When the passion was still high at the end of last year, the New Year has been quietly come. 2009, lets jointly offer our best wishes.  

Looking back to 08, I am so excited! The year had too many hopes and dreams. It was in this year that we faced serious challenges and materialized the promise of to rebuild another Yuchai within 3 years into a magnificent picture. The whole staff of Yuchai should be proud of it. The most important is how Yuchai people take global crisis and challenges.  

On the outlook of 2009, we are optimistic! As the global financial tsunami is spreading more broadly, China has already seen a slowdown while the impacts on the auto industry are beyond the imagination. We will face a severe challenging new year.     

The word "crisis" is used most often recently. And then, whats the meaning behind the word crisis. (In Chinese, the word crisis consists of two characters. Literally they are danger and opportunity). If we have learnt dialectics and understood a little philosophy, we may know the crisis always contains opportunity. The danger and opportunity (crisis) are inseparable from each other and they even are convertible. In the early 1970s, the first oil crisis hit Japan---the largest oil-dependent country---badly. Learning from the painful lesson, Japan promoted energy-saving technologies such as solar energy, and thereby changed the economic structure, quickly realized the national energy saving economy. As the second oil crisis came, Japan took this opportunity to sell the new energy-saving "made in Japan " products to the global marketing, turning danger into opportunity. 

Faced the crisis, the weak will unable to survive the impact and sink. The strong will rise up. People across the world are keeping a close eye on China to see whether the emerging market can withstand the financial tsunami. Yuchai, being a member of the Chinese industry, should stand up and turn the adversity into opportunity. Obviously, the financial tsunami will present a new business opportunity to those who are prepared. In order to speed up economic restructuring and prevent the economy from the big slide, the central government has put a series of measures to promote domestic demand and economic growth. The opportunities are in the right time at the right place. How shall Yuchai grasp the key to the conversion of adversity into opportunity? How shall we take the insulation measures?  

The key of turning adversity into opportunity is to establish confidence. Confidence is more important than gold and panic will create domino effect. Looking back to the course of Yuchai development, it was always with adversity and opportunities. Yuchai advanced despite difficulties. During the Asian financial crisis, the national monetary tightening, fierce competition in the auto parts industry, rare blizzard disaster, Yuchai has gained valuable experience on overcoming adversity in the journey of hardship.

Advance on difficulties need the Yuchai spirit. For the past 57 years, along with the growth of the Peoples Republic of China , Yuchai has developed in Yulin with a total asset of more than 20 billion Yuan from a small factory. It shows the unbeatable, and brave of Yuchai to the world. Standing at a new starting line, with new dreams, and new take-off, Yuchai people need to show the spirit. A growing number of teams are now carrying out the spirit of Yuchai such as the technician team loyal to the company and career, the management team bearing the responsibility, the passionate sales team, the innovative R&D team    

The key to turn the adversity into opportunity relies on enhancing the internal strength and competitiveness. We need to: make adjustments in the product structure and industrial structure as well as human resource reserves; upgrade management capacity; enhance response capability in accordance with the changes of market. As for Yuchai, we have to put top priority to the adjustments in the product structure. We should upgrade the performance and quality of existing products, create more competitive products, as well as make breakthrough in the move of product crisis. For the adjustments of industrial structure, we shall gradually get rid of the small subsidiaries that not related to the main business and then grow the core business. We shall consolidate the auto parts industry, and explore the establishment of parts group. We have to seize the opportunity of the rural construction and enter into the agricultural machine industry. We have to plan for the development of human resources, optimize the human resource structure, and human resource reserves to create reserve for the future development. We have to set up the Group strategic management system, the development plan, the Group-level control system, financial monitoring system, the responsibility system and cultural system. We should continue to low costs and upgrade the competitiveness of enterprises for turning adversity into opportunity.    

Quick response, strong force and building market growth advantage are sources of the strength for advance from difficulties. We have to focus on products and capital markets to have the diesel engines and construction machinery enter into a new field, and parts and components expand beyond the groups. We have to achieve multi-channel financing to meet the funds demand for Group's operating and expanding. We have to seek investment opportunities selectively, actively explore new projects, grow industry cluster of the Group and cultivate new economic growth points.   

Lets stand up as the backbone of national industry with the objective dialectical thinking, and calmly convert adversity into opportunity. A well-deserved Yuchai! A no-regrets Yuchai!

 Yan Ping