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“During the 14th Five-Year Plan period, Lu’an Chemical Machinery Group Co., Ltd. (hereinafter referred to as Lu’an Chemical Machinery), under the leadership of the Party, took the fields of chemical and new energy equipment as its key areas of focus. It pursued a development strategy oriented toward high-end capabilities, intelligence, sustainability, and internationalization, achieving breakthroughs in terms of operational metrics, lean management, technological innovation, new product development, and intelligent manufacturing. As a result, its overall strength placed it among the top players in the domestic industry, making it a key force driving the high-quality development of the chemical equipment sector. From the deep integration driven by party building to rapid growth in production and operations, from comprehensive reforms of institutional mechanisms to diverse breakthroughs in technological innovation, and from setting examples in intelligent manufacturing to steady expansion into international markets, Lu’an Huaji has achieved a series of outstanding results, writing a remarkable chapter in the high-quality development of state-owned enterprises in the new era. Party building drives development, while reforms enhance competitiveness. During the 14th Five-Year Plan period, Lu’an Huaji adhered to Party building as its core guiding principle and relied on reforms as a means to boost performance. It promoted the deep integration of Party building with corporate governance and production operations, and through the establishment of systematic frameworks and the implementation of innovative measures, it gathered collective efforts for development and stimulated internal momentum, thereby laying a solid foundation for the high-quality growth of the enterprise. In terms of leadership through Party building, Lu’an Huaji has always strived to integrate Party leadership with corporate governance closely, establishing a governance and supervision system centered on Party leadership to provide solid political support for high-quality development. The company’s Party committee fully plays its role in \"setting directions, overseeing the overall situation, and ensuring implementation.\" By utilizing the \"first agenda item\" system, it dynamically optimizes the list of matters to be studied in advance by the Party committee, and it improves the decision-making mechanism based on multiple documents and forms. This ensures that the Party committee is involved in all major decisions in a timely manner, thereby significantly enhancing governance efficiency. At the same time, Lu’an Huajie has innovatively introduced the “Party building+” project framework, integrating Party building work with business operations in terms of planning, assessment, and motivation. Party member task forces are established to tackle major projects, while Party member model posts are set up to address technical challenges, thereby transforming the advantages of Party building into advantages in innovation and development. Furthermore, a rigorous supervision system and risk prevention mechanism should be established; through coordination among departments such as audit, discipline inspection, and legal affairs, comprehensive and strict governance over the Party can be advanced further, thereby creating a clean and upright environment for development. In terms of integrating party building with production and operations, Lu’an Huaji has innovatively introduced the “Party Building+” project framework, which enables party building activities to be planned, evaluated, and motivated alongside business tasks, thereby enhancing the effectiveness of party building. For example, party member commando teams are established for tackling major projects, and party member model posts are set up to overcome technical challenges, thereby transforming the advantages of party building into advantages in innovation and development. At the same time, the company has established a rigorous supervision system and risk prevention mechanism. Through the coordination of various departments such as auditing, discipline inspection, and legal affairs, it pursues comprehensive and strict governance over the party, thereby creating a clean and upright environment for development. In terms of reform-driven empowerment, Lu’an Huaji focuses on optimizing governance, activating talent, strengthening incentives, and improving efficiency, and has introduced a series of key measures. In terms of governance structure, the board of directors should be optimized, the corporate governance system improved, independent directors should be appointed to enhance the scientific nature and independence of decision-making. The responsibilities and authority of the board of directors must be clarified, decision-making procedures standardized, and communication and coordination with the management team strengthened in order to work together toward the implementation of the company’s development strategy. In terms of talent development, a market-based mechanism for selecting and employing staff is implemented, with outstanding talents being chosen through competitive recruitment processes, thereby providing capable and ambitious employees with broad opportunities for growth. The assessment of managers and the development of talent pipelines are strengthened, and a scientific performance evaluation system is established to motivate managers and employees to be proactive. Talent development plans are formulated to train and nurture young managers, thus preparing a group of high-quality professionals for the company’s development. In terms of incentive mechanisms, Lu’an Huaji implements a differentiated compensation incentive system guided by lean thinking, establishing a \"four-in-one\" performance-based compensation framework that links compensation to factors such as work performance, capabilities, and attitude. This approach prioritizes those