HCD Group Highlights

In April, HCD Group kicked off its second-quarter offensive in full force, guided by the annual operating principles of "Stable Profitability, Efficiency-driven Growth, International Expansion." In mid-April, HCD Group held its First Quarter Business Review Meeting. HCD Group also made a prominent appearance at the China Humanoid Robot Ecosystem Conference, where President Chen Ze attended an investor communication session and Chief Scientist Professor Wu Dianliang delivered a featured speech, offering an in-depth look at HCD Group’s strategic posture in the integration of embodied intelligence and manufacturing systems.

The First Quarter Business Review Meeting was structured around the themes of "Reviewing Gaps, Clarifying Direction, Uniting Efforts," covering four key areas: Shanghai DEMC, Wuhan DEMC, Hubei DMW, and Group functions. Xu Guosheng, General Manager of Shanghai DEMC, conducted a thorough review of operational issues and personally drove the implementation of closed-loop cost management. Chen Ze proposed the "Four Priorities" principle for procurement, calling for deeper collaboration among finance, project management, and procurement. At Wuhan DEMC, R&D efforts progressed in an orderly manner, with Chen Ze urging stronger end-to-end application of the IPD process and better coordination for product launches. Yi Jiqiang, General Manager of Hubei DMW, put forward four profit protection measures. Chen Ze reaffirmed HCD Group’s three annual operating principles—stable profitability, efficiency-driven growth, and international expansion—and set the second-quarter target of "half the year’s work completed by the halfway point." Functional departments reported their progress: stable financial liquidity, notable cost savings through procurement collaboration, orderly IT digitalization, strengthened legal compliance, an optimized HR grade system, and efficient operations of the President’s Office. Chen Ze emphasized the implementation of matrix-based vertical management and designated the launch of the HBS digital management system as a top strategic priority for the year.

China Humanoid Robot Ecosystem Conference was held as scheduled in Shanghai. HCD Group President Chen Ze, Vice President Xu Xianzhong, and Chief Scientist Professor Wu Dianliang were invited to attend. At the conference, Chen Ze engaged in in-depth discussions on topics such as embodied intelligence robot R&D, in-house development of core components, key technology solutions, and AI innovation applications, clearly conveying the Group’s strategic positioning and growth potential in the humanoid robot industrialization process. Professor Wu Dianliang delivered a featured speech at the "Scenario Empowerment and Robot Industry Ecosystem" forum, systematically presenting cutting-edge practices in the integration of manufacturing system digitalization and embodied intelligence. He explained how AI enhances manufacturing systems across three dimensions—perception, decision-making, and execution—and shared the Group’s ongoing efforts to build a general framework for introducing embodied robots into manufacturing, enabling no-code or low-code integration into manufacturing scenario modeling and simulation.

Achievement Reports

HCD Group’s subsidiaries continued to gain momentum in market development and order acquisition, achieving breakthroughs on several key projects. Subsidiary Hubei DMW maintained strong performance in both domestic and international markets. Overseas, it secured an order for a stereoscopic warehouse project at the Nevada plant of a globally renowned Tesla-branded NEV manufacturer. Collaborative projects with DMX Mexico and a project in Brazil are both progressing, further reinforcing HCD Group’s footprint in the Americas. Domestically, DMW also logged multiple successes, including orders for a mining truck assembly line for a well-known construction machinery brand (X Brand), a plate chain retrofit for a major automotive brand (K Brand), chassis and trial production lines for a major automotive OEM (F Brand), and seat line additions and retrofits for an NEV OEM (E Brand). Shanghai DEMC won two floor main line orders in April, both from a renowned automotive OEM (G Brand), further solidifying its supplier status within the G Brand system.

