On Thursday, October 31, 2019, TK Holdings 2020Strategy Release Conference was held in the report hall on the first floor ofbuilding J. President of TK Group (Holding) Mr. Alan P. L. Li, CEO Mr. Weng Jianxiang,Director Mr. Li Liangyao, Executive Director Mr. Zhang Fanghua and the groupexecutives attended 2020 Strategy Release Conference. Heads of departments andstaff representatives also attended the conference. Colleagues from East Chinaand Huizhou also attended the conference online, and everybody looked forwardto the strategy and development of TK Holdings in the new year with high moraleand excitement.

Mr. Alan P. L. Li, President of TK Group (Holdings),affirmed the achievements of TK Group in 2019 and thanked everyone for theirhard work in 2019. At the meeting, “looking out”, the general strategy for 2019,was reviewed. In the face of ever-changing international situation, thestrategy for 2020 was formulated as “cautious and progressive, deepen the externalextension and internal development”. Cautious and progressive means: the worldeconomic pattern is undergoing drastic changes, plus the impact of the tradewar between China and the United States. In such a severe economic situation,it is both a challenge and an opportunity. Speaking and acting cautiously isthe best change for enterprise growth; external extension aims to deal withinternational trade disputes, strengthen the internationalization of TK anddisperse risks. Internal development refers to: domestic market develops vigorously,strategically steps into and digs the domestic market, opens a new phase.Turning strategy into results requires concrete strategies and actions. At thesame time, the strategic focus of the group, injection mold, mold in 2020 isalso proposed. The group is “process reform, safety and efficiency”, anddefines year 2020 as “year of process reform”. The company’s success in thepast is due to the orderliness brought by the process. Process reform is aprocess of eliminating the false and preserving the true, which is extremelysimple. Company business and innovation are limited by process. Therefore,process must keep pace with the times. At the same time, process reform shallalso follow two principles: safety and efficiency. In the process ofimplementation, we also need to follow the law, or the policy when there is nolaw. For injection molding factory, the focus of strategy is business beforeprofit, reducing cost after acquiring business, and improving efficiency; doingwell in quality, service is conductive to improving market competitiveness.While the strategy of mold factory is: quality first, followed by business, andquality shall be made the best, as the saying goes “the emperor's daughtershave no trouble in marrying”. Mr. Alan P. L. Li also put forward the ten-yearlong-term development strategy of the company, hoping to develop a ten-yearplan supported by theoretical data within six months, and to achieve ablueprint of diversified and focused business development of 2030.

CEO Mr. Weng Jianxiang introduced theoverall business development ideas and goals of TK, which was continuing todevelop towards the efficient operation of mold and injection moldingtechnology experts, and announced a long-term development objective of TK (2022-2026)as “developing TK into a listed group with reputation, realizing market value morethan HKD five billion, group sales more than five billion”; medium-termdevelopment objective (2019-2021) as maintaining organic annual growth rate of15% for existing injection and mold businesses, building a team of business andtechnical experts to meet the business and technical requirements ofinternational first-class customers; improve the control ability of m&aprojects; strengthen the use of capital, utilize investment and merger toimprove the return on capital and the speed of business development, realizeexternal extension and internal development, establish overseas productionbases and increase the proportion of domestic sales. The short-term developmentobjective of 2020 starts with the perspective of mold factory, focuses ontechnology and operation, continues to promote and deepen industry 4.0. Standardmold business, through dynamic adjustment of business strategy, gives full playto the advantages of production capacity, improves operating efficiency andreturn on working capital. Precision mold business further promotes thestrategic transformation of “multi-cavity precision mold”, improves moldquality and sales in specific market segments, and effectively cultivates seedbusiness. CE mold business supports TKP business needs by increasingproductivity elasticity to increase business throughput. From the perspectiveof injection molding factory, continue to strengthen the positioning of “one-stopinjection molding solution supplier” and “efficient operation technical expert”.  Improve business stability and create thefoundation for sustainable development.

Under the guidance of the group strategy,Mr. Lu Gongshan, General Manager of the mold factory, made a strategic analysisof the development of the factory. The medium and long-term strategicpositioning of the mold factory is efficiently operated mold technical experts,and four aspects including production operation, marketing, project management,technology are analyzed to support the achievement of strategy. On productionoperations, establish BU management mode for all technologies, such aspackaging, medical, double color, anti-deformation, etc., integrate automation,informationization, upstream and downstream integrated efficient operatingcompanies, construct production operation mode with the core of design,engineering and technology; pursue high efficiency, high customer satisfactionand high yield. On marketing, focus on fixed product types, continue to developdomestic sales business, strengthen the management of overseas functions, so asto improve long-term competitiveness. On project management, focus on buildinga professional project management team, improve the comprehensive projectcontrol ability of project managers, and improve the stickiness andsatisfaction of customers. On technology, aim to add value to customers andpromote automation, standardization and digitization; combine with the needs ofmarket and production, promote new mold technology, new materials, introduceengineering and technical talents, provide assistance and value-added for thedevelopment of company and customers.The focus of mold factory in 2020 is to promoteand upgrade the business, project management and production of three affairsdepartments. Standard Affairs Department ensures the monthly production loadand gives full play to the productivity advantage of the workshop throughtimely and effective order acceptance strategy. Precision Affairs Department continuesto focus on the mold business in high precision multi-cavity and packagingmedical segments. CE Affairs Department shall deepen the integration ofengineering design, processing and production, so as to meet fast andshort-term customer requirements.

Mr. Yan Zhanshen, General Manager ofinjection molding factory, also broke down the strategy of injection moldingfactory. The medium and long-term strategy of the injection molding factory isefficiently operated injection molding experts. Balance industrial distributionrisk by mobile phones and related equipment, smart home, business communicationequipment, medical and personal care industry, strengthen the cultivation ofseed business, such as wearable products (high-end headphones), form a 4+1industry business distribution; establish and develop disposable medicalproducts; explore packaging business and expand auto parts business in EastChina to meet the growing domestic business development in independent businesssegment. Accelerate the expansion of East China business and capacity, becomethe second strategic center; improve Huiyang Factory to become the thirdoperating base; establish production bases outside China, so as to reduce geo-riskand increase production flexibility. Continue to promote standard automation,lean production, with gross profit output as TKP economic engine, promote theproduction data information, reach level 2i in industry 4.0. Acceleratebusiness development, technical marketing, project management and engineeringsoft power improvement and management echelon development to match the fastgrowing international business in the future. Optimize and promote the overallmold management, manufacturing and maintenance to the international competitivelevel of precision mold. To promote the realization of medium and long termstrategy, the focus of the injection molding factory in 2020 will be theimplementation of market driving, efficient operation, technical expert,project management, quality system support, supply chain management, etc.

Later, the heads ofFinance Department, Human Resources Department, Facility Planning Department,Internal Audit Department, Foreign Affairs Management Department, Labor Union,etc. of the group shared the medium and long-term strategies and key work in2020 in the following meeting, so as to help achieve the medium and long-termstrategies of TK Group sustainable development of the business of the twofactories.

After layers ofstrategic analysis, everybody has a deeper understanding of the medium andlong-term strategy and key work in 2020 of TK Group. In the subsequent work, weshould turn the strategy into results and turn the ideal blueprint intoachievements. Looking forward to the future, we still have a long way to go. Inthe face of new situation, we will continue to improve our risk awareness,innovation ability and insight ability with the spirit of craftsman. With thesame destiny, the same goal and the same behavior, we will steadily marchtowards the goal of being leading in the world and create a better future forTK!