ventures, acquisitions, and mergers of upstream and downstream industries in the same sector. Therefore, we actively encourage extension and expansion in this manner.

D.TechnologyUpgradeExtension and expansion,Since our electromechanical industry is still relatively traditional, and the technical difficulty of control valves is also at a lower level, technological upgrading is one of our strategic priorities. We encourage investment in higher-end new technologies, new processes, and new trend areas within the industry, such as sensing IoT, control systems, and data software services.

E.Horizontal industryTransformation，When the original industry reaches a saturated state, we encourage seeking and investing in related, horizontal, emerging, sunrise, and blue ocean industries, such as environmental protection, utilities, and smart cities.

Everyone, although our strength has greatly increased after going public, we are still a small company. Please be sure to remain vigilant in times of peace, stay humble and low-key, be down-to-earth, and manage diligently with innovation and pioneering spirit. Because, in reality, there are still many shortcomings in our management. For example, our compensation system still lacks competitiveness in keeping up with the times; innovation and R&D resources of each product group remain scattered and inefficient; multi-location factories still need practical experience and accumulation; talent pipeline development and investment need a long-term perspective; local parochial thinking is still serious; we lack experience in the third type of acquisitions and mergers; our efforts in international expansion are still insufficient; the quality and vision of senior management need continuous improvement; and there is much room for improvement in information flow and execution from the top to the grassroots... These are all areas where we need to systematically improve our management in the near future.

Facing the unprecedented new challenges and new journey of 2021-2030, we should embrace an open mindset and tenacious will to strive and forge ahead for a “second entrepreneurship”! “Openness” means freedom, an infinite possibility and potential power, a state of readiness for growth; it means flexibility and inclusiveness, and the willingness to make changes for one's dreams and values! “Tenacity” is the courage to continue acting and persist in the face of pain, anxiety, fear, disappointment, and other costs for the sake of growth, while also being prepared to endure contempt, ridicule, and sarcasm from others, and having the determination and confidence to face loneliness. “Endeavor” is the faith to carry forward the pioneering spirit and corporate culture of our predecessors, to forge ahead for the dream of “a century of Chunhui,” and to advance with unyielding determination!

Twenty years have passed in the blink of an eye. Chunhui's yesterday has already been written in the history of the company's development; Chunhui's today is being created by all employees; Chunhui's tomorrow will surely be even better!

Finally, on behalf of the Board of Directors, I promise all employees that our management team is determined to firmly implement the 2021-2030 strategy and is willing to accept the supervision and suggestions of all Chunhui Smart Control employees! Once again, I would like to express my heartfelt thanks to all employees—you are our most trustworthy partners!

Zhejiang Chunhui Intelligent Control Co., Ltd.

Chairman

2021-8-6