On January 18th, 2022, with the theme of "New Journey, Start Again", the Fucheng Group's 2021 year-end management work conference was successfully held; affected by the epidemic, the conference was still held by video link, with a total of 91 participants, including 44 participants from the headquarters and 47 participants from subsidiaries.
The meeting started with the 2021 annual operation work report. Each department summarised its performance in 2021, reviewed the deficiencies in the department, clarified the work priorities and work targets for 2022, and elaborated on the medium and long-term planning of the department in conjunction with the Group's 2025 strategic plan.
Next, Mr. Tang Mingjie, Deputy General Manager of the Group, made an analysis of the overall business situation of the Group in 2021, focusing on the core business indicators for the first five years from 2017 to 2021 and the targets that need to be broken through and enhanced in the next five years (Group 2025), especially in the areas of the Precision Puzzle Operation System (FLM) of each subsidiary, the Group's human resource management system and supply chain capability enhancement. In particular, higher requirements were set for the FLM system of each subsidiary, the Group's human resource management system and supply chain capability enhancement.
Finally, Ms. Huang Yaojun, Deputy Chairman of the Group, and Mr. Fang Yisheng, Chairman of the Group, concluded their speeches, affirming the work of all departments throughout the year, while also pointing out the shortcomings in their work, emphasising that in the new journey of the Group's development, it is necessary to face up to challenges and break through difficulties, and releasing and interpreting the Group's strategic positioning, strategic objectives and strategic initiatives for the next five years, setting the tone for the development in 2022.
In the year 2021, the domestic car market experienced a metamorphosis of breaking through the cocoon and rebirth. Challenged by chip shortage, continuous rise in raw material prices and the globalisation epidemic, the market was once sluggish despite strong demand and constrained by chips, however, the new energy vehicle market grew beyond expectations, strongly pulling the overall car market back and ending three consecutive years of decline, With car sales ending at 26.275 million units in 2021, an increase of 3.8% compared to the same period last year, and total production and sales ranking first in the world for 13 consecutive years, it is particularly difficult to turn growth from negative to positive in such a complex market situation. The auto industry is undergoing a once-in-a-century change, and this specific background has determined that the auto industry is currently in a state of blossoming. Internet giants, mobiles phones vendors, home appliance vendors, the entry of these cross-border car-making players has brought an unprecedented impact on the traditional automobiles industry, but also brought vitality.
Looking ahead to the new year, the epidemic will continue to be steadily controlled and the macro economy will continue to recover steadily. Under the impetus of national macro policies, problems such as the shortage of chip supply and rising prices of commodities will gradually be alleviated, the auto market will continue to show a stable and positive development trend, and the new round of technological revolution will prompt the development of automobiless in the direction of electrification, intelligence, connectivity and digitalization. In 2022, production and sales will perform better than in 2021. The industry forecasts that annual new vehicle sales will reach 27.5 million units, an increase of 5.4% year-on-year; of which 23 million passenger cars will be sold, an increase of 8% year-on-year, while new energy vehicle sales will reach 5 million units, an increase of 47% year-on-year. The average market penetration rate is expected to reach 20%, and expected to achieve the 2025 development target ahead of schedule.
In 2022, we will focus on the established strategic policy and objectives, adhere to the policy of "cost leadership, technology-driven, global management" as a guide, and implement the strategic initiatives of "strengthening management, upgrading, market expansion and development".
The year 2022 is still a year to look forward!
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