On December 9, the XCMG Foundation 2017 Large Structural Parts Supplier Conference with the theme 'Craftsmanship for Durability, Sustainable Capacity Upgrade' was successfully held at the Guotai Pacific Hotel. Kong Qinghua, General Manager of XCMG Foundation, Assistant General Managers Zhang Rui and Chen Yitian, and representatives from over a dozen large structural parts suppliers gathered together to review the journey of struggle and discuss future development plans.
Zhang Rui, Assistant General Manager of XCMG Foundation, delivered a speech at the conference, extending a warm welcome to the supplier representatives and partners present. Mr. Zhang reviewed the company's entrepreneurial development history and expressed sincere gratitude for the long-term support from the suppliers. In 2017, XCMG Foundation closely focused on the Group's 'Three Haves and One Can' goal, building the 'Durable' boutique project of two drilling rigs and one machine. They comprehensively benchmarked against world-class enterprises and products, carried out a global catch-up plan with 'Six Characteristics and Four Uses' as the main goal, and created durable boutique products of two drilling rigs and one machine. With the efforts of all cadres and employees and the strong support of all distributors and suppliers, remarkable achievements were made. Considering the current production and operation situation, it is hoped that through this conference, colleagues present will discuss together the sustainable development path for long-term development and win-win cooperation between large structural parts manufacturers and OEMs. XCMG Foundation's continuous growth and expansion should also drive the suppliers present to become more refined and specialized, and the dedicated efforts of colleagues present will also bring a more brilliant and glorious future to Foundation Company.

At the meeting, heads of relevant departments of XCMG Foundation gave detailed reports on production and operation, procurement planning, quality service, etc., clarifying the improvement direction for future development. Subsequently, the participants held group discussions on production plan guarantee measures and 'Durable' quality improvement measures, reaching consensus on many aspects such as plan guarantee, quality, price, and service.
To further clarify the responsibilities and obligations of both supply and demand parties, Mr. Zhang, on behalf of XCMG Foundation, signed the 2018 annual procurement contract with suppliers.
At the end of the meeting, Kong Qinghua, General Manager of XCMG Foundation, made a concluding speech. Mr. Kong first expressed sincere gratitude to the supplier friends. 2017 was a busy year. Through the joint efforts of everyone present, XCMG Foundation and supplier partners have stepped up to a new level together, shouldered the responsibilities given by the times, and won the respect of peers. Entering a new era, we must have new ideas and new actions. Mr. Kong put forward earnest hopes and requirements for supplier development.

First, overcome difficulties and climb new heights. 'He who gets the parts gets the world.' Both the quality and quantity of supporting parts must be grasped, and both must be strong, in order to remain invincible in the market. All partners should join XCMG Foundation in facing difficulties and forging ahead.

Second, dare to challenge and plan new goals. In the new year, supplier partners should have new plans and new schedules, proceed from the development of the times and market demand, promote capacity upgrades, and solidly improve product quality.
Third, innovate methods and improve management level. Outsourced supplier partners should respond to XCMG Foundation's management requirements, consolidate basic management, focus on long-term strategic planning of the enterprise, use information technology, enhance intelligent manufacturing level, improve the management system, innovate management models, and help capacity improvement through management enhancement, seeking efficiency from management.

Fourth, pool collective wisdom and create a new future together. Supplier partners should have entrepreneurial spirit, passion, and the ability to endure hardship, unite closely with XCMG Foundation, jointly establish good cooperative relations, help each other, and benefit each other.

Standing at the end of 2017, XCMG Foundation and supplier partners will, with clearer minds, stronger morale, more vigorous attitudes, and greater energy, march toward the goal of building a new cooperative strategic alliance and meet the new challenges of 2018!