In the midst of fierce competition with numerous boats and sails on the horizon, our light boat has already traversed countless mountains. The year 2023 is destined to be extraordinary, marking a crucial year for China's "14th Five-Year Plan" development. In the tumultuous sea, Chengli Group boldly faces the waves, hoists its sails with determination, and continuously surmounts various challenges, peaks, and treacherous currents.
Despite the sluggish and lackluster domestic market, we have not only been constantly strengthening our internal capabilities but also actively exploring international markets, making every effort to expand our market share. As a result, the comprehensive strength of the group has significantly improved. What's more, according to data released by the All-China Federation of Industry and Commerce in 2023, we have successfully entered the ranks of China's top 500 private enterprises, ranking 378th, which is an improvement of 11 places compared to 2022. This achievement reflects our strategic goal of advancing steadily and rising against the trend.
(1) Actively responding to the rural revitalization strategy and exploring new models of poverty alleviation, Chengli Charity has once again reached new heights in its mission to achieve a qualitative leap from "thousands of enterprises helping thousands of villages" to "thousands of enterprises revitalizing thousands of villages."
Since the 19th National Congress of the Communist Party of China, the government has successively introduced a series of policies to support the development of private economy while encouraging private enterprises to assume more social responsibilities and contribute more to the great rejuvenation of the Chinese nation. In the context of integrated urban-rural economic development, we are required to achieve industrial returns, support shared prosperity in rural areas, provide support for farmers, rural areas, and agriculture to integrate into modern socialism, and expedite the great goals of "rural revitalization" and "thousands of enterprises revitalizing thousands of villages." Chengli Automotive Group actively responded to this call by providing assistance and support to Shuangtang Village in Guangshui City, Suizhou City, Hubei Province, as a targeted point for "rural revitalization" and the designated "thousands of enterprises revitalizing thousands of villages" support county by the All-China Federation of Industry and Commerce.
Furthermore, we have innovated the model of industry-driven poverty alleviation, proposing a national intercity industrial poverty alleviation plan for impoverished areas. This plan includes investments to create market opportunities, improve product quality, exchange technology for resources, increase sales through market promotion, and enhance management to boost efficiency. We have not only donated a batch of fire sprinkler trucks to Jianguo County but have also promoted a new factory cooperation model in Inner Mongolia and Guiyang, among other places. In the future, we plan to use the "East, West, South, North, and Central" as five core battle zones to expand the experience and model of industrial poverty alleviation to the national market.
Chengli Group actively supports the "thousands of enterprises revitalizing thousands of villages" support plan, donating fire sprinkler trucks to Shuangtang Village in Guangshui City, Suizhou City, and undertaking the production of specialty agricultural and sideline products in the village, providing strong support for the development of rural e-commerce.
In 2023, Chengli Group also actively responded to the call of the flood-fighting heroes in Zhuozhou, Hebei Province, sending a support team and achieving a successful return.
Under the guidance of the All-China Federation of Industry and Commerce, Chengli Automotive Group has provided strong support for the "thousands of enterprises revitalizing thousands of villages" rural revitalization project in Jianguo County, Guizhou Province. We donated a batch of fire sprinkler trucks to the county's fire brigade and provided multiple assistance measures.
Chengli Automotive Group continues to innovate in poverty alleviation models, receiving important support from the Guizhou Provincial Committee, District Committee, and local governments through market investment, resource integration, technical cooperation, and other means.
(2) We consistently care for the elderly and disabled children, turning donations of funds and goods into a regular practice that has established our outstanding reputation and image as a benchmark top-tier enterprise in the specialized automotive industry.
Since the inception of Chengli Automotive Group, we have adhered to an unspoken principle: regardless of the company's financial performance, during holidays and festivals, we consistently make donations of funds and goods to the elderly residents in nursing homes in Suizhou City. Our executive team always leads the employees in purchasing gifts like candies, milk, biscuits, and preparing cash red envelopes, which are then taken to the nursing homes for collective charity activities. We also provide support in the form of donations and goods to local schools for disabled children, and we have even prepared educational brochures about specialized vehicles for fundraising events.
This caring initiative has become institutionalized and is carried out year-round, making it a part of our regular practices. We continuously provide food and monetary gifts to the elderly and nursing homes, delivering warm care. Simultaneously, we offer continuous support to disabled children and kindergartens by gifting items, books, brochures, and providing assistance through donations of funds and goods.
(3) From the "Thousand Enterprises Helping Thousand Villages" to the "Ten Thousand Enterprises Helping Ten Thousand Villages" targeted poverty alleviation, and further to the innovative "Order-Based Poverty Alleviation," Chengli Group's philanthropic efforts have earned widespread acclaim among the general public and government authorities.