Over the Labor Day holiday, two subsidiaries kept 12 non-stop projects running on the front lines, with 102 employees participating in the intensive effort, ensuring key milestones were met as scheduled. Hubei DMW continued work at three project sites. At the Fuzhou Phase II site, a seven-person team completed rectifications including maintenance platform installation and hanger commissioning. The final acceptance had reached 95% and now is in the final phase. At a well-known manufacturing enterprise’s Phase VI site (S Brand), a ten-person team completed equipment installation and moved into commissioning and product online validation, laying the groundwork for mass production. At the Xi’an site of the renowned G Brand automaker, a nine-person team completed equipment installation and moved into commissioning and product online validation. A total of 26 person-times participated in the Labor Day push at these three projects, with their quiet dedication ensuring that every milestone was met on time.

Shanghai DEMC’s teams were deployed across nine project sites nationwide, involving 76 person-times. At a well-known B Brand automaker’s underbody and rear-body project, two teams totaling 19 people seized a five-day critical window, overcoming various on-site challenges to complete dozens of retrofits, including debugging for production, program optimization, safety rectifications, and system upgrades, exceeding daily targets and winning high praise from the customer. On other production lines for the same brand, a 16-person team worked on the engine compartment, rear floor, and floor projects, strictly adhering to safety management standards with zero safety incidents or violations, advancing production and cycle time optimization with high quality. Another three-person team focused on a rear-body retrofit project, completing meticulous work such as installing error-proof sensors and verifying pallet consistency, laying a solid foundation for subsequent line stability. On the floor line retrofit project at a W Brand automaker, three technicians used the production stoppage window to complete debugging and problem list rectifications, and the project has now entered the trial production phase. On the main line project at the renowned G Brand automaker, a seven-person team focused on gripper retrofits, collaboratively solving suction cup compatibility issues while advancing fragmented new-model construction. At two projects for emerging L Brand, an eight-person team completed tasks such as RFID testing and cycle time optimization at the welding retrofit site, while a 15-person team completed焊点 debugging, hemming quality optimization, and glue application vision validation at the door panel project, consistently exceeding daily targets. Additionally, on the cast aluminum rotor line project for a renowned F Brand manufacturer, five employees worked through the holiday to meet customer sampling requirements, successfully producing 26 samples despite the line not yet being fully automated, thereby giving a strong push to the line’s automation process.

Technology and Innovation

In his featured speech at the "Scenario Empowerment and Robot Industry Ecosystem" forum of the 2026 China Humanoid Robot Ecosystem Conference, Professor Wu Dianliang highlighted HCD Group’s latest progress in integrating manufacturing system digitalization with embodied intelligence. He noted that manufacturing system digitalization encompasses modeling, simulation, commissioning, and operation and maintenance, forming the foundation of digital twin systems. The deep integration of AI and embodied technologies is bringing three dimensions of enhancement to manufacturing systems:

Perception: AI visual recognition models are being integrated into manufacturing system sensor networks, enabling multi-dimensional, information-rich sensing and AR+AI-based complex on-site error-proofing guidance.

Decision-making: AI data analytics models empower management systems such as WMS/WCS with "brain upgrades," improving operational efficiency and outbound scheduling rationality for large, complex warehousing systems.

Execution: AI-assisted on-site robot commissioning and unmanned production monitoring significantly enhance line planning capabilities and commissioning efficiency.

Professor Wu emphasized that the future of the industry will be defined by real-scenario value creation and commercial closed-loop, and that the future belongs to companies rooted in real scenarios, capable of accumulating high-quality data, and building complete industrial ecosystems. HCD Group is a firm practitioner of this philosophy: building on its digital platform for manufacturing system modeling, simulation, and commissioning, the Group is establishing a general framework for introducing and operating embodied robots, aiming to enable the addition of embodied robots and their integration into manufacturing scenario modeling and simulation under no-code or low-code conditions—making embodied robots a true category of equipment in industrial applications.

