The year 2020 has come. On the occasion of saying goodbye to the old and welcoming the new, on behalf of the board and management of Shang Gong Group, I would like to pay high tribute to all chinese and foreign employees,  and express my heartfelt thanks and New Year greetings to the global customers, partners and friends from all walks of life who have been caring and supporting the development of Shang Gong Group. 

In the past year of 2019, in the face of the unfavorable market environment of continuous adjustment, ShangGong continued to adhere to the business philosophy of "market orientation, efficiency first", overcame difficulties, forged ahead, and achieved some achievements worthy of recognition. Through the integration of the group’s headquarter and domestic manufacturing subsidiaries, the parent company’s manufacturing capabilities were restored in a timely manner; through domestic and overseas institutional reforms and adjustments, the “major department system” and “flattening” were promoted to further reduce costs and increase efficiency, and continuously improved the management capabilities of the Group; through the promotion of the construction of the intelligent manufacturing base in Taizhou and the Bensheim R&D and trial production base in Germany, as well as the integration of the manufacturing bases in Nanxiang and Zhangjiagang, consolidated the group’s foundation for the development of intelligent manufacturing; increased R&D through adherence to technological innovation Investment to achieve technological improvements and upgrades for more products, and continued to maintain the leading position in the global sewing equipment industry in high-end products; through asset mergers and acquisitions, the business field began to expand from flexible materials to rigid materials, laying a good foundation for future development .

Faced with the cyclical crisis of slowing global economic growth and the huge challenges brought by severe market conditions, we cannot avoid it, and must rise to the challenge. We should clearly realize that ShangGong has once again come to the crossroads of development. On the one hand, the downstream industries on which we depend for survival have undergone unprecedented adjustments. The automobile industry may continue to decline, other traditional downstream industries may continue to be in recession, and the cyclical adjustment of the sewing machinery industry will have a negative impact on enterprises. On the other hand, we must also see potential major development opportunities in the crisis. More industrial investment goals will appear in the capital market, and the state will also pay more attention to supporting the development of the real economy. Therefore, we will look for opportunities to invest and seek development based on the basic principle of survival. We must continue to leverage our strong advantages in mergers and acquisitions and integration capabilities, continue to implement a global development strategy, and accelerate progress on the basis of supplementing and improving the flexible material process equipment industrial chain. The company's business expansion into the field of rigid material process equipment has improved its ability to provide comprehensive solutions for smart factories. At the same time, continue to adhere to the "technology-led, innovation-driven" development strategy, focus on leading enterprise development through technological innovation, and advance into high-tech fields such as aerospace and military-civilian integration through technological R&D and mergers based on existing technologies. Exploring and developing sophisticated technologies. It is necessary to make full use of the advantages of the capital market, promote the appropriate diversification of the company's manufacturing sector in a timely manner, and enhance the company's ability to resist risks. At the same time, we call on the managers of both domestic and foreign companies  of Shang Gong Group to adhere to the crisis management policy of "reducing cost and increasing efficiency, making cash the king, precise R&D and opportunistic investment", continue to take customer demand as the guide, work together in times of difficulty, cooperate and operate, and strive to get out of the trough as soon as possible and tide over the crisis.

2020 is the closing year of our country's comprehensive construction of a well-off society and the "13th Five-Year Plan". As a pioneer in China's sewing equipment industry and a representative enterprise of Shanghai manufacturing, ShangGong will accelerate the development of intelligent equipment manufacturing business, explore the appropriate diversification of the company's manufacturing business, and consolidate the company's leading position in technology through acquisition, merger, independent research and development, and lay a solid foundation for the company's long-term development.

2020 is the beginning year of the second century for the "Butterfly" brand under ShangGong. ShangGong will deeply tap the development potential of its century-old brand, make full use of Internet technology and give full play to the role of e-commerce sales platform to realize the "Butterfly" soaring again and let "Butterfly" fly into thousands of families.

Let us take Xi Jinping’s thoughts on socialism with Chinese characteristics in the new era as the guide, respect economic laws, immerse ourselves in hard work, practice internal skills, improve the quality of business operations, and strive for the long-term sustainable development of Shang Gong Group!

I wish you all good health, smooth work and happy family in the new year!

Chairman and President of Shang Gong Group

Zhang Min

January 1, 2020