During the 13th Five-Year Plan period, Chengli Automotive Group successfully achieved its strategic goal of leapfrog development, with an annual average growth rate of 35% in production volume and output value. By 2021, the single-item output value of specialized vehicles had reached 8.7 billion RMB, and foreign trade sales had also reached 50 million USD. While achieving good economic results, the group has consistently adhered to a business philosophy that emphasizes warmth and social responsibility, believing that development should not only pursue speed but also uphold a sense of social responsibility.
With the support and concern of the Suizhou Municipal Committee, Suizhou Municipal Government, Zengdu District Committee, Zengdu District Government, as well as the Provincial and Municipal Federation of Industry and Commerce, we have always viewed "targeted poverty alleviation" as an important mission for our company. In addition to donating funds for the construction of bridges and roads and supporting the aquaculture industry in Xindong Village, Wandian Town, Zengdu District, we actively participated in the poverty alleviation project commissioned by the Provincial Federation of Industry and Commerce in Xuanen County and innovatively implemented the "Order-Based Poverty Alleviation" model. This approach has been commended in reports by the Central Propaganda Department and Xinhua News Agency and has received widespread recognition.
Chengli Automotive Group has actively engaged in the "Thousand Enterprises Helping Thousand Villages" targeted poverty alleviation efforts in Xindong Village, Wandian Town, Zengdu District, contributing our utmost to the poverty alleviation work in the region and receiving commendations from the Hubei Provincial Party Committee and Provincial Government.
Furthermore, Chengli Specialized Vehicle Co., Ltd. has also received high praise from the State Council Leading Group Office of Poverty Alleviation and Development and the All-China Federation of Industry and Commerce for its contributions to the "Ten Thousand Enterprises Helping Ten Thousand Villages" poverty alleviation work.
The Secretary of the Chengli Automotive Group Party Committee, He Ru'an, personally conducted field research on impoverished households and provided assistance within our capabilities, demonstrating the group's genuine concern.
Additionally, Chengli Automotive Group has actively innovated the "Order-Based Poverty Alleviation" approach, receiving full recognition from the Hubei Provincial Federation of Industry and Commerce. Even Xinhua News Agency published press releases in both Chinese and English, praising this initiative.
(4) During the three-year battle against the pandemic, Chengli Automotive Group took proactive measures, participating in flood control and rescue efforts in places like Zhengzhou and Zhuozhou, generously donating funds and goods. These actions earned recognition from the government and commendation in a letter from the State Council, demonstrating the company's commitment to supporting disaster-stricken areas.
From the end of the 13th Five-Year Plan to the beginning of the 14th Five-Year Plan, Chengli Automotive Group, like other businesses, faced the challenges of a three-year-long pandemic and the impacts of flooding. The domestic and international markets suffered severe disruptions, and various uncertainties eroded market confidence, leading the company into a period of stable development adjustment. Nevertheless, Chengli Group responded actively to support the anti-pandemic efforts as soon as the outbreak occurred.
Chairman Cheng Ailuo canceled plans for international business trips and returned to Suizhou, disregarding personal safety to join the frontline of the pandemic response. He led by example, donating 1 million RMB to the Red Cross Association to support the logistical needs of healthcare workers. He also dispatched large tankers to Shandong three times to transport dozens of tons of high-concentration alcohol, contributing to the government's pandemic control efforts.
In addition, he proactively arranged for production staff to stay in the factory, ramping up the production of urgently needed equipment, including medical ambulances, negative pressure ambulances, medical waste transfer vehicles, nucleic acid testing vehicles, and field hospitals. These efforts made a significant contribution to winning the long-term battle against the pandemic.
Subsequently, the group dispatched voluntary teams and equipment to Zhengzhou, Yanling, Zhongmu County, Xinxiang City, Liulin Town, Hedian Town, and other areas, as well as Zhuozhou City, to participate in flood control and rescue operations. They generously donated funds and goods, providing full support for post-disaster reconstruction efforts. These actions received high praise from the government and were commended in a letter from the State Council.
Chengli Automotive Group is actively exploring and innovating in industrial poverty alleviation and rural revitalization strategies to drive forward its social responsibility and public welfare initiatives for "thousands of enterprises revitalizing thousands of villages." These efforts will not only promote the rapid development of the local specialized vehicle and emergency equipment industry, new energy vehicles, as well as upstream and downstream components such as motors, electronic control, and batteries, but also contribute to local governments through fiscal revenue, job stability, and economic growth, bringing long-term benefits and strong development momentum to the region.
We firmly believe in the philosophy of "time waits for no one, working together, seizing the day, and opening up new chapters." Chengli Automotive Group has boosted the income of suburban farmers by promoting the sale of agricultural products in the surrounding rural areas, furthering their commitment to unwavering social responsibility and taking on responsibilities that never cease, always staying at the forefront.
We are confident that Chengli Automotive Group's continuously upgraded and optimized social responsibility and public welfare initiatives will find even broader development prospects. Chengli's people will continue to contribute our humble yet unwavering efforts to the great rejuvenation of the Chinese nation with full determination.
