HCD Group Highlights

In December 2025, HCD Group successfully convened the landmark Group-level Strategic Decoding Conference for 2026, marking the successful completion of several months of systematic strategic planning. This initiative not only established a clear action framework for HCD Group's development in the new year but also demonstrated its strategic foresight and proactive approach to transformation amid a complex economic environment, highlighting the management's wisdom and resolve.

At HCD Group Strategic Decoding Conference held on December 18, Chen Ze, Vice Chairman and President of HCD Group, delivered an important speech. With profound insight, he emphasized that outstanding enterprises emerge from favorable market conditions and are forged through developing irreplaceable core competencies in the face of internal and external challenges. To this end, HCD Group remains steadfast in building a dynamically optimized business portfolio, gradually establishing two strategic objectives: "Cost Leadership Advantage" and "Technological Leadership Advantage."

HCD Group will abandon a static view of business operations, adopting instead a flexible perspective to examine and adjust each business unit. A refined system of financial and operational indicators will serve as the benchmark for evaluation and decision-making, ensuring resources are consistently allocated to areas with the greatest growth and profitability potential. The path to achieving these strategic objectives is clear and resolute: adhering to the dual-drive model of "Organic Growth" and "External M&A." Internally, HCD Group will deepen its presence in existing market segments and enhance the output of technology and management expertise. Externally, it will actively pursue strategic M&A opportunities to achieve capability integration and industrial upgrading, thereby expanding HCD Group's operational boundaries and market reach. To realize the "Cost Leadership Advantage" and "Technological Leadership Advantage," and to translate the grand strategy into executable, measurable daily operations, HCD Group proposes the establishment of the "HBS Digital Lean Management Platform." This platform will focus on the four core competitive elements of "Quality, Delivery, Cost, and Innovation," encompassing the development of a lean talent system, a methodology and standards framework, and a digitally integrated platform. The ultimate goal is to internalize lean management from an external tool and methodology into the behavioral habits of every HCD employee and the cultural DNA of HCD Group itself. This will empower HCD Group to navigate industry and economic cycles, building resilience in strategic execution amidst an era of uncertainty, and reshaping the entire system of the organization's operational genes. This necessitates the pursuit of ultimate operational efficiency while maintaining sustained investment in key technological areas to cultivate differentiated advantages, ensuring a dominant position in market competition.

The success of a strategy hinges on its execution. During the conference, the general managers of each subsidiary and the heads of various business divisions within HCD Group presented their 2026 Objectives and Key Results (OKR) in detail. Each set of OKRs underwent thorough discussion and rigorous calibration by the attending senior management team, ensuring the objectives are challenging, relevant, and achievable. Ultimately, the OKR proposals from all business units were reviewed and approved.

In a solemn ceremony, Chen Ze, Group Vice Chairman and President ,along with the general managers of subsidiaries and heads of finance, R&D, sales, and human resources, as well as Dou Wenyang, HCD Group Senior Vice President, together with the heads of the President's Office and legal affairs, jointly signed the "2026 OKR Commitment Document." Though a single sheet of paper, it carries profound strategic commitment and managerial responsibility. It symbolizes that HCD Group's 2026 strategic blueprint has been fully translated into a concrete roadmap for action. From this point forward, the entire HCD Group is aligned in pace and clear on focal points, laying a solid organizational and goal-oriented foundation for the year's work.The successful completion of this strategic decoding signifies that HCD Group's management maturity has ascended to a new level. It marks not only the conclusion of annual planning but also the starting point for a company-wide charge toward mission accomplishment. Guided by the decoded OKRs, every level of HCD Group is now engaged in detailed decomposition and step-by-step implementation, ensuring the flame of strategy illuminates every position.

In October 2025, the winners of China Machinery Industry Science and Technology Award, jointly established by China Machinery Industry Federation and Chinese Mechanical Engineering Society, were officially announced. HCD Group was honored with the "Third Prize for Technological Invention" for its project "AR-Assisted Technology and Application Based on Intelligent Perception in Production Sites." Concurrently, Professor Wu Dianliang, Chief Scientist of HCD Group, was also awarded the "Third Prize for Technological Invention." This prestigious accolade represents high recognition from national-level industry authorities for Huachangda's research capabilities and applied achievements in the field of industrial intelligent perception and augmented reality (AR) technology integration.

