Successful in 2017 and Positive for 2018

The year 2017 has already come to an end. The vision and the strategic planning in the beginning of the year, on which all management teams have now delivered, are clearly remembered. At that time, we made a three-year business performance commitment to the capital markets expecting to achieve a margin target of 750 million RMB in 2017, 1.2 billion RMB in 2018, and 1.56 billion RMB in 2019. There are people being surprised about our confidence to achieve such a rapid development and there are also people who doubt. Despite all these considerations, as the year of 2017 comes to an end, through all our efforts, our employees have achieved an outstanding result.

From a business performance perspective, Sunway revenues reached 2.48 billion RMB through the third quarter of 2017, with a year-on-year growth of 64.94%. The sales margin reached 714 million RMB, with a year-on-year growth of 106.4%. The return on equity, which is highly valued by the majority of western companies and investors, totaled 31.58%, an increase of 9.24% compared to 2016. All these performance figures have proven our ability to achieve rapid growth and excellent performance.

From a company market value perspective, the sustainable rapid development of Sunway gives us a market value of 50 billion RMB, ranking seventh of the listed companies on the GEM list. Our operating performance has increased YoY and QoQ for the past 15 quarters, ranking first among 3,000 listed companies.  In the Best Listed Company Award Summit held in Suzhou on Nov 18, 2017, Sunway won the title of “The best Listed Company “and “The Best Listed Company of the Communication Electronics Industry” during the award ceremony. 

From a customer satisfaction and internal capability build-up perspective, we have a core supplier qualification status with many of our key customers, and we also obtained new product development opportunities on various products such as wireless charging, LCP antennas, complex welding parts and deep drawing parts, high-speed cables and connectors, Type-C and BTB connectors, which play a significant role in our future development. In 2017, we carried out a multi-divisional structural reorganization, and dozens of product lines now fully have their own flexibilities to strive for faster development. In addition, we have also put our partnership culture into practice by implementing diversified incentive methods such as ownership incentive and employee stock ownership.

In 2017, we experienced several difficulties and challenges while coping with an enormous pressure. At the same time, we also accomplished a lot. Hence, I would like to express my sincerest thanks to every Sunway partner. Thank you all for your contributions and efforts for the company. I believe the most important thing in 2017 is that we have gathered a better understanding of customer requirements, strengthened our capacities and honed our team spirit.

2018 will be even more important, since we have set a target of achieving a profit of more than 1.2 billion RMB. We will further strengthen our key customer relationships, further accumulate technologies and continue to promote our development capability. Furthermore, when benchmarking with major industry peers with a long history, we target to reach a similar development in a short time period supported now by over ten years of accumulated experience and hard work.

Certainly, there will be many difficulties and challenges also in 2018. With high expectations from shareholders and investors and tough requirements from customers, we must keep our sustainable rapid development as well as improving our organizational capabilities. Only when we break the routine, change the traditional rules and conventional ways of doing things, constantly challenge ourselves and strive for an excellent standard, can we achieve our business performance targets. In addition, we should also put more efforts on talents introduction and team building. We should focus on collaboration and information sharing of the teams within each BU, strengthen the risk control ability while ensuring sufficient flexibility. Only then can we maintain sustainable development and achieve the three-year strategic planning objectives.

The year 2018 is destined to be a year full of challenges, opportunities and expectations. I strongly believe that our joint efforts will be paid off in this coming year. I hope all our partners will work together full of confidence, take needed actions and strive for an even brighter 2018!

At last, I wish you all the blessings of a wonderful new year.