HCD Group Highlights

In November 2025, HCD Group comprehensively convened its 2026 Annual OKR Strategy Decoding Meetings.Mr Chen Ze, Vice Chairman and President of HCD Group, personally provided guidance and participated throughout. he visited domestic subsidiaries accompanied by the Group's leaders overseeing various functional modules. Organized by the HCD Group's Human Resources Director, Ms. Hao Ying, the senior management of all subsidiaries participated in these strategic meetings aimed at reshaping future core competitiveness and systematic execution capabilities. The meetings charted the course for HCD Group's high-quality development in 2026 and the medium to long term, fostering synergy and systematically building sustainable competitive advantages.

On November 17-18, Shanghai DEMC, HCD Group's subsidiary, kicked off the series of 2026 Annual OKR Strategy Decoding Meetings gathered with Over thirty core management members. In his speech, Chen Ze provided a profound analysis of current challenges and opportunities, using the metaphor of "being both the patient and one's own doctor" to emphasize that only by confronting issues and digging into root causes can we truly "eliminate viruses and cure ailments." He pointed out the urgency of improving operational efficiency and reducing costs, which must be ensured through systematic actions to achieve strategic goals. Shanghai DEMC's General Manager, Xu Guosheng, stated that in the current complex and volatile market environment, we must both "deeply cultivate existing markets" and "break into incremental markets." This is the key path to achieving steady profit growth in 2026. All employees need to work together, focusing on accurately understanding customer needs, deeply engaging in solution development, strengthening supplier collaboration, strictly controlling costs, and other dimensions to comprehensively enhance project win rates and delivery quality. Simultaneously, he placed high expectations on the Independent Business Unit and the Overseas Business Unit, anticipating they would achieve performance breakthroughs in the new year and become new engines for Shanghai DEMC.

On November 20-21, Hubei DMW, HCD Group's subsidiary, held its 2026 OKR Strategy Decoding Meeting. Chen Ze first emphasized that action plans are key to strategy execution, and strategic tools are the guarantee of strategic success. Regarding market development, Chen Ze proposed further expanding market presence and enhancing comprehensive market competitiveness, stressing the importance of marketing. He also identified the company's current advantages and areas for optimization in market cooperation, proposing to strengthen core competitiveness by improving assessment mechanisms and diversifying business layouts.HCD Group leaders engaged in in-depth discussions with the DMW team, further clarifying the path for strategy execution. Regarding core capability building, we need focus on key areas such as technological innovation, brand cultivation, and operational control. In goal setting, core tasks critical to HuBei DMW's overall development were identified, clarifying medium-to-long-term direction and annual priorities, ensuring all employees understand their objectives. In strategy formulation, by defining company-level key performance indicators, strategic goals were broken down into specific execution paths across dimensions like business development, organizational building, talent cultivation, and cultural shaping, ensuring precise and efficient resource allocation and aligned action across the organization.

On November 22, HCD Group's subsidiary, Wuhan DEMC, convened its 2026 OKR Strategy Decoding Meeting. Wuhan DEMC's General Manager, Cheng Wenming, elaborated on the "2026 Wuhan DEMC Strategic Plan and Action Plan." The plan clarifies the company's commitment to its fundamental positioning in technology R&D and engineering services, adhering to the development direction of "persisting in intelligent manufacturing technology research, pursuing the dual-drive of technological innovation and management transformation, basing ourselves on the long-term strategy of scaling integration business + independent development of key standardized products, and becoming a globally leading and excellent industrial technology group in target niche sectors." After listening to reports and team discussions, Chen Ze provided guidance, emphasizing the need to clarify strategic priorities, refine execution plans, and ensure the effective implementation of strategic goals, covering areas such as the company's AI R&D and engineering applications, the development of Integrated Product Development (IPD) projects, and operational management issues.

Organized by the Human Resources Center, each subsidiary used multi-dimensional analysis to identify development opportunities aligned with their core competencies, laying a data foundation for strategic decision-making. The meetings employed the "Five Lookings and Three Determinations" model, systematically analyzing the industry, market, self-assessment, competition, and opportunities to pinpoint future opportunities and outline current challenges and improvement measures. A core outcome was the revision and refinement of the company's medium-to-long-term strategic plans and the formulation of 2026 company-level OKR, providing clear guidance for strategic execution in the new year. These meetings achieved comprehensive insight into the industry and the company itself, clarifying key measures for strategy implementation. Chen Ze affirmed the outcomes, believing the intensive discussions clarified key issues and their root causes. He led the Group's think tank to provide differentiated guidance across the three subsidiaries: advocating for self-revolutionary analysis in Shanghai, emphasizing tool rationality and objective analysis in Hubei, and focusing on the integration of technology and commercialization in Wuhan, ultimately producing differentiated strategic road maps.