HCD Group has achieved significant progress in global market expansion. HCD Group has approved plans to establish a European subsidiary in Munich, Germany, with a proposed investment of USD 1.5 million to implement its overseas business development strategy and strengthen its operational foundation in the European market. Additionally, HCD Group intends to acquire certain assets of Mexico's Elfer and Gishner companies for no more than USD 10 million to enhance its industry competitiveness. Furthermore, HCD Group plans to establish a subsidiary in Shanghai, tentatively named Huachangda Embodied Intelligence Technology Co., Ltd., to actively advance innovation and breakthroughs in embodied intelligence technologies and equipment, as well as in the digital forward-looking research and development of embodied products and key technologies in intelligent spatial algorithms.

Key Achievements

While countless families celebrated the New Year holiday, numerous project teams from HCD Group chose to remain stationed at customer sites. Seizing the valuable production shutdown window, they launched a critical campaign against the clock, each striving to be a pioneer in intelligent manufacturing. Across 26 project sites, 206 Huachangda employees exemplified professionalism, dedication, and commitment, vividly interpreting the profound meaning of being "customer-centric." Their efforts yielded outstanding results, securing a proactive and commendable start for 2026.

During the New Year holiday, Shanghai DEMC, HCD Group's subsidiary, simultaneously advanced the renovation and commissioning of 11 projects. A total of 108 employees participated in this phase of construction, demonstrating robust multi-project coordination capabilities. For instance, in the project commissioning for the world-renowned automotive manufacturer, Brand S, the team overcame tight schedules and demanding tasks to complete automated dry runs for mixed production lines on schedule. They also optimized cycle times for key vehicle stations to an advanced level of 51 seconds, and even 49 seconds, providing solid support for the production ramp-up of the manufacturer's electrified models. In the project implementation for the traditional luxury automotive manufacturer, Brand B, faced with extremely complex processes and stringent standards, the project team efficiently completed a series of high-difficulty tasks during the holiday, including first-vehicle commissioning, APC trajectory verification, and welding parameter optimization, earning the client's trust. Responding to the rapid product iteration demands of the emerging and dynamic client, Brand L, the project team deployed 36 skilled personnel under the constraint of a short renovation window. They successfully achieved online commissioning for multiple new vehicle model zones and met key renovation targets, ensuring the timely progress of the client's new models. Confronted with the complexity and high failure rate challenges of renovating old production lines for client Brand F, the team completed planned modifications for two vehicle models, trajectory commissioning, and online verification as scheduled. Meanwhile, the project team for new energy client Brand B utilized a brief production stoppage to efficiently accomplish critical tasks such as program backup handover and urgent dimensional adjustments, ensuring the stable achievement of the client's daily production targets.

During the New Year holiday period, Hubei DMW, a subsidiary of HCD Group, demonstrated its global service capabilities as an intelligent conveying solutions provider, with 98 Huachangda employees advancing 15 projects simultaneously.

For T, a global benchmark in the new energy vehicle sector, multiple projects at its factories worldwide entered critical phases. Projects at both the Berlin plant and the Austin, USA plant were in the site acceptance testing stage, where Chinese and international teams worked closely to ensure stable plant operation and meet upgrade requirements. Overseas turnkey projects progressed steadily, with the large-scale renovation project for final assembly conveying equipment at the Brazil base involving extensive demolition and new construction. Projects in Kazakhstan and a final assembly project in Mexico proceeded with installation and commissioning as scheduled, promoting Chinese manufacturing and intelligent manufacturing standards abroad. Domestic new energy projects also implemented renovations during the holiday. Serving Brand B, an automotive manufacturer expanding across both traditional fuel vehicles and new energy vehicles, multiple projects involving final assembly and chassis lines at various bases were either in trial production or issue rectification phases. Teams were stationed on-site to fully support the client's capacity expansion and upgrade needs. The acceptance process for the final assembly conveying line project for emerging new energy vehicle brand X entered its final sprint, with identified issues being systematically addressed and closed. Beyond the automotive industry, diversified businesses such as construction machinery and agricultural equipment also accelerated construction during the holiday, showcasing DiMaiWei's penetration and service capabilities across varied markets.

