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A Record of the High-Quality Development of Henan Jinkai Group in 2021 Author/Source: Henan Jinkai Group Date: 2022-01-27 Clicks: 4 In 2021, Henan Jinkai Group produced 1.33 million tons of synthetic ammonia, achieving a total production and operation value of 7.9 billion yuan and revenue of 6 billion yuan, thus exceeding its annual production and operation targets and setting a solid foundation for the 14th Five-Year Plan period. In terms of production, the manufacturing units leverage \"five small\" innovations as a driving force to carry out comprehensive technical efforts, taking practical actions to reduce costs and increase efficiency. The Second Branch has successively completed optimizations and upgrades to the boiler system, improvements to the liquid ammonia loading process, and heat recovery modifications to the urea high-pressure water system. The Rain and Dew Compound Fertilizer Branch has introduced a urea melting unit into its compound fertilizer granulation process, as well as advanced granulation technologies; since its commissioning, the daily production volume of compound fertilizers has on multiple occasions exceeded 450 tons per day... Through innovation and reform, it has been possible to achieve safe, environmentally friendly, energy-efficient, and stable production operations. All units adhere to the principle of \"using what’s available instead of acquiring new items, and keeping things in use rather than discarding them.\" By making use of the two strategies of \"recycling and reusing waste materials\" and \"innovation to improve efficiency,\" they strive to reduce costs while increasing profits through careful expense management. The second branch repaired 872 different types of spare parts, saving approximately 1.2899 million yuan in costs. The Rain and Dew Compound Fertilizer Branch completed 32 projects to repurpose existing assets, reducing maintenance costs by approximately 250,000 yuan ； 55 items of unused materials were utilized, saving approximately 1.668 million yuan in spare parts costs. A stable, efficient, and high-quality production system relies on a continuous supply of raw coal. Looking back at the whole year, the shortage of coal resources and difficulties in road transportation have consistently been challenges that have hindered the stable production of the group company. The extreme cold in January, the floods in Henan in July, the resurgence of the pandemic in August, floods in the areas where raw coal is sourced directly in September, and the efforts to ensure power supply and people’s livelihoods in October – these various emergencies have kept the group company’s inventory of raw coal at low levels. Faced with these challenges, the raw material supply department took proactive action rather than waiting for assistance. Taking advantage of the fact that the long-term contract prices for coal from state-owned large mines were much lower than those of coal mines in the market, it developed plans to ensure a stable supply of coal, and assigned employees to go to places such as Xinjiang, Shenmu in Shaanxi, and Jincheng in Shanxi to supervise, coordinate, and accelerate the delivery of coal ； Urgently promote the supply of coal from various suppliers, coal mines that are supplied directly by factories and mines, as well as low-cost coal provided under long-term contracts by large state-owned mines ； It is necessary to keep abreast of real-time information on production, transportation, sales, and inventory, to arrange railway shipping schedules appropriately, and to enhance coordination with the railway authorities and the cargo handling facilities at Kaifeng Station. All aspects of Jin Zhuoyue Company’s operations are seamlessly integrated. When the second branch faced an urgent shortage of raw coal stock, the company promptly sent its key staff to Shenmu to find sources of coal and compare prices. Within just 10 days, they managed to send back 40,000 tons of raw coal, ensuring the normal operation of the heating furnaces during the Spring Festival ； In October, Jin Zhuoyue Company purchased over 30,000 tons of Shenmu coal within nearly 10 days at a price 1,000 yuan per ton lower than the market rate, saving more than 30 million yuan in costs. In terms of sales, the sales branch distributed 2.1924 million tons of various products such as liquid ammonia, urea, concentrated nitric acid, and urea*ao acid an solutions, generating sales revenue of 5.152 billion yuan ； The Rain and Dew Compound Fertilizer Branch has an annual production capacity of 146,800 tons; it sold 54,200 tons of spring fertilizers and 39,300 tons of autumn fertilizers ； The agricultural industrialization branch company sold 20,400 tons of urea for use in vehicles. In 2021, the fertilizer and chemical industry market showed an overall trend of rising first and then falling. The sales subsidiaries, taking the market conditions into account, adopted a marketing strategy centered on operating within the province, strengthening their presence at the retail level, and ensuring a reasonable distribution of resources, while also making efforts to explore potential markets. By making every effort to overcome adverse factors such as the pandemic, heavy rainfall disasters, tightened export controls, and fluctuations in production levels within the same industry, the company seized opportunities presented by market changes and explored further the potential of the market. It adjusted the prices of products such as urea, liquid ammonia, **, and concentrated nitric acid on multiple occasions; the average price of liquid ammonia for the whole year was 3,638 yuan per ton, while the average price of urea was 2,257 yuan per ton – both reaching new highs in terms of sales prices in recent years. In terms of safety and environmental protection, the group company always adheres to the principle of \"safety first, prevention first, and comprehensive management.\" At the beginning of each year, a key document on safety is issued, outlining the \"13612\" work approach. By vigorously carrying out safety education and training for all employees, earnestly conducting emergency rescue drills for work-related safety incidents, and thoroughly implementing measures for winter prevention as well as regular inspections to identify potential hazards, efforts are made to address weaknesses, strengthen weak areas, and improve capabilities ； Six key projects were advanced, including those related to standardization of safe production, in-depth improvement of safety infrastructure, and grid-based identification and management of potential hazards; 12 foundational tasks were carried out, such as strengthening the \"dual prevention\" system and improving safety production management systems, resulting in an overall stable safety production situation throughout the year. In terms of technical upgrades for projects, Jinkai Group Company seizes **policy opportunities** and actively works with the relevant departments to obtain the necessary approvals and qualifications. Once the preliminary procedures for project construction, such as safety assessments, environmental impact evaluations, and project construction permits, are in place, specific plans are formulated, timelines are established, and coordination is strengthened to ensure that all aspects related to project validation, procedure handling, and risk management are properly addressed during the relocation and construction processes. Through relentless efforts, breakthrough progress has been made in the project for the technical transformation of the old factory site of the group company to produce coal-based new materials, as well as in the construction of the dedicated railway line. On November 3, 2021, the groundbreaking ceremony was held for the old factory site relocation project and the dedicated railway line ； On December 16, construction began on the 5.86-kilometer section of the road planned to be built within an area of 1,000 mu. To date, the project for the relocation of the old factory site and its technical upgrading to produce coal-based new materials has been approved through joint review by the Henan Provincial Development and Reform Commission; the relevant energy assessment and environmental impact assessment reports for this project are currently being prepared.