Hangzhou Advance Gearbox Group Co., Ltd.

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The group company's management accounting pilot project was rated as an "Excellent" project by the Provincial Department of Finance.

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2016.09.19

Recently, the Provincial Department of Finance organized experts from Zhejiang Province's Management Accounting Expert Advisory Committee to evaluate and accept the implementation of 18 pilot projects in management accounting. The evaluation was conducted across six key areas, including demand analysis and solution selection, with scores assigned accordingly. Based on these scores, projects were categorized as either "Excellent" or "Good." Among them, HAGG Corporation's pilot project titled "Practice of a Simulated Equity Incentive Model for Management Teams at Secondary Units of Hangchi ADVANCE—Based on Performance Evaluation Results from an Integrated Investment Center" was recognized as an "Excellent" project.

According to the relevant guidelines issued by the Zhejiang Provincial Department of Finance, the department has selected 18 enterprises, including HAGG, to pilot management accounting initiatives. To ensure the smooth implementation of these pilot projects, the company established a Leading Group for Building the Management Accounting System at the end of 2014. Chairman Mao Jianrong was appointed as the group’s leader, while General Manager Feng Guang personally took charge of overseeing the specific pilot activities. Meanwhile, various functional departments within the company, along with a research team from Zhejiang University of Technology, collaborated closely to plan and execute the project. This project focuses on analyzing and studying an integrated investment center model combined with a simulated equity incentive scheme tailored for second-level operating units, in line with the requirements of the management accounting pilot program. With the company’s approval, the proposed solution was rolled out starting January 1, 2016, initially at two second-level subsidiaries under the group. After more than six months of operation, significant improvements have been achieved in both economic performance and internal management practices, paving the way for new models of corporate mechanism reform and innovation. The initiative not only demonstrates high potential for broader application but also holds substantial practical value. Currently, this reform is steadily being expanded across the entire group.