The Group Company holds its 2025 Work Conference

　　On March 27, 2025, the Group Corporation held its 2025 Work Conference. During the meeting, Qu Siquiu, Party Secretary and Chairman of the Group Corporation, delivered an important speech titled "Strategic Leadership, Innovative Management, Leveraging Group Strengths, and Ensuring the Realization of Annual Goals." Meanwhile, Feng Yiyuan, President of the Group Corporation, presented the "2024 President's Work Report," while Liu Jian, Chief Scientist of the Group Corporation, shared insights into the company's progress in its research and development sector. The conference concluded with a comprehensive review of the achievements and lessons learned from 2024, along with an in-depth analysis of the current situation and challenges, thereby setting a clear direction for the corporation to achieve high-quality growth in 2025.

　　Qu Dong affirmed the company's achievements over the past year. He noted that in 2024, thanks to the hard work and collective efforts of all employees, 3D Chemical not only gained recognition from the capital market but also saw further improvements in its market capitalization management. The company’s young leadership team has demonstrated high caliber and remarkable unity, proving resilient in the face of challenges. However, 3D Chemical also faces numerous obstacles, including cyclical, phased, and highly uncertain trends in the engineering sector, as well as intense competition in the industrial sector, which has led to declining gross margins. Today, 3D Chemical has transitioned from a specialized professional services provider to a player in the chemical raw materials industry. While this shift represents a significant qualitative leap, it also brings with it considerable risks.

　　2025 is a pivotal year for the group company to achieve its three-year development goals. Despite the challenging and complex domestic and international environment—marked by industry-wide issues such as overcapacity, weakening demand, and a decline or even termination of new projects—the situation also presents significant opportunities. These include the 3D Longbang Isocyanate project, the butyric acid cellulose acetate project, policy support from private enterprise symposiums, opportunities arising from upgrading outdated equipment, and growth prospects in the coal chemical sector. Mr. Qu emphasized that the company’s core competitiveness lies in its ability to create value and deliver long-term benefits to customers. While each subsidiary of Sanwei Chemical remains competitive, they all face substantial challenges. Moreover, the "moat" that the group has painstakingly built must continue to deepen and broaden. To this end, company leaders must carefully consider the organization’s strategic positioning and long-term direction—ensuring that they focus on doing the right things. Meanwhile, managers at all levels need to ensure that their actions align precisely with these strategic priorities. Finally, Mr. Qu conducted a systematic analysis of the company’s current operations using the SWOT model, thoroughly examining its strengths, weaknesses, opportunities, and threats.

　　Qu Dong pointed out that in 2025, the company should focus on the keywords "empowerment, collaboration, value chain extension, and value," and thoroughly explained the significant meaning behind each of these four key terms. He also emphasized the need to carry out specific tasks in the following areas:

　　1. Strengthen audit oversight, reduce operational risks, and further enhance the level of standardized governance. With the new Company Law now in effect, various management systems and regulations will gradually be refined. The company must diligently study these changes and make improvements in line with the requirements for listed companies. Additionally, thorough technical and market assessments must be completed for all new projects.

　　II. Strengthen technological innovation, R&D, and innovation-driven development; focus on upgrading core technologies and business operations, expand into the new materials sector, enhance digital infrastructure, and fully leverage AI to unlock greater potential.

　　3. Optimize product structure and market positioning, accelerate research and development in cellulose technology, and ensure the early operational launch of the isooctanoic acid facility; simultaneously, explore international markets.

　　4. Deepen the integration of industrial chains and capital operations, effectively leverage the role of the capital market, strengthen industrial chain consolidation, accelerate efforts to address key shortcomings, and manage corporate value effectively.

　　5. Shift your mindset to enhance management efficiency. Transition from management-oriented thinking to business-oriented thinking by embracing platform thinking and digital mindset. Leverage ERP systems and comprehensive budgeting management to elevate your company’s operational standards. Conduct thorough business analyses, holding a quarterly business review meeting. Additionally, identify and address inefficiencies to reduce costs, while establishing a results-driven, collaborative sharing mechanism.