in front-line positions and key roles, thereby fully motivating employees’ enthusiasm and creativity. To improve operational efficiency, Lu’an Huaji has strengthened comprehensive cost control, and by standardizing investment management, reducing the amount tied up in accounts receivable and accounts payable, and revitalizing existing assets, it has effectively enhanced its operational efficiency. In terms of investment management, it is necessary to strengthen the feasibility studies and evaluations of projects, optimize the investment structure, and improve the return on investment. Regarding the control of accounts receivable and inventory, efforts should be made to reduce these amounts, thereby lowering the cost of capital utilization. To optimize existing assets, their value should be fully exploited through methods such as leasing or selling, in order to improve asset utilization efficiency. To ensure the implementation of tasks, Lu’an Huaji has fully embraced a \"accountability\" culture, establishing a management framework that covers all stages – before, during, and after tasks are carried out. Before the project is implemented, a detailed cost budget and benefit analysis are conducted to clarify goals and responsibilities; during the implementation phase, process monitoring and cost control are strengthened to address any deviations in a timely manner; after the project is completed, performance evaluations and reviews are carried out to gain experience and learn from lessons learned. At the same time, through mechanisms such as special contracts and research incentives, internal motivation is stimulated to ensure the efficient implementation of key tasks, thereby comprehensively enhancing the company’s core competitiveness. Innovation drives fruitful results; digital transformation boosts efficiency. Since the 14th Five-Year Plan period, Lu’an Huaji has taken innovation as its core driver and intelligent manufacturing as a key strategy, advancing the high-quality development of the enterprise through these two approaches simultaneously. In the field of technological innovation, Lu’an Huaji has undertaken 255 research projects at national, provincial/ministerial, and group levels through industry-university-research collaborations as well as independent research efforts. Of these, there is 1 project at the national level and 6 major projects at the provincial/ministerial level. The company focuses on conducting significant research in areas such as coal chemistry and new energy, thereby establishing an innovative ecosystem that covers technology development, result transformation, and industrial application. In terms of digital transformation, the company was among the first in China to establish demonstration factories for the digital and intelligent manufacturing of pressure vessels, creating a new model for discrete intelligent manufacturing and setting a benchmark for industry transformation. In terms of advancing core technologies and products, Lu’an Huajian has accelerated its strategy to cover all types of furnace markets. With the Jinhua furnace, Saiding furnace, Hangtian Maiwei furnace, and biomass gasification furnace as its core products, it offers the industry comprehensive gasification solutions that are \"efficient, clean, and low-carbon\". Among them, the Jinhua furnace has seen a significant improvement in its gas composition as a result of upgrades and modifications, replacing traditional refractory brick gasification furnaces; China’s first industrial-scale unit utilizing fluidized bed gasification technology based on biomass feedstocks has been successfully put into operation, marking a major breakthrough for the company in the field of biomass gasification. Meanwhile, Jinhua Furnace’s technical capabilities have earned it numerous prestigious recognitions, including being designated as one of the sixth batch of manufacturing industry champion products by the Ministry of Industry and Information Technology, receiving a Silver Award for Excellent Design from the Chinese Academy of Engineering, an Special Award at the National Innovation and Entrepreneurship Competition, and the First Prize for Scientific and Technological Progress in Shanxi Province. It has also passed the energy-saving technology application assessment conducted by the Energy Conservation Center. Its technologies have been included in 13 lists of advanced technologies for promotion, such as the \"Special Action Plan for Energy Saving and Carbon Reduction in the Ammonia Synthesis Industry\" issued by five ministries and commissions including the National Development and Reform Commission, as well as the \"Guidance Catalogue for the Promotion and Application of First-of-Kind Major Technical Equipment (2024 Edition)\」 issued by the Ministry of Industry and Information Technology; overall, its technical level is at the international leading stage. In the field of emerging energy, Lu’an Huaji’s diversified strategy has yielded significant results, enabling it to overcome the technical barriers associated with new energy technologies. The company has established the first GW-class intelligent alkaline electrolyzer production line in Shanxi Province; the hydrogen production equipment \"Jinhua Electrolyzer\" has broken the foreign technological monopoly. The country’s first set of carbon dioxide hydrogenation-based green methanol synthesis units, as well as special chemical containers for offshore use and core energy storage products, continue to play a key role in enhancing the company’s competitive advantage, thereby driving technological advancement and low-carbon transformation within the industry. The accumulation and transformation of innovative achievements are equally impressive. Over the past 5 years, Lu’an Huaji has been granted **300 patents, including 33 invention patents; it has contributed to the development of **7 standards and 1 local standard, and took the lead in formulating 9 group standards. This approach