Turbulent waves and turbulent winds, in 2022, it is not an exaggeration to use these words to describe the general environment at home and abroad. Ukraine war, pandemic containment, energy crisis, inflation, economic downturn, natural and man-made disasters, anti-globalization, supply chain turmoil... Standing at the ferry end of the year, looking back this year, mankind has witnessed too many sufferings and challenges, the earth's footsteps faltered. Fortunately, we still have some good news, such as the G20 meeting in Bali, the APEC meeting in Bangkok, the world-renowned 20th meeting of National Congress of China, several manned spacecraft have been in space, and the Qatar Football World Cup is a world-wide carnival …While walking along lake and watching the clouds rise, these positive actions to build a community with a shared future for mankind have also injected new hope and vitality into the world, enabling us to always believe that mankind will surely go through the cold winter and embrace a new spring.
Looking at global mining industry, with increasing demand for mineral products that promote economic recovery in various countries, the main theme of the price of bulk mineral products in 2022 is triumphant, with the background of anti-globalization, complicated geopolitics and new energy development, many countries have raised mineral resources to the national strategic level, which has received unprecedented attention. The industry sentiment is generally optimistic and confidence is boosted. Out of industry requirement of environmental protection, energy saving and emission reduction, mechanization, automation and intelligentization, technology innovation will drive a subversive revolution in the mining industry in near future, and the application of new energy power and intelligent mining technology will be the main theme of the changes in mining industry in the next few decades. Founded only ten years ago, Fambition Heavy Machinery, as a research and development manufacturer of underground drilling, blasting and ore handling equipment, a global enterprise and a leader in China's high-end mining equipment, we are fortunate to be in, participate in and promote this reform of industry disruptive revolution.
2022 is leaving, and the new year 2023 is slowly approaching. On the eve of 2023, on behalf of the company, I would like to say "thanks" to all Fambition employees who are with me through thick and thin, to extend "appreciation" to global customers and partners who have been with us growing together, and to express "gratitude" to investors who trust and support us, and "I’m touched" to the local government that helped our development.
In 2022, with combined efforts of all Fambition people, Fambition Heavy Machinery once again made a historic breakthrough. Operation data such as revenue, profit, and order-intake all hit record highs. Significant progress have been made in various aspects such as governance, research, marketing, production capacity expansion and quality management. We stand at a new height and a new starting point to create a new future.
In 2022, at the corporate governance level, we have completed corporate restructuring, equity reform, strategic financing, developed with professional counseling institution to sort out corporate governance, and drawn a clear blueprint for the company's next step capital operation and overall public listing.
In 2022, with the advantages of a "specialized, special and new" enterprise, we continue to exercise "unique skills" in subdivided fields, and create "historical products". This year we became the "hidden champion" of the industry, which further consolidated the company's technology-leading strategy. This year, we promoted industry-university-research cooperation at the level of new technology, and continued to promote "intelligent project” upgrades. The intelligent mining system and production data integration platform was landed successfully. Technology-Reserve of battery powered products was completed, R&D progress of ultra-large tonnage equipment has made breakthrough, and product lines have been further expanded and improved.
In 2022, we continue to move on against tide. While deeply cultivating professional fields, Fambition also assumes more social responsibilities, promotes local economic development, contributes to local fiscal and taxation, and increases local social employment. In just one year, Fambition employee QTY has increased by 46%.
In 2022, we adhere to the customer-centered culture, and continue to give comprehensive support to global customers with a four-dimensional business model, i.e., rich products, various solutions, aftermarket service and Rebuild service. The traditional market maintains a stable increase along with new projects, more and more new markets have achieved breakthroughs, and the number of strategic large customers has begun to take shape.
In 2022, we actively promote the integration of R&D and manufacturing, and optimize the production organization model. Laixi Industrial Park has commissioned successfully two new production lines, thus two production centers, i.e., Chengyang and Laixi, are running together, and the production capacity was further improved, which provided a guarantee for the achievement of excellent revenue performance.
In 2022, at the quality management level, we adhere to the conviction of "precision quality", continue to improve product quality and service quality by integrating the management objectives and standards of different departments of the company, and strengthening the quality control throughout production process and organization levels, which increased effectiveness of quality management.
