15^th-17^th Dec-2024, the end of 2024 year, Kaishan Group overseas operation division of our group held the annual work meeting of global overseas companies in the beautiful Mediterranean coastal city of Izmir. The management of 10 companies from different countries on four continents attended the meeting. Chairman Cao Kejian and General Manager Tang Yan attended the meeting.

The meeting first arranged for each company to summarize and report to the group headquarters on the work and achievements of 2024, which is about to pass, and submit the 2025 annual budget. Overall, the performance of major companies such as KCA (USA), LMF (Europe), and KMI (India) has increased significantly, and sales revenue and profits have increased to a certain extent; although some newly established companies are still losing money, they have entered new fields, opened up new markets, and are moving in the right direction; individual companies with poor operating conditions have made adjustments at this meeting, and the team is confident to regain growth momentum. What makes Kaishan people happy is that in the context of the general downturn in the global economy, the overseas compressor business has delivered a relatively outstanding report card.

The annual meeting of Kaishan, which drives the future with technology, has always been the protagonist of technical reports. This year, as usual, General Manager Dr. Tang Yan was invited to make the main report, and the chief engineers of each technical line made some promotions of innovative products. This technical report conference received widespread praise and was considered to be an important driving force for Kaishan to become a comprehensive compressor company. Overseas companies will increase the promotion of Kaishan’s new products in the new year to achieve greater growth and create more success.

The meeting also arranged exchanges around the company’s operations. The US subsidiary KCA made a key presentation. Their outstanding work in brand operation, marketing, product development, and channel expansion has inspired the brother companies. In accordance with the strategic goal of achieving $300 million in operating income for the overseas compressor business in the next 3-5 years, each company reported its medium-term development plan. KCA and LMF are confident that they will achieve the goal of revenue of over 100 million (US dollars) in the next 3 and 5 years. Other companies have also formulated revenue growth plans. The group is confident that it can achieve the set revenue target.

During the meeting, the “Kaishan Compressor Turkey Company (KCT)” established by our group in the Izmir Free Trade Zone obtained a business certificate, announcing the official establishment of the company. The meeting organized all participants to visit the site selection of the Kaishan factory in Turkey, which is about to start construction. Chairman Cao Kejian and some participants visited the heads of the central government and customs. According to reports, this factory is the third overseas manufacturing base of our group after the Austrian factory and the Alabama factory. It is planned to be completed and put into production in the fourth quarter of next year. The factory has the manufacturing capacity of screw main engine and screw compressor, with a designed annual production capacity of up to 40 million US dollars.

At the luncheon arranged by the meeting, a simple but warm celebration was held. Everyone raised champagne to celebrate the completion and commissioning of the SMGP Phase 5 power station. Everyone used the warmest applause to congratulate and thank General Manager Dr. Tang Yan who rushed back from the Sumatra power station to attend the meeting.

Finally, LMF CEO Dr. Ognar proposed that next year’s meeting be held in Leobersdorfer, Austria, to celebrate the 175th anniversary of the establishment of LMF and the company’s return to youth in the construction of the “hydrogen energy society”. The participating companies bid farewell in happiness and friendship and made an appointment to meet in Austria in 2025.