To be the leading person in industrial growth of Shaanxi Province

Economic operation analysis meeting of ShaanMei Group in the first half pf 2017

120.6 billion yuan sales income and 4.53 billion yuan benefits

July 24^th afternoon, ShaanMei Group held the economic implementation analysis meeting on the first half of 2017, which had an overall conclusion of work and arranged important work for the second half of 2017. Members of leaders, assistance of general manager, key personnel of Party department from various units, leaders in charge of production, safety, sales, finance, people in charge of vice-deputy or higher position, all participated in the meeting. The president Yang Zhaoqian, also the secretary of the Party Committee made a speech, Yan Guanglao, general manager, made the analysis report about economic implementation on the first half.The meeting was hosted by You Xidi, vice secretary of the Party Committee and president.

In the first half of 2017, the company has fulfilled the sale of 120.6 billion yuan,which was increased 24 billion yuan than before, with the benefit of 4.53 billion yuan,4.48 billion yuan than before.The production of coal has been 70.336 million tons in total,which has increased 17.6% than the production at the same time last year(6.821 million tons).The production of crude steel has been 4.627 million tons,which has increased 53.1% than the production at the same time last year(3.023  million tons).The amount of electricity generation has been 18.86 trillion kilowatt-hour,which has increased 16.3% than the production at the same time last year(16.22 trillion kilowatt-hour).The index of operation and production has created the unprecedented achievement since our establishment.

As Yang Zhaoqian said in the speech, the achievement doesn’t come easy, which manifests the progress we made knows as “ The power of ShaanMei Group” and “Responsibility of ShaanMei Group”. He pointed out, the primary guiding ideology and action guideline should be two tasks, they are crossing the obstacles and getting rid of poverty, developing and surpassing. The two tasks have close relations with our company, which required no ignorance and sluggish. He said,the former task is the biggest project for people’s livelihood. It requires high importance attached, improved awareness of political aspect and overall consideration from units and workers participated in the project. And they should also fulfill their duties and give full play to “power of union”. Besides, they should do better in helping the poverty of industry and also in proper ways, sticking to perform well in the job given by top leaders. As for the latter task, it is also a significant political task and a vital battle for the company’s revolution and development as well, which needs our courage and wisdom of being the final winner. It means we should turn our eyes on revolution, innovation and quality-improving, saying “no” to deep-rooted contradictions and tough problems and battle with the one who is more developed than us. We should push the company to step into the new level of transformation and upgrade with our achievements.

Yang also pointed, the company is at its crucial stage of chasing and surpassing.We have room for chasing and advantages for surpassing featuring in the development acceleration and transformation upgrade. He stressed, the priorities of the second half of 2017 lie in the following aspects, first, emphasizing investment,to accelerate the process of key projects(coal, coal chemical industry,etc.), which optimize the industry and product structure so that we can generate new competitive advantages for chasing and development.

Secondly, railways. Depending on the newly established railway logistic group, we should make good arrangement in the market, improve the total amount of railway and ability of transportation guarantee aiming at the cost and sales of 500 million tons new coals in the north part of Shaanxi province. Thirdly, revolution.We should decentralize the power of operation to industrial parts and enable every part to operate independently and be responsible for their own operation according to functional requirements of capital investment company run by the nation.

Fourthly, management. We should constantly improve the sales, cut the cost, improve the efficiency, improve the quality and rationalize the inner order of the company. He also required that every unit should attach great importance on production and operation, at the same time, complete the Party construction under the new tendency, and catch the favorable times.We also should treasure the cohesive power, keep chasing without sluggish, put “three mechanism” and fulfill it, change the manner of dealing with tasks, claim responsibility and welcome the 19^th Party conference with excellent achievements.

Yang said, chasing and surpassing is a systematic project in all directions and aspects.We company should combine the aggressive spirit of “jumping out of the traditional shackles”with practical working style of down-to-earth earnestness,sticking to pursuing the objectives and making constant efforts so as to complete tasks in advance,even overfulfil various tasks to be the leading persons under the guideline of chasing and surpassing in Shaanxi province.Yan Guanglao made a report of economic operation analysis and concluded the key points for overall economy operation in the first half of 2017, they are----the “stability” lies in consolidating,the tendency of development is to be more obvious, outstanding tasks spring up.As for the development of project measurement, six projects have been completed and checked including Huang Ling mining industry(2×300MW low heating value fuel comprehensive utilization power plant). Five coal mine projects have been examined and approved by National Development and Reform Commission, which include Cao JiaTan and No.1 Xiao Bao Dang.Four large-scale coal chemical industry projects have been listed into national projects including Qingshui Industrial Zone, the preliminary work of which has been put forward actively.As for the regional strategic cooperation, we opened a deeper cooperation model featuring in “capacity replacement+supply ensurance+logistic investment”,the breakthrough of which is coal capacity replacement with Chongqing municipal government.Besides, we expanded coal sale market of more than 5 million tons in western and southern markets.

The much more promising is that we have opened the fast channel of iron ore, phosphorite and other materials pouring from sea to river and transported from Chongqing port by railways to Shaanxi through the logistic platform company established by joint venture. The channel has reduced the logistic cost effectively. We also have signed 84.5 trillion yuan debt-to-equity cooperation memo with financial enterprises in the debt-to-equity financing area. We had turned debt into equity for 27 trillion yuan, which optimizes the capital structure, improves the credit situation and strengthen the ensurance ability of capital chain. According to the report of Chins Banking Regulatory Commission,the amount of  the debt-to-equity of our company has been up to 50% of the country, which accumulates experiences for its development. In the revolution of enterprises,employee stock ownership,stock incentive plan and pilot tasks of mixed ownership draw ahead in the Shaanxi province, the integration of railway logistics has been completed, Project of small enterprise revolution has been put forward, the work of getting rid of social function in public-owned enterprises and solving the problems leftover by history have been vigorously implemented.As for the reduction of employment and assignment of laid-off employees,the number of the former has been reduced 5616  while the reduction number of the latter is from 5064 at the beginning of the year to 3553. We have a scientific arrangement between the employment and reduction,which laid a solid foundation for lower cost of production and management.

The report analyzed the internal and external circumstances of the company currently, which demonstrated that the company is remained to recover from long-time depression of market, and it still has disadvantages of inadequate investment, tough situation of liquidize remnant,defective defective development of technology innovation, rapid growing of cos,etc.All there call for the consistent working guidelines from various enterprises and administrators, who should have a clear mind in chasing and surpassing, make up the shortages with courage and perseverance, occupy the favorable conditions and open a new era for development. According to the new objectives manifested in the overall arrangement of yearly work of the company and the idea of“to be the top leading person”in industrial growth, the report put forward nine priorities of the second half of 2017, 1) sparing no efforts to promote the investment;2)planning the production and sale as a whole; 3) promoting the construction of “improving quality, adding categories and creating new brands”; 4) deepening the revolution continually;5) reducing the cost by means of using policies externally and finding possibilities internally;6) implementing two special projects( operation,large-scale and industrialization of coke breeze of Shenwei Pipeline company);7)implementing the haze government task of Zhong Sheng,8) competing the task of heatstroke prevention, flood prevention drought prevention;9)strengthening the task of safety.

Yu Xidi made a conclusion of the meeting, he pointed that the new situation of our company featuring in stable with development and advancement has come into being, our double efforts are required by tough revolution task and the constantly changing situation of market. He required that every department should take in the meeting spirit immediately, fulfill the duties and responsibilities and do solid work with highest effenciency to ensure the new achievements gained in the second half of 2017 and fulfill the new breakthrough in chasing and surpassing.(Li Hua)