To further awaken and stimulate all employees' sense of corporate integration and quality honor, and to cultivate a quality culture where "the pursuit of excellence becomes our habit", on December 12, the 2015 XCMG Group Quality Work Commendation Conference with the theme of "Innovation-Driven, Quality First" was held at the company's International Conference Center. Chairman and Party Secretary Wang Min delivered an important speech. Company leaders Li Suoyun, Li Ge, Yang Yong, Shi Keyuan, Wu Jianglong, Zhang Shouhang, Han Bing, Sun Jianzhong, Yang Dongsheng, Lu Chuan, and Li Zong attended the conference. At the meeting, 150 outstanding employees who won the first "XCMG Group Chairman's Quality Award" and 48 outstanding projects of the first "Green Innovation" were commended. 1. Li Suoyun, Deputy Party Secretary and Deputy General Manager of the company, first delivered a quality work report titled "Actively Adapt to the New Normal, Strive to Build a New Excellent Quality System, and Fully Support the Company's 'Summit Climb'", reviewing and summarizing the quality work results, pointing out the current situation, gaps, and key action measures for the next step in quality work: First, master and apply the "two magic weapons" of world-class excellent enterprises, namely the Performance Excellence Model and Lean Six Sigma, to fully support the company's "Summit Climb". Second, accurately grasp demand and accelerate product structure adjustment. Third, carefully plan and innovate design. This includes innovative design, advancing research on common quality problems; strengthening innovative design in product realization, and promoting intelligent manufacturing. Fourth, raise standards and accelerate upgrading. Fifth, precise operations to reduce fluctuations. Sixth, establish a good quality culture, making the pursuit of excellence become employees' behavioral habits. Seventh, focus on key points, grasp practical matters, promote implementation, and emphasize effectiveness in carrying out "Green Innovation" activities.
The report requires that the current guiding ideology of the company's quality work must be clarified and continuously adhered to, fully implementing Chairman Wang Min's "Three More Emphases" and "Three Comprehensives" business guiding ideology, actively adapting to the new normal of economic development, aiming at customer satisfaction and customer loyalty, driven by quality technology and management innovation, vigorously advancing the quality construction project centered on product reliability and the Performance Excellence Model, striving to improve product reliability and management maturity, enhancing management refinement and precision, fully building XCMG's new excellent quality system, and achieving XCMG's world-class quality.
2. Chairman Wang Min pointed out at the meeting that this quality commendation conference is not only a review and summary of quality work, but also a baptism and education of the quality culture of "regard quality as life, regard quality as dignity". All employees should learn from the award-winning representatives the spirit of striving for perfection, perseverance, diligent study, and dedication.

In his three requirements, Chairman Wang Min first proposed the new business philosophy for the "13th Five-Year Plan", namely adhering to "lean, international, fill shortcomings, sustainable".

1) Emphasize leanness
Leanness requires us to start focusing on quality and technical problems that are difficult to overcome and have long plagued us in the construction machinery industry we have been engaged in for decades. If quality standards and technical standards are low, quality will certainly not come out. Therefore, leanness must be precise and focused, resolutely solidifying problems and standard solutions, and using strict processes, strict manufacturing, and tooling to ensure product quality upgrading.
2) Emphasize internationalization
"Internationalization" has been talked about for decades, but true internationalization still requires guidance from international concepts. The future market and living space lie in the international market, which is a market long occupied by high-end products. To survive and develop better, we must attach great importance to the needs of the international market and global users. Around "internationalization", in the future we will have a group of international talents mainly cultivated by ourselves. This places high demands on leaders at all levels and on talents, and they must improve quickly; if slow, they cannot survive.
3) Emphasize filling shortcomings
There are shortcomings in technology and quality, but the biggest shortcoming is our business philosophy, business system, business methods and means. Therefore, a new business philosophy must be established, attaching importance to product lifecycle business and international markets. The business system must be reformed, and the traditional management structure from top to bottom must be considered and changed. We need to study how the management structure at the group level, business divisions, and companies can more efficiently adapt to the development of productivity.
4) Emphasize sustainability
Now we are at a critical stage and time. If we do not solve some key problems, we cannot be sustainable. Currently, we have conditions, foundations, difficulties, and challenges. The whole company must grit its teeth and fight several tough battles to get through this most critical moment. This requires the top leader to personally take charge, leading cadres to take the lead, and all employees, especially those in important positions, to maintain high consistency with the company and work hard and diligently. In the process of achieving the summit climb, it is impossible without cadres and employees who are firm-willed, truly capable, hard-working, good at innovation, and able to produce practical results.

Chairman Wang Min proposed for the deployment of the "13th Five-Year Plan" and 2016 work that the key is to make great efforts to grasp quality.
Chairman Wang Min emphasized that XCMG's goals cannot be shaken. By the end of the 13th Five-Year Plan, we must enter the world's top five, and when the "Made in China 2025" strategy ends, we must strive to enter the top three. If we can truly enter the top three, with quality and efficiency, then we can become a true world-class enterprise and a respected enterprise, and basically achieve the summit climb.
All units must accurately analyze the market for next year's work, come up with measures, and implement them well. They must accurately match resources and make continuous investment without wavering. They must accurately calculate where next year's market is, how much sales revenue and profit there will be, and how much employee income will increase. This is a hard indicator for operators at all levels, and no carelessness is allowed. At least 95% of employees in various positions should have their income increase after assessment.
Facing new challenges and the new year, all employees must take their own actions and demonstrate a strong work style to promote the company's sustainable, quality-efficient development and transformation and upgrading. Through everyone's joint efforts, we will shape a quality culture that "values quality, values excellence, is meticulous, rigorous and fine", which means aligning with high standards and benchmarks. In quality, we must not be emotional but meticulous and serious; in management, we must not be negligent and must have high-voltage lines.

Chairman Wang Min also particularly emphasized that XCMG's interests are above all, and we must resolutely crack down on people and things that harm XCMG's interests without mercy.
XCMG's interests are our highest interests. XCMG belongs to the country and the nation, and the concentrated expression of safeguarding national and ethnic interests is to safeguard XCMG's interests. In cracking down on crime and corruption, Party committees and operators at all levels must not abandon principles, act emotionally, or be indifferent; they must crack down severely.
The foundation of enterprise survival and development lies in the market. We must strive to meet the requirements of the market and customers on us. Throughout the group, we need to see which enterprise has the most rigorous management, which enterprise improves quality fastest, and which enterprise has the best market efficiency. We must create this atmosphere and in the future strictly assess top leaders and management teams.
Chairman Wang Min emphasized the requirement that at this most critical moment, we must establish new concepts, create new ideas, and promptly implement new measures. Do not wait, do not hesitate. Employees loyal to XCMG, whether new or old, must not slack off and must go all out to truly break through the encirclement. I hope all employees will invigorate their spirits, unify their thinking, grit their teeth, overcome numerous obstacles on the road ahead, and strive firmly to take an important step in transformation and upgrading, ultimately achieving XCMG's ultimate goal of "summit climb and world-class".