Chen Ze required that company-level OKR decoding is completed, then all departments must finalize and sign their department-level OKR within the stipulated time frame, pragmatically advancing goal achievement. The Group Human Resources Center has developed a detailed plan for OKR decomposition, tracking, and evaluation. Supporting online system modules have entered internal testing and are about to be officially launched. Starting in 2026, HCD Group will fully implement the OKR management system, aiming to significantly enhance management visibility, execution synergy, and resource utilization efficiency.

In November, Mexico DMX, HCD Group's overseas subsidiary, represented Hubei DMW attended the opening ceremony of SINOBOOM's facility in Silao, Mexico. Previously, Hubei DMW successfully won the bid for the SINOBOOM Mexico factory project relying on its advanced technical solutions, efficient delivery capabilities, and mature industry experience. As an important overseas foothold for HCD Group, Mexico DMX will fully leverage its localized service advantages,expecting to closely cooperate with Hubei DMW in technical support, engineering implementation, and operational maintenance, jointly participating in the landing and implementation of SINOBOOM's Mexico project. The collaboration between Mexico DMX and Hubei DMW not only strengthens HCD Group's service network in the region but also provides customers with more complete and responsive integrated solutions, showcasing the strategic achievements of HCD Group in integrating domestic and international resources and deepening its global business layout.

From October 21 to 23, the eyes of the European logistics world were on Amsterdam, Netherlands, where the 28th Parcel+Post Expo, the most influential global event in the parcels, postal, and logistics sectors, was grandly held. HCD Group's key overseas subsidiary, DMW&H, a leader in intelligent material handling and logistics automation solutions deeply rooted in North America with a global reach, was invited to participate deeply in this event. Facing the profound transformation driven by e-commerce and empowered by technology within the logistics industry, maintaining acute awareness of cutting-edge trends is the lifeline for enterprise survival and development. The "Leadership Conference" established for the first time at this expo, provided DMW&H with a precious opportunity for strategic dialogue with industry peers. Moving beyond mere technical and product exchange, the conference focused on common industry challenges: how to build more resilient supply chains, how to address labor structure changes, how to turn sustainability into a competitive advantage, etc., aiming to jointly build a more open, mutually beneficial, and efficient global logistics technology ecosystem, creating systematic advantages for customers that go beyond the value of a single equipment.

During the November Safety Month, to effectively enhance all employees' fire safety awareness and emergency self-rescue capabilities, HCD Group President's Office organized the annual fire evacuation drill. Group leadership attached great importance, reviewing the drill plan in advance and putting forward clear requirements. The drill commenced on time as scheduled. As the fire alarm sounded abruptly, all on-duty employees immediately stopped work and, under the guidance of departmental safety officers, swiftly evacuated from fire exits on each floor according to predetermined routes. Everyone remained calm, followed procedures standardized, with no crowding or lingering, fully demonstrating the results of daily training. Within just a few minutes, all employees safely evacuated to the designated outdoor assembly point. At the assembly point, team leaders promptly conducted headcounts to ensure no one was left behind. Subsequently, hands-on training with firefighting equipment was organized. Under professional guidance, employees took turns operating fire extinguishers, familiarizing themselves with the key points of"lift, pull, grip, press", mastering methods for fighting incipient fires. After the drill, DEMC General Manger provided summary comments, fully affirming the organized conduct of the drill and the active participation of employees. He re-emphasized that safety work must be persistently pursued, requiring all employees to always keep safety in mind and translate what was learned into real emergency response capabilities.

Key Achievements

Leveraging its profound technical accumulation in automation integration and intelligent manufacturing, Shanghai DEMC successfully won the bid for the cast aluminum rotor line project of F-brand, a hidden champion, a new energy vehicle drive motor iron core enterprise. This project involves core production equipment for new energy vehicle drive motors, requiring stringent precision, efficiency, and reliability. This collaboration marks a renewed partnership following the complete success of a prior project. It not only demonstrates the customer's high trust in Shanghai DEMC's technical strength and delivery quality but also further solidifies Shanghai DEMC's position in the core equipment segment of the new energy track. It was precisely the "high standards, high efficiency, zero delays" successful implementation of the first project that established a solid mutual trust partnership, laying the decisive foundation for this renewed cooperation. This fully proves that Shanghai DEMC possesses not only high-quality equipment delivery capabilities but also the core value of providing full-lifecycle services and growing together with clients.

