Create True Value - Speech at Hangzhou Private Economy Development Conference

Lu Weiding, Chairman of Wanxiang Group

May 27, 2022

I am grateful, warm and glad to be able to attend the Hangzhou Private Economy Development Conference. At every critical moment for economic development, we make concerted efforts among ourselves and face external difficulties and challenges together.

"Disputes end when interests and status are clarified". We have long kept up the affirmation and establishment of industrial entities, industrial science and technology, design and manufacturing; and made earnest and practical efforts in advancing independent management, respecting market players, creation and starting new businesses, pioneering work and innovation.

By 2015, Wanxiang completed the "primary level exam" and entered the stage for "intermediary level exam". Up to the present, it has made a profound impact in the past six years following the architectural pattern of "Chinese investment, American operations, global market, innovative technology, and upgrading China". According to preliminary earnings estimates for January to May this year, we are projected to have a year-on-year revenue increase of 17% and a year-on-year profit increase of 9%.

Our understanding of the economy over 54 years of history has made Wanxiang more focused and vigorous in development, and more reformative and revolutionary with regard to the economy. Its scientific and technological productivity meets the demand of society, and its surplus has become better in quality and value.

The biggest challenge for the development of private enterprises comes from within themselves. No adverse condition could be used as an excuse for merely maintaining the status quo. And I would like to ask the government to not give us any reason for doing so. Complaining about the natural conditions and other people will not open up new prospects and pessimism only leads to dead ends. The key is to improve oneself and become better, which is the source of the greatest security and the most reliable guarantee. Thinking brings about new prospects and action determines the status. It is a joy of entrepreneurs to find the light in a perfect storm. An enterprise that has withstood storms will not only develop in a turbulent situation, but also grow in value after the turbulence.

Under the CPC Central Committee's requirements for "pandemic prevention and control, economic stability and safe development", we listen to the Party and follow the Party. "Wanxiang takes the righteous path guided by integrity". At this development conference, on behalf of Lu Guanqiu Wanxiang Enterprise Fund and the Board of Directors of Wanxiang, I'd like to announce that Wanxiang "will not lay off its employees or hold back wages. We will not shut down our operations or reduce input in technology. And we will not cut back our investment in construction". You are all welcome to supervise us.

We carry out energy revolution and technological revolution, fulfill the mission of "making the air fresher", and have long and firmly taken industrial development as our basis. "Combining industry with finance improves efficiency; combining going global with bringing in facilitates the flow of resources; and developing new energy helps us seize the commanding heights." With clean energy, and intelligent control of mobility, we will vigorously push forward the construction of the Wanxiang Innovation & Energy-gathering City.

On May 25, I watched the Hebei chapter of the series report "Following in the Footsteps of the General Secretary" in CCTV News, and got really moved by its progress from poverty alleviation in rural areas to the Xiongan New Area. I remember that, at the beginning of this year, it was put forward clearly at the Party Congress of Xiaoshan that the General Secretary's instruction to Xiaoshan 20 years ago - "To constantly promote industrialization, and accelerate urbanization so as to take the lead in realizing modernization", shall be taken as the program for development in the next five years. These are the footprints left by the General Secretary in Hangzhou and Xiaoshan.

In the industrial field, Wanxiang started to manufacture universal joints in the 1980s, and became number one in the world in the area. However, in areas of bearings and chassis, no world-leading breakthrough has yet been made. Wanxiang began to produce battery cells in 2000, and has become the best in the world in areas of start-stop batteries and energy storage systems. But, it has been unable to make headway in material science, energy security and control systems. With regard to "constantly advancing industrialization", our responsibility is to focus on developing bearings, chassis, material science, and energy gathering and storage, providing Wanxiang's hard core products and services in these four areas, and improving China's industrial manufacturing.

The theme of today's conference is development. As an enterprise, we'd like to vehemently call on the municipal Party committee to "accelerate urbanization" and assign 50 square kilometers, or even 100 square kilometers of land on the south bank of Qiantang River for a real city of the future. Wanxiang Innovation & Energy-gathering City is a pioneer in this regard and we commit to contribute all that we can for the integration of industries, scientific and technological innovation, and the city, the attraction of scientists, entrepreneurs, and innovators, the tackling of technological bottlenecks, and the facilitation of innovation-driven development. For this unprecedented practice and exploration, we are faced with astounding challenges, but we also have amazing strength. Carrying out self-innovation and pursing self-transcendence, we keep moving towards the goals of "building Wanxiang Innovation & Energy-gathering City through ten years' efforts" and "having the revenue increase tenfold after ten years' struggle". Wanxiang gathers energy and achieves success of vast undertakings through unity of purpose and effort.

"The world is so new, and nothing has been named yet." Go your own way and pursue your own dreams, then "everything seems smaller from the top of the mountain". China will definitely occupy a leading position in the world in industrial science and technology, and the Yangtze River Delta is bound to take a leading position in China in industrial science and technology. To integrate its development with that of private enterprises, Hangzhou should implement the strategy of "constantly upgrading industrialization and accelerating urbanization". Hangzhou will surely take a leading position in industrial science and technology in the Yangtze River Delta, and Wanxiang Innovation & Energy-gathering City is duty-bound to take up a leading position in industrial science and technology in Hangzhou. We are confident that we will "take the lead in realizing modernization"!

Future super first-class cities in China in the hearts of the people will certainly include Hangzhou, standing alongside Shanghai, Beijing, Guangzhou and Shenzhen.

The future of China will charm the world. For the future of Hangzhou, let's build Wanxiang Innovation & Energy-gathering City together.

The one who wants to wear the crown must bear its weight. Let's create true value.

Thank you.