JeHe CEO Speech at Annual Convention
To dear fellow colleagues,

Hello, everyone!

Today, in this 18th anniversary of JeHe, we are joyfully gathered here and toast to celebrate our achievement and look to the future.

Looking back at 2016, we sigh for many Black Swan Events, such as Britain exiting from the EU, Donald Trump won the American elections,trade war and currency war keep cropping up. The world economy continues to flounder, even China which maintaining high growth, also in slower-than-expected economic growth. Global companies’ business in a general downturn, some companies been through collapsed and overall unemployment. By reviewing 2016, it seems no inspiring news.

However, we should turn our sights to one Chinese extraordinary private enterprise, Huawei. It faced the same situation as other majority companies do, yet it sales actually increased by 30%, turnover more than 130 billion a year, Huawei absolutely became a legend and miracle in the industry.

We must clearly realize that: the future is always full of uncertainties, there will be many new companies setup, also will see a lot of business close down, many of them even well-known enterprises. Of course, I believe there still more companies like Huawei, aimed to be with action-oriented belief and dedicator spirit to create more miracles in the industry.

Of course, JeHe never follow the trend blindly, in 2016, we also achieved a 32% sales growth,especially 50% rise in china. For the growth rate, we are quite with Huawei.

Well, now let’s summarize and take a deep look at 2016, the first year we struggle for the second pioneering effort.

Strategic Transforming, Industrial Focusing

In accordance with the company's three-year strategic plan, we focus industrial on big data, cloud computing and IoT (Internet of Things). We will commit to be world-class leading provider for infrastructure upgrading and solution innovation.

It takes great courage and pain, like warriors cut off the wrist, to do business transformation. On January 1, 2016, with full accordance the policy of been a listed companies, we spin off nearly one billion market and cut the product line and related business, focusing on more potential and valuable industries and products in the future.

Management Upgrading, IPO Preparing

2016 is not only the first year of our venture, but also the year we start target listed on the capital market and struggle to become a tens billion enterprise.
Fully follow the listed company standard, not just implement on finance, HR setup consultant project, new organization structure establish, new incentive policy online, evaluation and promotion management, all those lay a solid foundation to be a public company.
In the future, company has no doubt to put talent people in the first place. JeHe’s employment standard is simple and practical, that is: want to do, dare to do, have the ability to do. Outstanding employees are what company needs and appreciates. We will build a great career path for employees, so that everyone in JeHe can get a fair evaluation, and the corresponding return.

Overcome Difficulties, Keep High Performance

In 2016, global environment is complex, the increased financial cost, china yuan depreciation in oversea markets, and raw materials cost rise sharply without any signs. Even in this case our performance still made remarkable achievements.

H3C chose JeHe as their important partner with full confidence on us. This success case, laid one another solid foundation for JeHe to be a leading manufacturer in this industry.

Even if the growth in absolute terms still far apart from Huawei, we can proud to say that overall increase, we are 2% higher than Huawei. We can be proud of our business growth in 2016, the performance turns out that our strategic transformation has initial success.

Manufacturing Upgrades, Equipment Updates

In 2016, Dongguan Qingxi factory’s project site selection has been completed, so does the decoration. Today, while we celebrate here, the factory is performing the duty in production.

As I just said, we have cooperated with H3C, it can prove our leading position in this industry, while bring unprecedented challenge to us at the same time. And for this, our production objectives for Dongguan factory set in line with the company's development strategy, and achieve world-class level. Our new factory’ products quality control goal is first pass yield achieve 98%, repair rate lower to 0.3%. It is not just a yelling, it needs to be fulfilled with hard work. Moreover, we purchased some internationalization equipment, such as online solder paste inspection, high-speed online ICT tester, signed and the introduction of MES manufacturing management system. With such production equipment and systems, we can lay one more foundation for produce stable high-end server products such as quad-node, 4-socket server.

Of course, the achievements we made in 2016 are not limited to this, and we won’t mention all of that today.

I believe that the world and China's economy will begin to recover in the next two years, and have dramatic rise. JeHe don’t want do things aimlessly without a direction or follow others. We have to foresee the future and plan ahead, overtaking other companies by hardworking and innovation, so that to become an excellent and respectable company.

As JeHe’s CEO, I would like to take today's opportunity to explain the theme of this annual convention: “Improving efficiency to exceed, Making honor to sharing”

Improving Efficiency, To Exceed As Leading

In 2017, our company will enter a critical stage to accelerate growth. In order to get much higher growth rate than average market, we must follow the concept for the products and solutions "we have while you don’t, you have while we are master, you master while we are leading". We will pay more attention to our business and increase investment, as well as develop our product solutions and launch new products faster than before. Along with the successful development of NAS system, GS storage server series products will also be officially on the market soon. Its successfully launch will lead our achievement to a higher level. Beside NAS, the company will also develop a platform for virtualization, a digital signage management system which based on multi-screen splicing, and a server cluster monitoring system GIV, etc.

In January 2017, we successfully held a departmental performance signing ceremony with the support of our management team. During the signing ceremony, our management team proudly announced our goal, which is that the growth in 2017 should reach 100%. This is not just simple words, but a commitment. Accompany with the big tides of industry development, we have to seize the opportunity to improve ourselves fast.

In 2017, the company will continue to reform management system, introduce lean production and other consulting projects, promoting the construction of product manufacturing quality system. As well as optimize product road mapping and sales management system, so that we can seek a better chance to develop business and strengthen the ability of avoiding market crisis.

Making Honor, To Sharing As One

Aiming at the public company, our goal is become a tens billion enterprise. Base on financial regulation, the capital market is not an unrealistic fantasy, what we have to do is definitely not just an increasing number, it is real results that people can see and touch. Excellence people can benefit from their hard work by achieving personal values, which is also in line with corporate values.

2017, we will establish mutual benefit supplementary and benefit sharing system, and provide stock-based incentive compensation and performance management, so that the real struggler can become shareholders. Let us unite as one and work side by side to make our company stronger!

Staff developments will always the most important implementation in our future progress. JeHe people commit to have a great platform that making more possibility, brighter career promotion. Everyone who has ambitions, and those experienced people will be welcome to join our big family. It would bring in fresh vitality and new energy into this company.

When Wind Blows Sail, Dedicator Gains Reward

In order to continue to grow in the fierce competition, JeHe adhere to the core value of customer-orientation, innovation and dedication, never stop to exceed. At the same time, we keep learning and courageous in practice.

Let us fight together! In this new journey, we can overcome every difficulty and make persistent efforts. We fully realize that we would face more and more difficulties and challenges in the future, which also means more opportunities. Just like crisis and opportunity always coexist, so does pressure and motivation.

I firmly believe that as long as we unite as one and work side by side, will be able to break through ourselves, exceed as leading, and together to create our brilliant. When market trend direction is unknown, many difficulties along the way, I sincerely hope JeHe can stand out from the crowd and make a difference!

Thank you!
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