Looking back at 2022, the global economy gradually shook off the impact of the COVID-19 pandemic, and manufacturing output gradually recovered. Although a few regions were still affected by war and inflation, the pressure on business operations has been significantly eased. Furthermore, the gradual decline in material prices season by season led to a significant improvement in the management and profitability of our company in 2022. Looking forward to 2023, although the world continues to be affected by inflation, the overall business environment has gradually recovered. We expect that new development projects undertaken in the past and the construction of the second factory in Baishan will continue to help the Company’s revenue grow. In addition, we will continue to focus on constant improvement in management and production technology, as well as to diversify customer risks. With professional manufacturing capabilities and an outstanding service concept, we strive to attract new orders from domestic and foreign customers and proactively achieve product innovation for our customers.

Solid Governance Creates Value

Based on solid corporate governance, Eurocharm actively provides customers with precision machinery of high quality and diversity by applying manufacturing technology and comprehensive solutions to meet the specific product needs of our customers. Eurocharm brings the maximum benefit to our shareholders and to the development of our employees. We strive to becoming an elite enterprise that is trusted and respected by the society while maintaining good interaction with the stakeholders and continuing to create corporate values.

Continue to Promote Smart Manufacturing

In 1983, Eurocharm introduced welding robots to achieve automatic production lines, and since then the Company has continued to transform our production in the wake of Industry 4.0 era. The Company builds intelligent production, equipment, and management of production process based on data. Connecting design, production, and services, we have successfully reduced our costs, improved manufacturing efficiency and optimized quality and experience, which facilitates the progress of the industrial environment. Eurocharm continues to develop automatization by introducing TOYOTA lean production. Utilizing various aspects such as the system structure, personnel organization, operation methods, and market supply and demand while combining the implementation of the MES project, our production system can immediately adapt to the rapid changes in user demand and reduce unnecessary waste in the production process to strengthen our production management model.

Mitigate Environmental Impact

Natural disasters caused by extreme climate make us profoundly aware of the threat and impact from climate change. The importance of ESG (Environmental, Social, and Governance) has gradually become a global consensus. In November 2022, COP 27 focused on viable solution plans and proposed four major objectives- mitigation, adaptation, finance, and collaboration- to urge all countries to fulfill their commitment to the goals of Paris Agreement, keeping the temperature rise from global warming within two degrees Celsius and striving to maintain it within 1.5 degrees Celsius. Extreme climate events such as heat waves and wildfires are becoming increasingly frequent and severe. To reduce their impacts, it is necessary to develop preventive and adaptive strategies in advance to allow developing countries to acquire sufficient funds to carry out works of mitigating and adapting to climate change. It is also important to ensure that all stakeholders, especially groups at risk and countries vulnerable to the effects of climate change, are involved and that we are transforming the achievements of COP 26 into actions. As a responsible corporate citizen, Eurocharm is committed to responding to climate change and actively planning to mitigate climate impacts to protect global environment that we share.

Friendly Environment, Employee Health, and Work Safety

We will continue to make improvements on noises, dust, air, sewage treatment systems, lighting, and electrical furnaces while replacing old equipment. We will also strive to keep our factories green and move toward the goal of energy saving and carbon reduction. At the same time, we are continuously making practical changes in employee participation, safe production, working environment, quality improvement, shortened delivery time, reduction of invalid working hours, and better employee compensation and benefits. We aim to strengthen the cohesiveness of the factory, improve internal factory management, and continuously improve our working environment and labor conditions to protect the legal rights of employees and become an enterprise that brings our employees happiness.

Actively Cultivate International Talents and Succession Plan

To help management talents at all levels equip with the proactive problem-solving ability and international perspectives, the Company continues to develop training programs with external experts and arrange training contents according to individual characteristics and job attributes. Our major goal is to cultivate and retain outstanding management and technical talents, laying a more solid foundation for the company’s sustainable development. Looking forward to the future, Eurocharm will continue to actively expand into recreational vehicle components and medical equipment and move strategically towards production internationalization to ensure sustainable growth in performance and profits. Meanwhile, we will follow the blueprint of the sustainable strategy and fulfill our corporate responsibility to achieve sustainable operations.