The in-depth application of the integrated IPD system will effectively enhance the Group’s R&D efficiency and product innovation capabilities. The online operation of R&D projects has been initiated, ensuring the accuracy of R&D resource allocation and process compliance. Progress has also been made in building an AI corporate knowledge base. The service-oriented encapsulation and testing of document parsing and project summarization have been completed. Front-end interaction pages and functions of the AI knowledge base system are being optimized, and back-end UI development and optimization are also underway. Hubei DMW continues to advance technical standardization. The mechanical, electrical, and solution planning departments are enhancing their standardization level, and through formalizing standard solutions, they aim to improve design efficiency and reduce repetitive work. Concurrent management of technical documentation versioning and the formalization of the anomaly feedback process are progressing as planned, providing institutional safeguards for efficient R&D operations.

Team and Talent Spotlight

Over the Labor Day holiday, 12 projects and 102 person-times of on-site work demonstrated the dedication and responsibility of the Group’s people. These employees put the team’s mission before personal comfort, exemplifying outstanding professionalism and teamwork, shining in their respective roles, and living up to the promise of high-quality customer delivery with their expertise and accountability. Every front-line employee who remained on duty deserves our gratitude: your hard work and intelligence are the greatest driving force behind HCD Group’s continued progress.

Amidst intense work, various subsidiaries also organized a range of employee activities. Hubei DMW held a team-building barbecue event. In the pleasant spring weather, employees went to the Little Ant Farm barbecue base. Everyone showed their skills—some grilling, others assisting—with continuous laughter and conversation. Employees divided tasks and cooperated seamlessly, cooking their own food and chatting about work and life. After the barbecue lunch, they enjoyed a leisurely spring outing: some picked fresh strawberries in greenhouses, savoring the joy of harvest; some brought children to the fun park, enjoying bonding time with your children; others strolled along farm paths, taking in the rural scenery and fresh air, completely relaxing. This spring outing was both a practice in corporate culture building and a reward for employees’ hard work.

Wuhan DEMC held its first Spring Fun Games at the company’s sports ground. Teams were formed on the spot by drawing lots, and four teams competed in six group events: In spot shooting, the player concentrates on aiming, with a precise arc; in table tennis relay, chopsticks were used to pick up balls, testing speed and skill; in group jump rope, rope turners and jumpers coordinated perfectly; in the multi-person multi-leg race, team members tied their legs together, chanted "one-two-one" in unison, and moved forward in step; in the funny kangaroo jump, participants hopped to the finish line in sacks; and the tug-of-war finale, with both sides gripping the rope tightly and leaning back, brought the atmosphere to a climax. The whole event was filled with laughter, demonstrating both competitive spirit and teamwork. Prizes were awarded based on overall scores, and everyone went home with joy. The games moved away from the tension of traditional competitions, combining fun with collaboration, allowing employees to relax amidst their busy schedules, enhancing mutual understanding and cohesion, and strengthening team awareness.

April 30 is World Children’s Day in Mexico. Overseas subsidiary DMX organized a celebration featuring a "guess the childhood photo" interactive game to enhance mutual understanding and friendship among employees. The company specially recognized Marifer, who proposed the celebration and brought creative ideas that fostered teamwork and a positive work environment. Marifer is always willing to participate and actively support various initiatives, helping to create a more enjoyable and engaging workplace. DMX General Manager Yasser wrote in the employee corner: "April is a great time to strengthen focus and maintain momentum toward our goals. Every small step forward brings us closer to the results our team wants to achieve. I encourage everyone to continue to maintain self-discipline, a positive attitude, and dedication. Perseverance is the key to reaching our goals." The company also organized Inventor software training and Power & Free system training to enhance team skills in 3D design and modeling, laying a solid foundation for delivering higher-quality solutions.

Operational Excellence Initiatives

Lean management is a critical lever for HCD Group to enhance operational efficiency, reduce costs, and strengthen core competitiveness. At all levels, HCD Group has been deepening lean management improvements, achieving notable results in system building, process optimization, cost control, and performance assessment. HCD Group’s IT Center has played a key supporting role, driving multiple breakthroughs in digital management through optimizing the four major modules of procurement management, human resources, project management, and financial management.

