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Message from chief executive officer
My principal responsibilities were to establish the basement for our growth businesses, namely, to return to the basics of high quality bearing manufacturing. Also we removed the negative aspects of our businesses. It is highly appreciated by our customers and has achieved good effect. We believe that the achievement was realized by the efforts of HCH's continuous improvement:

1) Continuous Investment-- annually 15 million USD are invested in the continuous improvement, more than 100 Japanese lines are served for precision bearings, totally over 400 lines are innovated to fully automatic lines. By continuous innovation and integrated solutions, we are contributing to increasing power density and thus improving machine performance. This makes HCH to apply automatic grinding lines and assembly lines and centralized filter system, which is the grinding oil filter and cooling system.

2) Organizational reform--the introduction of Business Unit system, and the establishment of policy change from volume to quality. Through the organizational reforms, removal of the organizational walls and effectively use of Group resources have progressed, focusing the organizations on deploying their businesses. Furthermore, I set a new clearly defined policy of placing quality ahead of volume to ensure that the entire company is aligned toward shared principle by returning to the basics of manufacturing once again.

3) Reinforcement of R&D--integrate R&D activities at our Plants and other departments under the new Engineering. We have integrated R&D activities at our Plants and other departments under the new Engineering Headquarters to avoid overlapping. We also reorganized our engineering team and made the operation more efficient so that we can maximize synergy effects by linking R&D activities in various parts of our operations.
The next year is a year of leap. But to that end, we will continuously implement our innovation and better our structure for expanding the growth businesses. I expect for this year, by emphasizing reinforcement of manufacturing technologies and technological development, by creating new products and entering new markets, I aim for HCH to be “The Leading Company through Manufacturing and Technological Excellence”.

Hu Dike

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