Technology and Innovation

In HCD Group's strategic blueprint, "Technological Leadership Advantage" stands as a strategic objective equally paramount to "Cost Leadership Advantage." We firmly believe that only through continuous innovation and profound technological accumulation can we create value that exceeds expectations for our clients and lead industry development trends. December witnessed a succession of achievements for HCD Group in the fields of technological R&D and innovation exchange.

HCD Group has been awarded the "Third Prize for Technological Invention" for its project "AR-Assisted Technology and Application Based on Intelligent Perception in Production Sites." This award-winning project was spearheaded by HCD Group's Chief Scientist, Professor Wu Dianliang. The project innovatively integrates artificial intelligence (AI) visual perception with augmented/mixed reality (AR/MR) technologies, establishing a workshop-level digital twin assistance system that covers the entire "perception-analysis-decision-guidance" workflow. This system aims to address long-standing challenges in high-end manufacturing, such as difficulties in monitoring process execution, delayed detection of assembly errors or omissions, and quality reliance on manual experience. By utilizing AI vision to capture assembly status and process information in real-time, and leveraging AR/MR for precise 3D visual guidance and real-time error prevention, the system achieves "predictive analytics, in-process error prevention, and real-time guidance" for manufacturing processes. This significantly enhances production transparency, controllability, and first-pass yield. Currently, this technology has been successfully implemented across multiple complex industrial scenarios, creating replicable and scalable standard cases for intelligent upgrades. Professor Wu Dianliang emphasized that "R&D is rooted in real-world scenarios, and its value is realized within the industry." This award serves as a perfect testament to this R&D philosophy and marks Huachangda's commitment to advancing the digital transformation of manufacturing, fulfilling its corporate responsibility in implementing the national "Manufacturing Power" strategy and realizing the manufacturing vision of "Digital China."

To accelerate the transition of cutting-edge technologies from the laboratory to industrial application and build a sustainable technological leadership advantage, HCD Group has officially entered into a strategic cooperation agreement with Harbin Institute of Technology Assets Management Co., Ltd. The collaboration focuses on two core areas: embodied intelligence and the commercial application of robotics, aiming to establish a new paradigm for university-enterprise cooperation. This partnership will foster deep synergy across four key dimensions: aligning research outcomes with industry needs, collaborating on key projects, conducting strategic research with think tank support, and promoting innovation, entrepreneurship, and talent development. By forming an innovation consortium that integrates "venture capital institutions + listed companies + leading universities," this cooperation is designed to explore replicable and scalable business models for the commercialization of civilian scientific and technological achievements. It aims to inject a powerful and sustainable source of vitality into HCD Group, fostering new quality productive forces and leading the advancement of intelligent manufacturing.

While advancing both fundamental R&D and strategic partnerships, HCD Group's applied research achievements also shone brightly on the industry stage. At the 45th Anniversary Celebration and Academic Conference of the Hubei Province and Wuhan Welding Society, Wuhan DEMC, a subsidiary of HCD Group, was invited to attend as an innovator in intelligent equipment. Li Huarong, a R&D engineer at Wuhan DEMC, delivered a keynote presentation titled "Development and Application of an Ultra-Thin, Heavy-Duty, Lattice-Type AMR Based on Non-Standard Pallets," detailing the company's latest breakthrough in the field of intelligent logistics. This AMR addresses the pain points of low space utilization and limited flexibility in traditional solutions, featuring an integrated design with an ultra-thin profile, heavy-duty underride capability, and intelligent navigation. Dr. Cui Houxue, Chief R&D Officer of Wuhan DEMC, was honored as an "Advanced Worker" by the Hubei Province and Wuhan Welding Society. Concurrently, a paper titled "Development and Application of a New Intelligent Coating Conveyance Trolley," authored by Chen Gang, R&D Director at Wuhan DEMC, was accepted by "AI Automotive Manufacturing," a top-tier industry publication. Furthermore, Wuhan DEMC was appointed as a member unit of the "Welding Manufacturing Professional Committee of the China Staff Welding Technology Association," with Dr. Cui Houxue also appointed as a committee member.

HCD's technological innovation has established a complete chain and virtuous ecosystem encompassing "Frontier Exploration – Core Breakthroughs – Application Implementation." Moving forward, HCD Group will continue to increase R&D investment and refine its innovation ecosystem. HCD Group aims not only to be an excellent deliverer of client projects but also an active contributor to industry technological advancement and a leader in future intelligent manufacturing solutions.

