On January 16, ChemChina held its working conference in Beijing. The main task of the meeting is to follow the guiding principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the spirit of the Central Economic Work Conference and the Conference of Heads of Central Enterprises, summarize the work in 2018, exchange experience, analyze the situation, and arrange the key work in 2019.

At the meeting, Ning Gaoning, Chairman and Party Secretary of ChemChina, delivered an important speech and answered on-site questions. Qenos, Adisseo, Zhonghao Chenguang, and Aeolus Tyre gave speeches on exchanging experience, respectively.

In 2018, ChemChina’s operating revenue increased by 13.2% year on year, with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) rising by 26.3% from a year earlier. The operating revenue of overseas enterprises accounted for 66%, and their EBITDA took up 69%. Asset securitization increased by 16 percentage points. ChemChina’s Elkem, Norway, was listed on the Oslo Stock Exchange, becoming the first China-funded enterprise to go public in Norway. KraussMaffei and Tianhua Institute were restructured and integrated to be listed. China Haohua Chemical Group Co., Ltd. went public as a whole. ChemChina has given a boost to the development of technological innovation platforms and improved its scientific and technological innovation capabilities. It has 11 certified enterprise-based technology centers at the national level, with a total investment of RMB13.64 billion in science and technology. In addition, ChemChina has 147 overseas R&D institutions.

Regarding Party building, according to the requirements of SASAC’s “Year of Quality Improvement of Party Building in Central Enterprises,” ChemChina has fulfilled its responsibilities of overall Party supervision and governance, improved the building of intra-Party oversight system, continuously worked for Party conduct, tightened up on accountability for overseeing discipline compliance, facilitated effective integration of Party building with production and operation, and conducted inspections on 49 enterprises affiliated to four secondary units.

There are four main reasons for ChemChina’s substantial improvement in its operating performance in 2018. First, the balanced global strategic layout offsets market risks; Second, the optimized product structure improves the gross profit margin significantly; Third, the supply-side structural reform has enabled domestic enterprises to achieve better prices for their products and enhanced the benefits of domestic enterprises continuously, especially those with large losses. Fourth, enterprises have kept improving their performance through management reform, marketing reform, cost reduction, efficiency improvement, and continuous improvement.

Regarding the work in 2019, the conference put forward ten major action plans: first, to reflect and comprehensively rectify the safety management work; second, to further clarify the strategic positioning; third, to bear in mind the concept of “science is sovereign;” fourth, to optimize and adjust the management and control model; fifth, to improve the human resources management; sixth, to strengthen the management and integration of overseas enterprises; seventh, to further prevent financial risks; eighth, to establish a budget management and control system; ninth, to strengthen the overall management of assets; and tenth, to strengthen on-site management.

The whole company must conduct self-examination and draw the lessons from the 11.28 explosion accident in Hebei Shenghua Chemical Company. The meeting emphasized the action plan and requirements of defining the year of 2019 as ChemChina’s “Safety Management and Rectification Year.” We need to firmly bear in mind the concept of safe development and raise public awareness that life matters most and that safety comes first to further foster the “redline awareness” of production safety. We must put strict management first throughout production.

A total of 410 people attended the meeting, including members of ChemChina Party leadership, assistants to deputy department heads and officials above that level at headquarters, the leadership and department heads of all specialized companies and directly affiliated institutions, and heads of directly affiliated enterprises.