Looking forward, the world may move towards a global economic recession in 2023, and a series of financial crises that may cause lasting damage to emerging markets and developing economies may occur; the World Trade Organization predicts that due to multiple shocks to the world economy, the growth rate of global trade in 2023 will dramatically fall. In the eyes of many industry insiders, the arrival of the economic recession is not unexpected. First of all, the economic prosperity that has emerged in some countries after the COVID-19 epidemic is largely a false prosperity brought about by the central bank’s aggressive “water release”. Secondly, the impact of the epidemic has not dissipated, and the Russia-Ukraine war has not seen any signs of easing. Although the Fed’s aggressive interest rate hikes have curbed inflation, the inhibitory effect on economic growth has become more and more obvious. The external environment we are facing is still very severe and complex. The just-finished Central Economic Work Conference of the Chinese government comprehensively summarized the 2022 economic work, deeply analyzed the current domestic and foreign economic situation, and systematically deployed the 2023 economic work plan. The meeting pointed out that next year's economic work will be complicated. It is necessary to proceed from the overall strategy, improve social psychological expectations and boost development confidence. The meeting also pointed out that it is necessary to strengthen the development of important energy and mineral resources, increase storage and production, accelerate the planning and construction of a new energy system, extend the service life of mines, and continue to promote the intelligent and green production of mining. It will promote high-end, intelligent, and green manufacturing industry, develop intelligent and green manufacturing, also will promote the transformation of production methods to flexible, intelligent, and refined style, and enhance the security of the industrial chain and supply chain.
Times change faster than ever, and the world difference come from us. In every era, challenges and opportunities coexist. Fighters are never afraid. Challenges are step stones for us to reach pinnacle, and opportunities are the baton for us to run relay race. "Practice the constant to meet the change, change to know the constant", the experience of going through storms will surely fill us with the courage to ride the wind and waves.
We will continue to uphold the corporate social responsibility, fulfill the corporate mission, adhere to the "customer-center" culture, instill our vitality into economic development, adhere to long-termism, conduct in-depth research on industry focus and customer pains, continue technological innovation , constantly improve the product performance, and strive to become a loyal partner of every customer, always take customer need as our work orientation, and customer satisfaction as our eternal pursuit.
We will continue to increase investment in scientific research, improve technology innovation capabilities, promote high-end, intelligent, and low-carbon products, conduct in-depth research on different operating scenarios of mining at home and abroad, and promote the large-scale application of battery powered equipment and intelligent mining, most of all, provide customers with better systematic and comprehensive solutions.
We will pay more attention to close cooperation with global suppliers, integrate the spirit of win-win cooperation into the global supply chain growth plan, and build a community of mutual interests with all partners. Collaborate with more Chinese suppliers to deeply participate in the research and application of core technologies in the industry, strengthen the chain, create a healthy supply chain ecology, enhance the basic strength of Chinese manufacturing, and make a historical contribution to the development of the country's high-end equipment manufacturing industry.
We will further accelerate the construction of Laixi Industrial Park, facilitate simultaneous development of the two production bases, further improve the integration of production, sales and research, and strengthen product management, project management, design and development, engineering transformation, and material management through continuous iteration of the information system , production operation management, quality management, warehouse management standardization and integrated construction, connect channels of capital flow, logistics flow and information flow, a real "three streams in one" within the company.
Fighting is the eternal theme of fighters. If you use a word to describe China's 5,000-year-old culture, perhaps the core of the national spirit of "endless fighting" runs through the entire history. Like heaven runs resiliently with power all the time, a man should do the same. We firmly believe that hard work changes everything, and this is where the vitality of Chinese society lies. Based on hard work, winning in execution, pragmatic innovation, continue to build a learning organization, cultivate a positive learning culture, stimulate organizational vitality, and help enterprises develop high-quality.
"One new spring, one new year.” At the end of 2022 we see the end of three-year long pandemic, our city is gradually recovering, and our work and life will be revived after the suffering, the New Year with a new atmosphere is coming. Wherever there is light, there is hope. Let us welcome the dawn and sunshine of the new year, and take confident and light steps to pursue our Fambition dream.
Lastly, wishing all the best to our customers, suppliers, partners, friends, colleagues, including those who’re giving us unseen support.
新年快乐！Happy New Year!