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Expedition to Glory and Dream | 2024 New Year Message from Chairman Zeng Guangan

January 04, 2024

2024

New Year's address

The sun and the moon,The law of the year is renewed,The struggle never stops。

Time flies and another new year is coming, yet we have never stopped striving.

2023 is the first year to fully implement the spirit of the 20th National Congress of the CPC.,Liugong ushered in the important moment of the 65th anniversary of its establishment and the 30th anniversary of its listing.。Facing the challenge of the deep decline of the domestic construction machinery industry and the opportunity of the gradual economic recovery after the epidemic,The company has adopted a positive change and proactive response strategy.,In-depth implementation“A comprehensive solution、Fully intelligent、Full internationalization”Strategy,Promote the steady development of various businesses,Good performance has been achieved.。

The year 2023 marked LiuGong’s 65th anniversary and the milestone of 30 years since it went public. In the face of challenges posed by a sharp decline in the domestic market and emerging opportunities following the epidemic, we embraced positive changes and implemented a strategy of "Comprehensive Solutions, Comprehensive Intelligence, and Comprehensive Globalization" to drive steady growth across our various businesses and achieved a good result.

On the occasion of bidding farewell to the old year and ushering in the new,On behalf of the Party Committee and the management of the Company,To all the staff and their families who have United and forged ahead in the past year,To the marketing and service officers and soldiers who have been stationed on the front line for a long time,Leaders at all levels who care about and support the development of Liugong for a long time、The vast number of customers、Partners and the community,I would like to express my heartfelt thanks.,With best wishes for the New Year.!

As the new year is coming, on behalf of the top management team, I would like to express my heartfelt thanks to all the employees and their families who have worked hard over the past year. I also want to extend my gratitude to our marketing and service staff who have worked tirelessly at the forefront of our markets, as well as all the managers, customers, partners, and friends who have always shown care and support for LiuGong's development. Wishing you all a fantastic New Year!

This year,We adhere to the principle of struggle,High quality development to a new level。

In 2023, we insisted on striving for excellence and achieved a new level of high-quality development.

Struggle is the cultural gene of Engineer Liu.。For 65 years,We always persist in hard struggle.、Long struggle、Strive for excellence,It has made remarkable achievements in the industry.。Under the leadership of the superior department,We will continue to deepen the reform of mixed ownership.,Promoting high-quality development of enterprises。Excavator、Product lines such as AeriaL Work Platforms outperform the industry by a large margin,The fourth national product industry is leading.。Overseas revenue exceeded 10 billion yuan for the first time,Become the company's main source of profit contribution。

Striving is our cultural DNA. For 65 years, we have been insisting on hard working, long-term endeavors, and achieved remarkable success in the industry. Under the leadership of management team, we continued to promote our diversified corporate governance and achieved substantial progress. LiuGong Excavators and aerial work platform significantly outperformed the industry, while our National Stage IV products are leading the industry. With more than 10 billion RMB in revenue for the first time, our overseas business has become a major contributor to LiuGong's profits.

2023,We officially released the new culture and brand concept of Liugong.,With“Sanquan”Strategy is the core,Continue to promote research and development、Manufacture、Supply chain、Twelve changes such as corporate governance。On the occasion of the 30th anniversary of listing,Successfully issued 3 billion convertible bonds,Implementation of stock option incentive scheme,Establish and improve long-term incentive and restraint mechanism。Accelerating Intelligent Manufacturing,Build Engineer LiuLPSSystem,Excavator Intelligent Factory of Liugong Intelligent International Industrial Park Completed and Put into Operation,Construction of Zhongyuan Hydraulic New Factory Completed。Loader Intelligent Factory won the second China Benchmarking Intelligent Factory in 2023。

In 2023, we officially launched new versions of LiugGong culture and brand concept. With the "Three Comprehensives" strategy, we kept pushing forward with 12 changes in R&D, manufacturing, supply chain, and corporate governance. On the occasion of our 30th public listed anniversary, we successfully issued 3 billion RMB convertible bonds, implemented the stock option incentive scheme, and establisheda sound long-term incentive and restraint mechanism. We accelerated intelligent manufacturing and keeps building LPS system. Excavator intelligent factory in LiuGong Intelligent International Industrial Park was finished and put into production. The construction of Zhongyuan Hydraulic new factory was completed. What’s more, our Wheel Loader intelligent factory was awarded as China’s 2nd batch of “Bench-marking Intelligent Factory” in 2023.