　　6. Deepen the reform of the personnel and compensation system by developing tailored evaluation methods for different administrative departments. Employees who successfully complete their tasks will receive performance-based incentives, and we will actively promote cost-reduction profit-sharing schemes, overproduction bonuses, and research & development-driven incentive programs.

　　7. Strengthen brand culture development to enhance corporate cohesion, fostering a culture of altruism, brand excellence, and entrepreneurial spirit. Each subsidiary must prioritize robust brand-building efforts, while continuing to uphold the "harmony with difference" cultural policy. Embrace long-term thinking, stay true to our original vision, maintain unwavering confidence in our core values, and firmly commit to pursuing a path of differentiation, refinement, and globalization. Through technological innovation, strategic capital integration, and meticulous management practices, we will drive continuous improvement and elevate the overall operational excellence of Sanwei Chemical.

　　In his report, President Feng pointed out that in 2024, the chemical and petrochemical industries faced weakening social demand, the release of homogeneous production capacity, and intensifying internal competition among enterprises, pushing industry profitability to its lowest point during the 14th Five-Year Plan period. Against this challenging backdrop, the Group Company has closely aligned itself with the 2024 work guidelines, embracing the key themes of "Platform, Opportunity, Chain Extension, and Efficiency," and actively promoting integrated development to ensure stable operations. President Feng highlighted the company's achievements across seven key areas: management structure and integrated development, strategic planning and institutional building, industrial growth and value-chain exploration, research innovation and technological support, compliant operations and risk management, digital transformation and financial oversight, as well as corporate culture development and employee morale enhancement. While acknowledging these accomplishments, he also clearly identified several ongoing challenges, including a shortage of specialized and high-end talent, insufficient innovation capabilities, slow progress in extending the industrial chain, and a digital transformation still largely in the exploratory phase. Looking ahead to 2025, President Feng urged the company to stay firmly focused on "strengthening our core identity." He emphasized aligning with Qu Dong’s proposed work philosophy—“optimize, reduce costs, improve quality, enhance efficiency, and drive coordinated innovation and development”—while keeping close attention to the four annual keywords: "Empowerment, Collaboration, Chain Extension, and Value." To achieve these goals, he outlined five critical areas for action: 1. Deepen the integration of production and operations to reinforce the competitive edge of our core business; 2. Continue advancing lean management practices to comprehensively boost operational efficiency; 3. Intensify efforts in innovation and development, fostering new growth engines to fuel sustainable expansion; 4. Strengthen risk management and ensure robust safety protocols to safeguard steady growth; 5. Reinforce organizational culture-building initiatives, cultivating a solid foundation for high-quality, long-term development. President Feng stressed the importance of systematic planning and holistic implementation, leveraging scientific management as a shield to fortify and elevate performance, while embracing innovative approaches as a spearhead to break through barriers and unlock new opportunities. By doing so, the company will not only expand its core strengths but also cultivate fresh momentum for growth, refine its management systems, optimize resource allocation, and ultimately propel the organization toward a new era of high-quality, sustainable development.

　　Mr. Liu shared an overview of the company’s research and development sector over the past few years. He emphasized that 3D Chemical, as a "small but beautiful" company, boasts a fully integrated technology and industrial ecosystem. Moving forward, the company is firmly committed to pursuing an "extension-of-chain" strategy, deeply cultivating the fine chemical industry while steadily advancing the construction and R&D of its iso-octanoic acid and cellulose projects. With clear objectives in place, the company will adhere to the approach of "getting started first, then recruiting talent." Amidst challenging external conditions, he stressed that only by continuously enhancing our own capabilities can we thrive and ensure long-term survival.

　　During the meeting, the "2025 Work Target Responsibility Agreement" was also signed, and outstanding teams and individuals who excelled in 2024 were recognized. All members of the group company, as well as mid-level and senior staff from the engineering company and its subsidiaries, attended the meeting.