Lettre aux actionnaires

Letter to shareholders

Dear shareholders of WECEM:

Through this letter we wish to assess our company’s performance over the past five years. We would also like address the upcoming alterations in our market and how this affects our policy moving forward. All the achievement we got has experienced difficulties. Thanks to yours confidences and all ours excellent managers’ hard work, WECEM has become more and more productive and competitive in the national market especially in the market of high-quality production. As a young company in an expanding turbulent market, WECEM has overcome much hardship to establish a solid foundation for future success. In the midst of initial misfortunes, our board of directors along with the production team has shown extraordinary resolve and commitment to steer WECEM in the right direction.

In the first two years we decides to discontinue the production of Alarme, in consideration of its high-cost and low profit. Then we focused on our second production INTERPHONE. We have to admit we didn’t harvest very good achievement in our founding period. The profit was negative and so is the cash-flow. In order for a necessary adjustment we bought two studies of market from the consulting company which show that it would be an opportunity if we enter in the market of ‘CENTRALE ALARME’. With the 300 000€ loan from the bank, we can get the product permission of this new and at the same time the loan could be a big financial burden for the company. Fortunately it was proved to be a good idea. Our profit became positive and the cash-flow was much better than before in 2009.

In the beginning of 2010 we think it’s the time to improve productivity of company. But to avoid the consequence of unsustainable rapid expansion, we selected a more conservative strategy. Temporarily no more recruit and get a new machine in a year later. So we took the sweetener in 2009 and 2010.Then in 2011 we are suddenly in the circumstance without subsidy. Obviously we were not ready to live without our subsidy and along with the increasing of labor cost we have to face the negative profit and cash-flow again. Even in this situation I have to say that in the view of long term our enterprise’s financial status will better and better. Of course there are always a few uncertain factors which will bring us challenges. The challenges also mean opportunities. For the next five years we forecast that the next growth points will be in the international market especially in those emerging countries. We predict the focus of competition would be the quality but not the price. And it’s us who specialize in manufacture the high-quality products. So we optimistically foresee in the next five or ten years we will achieve a much better development.

The WECEM commitment to sustainable development provides the foundation for our actions, which focuses on conducting business to promote economic growth and a healthy environment now and into the future. We thank you for your continuous support which allows us to do so.                                                                                                                          

...