This year,We insist on customer first.,Market competitiveness and brand influence are constantly improving.。

In 2023, we insisted on customer-foremost to continually improve our market competitiveness and brand influence.

Customer is the origin of value creation。In a market environment with a huge decline in domestic demand,We actively implement channel changes、Industry customer transformation,Leading investment and construction industry 7S Store 、Actively promote electric and intelligent products,The domestic construction machinery products have won the industry as a whole.。

Customers are the origin of our value creation. Despite the huge decline in domestic market, we still actively implemented channel reform and industrial customers’ transformation. We invested in industry-leading 7S stores to actively promote electrified and intelligent products. With all the efforts, our CE products put us in an even stronger position in the industry.

We will continue to deepen our comprehensive internationalization strategy.,It has set up subsidiaries in Australia and other key overseas markets.,Substantial growth in marketing revenue in mature and emerging markets in Europe and the United States,The international post-market business is gradually improving.,Promote the sustained and high-quality development of overseas business。2023,Basically realize the new strategic pattern of balanced development of domestic and international business。

We deepened the comprehensive globalization strategy and set up subsidiaries in Australia and other key countries. We achieved substantial growth from mature markets in Europe and US, as well as emerging markets. Our after-market business is gradually improving, driving the sustained high-quality development of overseas operations.In 2023, we basically realized a new strategic pattern of balanced development for both domestic and overseas business.

By participating in large-scale industry exhibitions at home and abroad,Liugong 5 will be held.28、11.26 Global Customer Day,The large-scale equipment of Liugong is displayed.、Electrification、Intelligent、Digital and other new products、New technologies and comprehensive solutions,Enhance the global influence of Liugong brand。

By participating in large domestic and international industry exhibitions, hosting the LiuGong Global Customer Festivals on May 28th and November 26th, we showcased large-scale equipment, as well as new products, technologies, and comprehensive solutions for electrification, digitalization and intelligence. This has greatly enhanced the global influence of the LiuGong brand.

This year,We insist on innovation drive.,Green intelligent achievements are constantly emerging.。

In 2023, we insisted on innovation driving and achieving impressive results in zero-emission and intelligence technology field.

Innovation is the soul of Engineer Liu's progress.。We set up yuanxiang Company.,Expand R & D centers at home and abroad,Increase investment in R & D and innovation,Continue to improve overseas business、Support for strategic emerging businesses。

Innovation is the soul of LiuGong’s progress. We established Yuanxiang Technology Company, expanded domestic and overseas R&D centers, increased investment in R&D and innovation, and continued to enhance support for overseas business and strategic emerging business.

More than 100 new products were released throughout the year.,Introduction of large mining loaders、Excavator Hybrid Power New Product,Rapid serialization of electric product,The world's first driverless pure electric loader,Continue to expand smart mines、Industrial Internet and other solutions,Many spare parts products have reached the international leading level.。Take the lead in formulating a number of mechanical electrification standards for earthwork,Leading the development of electric technical specifications in the industry。

In 2013, we launched over 100 new products and introduced hybrid options for large mining loaders and excavators. We quickly developed electric models and unveiled the world's first unmanned pure electric loader. Additionally, we expanded our offerings in smart mining and smart industrial internet solutions. Many spare parts and components we produce reached the international leading level. We took the lead in formulating multiple standards for electrification of earth-moving machinery, leading the development of electric technology specifications in the industry.

We actively advocate green manufacturing and green products.。“Application of Carbon Neutralization and Carbon Saving in Liugong Products and Production Process”The case won the first prize of the typical case of the Carbon Neutralization Action of the State Council SASAC in 2022.,Hydraulic factory won the national level“Green Factory”,Engineer Liu Owim was selected“Create a world-class specialized, special and new demonstration enterprise”。

We actively advocate green manufacturing and green products. A case of "Carbon Neutral and Carbon Saving Application of LiuGong's Products and Production Processes" won the top prize of 2022 Carbon Peak Carbon Neutral Action Typical Cases from the State-owned Assets Supervision and Administration Commission of the State Council. And our Hydraulic Factory was recognized as a national "Green Factory". LiuGong OVM was made it into the list of "Professional Excellence and Innovation Enterprises" on National level.