facilitates the conversion of technological innovations into standards, thereby helping to establish a competitive position in the industry’s technical sphere. The development of innovation platforms is also progressing simultaneously. The company has been approved to establish 1 corporate technology center, as well as 6 provincial-level innovation platforms, including the Shanxi Province Large-Scale Coal Gasification Technology Innovation Center and the Shanxi Province High-End Coal Gasification Equipment Manufacturing Innovation Center. These platforms cover research and development areas such as coal gasification, hydrogen energy, and energy storage, providing a solid foundation for advancing core technologies and translating research results into practical applications. In the practice of intelligent manufacturing, Lu’an Huaji’s automated equipment boasts an intelligence coverage rate of 92%, making it one of the first factories in China to establish digital and intelligent manufacturing models for pressure vessels. The company has developed a management system that covers the entire life cycle of products, including marketing orders, production planning, design processes, material procurement, warehouse management, product manufacturing, and shipping. This system ensures seamless integration among various stages of production, and it promotes the advancement of production technologies and management practices toward networking, expertise-driven approaches, automation, precision, sophistication, accuracy, and standardization. As a result, a new model of discrete intelligent manufacturing has been created, placing the company at the forefront of its industry in China. At present, the company has built smart factories covering 14 different scenarios, promoting the application of various AI technologies such as multi-objective optimization algorithms, welding expert databases, and simulation models; the proportion of AI applications in these scenarios reaches 80%. Thanks to its outstanding performance in the fields of innovation and manufacturing, Lu’an Huaji has won numerous prestigious awards, accumulating 11 **-level honors as well as 25 industry awards at the provincial, municipal, and regional levels. The **level honors include being recognized as an outstanding enterprise in the Science and Technology Reform Demonstration Program by the State-owned Assets Supervision and Administration Commission of the State Council, a pilot unit for the integrated development of advanced manufacturing and modern service industries by the National Development and Reform Commission, a demonstration enterprise for service-oriented manufacturing by the Ministry of Industry and Information Technology, a demonstration enterprise for the integration of next-generation information technology and manufacturing, a green factory, an excellent-level smart factory, an enterprise with strong intellectual property capabilities as recognized by the Intellectual Property Office, as well as the National \"May 1st Labor Award\" awarded by the All-China Federation of Trade Unions. At the provincial, municipal, and industry levels, such honors include being designated as a \"chain core\" enterprise in the high-end equipment sector by the Shanxi Provincial Department of Industry and Information Technology, a \"little giant\" enterprise characterized by specialized skills and innovation in Shanxi Province, a technology innovation demonstration enterprise, or being part of the \"Coal Gas Chemical Technology Innovation Team\" established by the China Coal Industry Association. These honors reflect the company’s comprehensive competitiveness and influence within its industry, as well as its high-quality development. Dual improvements in scale and efficiency: pursuing growth both internally and externally. In recent years, Lu’an Huaji has focused on achieving high-quality development, making targeted efforts and continuous progress in areas such as improving operational standards, pursuing green transformation, enhancing quality, and expanding internationally. As a result, it has achieved a favorable development trend characterized by simultaneous growth in scale and efficiency, as well as progress in terms of technology and brand strength, gradually emerging as a key force driving industry advancement. During the 14th Five-Year Plan period, Lu’an Huaji achieved comprehensive high-quality development; it not only saw an increase in both its operational scale and efficiency but also succeeded in entering international markets and expanding into the new energy sector, demonstrating strong resilience and core competitiveness. At the operational level, Lu’an Huaji has seen increases in both production volume and output value, with significant growth in profits and taxes. In 2024, Luan An Hua Ji’s production volume and output value increased by 40.13% and 54.06% respectively compared to 2021, while the total profit and tax amount rose by 52.54%, achieving simultaneous growth in scale and efficiency. Meanwhile, through the optimization of the workforce structure and the improvement of skill levels, labor productivity increased by 29.5% in 2024 as compared to 2021. In the field of green manufacturing, Lu’an Huaji adheres to the concept of green development. Its emissions of waste gas and wastewater meet standards that are even stricter than those required; the recycling rate of solid waste exceeds 80%, while the rate of proper disposal reaches 100%. The coverage rate of third-level measuring instruments is also 100%. Energy consumption per unit of output has decreased by more than 15% compared to 2021. As a result, the company has been recognized as a \"Green Factory\" and a \"Green Supply Chain Management Enterprise\", serving as a model for green transformation in the industry. To continuously promote green development, Lu’an Huaji has ventured into the field of new energy, achieving a \"zero\" breakthrough in the area of compressed air energy storage