“2021 QUALITY DRIVEN YEAR’”SUMMIT

At 9 am on February 3, 2021,We,Hangzhou Aodi Electronical Control Co., Ltd. “2021 Quality Driven Year” seminar was successfully held in Relax Hotel.

At this meeting, the management team discussed their work and shared their deep understanding of the “Quality Driven Year” in 2021.

President Mr Feng explained why define 2021 year as “Quality Driven Year”.

1.What is the “2021 Quality Driven Year”

We know that the development of an enterprise has different driving methods, such as technology-driven, talent-driven, system-driven, capital-driven, information-driven, and so on. After analyzing the market, products, management and other aspects, we believe that in 2021, for the survival and development of our AODI, the most important issue is quality improvement, not limited on the product quality, but also includes R&D quality, service quality, work quality etc. By using the comprehensive quality management to enhance the vitality of the enterprise and generate stronger endogenous strength, thereby driving the rapid, healthy and sustainable development of AODI. Therefore, we define 2021 as a quality-driven year.

2. Why define 2021 as “Quality Driven Year”

Firstly, One is to meet the demand of industry development. In terms of sales, due to the decline in new energy subsidies, the sales of new energy vehicles have shown a sharp decline in the second half of 2019. What is more, due to the COVID in 2020 year, the EV industry is getting more slowly. In order to stimulate the consumption of electric vehicles, in April 2020, the government issued corresponding policies to extend the purchase subsidy policy for EVs from 2021-2025 (refer: EVs industry planning). Generally speaking, with the decline of the EV’s subsidies,as the decline of the subsidies , the EV industry will show a trend of rapid growth, gradual decline, stability, and gradual improvement, which will objectively intensify new energy Industry competition in the automotive market.

In 2021, in the complicated international and domestic situation, in order to keep the steady growth, the government will promote the international and domestic dual-cycle strategy. Therefore, the automobile industry will also show a steady development trend, and rapid growth is unlikely. Analyzed from the perspective of technological progress, electric vehicles still do not appear to have top-notch technologies. For example, we could see it is still a probability to change the current situation even graphene technology came out. The market is showing a steady rise, and at the same time, small sales volume will increase to move closer to high-quality companies.

As a OEM charger company for new energy vehicles, it will inevitably be affected by the industry. ”Companies rarely stand or fall alone”. Thus, we should clearly realize that there are no bankrupt industries, but only bankrupt companies. In the face of adversity, some companies can still maintain good performance and achieve good development. The reason is that I think there are two fundamentals. One is product innovation, which uses improved innovation and subversive innovation to iterate more advanced technologies to mainstream technologies, gain first-mover advantages, and obtain high added value. The second is high cost performance. Gain the market with the competitive advantage of high quality and low price. From AODI’s view, what we can achieve in 2021 is two improvements, one is to improve R&D quality, and the other is to improve product quality. We are unable to change industry trends, but we could change ourselves. To survive in 2021, the only way out is to smash ourself and our “quality”. The second is the need to surpass competitors. Today’s new energy market is not an era of barbaric growth under subsidies, but an era that requires the quality of products, technologies, and services. For AODI, our competitors are getting stronger and stronger, some of them are the Fortune 500 companies, or the century-old automotive electronics companies, or the listed companies. Moreover, they are also working so hard and getting better and better. So what are our advantages to compete with them? I think we can only be “down-to-earth”, implement it, and improve the quality of each link. If we want to gain more market share, the only way to create higher cost performance, higher quality, bring higher value to customers, and provide best customer service.

3. How do we implement the “Quality Driven Year”?

Although the industry situation is not optimistic in the short term, we should still see many favorable factors and opportunities. Firstly, Electric Vehicles Industry will become the mainstream of automobile consumption, and AODI has no ceiling in the future. Secondly, after years of development and efforts, the company has gradually accumulate the products, customers, and is familiar with the requirements of the industry. Thirdly, product research and development have kept steps with the EV Industry. Fourth, we have a strong and experienced team, also got the most possibility to be No.1 in the industrial equipment that could help AODI to survive. We also have the opportunity to squeeze among top threein the 10 billion-level new energy market . As long as we work harder enough, I believe that AODI’s tomorrow is brighten and splendid.

Chinese old saying: The road is tortuous, the future is bright, and it is AODI’s present. We will not give up the light because of the twists and turns, we will only face the difficulties for the bright future. Therefore, now the most important is how to launch a Quality Driven Year. Our managemeng team have made up their minds to take the Quality Driven Year as the main focus of all work in 2021.

To effectively carry out the Quality Driven Year, the key is the unity of thinking,the common understanding of each AODI people.