This year,We insist on win-win cooperation.,Join hands with relevant parties to create a better future。

In 2023, we insisted on cooperation for mutual benefit and create a better future with all stakeholders.

Cooperation creates value is Liugong's core value.。We and Tsinghua University、Zhejiang University and other universities to promote“Produce、Learn、Grind、Use”Comprehensive innovation and cooperation,Promote intellectualization with domestic and international industry customers、Green and other comprehensive solutions,Signed a product technology license agreement with ZF,Hand in Hand with France to Create a New Model of Operating Lease。On the occasion of the 65th anniversary of the founding of Liugong,We reviewed our relationship with a wide range of customers、Long-term strategic cooperation with agents, suppliers and other related parties、Fruitful results of mutual benefit and win-win。

Creating value through cooperation is our core value. We promoted the comprehensive innovation in production, learning, research and application, with Tsinghua University, Zhejiang University and other top universities. We promoted the comprehensive solutions of intelligent and zero-emission with domestic and overseas industrial customers. We have signed the product technology license agreement with ZF Germany, and partnered with Folangsi to create a new business leasing model. At this special year, we reviewed the fruitful results from our long-term strategic cooperation with customers, dealers and suppliers.

Through the training programs at all levels of Liugong University,We continue to strengthen the expertise of our employees and the leadership of our managers.;Launch Innovation and Entrepreneurship Competition、Hold a global skills competition、Construction of International Skills Craftsman College, etc.,Build an international talent team for sustainable development。

Through various training programs at LiuGong University, we continuously enhance the professional capabilities of our employees and the leadership skills of our managers. We organize innovation and entrepreneurship competitions, host global skills competitions, and establish an International Skills Artisan Academy to cultivate a sustainable international talent pool.

We continue to support scientific research in Antarctica.,Sponsor China's First Youth Congress,Continue to Promote the Rural Revitalization of Five Villages in Sanjiang County,Demonstrate Liugong's social responsibility and responsibility with practical actions。

We continue to support Antarctic scientific research, sponsor the first China Youth Association Conference, and promote rural revitalization in five villages in Sanjiang County. Through practical actions, we demonstrate LiuGong's social responsibility and commitment.

Looking back on 65 years of passion,The original aspiration remains unchanged;Looking forward to a century of evergreen foundation,Be determined to move forward!

Looking back on 65 years of passionate moments, our original aspiration remains unchanged. Looking forward to a century-long thriving business, we are determined to move forward!

2024,We will realize“Fourteen five”Strategic objectives as the core,With“Sanquan”Strategy is the direction,Change around domestic marketing、International market development、Innovation of new products and new technologies、Intelligent manufacturing promotion、Organizational and human resource change, etc.,Strive to achieve the overall improvement of the company's performance in 2024。

In 2024, in line with the 14th Five-Year Plan strategic objectives and the direction of "Three Comprehensives" strategy, we will work towards achieving comprehensive performance improvement by focusing on domestic marketing reforms, overseas market development, new products and technologies innovations, intelligent manufacturing improvement, organization and human resources adjustments.

 

With“Become the world's leading provider of equipment and technology solutions”For the vision,Firmly practice“Extend human power with intelligent green machinery”A mission,Always insist on customer first,Struggle is the foundation,Create a better future with global customers and partners!

With the vision of " to be the world leading equipment and technology solutions provider" and the mission of "empower people with intelligent, green machinery", we will always adhere to the principle of customer foremost and create a better future together with our global customers and partners!

Follow the main road,To ten thousand miles。Let's go all out,A hundred years of passion and progress for Engineer Liu;Let's move forward with our heads held high.,An Expedition to Glory and Dream。

Let's hit the road and travel ten thousand miles on LiuGong's century-long journey of progress with passion, together embarking on a magnificent and dreamy expedition.

Guangxi Liugong Machinery Co Ltd

Secretary of the Party Committee、Chairman、Chief Executive Officer

Zeng Guangan

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