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Strategy of 2020: Consolidate Foundation and Cultivate"Source"

On Thursday, November 26, 2020, the 2021 Strategy Press Conference of TK Holdings was held in the conference hall on the first floor of Building J. President of TK Group (Holdings) Mr. Alan P. L. Li, CEO Mr.Michael Yung, Director Mr. Li Liangyao, Executive Director Mr.Franky Cheung

and the senior management of the Group attended the 2021 Strategy Press Conference. Heads of departments and employee representatives also attended the meeting, and colleagues from East China and Huizhou were also connected online throughout the meeting to look forward to the strategy and development of TK Holdings in the new year.



The year 2020 will soon be over. First of all, I would like to thank


all the employees of the company for their solidarity and concerted efforts in the fight against the epidemic. In the epidemic, the company still achieved good results. Looking forward to 2021, I hope that we can make further efforts to achieve better results.


President of TK Group (Holdings) Mr. Alan P. L. Li reviewed the strategy of 2020, “be cautious and enterprising, deepen the external extension and internal development”. Due to the epidemic, the extension strategy was temporarily suspended; in 2021, we put forward the strategic goal of “consolidating the foundation and cultivating the source”. For consolidating the foundation, under the new situation, we will continue to deepen and quantify the external extension and internal development, and formulate a five-year plan; for cultivating the “source”, TK has been engaged in processing and manufacturing, and rarely contacted with consumer terminal products, which means that we need to jump out of the business perspective, depend on the new development situation in which the domestic cycle is the main body, with domestic cycle and international cycle mutually promoted, and think about what can we invest? Whether the current operation model (cost, speed and other factors) of TK can compete with the mainland enterprises?


“Diversification and concentration” is the medium and long-term development strategy of TK. Through macro analysis and scientific research, we will find out the advantages of TK, and formulate a five-year plan echoing “diversification and concentration”. The first quantified five-year plan (2021-2025) just coincides with the 14th Five-Year Program of the central government. At the group level, I hope to see some profit and management indicators, such as sales, gross profit, net profit, VAR per capital, etc. The Group formulates guidelines, policies and development directions; the General Manager implements them in detail and quantity according to the actual situation. I hope that it will be neither centralized nor divorced from the development direction of the enterprise. In the implementation of the middle-office management promoted in 2020, there were mass departmentalism. I hope to achieve close cooperation in the future, empower the process, put the control points on the process mechanism, and reduce the excessive administrative approval.


CEO Mr.Michael Yung introduces the overall business development idea and goal of TK, which is to continue to march towards the direction of high-efficiency operation mold and mold injection to continue towards the efficient operation of the mold and injection molding expert, and announces that the long-term development goal of TK (2022-2026) is “to develop TK into a famous listed group with the market value above HKD5.00 billion, group sales above HKD5.00 billion”; the middle-term development goal (2019-2021) is to maintain organic annual growth of 15% for existing injection molding and mold business, depend on mold and injection molding technology, become a one-stop solution provider in the field of segment product, including design, development, production and verification of structural parts. Such as: Bluetooth headset, catheter, pipette, etc.; strengthen the use of capital, utilize investment and acquisition to improve the return on capital and business development speed; external extension and internal development, establish overseas production base and increase the proportion of domestic sales. We will build the business development as a building, encourage the management to pay more attention to internal processes, incentive policies and whether appropriate resources are allocated to promote the development of relevant businesses; he introduces the 233 mode and agile organization promoted by the Group, and mentions that the business strategy of 2021 is to focus on products, deposit technology, lead customers, and develop markets.The short-term development goal of 2021 is divided into two dimensions from the perspective of TKP: one is the regional layout, the Group will continue to expand the business scale of TKHD in East China; start the TKVT production base in Vietnam and put it into production within the year; increase the scale and capacity of injection molding business and build South China branch with independent operation for TKHZ. The other is the product line, medical business is the top priority in the medium-term development, and resources shall have inclination; the Group will dig super elephant customers (accounting for 20~30% of the business) to improve the overall business efficiency; gradually form 8D scale and management for SD and HD businesses, and allocate full-time middle-office resources to promote relevant business. From the perspective of TKM, the Group will give full play to the existing advantages of standard mold to promote the sales of strategic products, including large mold, deformed mold and two-color mold, etc.l broaden the customer base of related products; refine front desk management of each strategic product, market-oriented and customer-centric, organically coordinate market, project and production, and promote internal improvement and flexibly respond to customer needs; middle-office functions (technical department, purchasing, etc.) shall pay attention to the different needs of front desk product lines and give targeted empowers to improve the competitiveness of existing products. Precision mold shall refine strategic products, focus on developing target product market; improve the stability of product and service quality. CE mold shall improve business throughput capacity flexibility.

Later, the heads of industrial mold factory, injection molding factory, financial department, human resources department, facilities planning department, internal audit department, foreign affairs management department, trade union, etc. respectively share their medium and long-term strategies and key works in 2021 to boost the achievement of medium and long-term strategy of TK and sustainable development of factory business.

After strategic decomposition layer by layer, we have a deeper understanding of the medium and long-term strategy and key work of TK Group in 2021. In the follow-up work, we shall turn strategy into results and turn the ideal blueprint into practical achievements. Looking into the future, we have a long way to go. In the face of the new situation, we must continue to improve our risk awareness, innovation ability and insight with the spirit of craftsmanship. With the same destiny, same goal and same action, we will steadily march toward the global leadership and create a better future for TK!

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