HCD Group Procurement Center has achieved significant results in collaborative procurement. Through internal group collaboration, DEMC procured sensors on behalf of Hubei DMW, achieving a 20% cost saving—a clear demonstration of the scale effect and synergy advantages of group procurement. The new supplier module on the procurement digital platform has been officially launched after development, internal testing, and user training.

Hubei DMW continued to excel in cost control. Procurement cost savings exceeded targets, with actual reductions surpassing budget expectations, reflecting Hubei DMW’s professional competence in supply chain management and cost control. Management personnel took the lead in improving work efficiency. Overseas business focused on overcoming language barriers and enhancing project management capabilities, while domestic business accelerated customer base expansion. Cost control efforts centered on materials and outsourcing.

Shanghai DEMC further refined its budget control process. The sales and solution departments are developing and updating standardized bidding and quoting procedures to improve solution accuracy and bid win rates. The project department is reviewing existing departmental systems and processes, aiming to streamline all processes into a unified flow chart, addressing any deficiencies or missing elements, and closing the loop.

Team Culture in Action

During the First Quarter Business Review Meeting, the general managers of each subsidiary confronted issues directly and conducted thorough analyses, demonstrating the team culture’s spirit of "No Avoidance, No Shifting of Responsibility." This "Captain Leading the Charge" accountability is the core embodiment of the team culture. The entire agenda was packed, problem-oriented, and goal-clear, much like a team’s halftime tactical briefing, providing clear direction for the "second half."

The concentrated work over the Labor Day holiday was the most vivid practice of HCD Group’s team culture. Each project site at the subsidiaries functioned as a "combat squad," with team members playing distinct roles and collaborating closely—like forwards, midfielders, defenders, and a goalkeeper on the field. Everyone knew their position and responsibilities and worked all-out toward the same goal: on-time, high-quality project delivery. This spirit of full participation, leveraging individual strengths, and coordinated action is a true reflection of HCD Group’s team culture.

The spring outing at Hubei DMW and the fun games at Wuhan DEMC were not only employee benefits but also flexible vehicles for fostering team culture. In the multi-person multi-leg race at the fun games, team members tied their legs together, stood shoulder to shoulder, and chanted "one-two-one" in unison, moving forward in lockstep. This image of "minds united, efforts combined" vividly illustrates the team culture axiom that "unity is strength." In the tug-of-war, both sides gripped the rope, planted their feet, leaned back, and pulled with all their might. Every moment of stalemate and every tug demonstrated resilience and an unyielding spirit—a direct parallel to the fighting spirit on the field when the score is against you. At the spring outing, employees divided tasks, cooperated seamlessly, grilled their own food, and chatted about work and life, building mutual understanding and trust in a relaxed atmosphere and laying an emotional foundation for efficient collaboration at work. At DMX Mexico’s Children’s Day event, Marifer proactively proposed a celebration plan and offered multiple creative ideas to promote teamwork and a positive working atmosphere, for which the company gave her special recognition. This culture of encouraging initiative and recognizing team contributions embodies the team culture principle that "every player is part of the team, and each person’s contribution is seen and respected."

Since the beginning of the quarter, HCD Group has aligned thinking and clarified direction through the Business Review Meeting, showcased its technological strength and strategic vision at the Humanoid Robot Ecosystem Conference, honed its teams and earned customer trust through the Labor Day intensive construction, and strengthened team cohesion via a range of employee activities, thereby advancing annual strategic implementation on all fronts. Looking ahead to the second quarter and the full year, HCD Group will continue to adhere to the operating principles of "Stable Profitability, Efficiency-driven Growth, International Expansion," deepen matrix-based vertical management, strengthen cost control and lean management, and accelerate overseas expansion and technological innovation, striving to achieve the 2026 strategic goals.