Guanghuatong Group 2018-2019 Summary and Planning Meeting

Improve quality and efficiency, make steady progress, optimize management and control, be diligent and clean. Looking back on the past, we are full of passion; looking forward to the future, we will forge ahead. In the past year of 2018, all companies in the group have strived for progress, pioneered and innovated, continued to develop, and seized opportunities, and achieved excellent results. In the new year, we will write a new chapter in 2019 with a firmer belief, fuller enthusiasm, more pragmatic style, and stronger joint efforts. Review of work in 2018 1. Profits continued to increase, and sales grew against the trend 1. Passenger cars and sedan systems went hand in hand: Zhenyi, Jiyi, and Qianshun formed the "iron triangle" in Bao'an District, which was deeply transformed and upgraded; despite the decline in sales of most brands across the country, sales increased by more than 35% in 2018, with annual passenger car sales of 9,113 units. 2. Commercial vehicles: Commercial vehicle companies such as Guangpengtong, Guangdatong (Chezhicai), and Guangnengtong efficiently completed their sales and profit targets, and all won the sales championship in South China. 3. Service system: The service stations have been improved and rectified, and service profits have grown steadily. 4. Honors: Zhenyi, Shenyi and Jishun three car companies successfully won the government growth award respectively, with a total of 3.1 million yuan; Guangpengtong won the 2018 Shenzhen Logistics Industry Top Ten Growth Enterprise Award; Guangdatong (Chezhicai) won the 2018 Meritorious Dealer Enterprise; the group won the 2018 Shenzhen Logistics Industry Top Ten Leading Enterprise Award. 2. Keep pace with the times and be united and diversified 2. E Repair Cars. Each company’s E Repair Cars self-purchases and franchises have been launched and are developing steadily. Guangnengtong E-car repair achieved an output value of 7.4 million and serviced 63 vehicles per month. 3. Car rental Guanghengtong Company engages in commercial vehicle leasing and sales, car leasing, and car transportation wet leasing. Based on the existing internal business, Guanghengtong Company actively expands business outwards and integrates resources. 30 trains have been put on line. 4. Finance: The financial mortgage target has been initially achieved; SDIC Juxin has officially gone online. 5. New energy trucks are introduced at a pace. Guangpengtong won the bid, and SF Express purchased 260 new energy light trucks; Shaanxi Automobile, Xuande, Chenglong, Geely, etc. settled in commercial vehicle companies such as Guangnengtong and Guangdatong (Chezhicai). 6. Cao Cao Private Car Cao Cao’s online private car service has expanded its presence in Shenzhen, with nearly 600 vehicles on line in 2018 and 2,200 vehicles on line in 2019, boosting the company’s vigorous development. 3. Expand outlets and strengthen operational capabilities 1. Expand outlets ① Add Jishun Tianbei direct-operated store on the second floor to expand functions; ② Zhenyi Shajing 4S store opens; ③ Add Geely Junyuan Dalang 4S store; ④ Che Taisheng officially obtains Chenglong Dongguan agency rights; ⑤ Qianshun store officially becomes Geely Guangming Direct 2S store; ⑥ Guangdatong (Chezhicai)'s secondary network in Shenzhen has made a significant contribution; ⑦ Guangdatong's secondary network outside Shenzhen is in the ascendant. 2. Strengthen operational capabilities ① Improve service system management; ② Implement plans and goals for improving service quality and efficiency; ③ Reduce inventory; ④ Optimize performance appraisal methods. 4. Inheriting culture and building a team 1. Inheriting culture ① All employees of Dongcai have completed correspondence-based financial training. ② The top-notch, broad and diversified corporate culture is deeply rooted in the hearts of the people, plays a guiding and standardizing role in the progress and development of the company and employees, and highlights the core competitiveness of corporate culture and talent partners. ③ Continuous and comprehensive job qualification training and skills training for Geely, Jiefang, Chenglong and other companies. 2. Build a team ① Increase the number and standards of new employees and improve the quality of old employees. 5. Consolidate the foundation and optimize management 1. Consolidate the foundation ① Preliminarily complete the car job responsibilities, standardize operating behaviors, and improve work efficiency; ② Complete the financial mortgage work manual; ③ Develop various systems and procedures. ④ Exquisite marketing ⑤ Strict cost control ⑥ Strict cost control ⑦ Innovative model