Cautious about of the cold winter

At the morning meeting of all management cadres on May 21th, 2022, Mr. Wang asked the heads of the business, engineering, production, human resources and other four departments to share their work status since the commencement of the project this year and the direction of future work. Taking this as an introduction, he expounded the management idea of being cautious about of the cold winter.

It has been more than three months since the start of the Spring Festival. In these three months, we have obviously felt the chill of the global economy. Both of the United States, Europe and Asia have been affected by the COVID-19 and the Russian Ukrainian war. Let the heads of business, engineering, human resources and production departments share their work status since the commencement of the project this year and the direction of future work. The purpose is to tell everyone that we must face the fact that the global economy is declining and that in the economic downturn, we should be prepared to live through the cold winter carefully and rush out "a belong to our blue ocean" through hard training in basic skills.

In the face of the cold winter

Economic development depends on the "troika", namely consumption, investment and export. From the analysis of economic data and market feedback, the performance of the "troika" from January to April this year is not optimistic.

Consumption. It refers to the process of using social products to meet people's various needs, that is, the consumption needs of domestic residents. It is the main driving force of the economy. When communicating with peers in the domestic market or entrepreneurs in other industries, we learned that most of the sales in the domestic market fell by 15-30% this year. When talking about China's consumption, Fu Linghui, spokesman of the National Bureau of statistics, said that the service industry production index fell by 6.1% in April, and the total retail sales of consumer goods fell by 11.1%. Even Premier Li Keqiang said during his investigation in Jiangxi in April that "enterprises should take a long-term view, work together with employees, and strive to stabilize their posts."

Investment. It refers to the fiscal expenditure, that is, the government's expenditure on education, science and technology, national defense, health and other undertakings through a series of fiscal budgets, including the issuance of national debt. It is a supplementary expansion of domestic demand. In terms of investment, from some angles, real estate is the direction of investment. Because the real estate industry can drive industries such as metallurgy, nonferrous metals, building materials, transportation, architecture, design, service industry, electric power, water conservancy, road transportation, commerce, home appliances, and even the development of the banking industry. Evergrande crisis and financial innovation storm in 2021 were caused by poor business operation in 2021on the one hand, and insufficient confidence of investors on the other.

Export. It refers to external demand, that is, to enter the international market through the products of domestic enterprises, participate in international competition, and expand their own product sales. In the first quarter of Asia in 2022,with the exception of Vietnam where import and export of increased by more than 14% , other countries showed weakness, especially the export of products to European and American countries. Besides, the total GDP of Vietnam is about the same as that of Shenzhen City in China, which cannot be generalized in one corner. We can also see the global economic situation from the financial reports of the stock market and listed companies. The US Dow Jones index has dropped from 36952 in May 2021 to 30635 now. We can also see from the financial reports of customers of European and American listed companies cooperating with us that the sales of some customers fell by 5-15% from January to April. The decline in the stock market and the drop in earnings sales data show that western countries are also lack of confidence in this year. Recently, several international authoritative institutions have also lowered their economic expectations for 2022. The economic downturn means that the export demand of our glasses manufacturing enterprises, which are mainly export-oriented, will also be greatly reduced in the future.

Treat the cold wave with caution.

Since the COVID-19outbreak, the US government has printed a large number of banknotes, issued treasury bonds and distributed money to the people, resulting in retaliatory consumption by the American people in the second half of 2020 and 2021, bringing a wave of dividends to the glasses export enterprises last year. The ancients said: after a great disaster, there must be great evil. The black swan incident of the Russian Ukrainian war has exceeded many people's predictions, resulting in energy shortage, soaring commodity prices and serious inflation this year... How will we deal with the uncertainty of the global economy in 2022? My personal answer is "treat the cold wave with caution", that is, not pessimistic, but cautious. The core is to cultivate basic skills. No matter whether the economic environment is good or bad, there will always be a pair of invisible hands in the market to adjust according to the economic law, and consumers' emotions will eventually return to rationality. The key is that we should practice our basic skills well and not fall into the darkness before dawn. Just as Ren Zhengfei said, we should temper ourselves to "rough skin and thick flesh". Only when we are strong can we withstand the cold wave, seize the opportunity and win the battle. Instead, Ma Baoguo, the leader of Hunyuan Xingyi Taijiquan, and Wang Qingmin, a 50 years old fighting enthusiast, could not have a challenge arena battle. As a result, he were knocked down three times in 30 seconds and did not get up for a long time after the last time. After being KO, he mocked himself that he was not ready to talk about "martial virtue" with his opponents. The same is true of market economy. It will not stop moving forward because you are not ready. Competitors will not tell you "martial virtue" because of your lack of skills. For Ouhai, to improve its basic skills is to put forward the " Complex Five Turns " at the 2022 strategy meeting, that is, to improve its competitive strength from the five aspects of R & D, price, delivery time, quality and comprehensive service according to the concerns of customers.

Keep the seeds of hope.

In the economic downturn of 2022, fortunately, there are still many new projects that customers cooperate with us. These development projects in cooperation with customers are the seeds for Ouhai to receive new orders in the future. Objectively speaking, the work of the engineering department this year was just as the person in charge of the engineering department reflected that the quality of our new samples was not good, and the delivery date did not meet the needs of customers and business development. Therefore, the company has carried out a series of reforms within the engineering department, and adjusted the personnel of key positions in the engineering department accordingly. At the same time, the company also hopes that the T5 team led by the salesperson can really play a role, especially PE should do a good job in the preliminary planning and technical research of new products. The production unit should also give full play to its organizational strength. As Qi Fei vice president of production, said, we should do everything for the customer and receive orders. Through collective wisdom and efforts, we should do our best to assist the engineering department to do a good job in the customer's new projects, ensure the quality and quantity, and deliver them to the customer on schedule. A single spark can start a prairie fire. We should keep the spark. If the seeds are not cultivated well, they cannot thrive into big trees. If the quality and delivery date of new samples are not as good as the service, new orders cannot be received, and it is impossible to achieve performance growth. Whether it is a business team or an engineering team, we should explore business opportunities and cherish them. We should not be unable to take the first step. We should let customers experience Ouhai's cooperation sincerity and comprehensive strength, and constantly improve customers' recognition and trust.

In the face of the fact that the global economy will decline in 2022, we should be prepared for cautious about of the cold winter. In the face of the cold wave, we are not pessimistic and need to be cautious. The core is to focus on the "Complex Five Turns", that is, to cultivate basic skills from the five aspects of R & D, price, delivery time, quality and comprehensive service according to the concerns of customers. We must temper ourselves to "rough skin and thick flesh", so that we can withstand the cold wave, seize the opportunity and win the battle against our opponents, so that we will not fall into the darkness before dawn. At the same time, we should keep the seeds of hope, give full play to our organizational strength, make concerted efforts, do a good job in the new projects that customers cooperate with us, ensure quality and quantity, and deliver them to customers on schedule, so that customers can experience Ouhai's cooperation sincerity and comprehensive strength, and constantly improve customers' recognition and trust.