Innovation, Development and Win-win Cooperation

　　　　　　　　　　　　　　　　　　---Report on the Supplier Conference of Shinwa(China) Industries Ltd. in 2017

　　On March 24, 2017, the annual supplier conference of Shinwa(China) Industries Ltd. was held in Taojing Golf Resort, Huizhou City. 248 representatives from 128 partners of Shinwa(China) Industries Ltd. participated in this year's supplier conference.

　　The conference was sponsored by Shinwa(China) Industries Ltd. and co-sponsored by Huishan Industrial Co., Ltd. The chairman of Shinwa(China) Industries Ltd., Mr. Mingyan Temple, General Manager Xu Lixin and General Manager Yijun Lin of Huishan Industry Co., Ltd. participated in the meeting.

　　With the continuous change of market demand, Shinwa's independent business types mainly involve three parts of vehicle entertainment information system components (machine core, Bluetooth module, WIFI module, DAB module), vehicle lens, power management system (BMS), and some new business in development. At this vendor conference, the company invited the above business-related suppliers from all over the world and Huahua to gather together, review and summarize the gains and losses of the past year, pay attention to the new year's market dynamics and new requirements related to quality, cost, environmental protection and service, so as to achieve a harmonious win-win and sustainable development of all parties involved in the cooperation.

　　There are eight agendas for this meeting:

　　Address by the Leader of Shinwa(China) Industries Ltd.

　　Address by Chairman of Shinhua Jingji Co., Ltd.

　　Shinwa(China) Industries Ltd. Self-owned Business Performance in 2016 and Prospects for 2017

　　Summary of Procurement System Work in 2016 and Expectation Statement in 2017

　　Supplier Performance in 2016 and Requirements for Suppliers in 2017

　　Hazardous Substances Management Requirements

　　2016 Award-winning Supplier Recognition

　　Speech by the Award-winning Supplier Representative

　　First, Mr. Xu Lixin, General Manager of Shinwa Company, delivered a speech. In his speech, Mr. Xu mentioned that in the past year, the traditional business with the same sales scale as the previous year, through the introduction of Amiba management system and the implementation of lean management measures, the company's operational vitality has been further enhanced, which provides favorable conditions for the company's transformation and upgrading. At the same time, under the guidance of the board of directors, the company has formulated a business and technology roadmap plan, which makes it clear that while adhering to the three traditional businesses (OPU processing; PCBA processing; design, purchase, manufacture and sale of the core components of the automotive entertainment information system), it focuses on the field of automotive electronic components, focusing on "automotive assisted driving, automatic driving" and "automotive assisted driving". Automobile from fuel-driven to electric-driven "these two major automotive development directions for layout and investment. Among them, in-vehicle lens will rapidly develop into one of Shinwa's core business, Shinwa aspires to become the top provider of in-vehicle lens at home and abroad. BMS will be one of the key investment projects in Shinwa's medium and long-term planning. In addition, Shinwa's adherence and innovation in the future, in terms of quality, delivery, cost and other aspects, also need the vigorous cooperation and support of old and new partners, sincerely hope to grow and grow together with you.

　　In the report of Chairman Yasuhiko Ikeda, the sales situation of Shinwa Group in the aspects of machine core, SMT, skinhead processing in 2015, 2016 and the forecast of 2017 are explained. Secondly, the development trend of the automobile industry is explained, with emphasis on the intellectualization, informationization, electrification and the industry changes brought about by it. Finally, it explains the five unchangeable aspects of market demand: quality, cost, delivery, environmental protection and service, and encourages the suppliers present to give more support to Shinwa in the future.

　　Vice President Yang Ronghua focused on the performance of Shinwa's independent business in 2016 and the outlook for 2017. From the review of suppliers in 2016, the business planning of Shinwa's independent products, and the development trend of various businesses, he gave a detailed explanation. Finally, he emphasized some basic requirements put forward by our customers.

　　Subsequently, the relevant business departments elaborated on some specific requirements for each partner. Hu Fengwen, manager of purchasing and Development Department of Huihe Institute, described the cooperation of suppliers in delivery and cost reduction, and explained in detail Shinwa's "four good expectations" for suppliers in 2017: good quality, good price, good delivery and good service. Vice Manager Cui Wenli of Purchasing and Development Department reported on the quality performance of suppliers in 2016. Through a strong case of quality incidents, this paper gives some warnings to the suppliers present. At the same time, it puts forward the requirements of 2017 on supplier information submission, timely response to customer complaints, and quality awareness improvement. Zuo Penghui, manager of QA supervision department, explained in detail the EU ROHS 2.0, REACH regulations, China ROHS 2.0, prohibited substance requirements for automobiles, conflict Mineral Investigation and Shinwa's requirements for supplier hazardous substance management.

　　The final agenda of the meeting is the recognition of outstanding suppliers in 2016 and the speech by the representatives of awarded suppliers. We would like to express our sincere thanks to all the suppliers who have given Shinwa all-round support in 2016. We hope that in the future, we can continue to cooperate and make progress in both old and new projects.

Competition in the market is fierce, and it is necessary to think and strive. Only by thinking constantly, innovating constantly and transforming in time can there be new breakthroughs, which requires all of us to work together. Fight hard! Try hard! Let's meet the challenge together and go ahead bravely!

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　《Shinwa people》Editorial Department

Chairman Ikeda Awards Excellent Supplier Representatives

General Manager Xu Lixin Awards Excellent Supplier Representatives

Speech by Vice-President Yang Ronghua