Xinxing Jihua Group: Strengthen The Main Business, Promote Innovation And Activation, And Promote High-Quality Development Of Enterprises

Xinxing Jihua Group focuses on strengthening the main business, improving market influence, stimulating enterprise vitality and other aspects to deepen the reform of the three holding listed companies, steadily improve the operating quality of listed companies, and help enterprises develop in high quality.

Strengthen the main business and promote the optimization of the layout and function of the listed platform

Overall optimize the layout of listing platforms. All units implement the "14th Five Year Plan" of Xinxing Jihua Group, carry out major structural adjustment based on the principle of "main business verification, resource collection and industry classification", and implement the "531" industrial layout. Reasonably divide the business scope and boundary of the three listed companies, and clarify the strategic positioning and development direction. Metallurgical Casting Pipe Co., Ltd. strives to become an influential Chinese excellent steel manufacturer and a global leader in ductile iron pipes and pipe fittings. Jihua Co., Ltd. in the light industrial clothing sector strives to be the largest manufacturer of protective products, protective materials and functional materials in China, and build a long chain of emergency supplies industry. In the pharmaceutical sector, Hainan Haiyao strives to build Hainan's bio pharmaceutical innovation and industrialization platform and world-class inspection and testing platform; Strengthen the cultivation and reserve of listed resources. All units, through capital holding companies, have steadily increased their efforts to incubate a number of high-quality resources with development potential and outstanding professional advantages to connect with the capital market, and accelerate the positive interaction between capital and industry cultivation, and technology incubation. The Capital Operation Department strengthened the overall planning of the listing of subsidiaries, and established a research and evaluation mechanism for the necessity, feasibility, and listing methods of related resources. Support "Double Hundred Enterprises" 3521 environmental protection technology companies to promote spin off and listing, and launch the separate listing of "Science and Technology Reform Demonstration Enterprise" Shanghai Lishengte.

Focusing on the foundation, promoting the improvement of governance and standardized operation of listed companies

Accelerate the improvement of the modern enterprise system with Chinese characteristics. Xinxing Jihua Group improved the governance mechanism of listed companies, revised and improved the List of Corporate Governance Rights and Responsibilities, and clarified the boundaries of rights and responsibilities among the Party Committee, the Board of Directors, and managers. The Board of Directors has four special committees, namely, the Strategy Committee, the Nomination Committee, the Remuneration and Assessment Committee and the Audit and Risk Committee, to formulate the Implementation Plan for the Implementation of the Authority of the Board of Directors and various supporting management systems to effectively guarantee the implementation of the authority of the Board of Directors. Revise and improve the working system of independent directors, and strengthen the support for independent directors to perform their duties; Continuously improve the quality of information disclosure, establish a weekly report mechanism, optimize and improve the communication and transmission mechanism with listed companies, improve the information disclosure system, take the needs of investors as the guide, improve the standardization and effectiveness of information disclosure, and cast pipe shares were rated as A-level evaluation of information disclosure in Shenzhen Stock Exchange in 2022; Establish and improve the ESG system, implement the new development concept, and promote the holding listed companies to continuously improve the professional governance ability and risk management ability of ESG, so as to achieve the "full coverage" of ESG special report disclosure.

Cultivate growth board, strengthen endogenous growth and innovative development of listed companies

To improve its independent innovation capability, Cast Pipe Co., Ltd. has built a "1+3+N" science and technology management system, established a science and technology innovation committee, set up three research institutes of cast pipe, steel and new industry, and N full-time research and development centers, and established a full cycle project management and scientific research project "unveiling and leading" mechanism. Jihua Co., Ltd. has made substantial progress in building a 1+4 R&D system. The heads of four professional research institutes have been publicly recruited, and the functional footwear R&D center has been put into operation; We improved the incentive and restraint mechanism, formulated the Company's "Management Measures for Incentive of Excess Profit Sharing", implemented equity incentives for technology-based enterprises, and increased incentives for scientific researchers. Jihua 3521, an affiliated enterprise, achieved substantial growth in its performance for two consecutive years, reached the group's goal of "Little Giant Action" to share excess profits, and realized 7.05 million yuan. Cast Pipe Co., Ltd. implemented equity incentive, and the incentive objects covered 452 core talents in key positions.

Focus on efficiency, enhance market recognition and value realization of listed companies

Strengthen the management of investor relations, establish a weekly mechanism for investor management, track and count the communication and interaction of investors such as investors' Q&A and research papers every week, pay close attention to the performance of three listed companies in the capital market, and supervise the establishment of a good communication and interaction mechanism with investors. Through "going out" and "inviting in", listed companies conduct diversified investor exchanges in the form of one-to-one, one to many, online+offline, strengthen interaction with industry analysts, and hold quarterly high-quality performance presentations. In 2023, the company won the "Gold Award for Investor Relations" (excellent IR team) and the "Outstanding Practice Award for Performance Presentation" of listed companies in 2022; Improve the management level of market value, establish the concept of scientific value maintenance, pay attention to the fluctuation of the company's share price, and improve the ability to deal with complex situations in the capital market. Hainan Haiyao has established a shareholder shareholding analysis and public opinion monitoring mechanism to focus on the changes of important investors, strengthen the analysis of shareholder structure, form a shareholder analysis report every month, and focus on the concentration of shareholders and the changes in the increase or decrease of important shareholders. We will promote listed companies to establish and improve a reasonable and sustainable profit distribution system, optimize shareholder returns through cash dividends and other ways, and help enterprises develop healthily.