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All respected distributors and marketing teams of Boda:

Good evening! I want to not so much say a toast as report the company’s development history to everybody.

When 2013 National Day is coming, staffs of Boda merrily gather to celebrate Yongkang on convoking the 15th Hardware Expo smoothly. In such red-letter days, all distributors of Boda striving in the front line return to Yongkang to celebrate it. At this very moment, let’s look back the development history of Boda for more than 20 years, translating from an extensive management manufacturing enterprise to a modern systematic management enterprise with extremely extended brand connotation, and expanding from a pure sales network in local market to modern marketing network covering markets around the world. In the past 20 years, from concentration to leading, management level of Boda is delighted. Firstly, let me extend cordial welcome to distributor friends of Boda and Silver Arrow Brand on behalf of management level of Boda. Thank you for making great efforts to business development and brand promotion of Boda and Silver Arrow Brand in 2013.

Looking back on the past, world economy in 2013 will increase at low speed, but its dependence severity to stimulation policy is reduced and recovery basis tends to be stable. The growth rate of American economy will be slightly higher than that in the last year; it is difficult for Eurozone to get rid of negative growth, and the situation that main emerging economies may slow down in growth. With devaluation of domestic currency, global financial situation will take a turn for the better, but it may appear unrest. Fiscal policy of main developed countries is still tense, and China also has some disadvantages, such as insufficient overseas market demands, increasing trade frictions, built-up imported inflation, and dramatic decline for rigid demands of electric tools at home and abroad. Labor cost increases, sales promotion in 2013 is increased, products’ profit margin is compressed greatly, and enterprise’s living space is shrunk seriously, so that we must keep a cool head. Aiming at future development of market, Boda will mainly develop the following three aspects of work in 2013:

I. Build “people-oriented” management mode

“Cultivate high-quality talents and manufacture high-quality products”. The company will pay much attention to human resource construction in 2013, bringing human resource strategies to the strategic level of enterprise development, building talent introduction mechanism, enhancing threshold, making great efforts to create a HR management system and environment for selecting, cultivating, and retaining talents, energetically developing HR introduction channels, and building cooperative relationship with three institutions of higher learning one after another; the company will promote all staffs’ comprehensive quality gradually, inputting in building Staff Club and Staff Training Center, and trying hard to create cozy learning atmosphere; organize activities and trainings regularly and all staffs shall participate in enterprise construction to create high-quality staff team.

II. In order to guarantee the company’s sustainable and benign development and demands of various distributors on sales amount, we will make efforts from the following aspects:

Advocate supply chain management mode and enhance service awareness of the whole system;

Comprehensively promote logistics integration development, integrate logistics and information flow, and put ERP information management system into use. At the time of information sharing, ERP system will enhance our production logistics efficiency and operating efficiency of sales logistics and shorten the period from orders to product delivery.

III. Strengthen core competitiveness of Boda further

After products were upgraded across the board in 2012, No. 65 electric pick, H8-17 electric pick, lithium battery electric wrench, No. 26 light-weight three-function electric hammer, and No. 82 plastic electric planer have unique design style of Boda, super-strong cost performance, good usability, and stable quality consistence. 9-15 products which are being researched and developed in 2013 will be put on the market one after another after the Expo, including No. 23 light-weight electric hammer, H2-28 heavy-duty electric hammer, and No. 30 electric hammer, G21-100 and G18-100 cost-effective high-power angle grinder, cost-effective CS9-405 electric chain saw, small square sand, M1201-1.4 lithium multi-functional machine, and lithium air blower. Through comprehensive transformation, rate of the company’s self-support products will reach up to 85%, so as to enhance market competitiveness of Boda brand. Woodworking series products try hard to be No. 1 in China.

Strengthen consistency transformation of product quality.

1) The company will continue to conduct IE project transformation in 2013. For quality consistency of self-manufactured accessories and reducing labor costs, the company will import advanced equipments and guarantee stability of product quality with good technologies during implementation for IE project of electric machines and assembly;

2) The company will mainly import advanced equipments and testing devices in 2013. For example, in order to enhance processing precision of metalworking, the company has imported one three coordination, two multi-functional self-drilling threading machines, and two modular machine tools, so as to reduce potential risks which is difficult to be avoided by common devices, and to reduce labor cost;

3) The company will continue to reform operation and assembly system of assembly production line in 2013, reducing man-made operational risks and enhancing stability and consistency of product quality. Next, the company will continue to invest in two full-automatic assembly lines and three assembly lines to manufacture access products particularly to meet sustainable development of Boda and Silver Arrow Brand. In accordance with statistics, the company has invested RMB 6 million Yuan in equipment and assembly.

Enlarge market input intensity and enhance enthusiasm of distributor team

The company decisively chose large-are promotion of access products at the beginning of this year with the combination of market status, which has increased channel promotion effectively. From January to August, the total domestic sales amount has increased year-on-year growth, and five selected bargain promotion products have accounted for 65% of total sales amount.

Choose key markets to conduct channel-supporting depth marketing, with very clear aim: make great efforts to create secondary, three-level, and terminal core sales network in regional market. And at the same time, the company will bring in some excellent market management personnel in assisting distributors in conducting channel sink and expanding blank market and implementing specially-assigned all-dimensional dynamic tracking management, so as to guarantee market’s sustainable and stable development, and to enhance marketing terminal occupancy rate. For example, Boda brand of Chongqing market has realized 137% of annual sales target from January to August, increasing by 101% when compared that in the last year; the Silver Arrow Brand has increased by 92% from January to August in Guangdong province when compared with that in the last year.

January to August in 2013 is a temporary success for Boda, because Boda Brand can keep the growth rate of 15.7% under the status of market’s continuous downturn. However, complete machines and accessories were seriously out of store in the first half year, which is caused by inaccurate forecast of market sales, and I hereby show deeply regret. When compared with the development history of Boda, 15.7% of growth rate is low. Aging and renewal of Silver Arrow series products are extremely urgent. Quality consistency of some products is fluctuated. The company has some differences with distributors in channel building, as well as regulatory policies of China towards real estate, tightening credit policy, foundation building, and exchange rate movement of emerging countries (excluding China), so that the company is influenced by deflation policy of foreign trade market. As management level of the company, we shall keep a cool head all the time. How to strengthen channel management and innovation has become a new topic. The company has confidence and ability to do the topic well. What man can conquer nature and confidence is more precious than gold has become the theme in 2013, running sacredly. Meeting changes with constancy, the enterprise will continue to enhance product competitiveness of Boda and Silver Arrow Brand and cohesion of distributor team.

“Efficient, innovative, win-win, and sustainable” is the best interpretation of Boda management level to Boda brand, which is also a guidance for the enterprise to develop management level and represents pursuit of people in Boda from generation to generation. Only if we make common efforts, are of one heart and one mind, pay out wholeheartedly, and make scientific management, we are certain to build better future for Boda. Please raise your wine glass to cheer. May you enjoy good health, all go well with you, and profits will pour in from all sides. And at the same time, let’s may a more glorious tomorrow for Boda. Thank you!