Team and Talent Spotlight

HCD Group deeply understands that its most valuable asset is its employees, and its most powerful force is its teams. It is the extraordinary dedication and perseverance of countless individuals in their ordinary roles that converges into the immense strength enabling HCD Group to overcome challenges and earn trust. From winning technological awards to delivering projects on-site for clients, HCD employees, through their professionalism, commitment, and innovation, have written glorious chapters for both individuals and teams.

Professor Wu Dianliang, Chief Scientist of HCD Group and leader of the project "AR-Assisted Technology and Application Based on Intelligent Perception in Production Sites," has been honored with the "Third Prize for Technological Invention." As HCD Group's technology leader, Professor Wu has long been dedicated to pioneering research in industrial artificial intelligence, digital twins, and other cutting-edge technologies. This prestigious accolade serves as authoritative recognition of Professor Wu's outstanding personal contributions in the fields of industrial intelligent perception and smart manufacturing. It vividly reflects the realization of HCD's strategic goal of "technological leadership advantage" and highlights HCD Group's systematic capabilities in deep integration of "industry-university-research-application" and the cultivation of high-end talent. His achievements inspire all R&D technical staff to continually advance on the path of technological excellence.

On the front lines of project execution, team brilliance shines just as remarkably. At the end of 2025, Shanghai DEMC received a commendation letter from the well-known domestic brand, Client C, specifically recognizing the outstanding team and individuals involved in its "Body-in-White Production Line Construction Project." Facing a tight schedule and demanding tasks, Shanghai DeMeiKe was responsible for three core production lines: FD, UB, and MB. The project team not only comprehensively met all technical, quality, and milestone targets but also delivered on its commitments "ahead of schedule": the FD line was delivered for mass production over two months early, while the UB and MB lines achieved automated mass production requirements one month ahead of schedule, significantly boosting the client's production capacity. In the letter, the client particularly commended Project Manager Jiang Hongtao and Site Manager Dong Hongchuan for their exceptional professional competence and collaborative spirit. Jiang Hongtao actively coordinated with clear strategic thinking and effective resource integration, fully demonstrating the professionalism and comprehensiveness of project management. Dong Hongchuan proactively resolved issues and formulated reasonable on-site implementation plans, showcasing rich experience and expertise in site management. Furthermore, the client highly praised the close collaboration across various departments—including design, robotics, PLC, electrical installation, and procurement—for their excellent coordination, provision of specialized technical personnel, and timely delivery of materials. This perfectly embodies HCD's "Team Culture" in practice: breaking down departmental barriers and prioritizing project success and client satisfaction as the ultimate goals.

From technological honors to letters of commendation, what shines through collectively are the core values of HCD's corporate culture: customer success, courage to innovate, quality first, fairness and justice, people-oriented, results-driven. The accomplishments of Professor Wu Dianliang and the outstanding performance of the project teams together form a vivid microcosm of HCD's community of dedicated strivers. They have set a visible, learnable, and attainable benchmark. HCD Group calls upon all employees to follow their example—to pursue excellence, foster collaboration, and advance together in their respective roles. Let us jointly forge HCD's golden reputation, so that the light of every dedicated individual converges into a brilliant galaxy, illuminating the path forward for the entire HCD Group.

Operational Excellence Initiatives

Outstanding strategy and remarkable achievements are underpinned by a solid management foundation. HCD Group deeply recognizes that, within fierce market competition, continuous management improvement and excellent operational capabilities form the cornerstone for building long-term competitive advantage. In the final month of 2025, guided by strategic decoding, HCD Group concurrently advanced a series of robust lean management initiatives across areas such as organizational capability building, financial control, process optimization, and global operational safety, injecting certainty into its high-quality development for 2026.

Amidst a complex economic environment, HCD Group's Finance Center has elevated financial stability and cash flow management to an unprecedented level of priority. The preparation of the 2026 comprehensive budget is progressing intensively under HCD Group's unified coordination. The finance department continues to strengthen payment collection tracking and fund allocation to enhance cash flow control. HCD Group's annual financial pre-audit process has commenced, and communication meetings with both domestic and international audit firms have been successfully held. These efforts ensure the compliance, transparency, and timeliness of global financial reporting, thereby upholding HCD Group's credibility in the capital markets.

