Recently,Chongqing Xinxing Gear Wheel Co., Ltd. successfully held its 2026 Mid-Year Work Review Conference. The meeting comprehensively reviewed the company’s operating performance in the first half of the year, conducted an in-depth analysis of existing issues, and made detailed arrangements for key priorities in the second half. Chairman Li Xingming, Assistant to the Chairman Li Mingyang, General Manager Xu Wenwu, and heads of various departments attended the meeting and delivered important remarks.

【Breaking Through Against the Headwinds: 30% Growth in the First Half, with Tribute to Every Xinxing Employee】

At the beginning of the meeting, the General Manager presented the work report for the first half of the year. He noted that, against the backdrop of continued pressure on the domestic economy and increasing uncertainty across the industry, all Xinxing employees rose to the challenge, worked together with determination, and delivered hard-earned results — overall revenue increased by 30% in the first half of the year.

The report systematically reviewed the company’s operating data, progress on key projects, and achievements in organisational development during the first half. While objectively recognising the results achieved, it also candidly identified areas requiring urgent improvement.

Following this, the heads of each department presented detailed reports on their respective areas of work.

The Sales Department delivered outstanding results, with sales exceeding RMB 500 million in the first half of the year, representing year-on-year growth of more than 30% and creating broader market opportunities for the company.

On the production side, output of key products, including main and counter shafts and scooter gears, repeatedly reached new highs. Through the introduction of intelligent equipment and lean management practices, production processes were comprehensively optimised, achieving improvements in both output and quality.

The Technical Department continued to advance the development of the company’s standardisation system. During the first half of the year, it led the formulation and revision of several company-level technical standards and process specifications, providing strong support for quality improvement and the release of additional production capacity.

The Supporting Department made every effort to ensure supply chain stability while actively expanding the company’s network of high-quality suppliers. The on-time delivery rate for key materials exceeded 98%, effectively ensuring the continuous operation of production lines.

 Each department conducted an in-depth review of target achievement, existing issues, and improvement measures, while also setting out clear plans for the second half of the year. All departments expressed their firm determination to exceed the company’s annual targets.

【Chairman Li’s Concluding Remarks: Thanking Those Who Strive and Keeping High Quality at the Core】

After carefully listening to the reports, Chairman Li delivered his concluding remarks. He began by expressing his sincere appreciation to all employees for their hard work and dedication. He emphasised that the 30% growth achieved in the first half of the year had not come easily, but was the result of everyone’s perseverance, dedication, and close collaboration. It is the hard work and sense of responsibility demonstrated by every Xinxing employee that have enabled the company to maintain strong resilience and market competitiveness in a complex external environment.

While recognising the achievements made, Chairman Li stressed that the external environment remains highly uncertain and that everyone must maintain a strong sense of urgency and risk awareness at all times, with quality improvement elevated to the company’s highest priority. He outlined five major areas of focus:

1. Safety — Safety Is a Red Line, and Department Heads Must Take Direct Responsibility

The workplace injuries that occurred during the first half of the year exposed shortcomings in safety management. Safety is not only a prerequisite for production but also a fundamental management responsibility. Heads of all departments must take direct responsibility, enforce strict management, and ensure that safety responsibilities are implemented at every position and throughout every stage of operations.

In view of the recent period of sustained high temperatures, Chairman Li particularly emphasised the importance of electrical and fire safety and called for the elimination of any management oversight. At the same time, managers at all levels should remain close to frontline employees, ensure effective heatstroke prevention and cooling measures, and safeguard employees’ physical and mental wellbeing.

2. Quality — Quality Is the Lifeline and the Number One Priority for the Second Half

In response to the various quality issues identified during the first half of the year, Chairman Li emphasised that quality is the lifeline of the company and must be treated as the top priority in the second half. He called on all employees to embed quality awareness into their mindset and daily actions, implement a company-wide quality responsibility system, and uphold the principle of “doing things right the first time”.

3. Production Output — Increase Capacity to Fully Meet Customer Demand

In response to the current shortage of production capacity for large-displacement motorcycle main and counter shafts and scooter gears, which has made it difficult to fully meet customer demand, Chairman Li instructed the Production Department to continue optimising processes and improving efficiency. All departments must work closely together to ensure steady capacity growth and respond effectively to market demand and customer orders.

4. Cost Reduction — Improve Both Cost Efficiency and Per-Capita Productivity

Cost reduction and efficiency improvement must be integrated into every aspect of production and operations, ensuring that each cost-control measure is implemented accurately and effectively. At the same time, greater attention must be paid to improving per-capita output.

Regarding the issues identified in piece-rate working hours during the first half of the year, the relevant departments are required to conduct an in-depth analysis of the causes and develop practical improvement measures. The objective is to make remuneration allocation fairer, more reasonable, and more motivating, thereby genuinely encouraging the productivity of frontline employees and creating a win-win outcome for both employees and the company.

5. New Product Development — Actively Expand into Gear Applications Beyond Motorcycles

Chairman Li placed particular emphasis on the importance of new product development to the company’s future. While continuing to strengthen research and development in motorcycle gears, the company must accelerate its expansion into non-motorcycle sectors such as wind power, construction machinery, and humanoid robotics.

The Technical Department should remain focused on the forefront of industry development, introduce new processes and technologies, explore new areas of business, and build new momentum for the company’s long-term growth.

We review the past so that we can move forward with greater purpose, and we reflect so that we can fight more effectively. Let us unite closely around Chairman Li, adopt a more pragmatic working style and a more rigorous approach, and strive for excellence in every task. Let us live up to the trust of our customers, seize the opportunities of our time, exceed our annual targets, and write a new chapter in the high-quality development of Xinxing Gear.