during the 14th Five-Year Plan period. In December 2024, the company delivered the first batch of clip-type heat exchanger units manufactured for the Huai’an salt cavern compressed air energy storage power generation project, and the second batch was delivered in February this year. The project can generate 792 million kWh of electricity per year, sufficient to meet the annual energy needs of 600,000 households. The successful delivery of these two batches of equipment marks the company’s mastery of the core manufacturing technologies for compressed air energy storage systems, enabling it to officially enter the field of manufacturing new energy storage equipment. Meanwhile, the biomass gasifier for JinFeng Green Energy Chemicals (Xing’an League) Co., Ltd.’s project aimed at producing 500,000 tons of green methanol per year from green hydrogen, manufactured by Lu’an Huaji, was successfully commissioned for its first operation. This facility is the largest and highest-pressure biomass gasifier of its kind in the world, demonstrating the company’s technological leadership in the field of biomass gasification and laying a solid foundation for accelerating the implementation of its strategic approach to developing various types of gasifiers. At the same time, Lu’an Huaji has achieved steady improvements in product quality through strict quality control and technological upgrades. In 2024, the rate of high-quality products reached 66.15%, an increase of 23.04% compared to 2021, and it is expected to exceed 68% this year. The first-pass success rate for non-destructive testing of welded joints increased from 96.37% in 2021 to 97.85% in 2024, with expectations of it reaching over 98% this year, resulting in a significant improvement in the level of intrinsic safety. On its path toward internationalization, Lu’an Huaji has managed to enhance the reputation of its \"Huaji\" brand. It entered the African market for the first time, with 35 units of equipment manufactured for projects in Africa being shipped in three batches. The first batch of key equipment was dispatched in June of that year; the second batch of large-scale equipment arrived in Zambia in August of the same year, while the third batch set off at the end of September. Once these devices are put into use, they will help alleviate the shortage of fertilizers in the region and contribute to sustainable, low-carbon development. Leveraging its extensive experience in overseas projects, strong technical capabilities, and professional manufacturing skills, the company has further enhanced its competitiveness in international markets. At the beginning of this year, key equipment such as raw material dryers with a diameter of 2.3 meters and precision catalyst storage tanks, manufactured for projects in Europe, were successfully shipped out from its production base in Taiyuan. “Since the 14th Five-Year Plan period, Lu’an Huaji has relied on party building as a guide, innovation as a driving force, reform as an engine, and the market as a orientation, achieving comprehensive breakthroughs in various fields. Its overall strength has improved significantly, and its influence within the industry has continued to grow. Looking to the future, Lu’an Huaji will continue to pursue a development path focused on high-end capabilities, intelligence, sustainability, and internationalization. It will deepen reforms in its institutional framework, increase investment in technological innovation, and expand its presence in both domestic and international markets. By doing so, it aims to make greater contributions to the high-quality development of the chemical equipment industry and to helping achieve the **\"dual carbon\" goals, striving to become a globally competitive supplier and service provider of high-end energy-related equipment. Corporate Profile: Lu’an Chemical Machinery (Group) Co., Ltd. boasts a strong heritage and robust development capabilities. Its predecessor was the Shanxi Chemical Machinery Factory, established in 1966; it was transferred to Lu’an Chemical Group in April 2021. Today, the company has four manufacturing bases in Taiyuan, Yongji, Fukang in Xinjiang, and Tianjin Lingang. Its business scope is comprehensive; its plant scale and production capacity rank among the best in the country, placing it among the top three in terms of overall strength. The brand value is 708 million yuan. The company possesses comprehensive qualifications, holding various professional certification documents such as the manufacturing license for large pressure vessels (A1) issued by the State Administration for Market Regulation; these certifications cover multiple areas including the inspection of special equipment. It has also obtained international certifications such as ASME “U” & “U2” from the American Society of Mechanical Engineers, providing a solid foundation for expanding its market presence. Talent is the core driving force for a company’s development. Lu’an Huaji brings together professional talents such as experts enjoying special government allowances from the State Council and mid-to-senior level engineers. It has a large number of personnel with certification in non-destructive testing as well as certified welders, providing solid support for technological innovation and product quality. Luan An Hua Ji places great emphasis on the development of innovation platforms; it has 3 **-level platforms and 10 provincial-level innovation platforms, which serve as important hubs for technology research and development as well as the transformation of research results. To date, it holds **653 patents and has led or participated in 11 standards. Over the years, Lu’an Huaji has earned numerous honors thanks to its outstanding performance and excellent reputation, including the National May 1st Labor Medal and the title of an exemplary enterprise for its leadership in the 40 years of reform and opening up in China’s petroleum and chemical industry. (All photos taken by Chen Yang)