Hubei DMW successfully won the bid for the South Africa project of a well-known domestic Z-brand automobile, marking another successful overseas project case for Hubei DMW, assisting Z-brand in achieving local production capacity implementation in an efficient and compliant manner. South Africa, as a key automotive industry hub in Africa, makes this project significant not only for further expanding Z-brand's reach into the African market but also as a referential cooperation model for manufacturing enterprises "going global." This successful bid is one of the successful cases of HCD Group promoting coordinated overseas expansion among its subsidiaries under the backdrop of the "Belt and Road" initiative and international capacity cooperation. It consolidates its role as a professional technical service partner within the global industrial chain and lays a solid foundation for subsequent expansion of more overseas cooperation projects.

Technology and Innovation

HCD Group's progress in artificial intelligence and digital R&D is in line with expectations. Regarding the AI Enterprise Knowledge Base construction project, the university team has recently achieved phase progress. During the preliminary analysis stage of project materials from the Solution Planning Department, the team systematically reviewed historical and current project documents, clarified various document types including project bidding documents, technical proposals, design drafts, review reports, contracts, agreements, etc., and their core features, laying the groundwork for subsequent knowledge structuring.

The innovation proposal solicitation campaign targeting the entire HCD Group, led by the Innovation Committee chaired by Wuhan DEMC General Manager Cheng Wenming and HCD Group HR Director Hao Ying, is progressing encouragingly with enthusiastic participation from various departments. Personnel from subsidiaries and departments continued to contribute ideas, with 200 innovation proposals received in November, 10 from 10 Group functional departments, 66 from Shanghai DEMC, 87 from Hubei DMW, and 37 from Wuhan DEMC. The next phase, relevant professionals and experts will be organized to conduct evaluation, analysis and assess the implementation feasibility of the product innovation proposals.

Team and Talent Spotlight

November's most shining “Team Spotlight” is demonstrated by the core teams of each subsidiary during the Strategy Decoding Meetings. They showcased an inspiring team spirit with new roles and perspectives, marking a solid step for the Group in building strategic consensus and leadership evolution.

These strategy decoding meetings became a key stage for the teams' capability leap. Participants transformed from traditional "business experts" reporting performance and stating difficulties into active "operators" deeply involved in operations and forward-looking "strategic thinkers." Leveraging their professional depth in respective fields, they elevated their perspective to a global level,deeply analyzing industry competition, anticipating technological trends, and exploring potential market opportunities and risks. In open debates on development paths, diverse viewpoints clashed intensely and mutually inspired, completing a significant upgrade from an execution mindset to a strategic mindset. The meetings vividly practiced the open communication culture advocated by the Group. Attendees dared to confront challenges, engaging in sincere and intense intellectual exchanges around typically sensitive and complex issues like cost control optimization, product and service quality management, and cross-departmental collaboration barriers. This kind of candid discussion based on shared goals and pursuit of fundamental solutions did not create divides but instead became a touchstone and a tremendous boost for inter-team trust and cohesion. It proves that in the pursuit of truth and excellence in performance, an open debate culture resonates more deeply than formal team-building activities, forging teel-like teams capable of tackling tough challenges.

The teams further clarified their shared responsibility and shared benefits sense of a responsibility community.One of the core outputs of the conference is the joint formulation of key goals and outcomes that are decomposed and interrelated at different levels. This process allowed each participant to clearly see the strategic value of their own work and understand how individual and team contributions support the achievement of HCD Group's overall strategy. When abstract strategies transformed into specific, personally shouldered commitments), a strong sense of responsibility and mission naturally arose. This mindset shift from "being told to do" to "I want to do," from "bystander" to "owner," is the most fundamental driving force for an organization to break through growth bottlenecks and achieve leapfrog development.

Yasser Haidar, General Manager of Mexico DMX,one of HCD Group's overseas subsidiaries, wrote: a letter to his team. Organization and discipline are the important cornerstones that ensure our success in any endeavor. When we initiate a task, strictly adhering to established processes and actively reviewing past experiences and lessons can significantly reduce errors and enhance the reliability of our work and the stability of our outcomes. I have always believed that efficiency built upon order is what is lasting and real. Therefore, I encourage every member of our team to fulfill their duties diligently and focusedly within this orderly environment we collectively create, actively and responsibly embracing every task. Please do not underestimate those subtle, continuous habit improvements. It is these seemingly small efforts, accumulating over time, that will ultimately converge into a great force propelling both our individuals and the company forward. I sincerely thank everyone for all their contributions to our company. It is your daily focus and dedication that has shaped the current collective atmosphere where everyone can utilize their talents and pursue excellence in their daily work.

