The Group Company holds its 2024 Mid-Year Work Conference

　　On the morning of August 23, the Group Company's 2024 Mid-Year Work Conference was held in the sixth-floor conference room at the headquarters. Qu Siquiu, Party Secretary and Chairman of the Group Company, presided over the meeting and delivered a keynote speech. Feng Yiyuan, President of the Group Company, presented a summary of the first-half performance. All staff from the Group Company headquarters, as well as mid-level and senior personnel from the Engineering Company and its subsidiaries, attended the meeting.
 

　　Qu Dong mentioned that over the past six months, the group has confronted challenges head-on, acted proactively, moved in the same direction, and pursued integrated development. As a result, the group’s strengths in management model have begun to emerge, and all key initiatives have been steadily advancing, laying a solid foundation for a strong start. The Third Plenary Session of the 20th Central Committee of the Communist Party, held in July, emphasized the need to further deepen reforms and accelerate China’s unique path toward modernization, setting the tone and charting the course for the country’s future high-quality development. Meanwhile, the external environment continues to evolve in increasingly adverse ways, while domestic demand remains insufficient, leading to divergent trends in economic performance. Moreover, risks and vulnerabilities persist in critical areas. Under these circumstances, as the company grapples with mounting pressures on both survival and growth, it is imperative to remain razor-sharp and vigilant at all times, ensuring that Sanwei Chemical continues to move forward steadily and confidently.

　　Chairman Qu, aligning with the group company's "18-character" management positioning, elaborated on the company's key tasks for the second half of the year and the near-term future, while also setting forth specific expectations. First, regarding direction and strategy, Chairman Qu emphasized that the group must clearly position itself as the entity capable of tackling challenges beyond the reach of its subsidiaries. He stressed the importance of firmly anchoring the company’s growth trajectory—specifically, pursuing a path of "differentiation, refinement, and internationalization" within the chemical and petrochemical sectors, with the ultimate goal of becoming the market leader in niche segments. To this end, the company’s three-year development plan serves as both its directional guide and strategic roadmap for the next three years. He urged all subsidiaries to prioritize stability while simultaneously driving steady progress, and encouraged them to swiftly formulate their own sub-plans and annual action plans to ensure effective implementation of the overarching strategy. Second, on risk management, Chairman Qu underscored the need for a balanced approach: "knowing what to pursue and what to let go," embracing both growth and retreat as necessary, and carefully managing the pace of development. He highlighted the importance of proactively identifying and mitigating operational risks—including those related to business decision-making, technology adoption, technological substitution, and financial management—to safeguard the company’s long-term sustainability. Third, when it comes to innovation, Chairman Qu called for fostering "effective innovation." In terms of management innovation, he advised striking a balance between maintaining control without stifling creativity, focusing on key priorities while allowing flexibility in less critical areas, ensuring efficient operations, and delivering exceptional service to customers. For technological innovation, he emphasized the need to leverage integrated resources across the organization, rallying collective strength to establish a robust Group Research Institute or Center of Excellence. This initiative would centralize technology development efforts, enabling seamless collaboration across upstream and downstream processes, while also promoting complementary synergies within the group. Crucially, he advocated for establishing a mechanism that ensures equitable sharing of research outcomes and commercialized innovations. Fourth, regarding platform development, Chairman Qu outlined the vision for the group to build and strengthen its core platforms—ranging from a dedicated management platform and an innovation hub to advanced marketing, digital transformation, financial-fiscal, and overseas-market initiatives. These platforms will work in harmony to create an integrated industrial ecosystem, ultimately forming a self-sustaining, closed-loop system that maximizes overall business efficiency. He also stressed the importance of capitalizing effectively on these platforms to unlock greater value and opportunities. Finally, on the topic of corporate culture, Chairman Qu acknowledged the rich cultural heritage shared by each subsidiary and emphasized the need to both preserve and evolve these traditions. He reiterated the guiding principle of "harmony amid diversity," encouraging employees to embrace a sense of collective purpose, compassion, and pride in being part of the 3D Chemical family. By nurturing the "family culture" ethos, the company aims to instill a deep sense of belonging among its workforce, empowering employees to take genuine ownership of their roles while fostering a workplace environment where everyone feels valued, respected, and inspired.

　　In his report, President Feng outlined the group company’s key operational indicators for the first half of the year, along with specific targets set by its subsidiaries. He provided a comprehensive overview of the group’s major initiatives over the past six months, covering areas such as building a robust institutional framework, enhancing internal management standards, strengthening the R&D system, and reinforcing safety management practices. President Feng emphasized that in the second half of the year, the group must focus on four key priorities: 1. **Driving Growth Through Strategic Expansion**: The engineering company should spare no effort in exploring new market opportunities, seizing four major growth avenues to ensure sustained project performance and stability. Meanwhile, Noah Company needs to sharpen its market analysis capabilities and further leverage its flexible production advantages. For Lianxin Company, practical measures—such as tackling technical challenges and fostering management innovation—should be implemented to continuously refine and optimize production processes, adopt smart procurement strategies, reduce per-unit costs, and enhance product competitiveness in the market. As for Sanwei Longbang, the priority is to expedite the construction of the iso-octanoic acid project, ensuring that progress, investment, and quality remain firmly under control. 2. **Advancing Lean Management**: All units are tasked with effectively breaking down and implementing the group’s three-year development plan. Additionally, they must keep pushing forward the establishment of the group’s institutional framework, fully embrace comprehensive budget management, strengthen centralized financial oversight, and accelerate the execution of the “digital transformation” strategy. 3. **Strengthening Risk Management**: The group must continue cultivating and refining a prudent risk culture,不断完善风险管理体系, and proactively identify potential risks through self-assessment. Furthermore, it should conduct a thorough review and standardization of the company’s internal rules and controls in alignment with the new *Company Law*. Other critical tasks include establishing or improving supplier and customer management systems, ensuring successful re-certification as a high-tech enterprise, and reinforcing effective management of R&D projects. Finally, organizations must elevate their awareness of cybersecurity to safeguard sensitive information. 4. **Fostering Innovation and Development**: To drive innovation, the group should refine its talent incentive mechanisms, gradually ensuring that employees with innovative capabilities and entrepreneurial spirit become the primary beneficiaries of the company’s growth. At the same time, the group must capitalize on its strong capital platform to support strategic initiatives. In addition, staying ahead of the global wave of internationalization, the company should leverage its unique strengths to forge new partnerships, adopting both “borrowed-ship” and “co-built-ship” approaches to expand into overseas markets. Lastly, the group should prioritize robust corporate culture-building efforts to inspire collaboration and shared success across all levels.