Xinxing Jihua Group: Comprehensively Promoting Reform And Stimulating Enterprise Vitality

The Party Committee of Xinxing Jihua Group Co., Ltd. (hereinafter referred to as the Group Company) has comprehensively promoted the reform with great political courage and stimulated the vitality of enterprises. The reform is comprehensive and profound. The Group has always focused on the nature and mission of the enterprise, deepening reform and stimulating the vitality of the organization and employees. Take the three-year action of state-owned enterprise reform as the starting point, strengthen the top-level design of reform, dare to bite the bullet, dare to wade into dangerous beaches, and unswervingly push forward the reform with the courage of "knowing that there are tigers in the mountains, and preferring to travel in the mountains".

Significant achievements have been made in promoting professional integration

In the face of serious homogenization of various sectors of the group company and other problems, the group company has vigorously promoted horizontal integration, vertical coordination and professional integration since 2006, and promoted more resource elements to gather in superior units and fields. 114 enterprises have been adjusted in various ways such as property right transfer, custody and asset disposal, accounting for nearly half of the total number of enterprises in the group company. Historically, "main business verification, resource collection and industry classification" have been achieved, "531" industrial layout has been built, and "one industry, one enterprise, one industry" professional operation and management has been realized. The overall industrial structure has become more reasonable, The competitiveness of all sectors was further enhanced, and the comprehensive profitability was improved. The brand competitiveness of Cast Pipe Co., Ltd. and Jihua Co., Ltd. has increased year by year. The Group's profitability per ton of steel ranks first in the industry. At the same time, it actively practices the "going global" strategy and further expands its international business. Based on the positioning of "buying the world and selling the world", it focuses on energy import business, serves the national "double cycle" strategy and the "Belt and Road" construction, and makes every effort to ensure the security and stability of the strategic resource supply chain. For many years in a row, the volume of special import business ranks among the top of central enterprises.

Significant achievements have been made in promoting the construction of enterprises' withdrawal and revitalization mechanism

In the face of problems such as a wide range of loss making enterprises, the Group has built "one channel and two platforms", established the concept of "reducing losses is also increasing efficiency", established an economic responsibility assessment system for asset disposal, and promoted platform enterprises to take the initiative to accelerate professional construction. Set up an asset management company as an asset revitalization platform, transfer and inject long-term idle assets, entrust management, adhere to the concept of "no innovation, no development, no innovation, no design", accelerate the revitalization in accordance with the principle of "one enterprise, one policy", activate assets accumulatively, and avoid losses of more than 4 billion yuan. At the same time, it reorganized Xinxing Heavy Industry as an enterprise exit platform, transferred 26 enterprises that have lost blood for a long time and cannot continue to operate into it for centralized disposal. At present, it has completed the disposal target of 18 enterprises. The Party Committee of the Group Company fully carries forward the spirit of struggle, promotes the management of difficult enterprise governance, "two non" asset disposal and other matters, adheres to the principles of marketization and rule of law, and resolutely restores the dominant position of enterprises in the market.

Significant achievements have been made in promoting the construction of modern enterprise system with Chinese characteristics

Comprehensively implement the "two consistent", give full play to the important role of the Party Committee in guiding the direction, managing the overall situation and ensuring implementation, integrate the leadership of the Party into all aspects of corporate governance, and achieve institutionalization, standardization and proceduralization. A list of governance rights and responsibilities has been developed to achieve professional and differentiated management and control. Give full play to the important role of the board of directors in making strategies, making decisions and preventing risks. The board of directors should be fully built, with external directors accounting for the majority. The board system has basically taken shape. In terms of implementing the right to select and employ members of the management level, the management level of the secondary company should be classified and managed. The affiliated enterprises are listed as "Model Enterprises of Corporate Governance of State owned Enterprises". Give full play to the positive role of the manager in seeking operation, implementing and strengthening management, establish a management system authorized by the board of directors at all levels to the manager, and set up several audit committees to perform the responsibilities of demonstration and audit before making decisions on important matters.

Significant achievements have been made in promoting the three system reforms

The Group took three system reforms as the starting point to break the ice and break the situation in an all-round way. A new type of business responsibility system characterized by the tenure system of managers and contractual management has been basically established. 144 enterprises should promote that 449 managers involved in the enterprise have signed the Employment Agreement and the Letter of Responsibility for Business Performance Assessment. Up to now, enterprises at all levels have achieved full coverage by implementing open recruitment of employees and performance appraisal of all employees. The proportion of management personnel who implement final adjustment and are incompetent to quit has reached 6.1%, an increase of 4.2 percentage points over 2019. Use the shares of listed companies and share of excess profits to encourage core talents in key positions in the medium and long term, start the pilot work of investment follow-up in innovation fields, and explore equity or dividend incentives for technology-based enterprises and employee stock ownership. We unswervingly implemented "rigid assessment", strengthened the implementation and application of assessment and evaluation results, and the income gap between enterprise leaders continued to grow, which truly enabled the increase and decrease of salaries, and the promotion and demotion of cadres.