Overall, what HCD Group values and continuously cultivates is a team culture that blends rigorous discipline with close collaboration. In this atmosphere, individual responsibility and team support complement each other. Everyone's adherence to processes becomes the most powerful support for the collective, while the team's tacit coordination provides a broad stage for the realization of individual value. The strong organizational discipline and deep team collaboration spirit are our most core advantages for addressing challenges and winning the future.

Operational Excellence Initiatives

As November arrived, signaling the end of 2025, under the guidance of Chen Ze, Vice Chairman and President of HCD Group, proactively and took preemptive measures to launch specialized work focused on managing the progress of projects concluding within the annual closing period. Through systematic review,forward-looking coordination, and refined allocation of resources, HCD Group aims to lay a solid foundation for the smooth progression and perfect delivery of key cross-year projects, ensuring coherent, efficient, and reliable service assurance for customers.

Regarding project acceptance closed-loop management, HCD Group has established a clear closing road map. Core subsidiaries Shanghai DEMC and Hubei DMW have completed a comprehensive inventory and detailed review of all pending acceptance projects, forming a detailed acceptance plan list. Chen Ze emphasized that project success lies not only in high-quality implementation but also in successful delivery and confirmation. To this end, a "Sales + Project" dual-line collaborative responsibility system has been established, requiring sales teams and project management teams to work closely together, actively engage with clients, and jointly resolve any outstanding issues before acceptance, ensuring every project completes the acceptance process according to plan and to high standards.

For key projects currently under execution, the Group is fully ensuring their orderly progression according to milestones. Currently, several major projects closely followed by Shanghai DEMC and Hubei DMW maintain high-frequency, smooth communication mechanisms with client sides, demonstrating tacit cooperation. Construction organization at each project site is orderly, with progress, quality, and safety all under control, ensuring the timely achievement of every construction milestone with professional execution and a responsible attitude, living up to customer trust.

Regarding material assurance, HCD Group Procurement Center has acted proactively, initiating a collaborative allocation mechanism for long-lead procurement items and anticipated temporary shortages based on project site feedback, ensuring stable rear supply to avoid project delays or impact on customer delivery due to material shortages. In human resource deployment, HCD Group requires subsidiaries to scientifically plan the scheduling and flexible support of various technical personnel across different project sites based on project priorities and progress needs. Especially for international projects requiring overseas technical support, advance approval and arrangement processes for personnel travel have been initiated to ensure overseas projects receive timely and sufficient human resource supplementation, ensuring smooth project operation.

Team Culture in Action

Invited to the 28th Parcel+Post Expo, DMW&H's team, facing emerging innovations at the exhibition, relying on profound industry knowledge, demonstrated excellent technical identification and integrative thinking capabilities. Through exchanges with clients of diverse business models globally, the DMW&H team gained a deeper understanding of the personalized needs arising from differences in regional culture, policies and regulations, consumption habits, deepening the "Customer Success" value. The insights and connections DMW&H made at the expo are not isolated overseas. Through HCD Group's efficient internal collaboration mechanisms, the information, resources and potential opportunities will be quickly shared with teams within HCD Group, strengthening the "Global Collaboration" operational model. In interactions with various parties, the DMW&H team consistently upheld a professional and candid attitude, committed to finding cooperation opportunities based on mutual trust and long-term value, embodying the "Professional Integrity" and "Win-Win Cooperation" partner image.

The collaboration between Mexico DMX and Hubei DMW in advancing the SINOBOOM Mexico project is a vivid example of global synergy. True internationalization is not just about establishing overseas branches but about the deep integration and seamless of domestic and international teams in technology, resources, and services. The domestic team secures opportunities with its technical accumulation and manufacturing strength, while the overseas team ensures delivery with its localized understanding and rapid response capability, forming a complementary and win-win organic whole. This synergy not only strengthens the Group's overall service capability to clients but also builds a flexible and efficient transnational value network, enabling the deep integration of Chinese technology with global operations, establishing a unique structural advantage for HCD Group in global market competition. In the future, HCD Group will continue to strengthen collaboration mechanisms between domestic and international subsidiaries, deepen global cooperation in fields like intelligent manufacturing and logistics equipment, assisting more Chinese enterprises in going overseas.