In the realm of digital process development, the IT Center has launched several new workflows. HCD Group's R&D Center has officially implemented the Integrated Product Development (IPD) process, designed to standardize R&D procedures and enhance the efficiency and success rate from market insight to product launch. Concurrently. the Human Resources Center has rolled out the OKR Management Dashboard process, enabling visual management for the implementation of Objectives and Key Results (OKR).

On the supply chain development front, HCD Group's Procurement Center is actively advancing the establishment of a centralized procurement platform and preparing for the 2026 Supplier Conference. These initiatives aim to optimize the supplier ecosystem, strengthen strategic collaboration, and enhance the overall stability and responsiveness of the supply chain.

Safety is the bottom line of operational management and a reflection of corporate values. In August 2025, HCD Group's U.S. subsidiary, DMW&H, welcomed an important new member—Safety Manager Gregory Deming. Greg brings over ten years of professional safety experience, including six years deeply rooted in the logistics industry. His core mission is to systematically identify risks across the entire organization and prioritize targeted mitigation measures in high-risk areas such as on-site installation and field services. More importantly, Greg advocates for "management by walking around," emphasizing that safety is not merely about written policies but involves on-the-ground communication, firsthand observation, and continuous interaction. He has already engaged with frontline teams to understand their practical work challenges and collaborates with employees to explore safer working methods.

Team Culture in Action

At HCD, we often use the metaphor of a "sports team" to describe our organization. This is not merely a warm term but a true reflection of the core cultural ethos we champion: clear goals, well-defined roles, selfless passing, close collaboration, and the fighting spirit ignited by a shared pursuit of victory. Every achievement realized in December 2025 stands as a brilliant demonstration of this "team sports culture" in action.

Reflecting on the intensive construction campaigns across multiple global locations during the New Year holiday, they were truly a series of high-intensity "away games." Each project team functioned as a specially assembled "special forces squad": 

Forward Line (Project and Technical Specialists): Including project managers, site managers, and specialized engineers, they face clients directly, bearing the immediate pressure to "score" (deliver). They require precise "shooting skills" (professional expertise) and calm on-the-spot decision-making.

Midfield (R&D, Design, Procurement): They serve as the pivot for offense-defense transitions, responsible for "passing" and "orchestrating play." R&D provides new "tactical" tools, design maps out precise "attacking routes," and the supply chain ensures "ammunition" arrives on time. Their vision and coordination determine whether the forward line receives adequate support.

Defense (Manufacturing, Quality, Logistics): They fortify the backline to prevent "conceding goals." Manufacturing ensures equipment leaves the factory with quality intact, the quality department maintains strict oversight, and logistics support ensures the team can operate seamlessly, even when deployed far from home.

Goalkeeper (Finance, Legal): They guard the final line of defense, managing risks, ensuring cash flow security, and allowing the team to operate without rear-area worries.

Over two hundred employees sacrificed their holiday during the New Year period, striving on shop floors, production lines, and in foreign lands to achieve high-quality delivery. This relentless commitment to "mission accomplishment" is the most spirited manifestation of the team sports culture. The special commendation letter from Client C represents precisely such a perfect "team goal." From Jiang Hongtao's overall coordination to Dong Hongchuan's efficient on-site management, and extending to the precise support and steadfast backup from all assisting departments—every pass was perfectly timed, ultimately earning the client's acclaim.

In December 2025, HCD Group unified its vision through a profound strategic decoding, demonstrated its capabilities with a series of hard-won victories, illuminated the future with multiple innovative achievements, warmed hearts with inspiring team stories, solidified its foundation through robust management improvements, and vividly interpreted its team sports culture through dynamic practice. The strategy is now clear, and the drums of advancement have sounded. Looking ahead to 2026, HCD Group—a "joint fleet" composed of numerous professional teams—will continue to uphold the dual-core strategic objectives of "cost leadership advantage and technological leadership advantage." With the tacit understanding and fighting spirit of a cohesive team, it will navigate the vast oceans of the global market, breaking through the waves to embark on a new journey and jointly create new glories!

The expedition of a stronger team advances toward 2026!