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By 2025, the domestic fluorine chemical industry was showing positive development trends. Meilan Chemical Group Co., Ltd. (hereinafter referred to as Meilan Group) seized the opportunities presented by this industry development, emulated leading enterprises, and focused on improving its internal management. It moved forward steadily with the goal of developing high-tech and advanced manufacturing industries as well as building green and intelligent factories. Throughout the year, the company achieved sales revenue of 5.68 billion yuan and paid 277 million yuan in taxes, demonstrating a stable and positive business performance. By 2026, Meilan Group will accelerate the upgrading of its fluorine material products, pursue new technological approaches, strengthen efforts in talent recruitment and development, consolidate its operational foundation, boost production and sales, expedite its digital transformation, improve its institutional framework, and deepen lean management practices. These efforts are aimed at getting a good start for the 15th Five-Year Plan period and striving to create a new landscape of high-quality development. Focusing on industrial upgrading and fostering new forms of productive capacity, by 2026 Meilan Group will leverage core technological breakthroughs and a diversified industrial structure to promote the development of such new productive capacities, thereby strengthening the industrial foundation for high-quality development. The Meilan Group will fully implement the development project for fourth-generation refrigerants with ultra-low GWP values, and will develop fourth-generation refrigerant products using two different technical approaches at its Meixin and Jiuhong manufacturing sites. Among them, Mei Xin focuses on the hexafluoropropylene route, with the construction of facilities for producing 30,000 tons per year of the monomer and 20,000 tons per year of hexachloropropylene ； Jiuhong focuses on developing the carbon tetrachloride route, and makes every effort to advance the efficient model of building the fourth-generation refrigerant project with one team operating in two locations. Meanwhile, Melan Group will actively expand its presence in the new energy sector, planning to collaborate on the development of hydrogen peroxide production projects with a capacity of 300,000 tons per year as well as hydrogen energy projects, and will accelerate the research and development of new semiconductor materials. Talents are the core support and key driving force for fostering new-quality productivity. The Meilan Group will adhere to the principle of combining recruitment with cultivation to accelerate the development of its talent pool. On one hand, we build platforms to attract high-level talents and collaborate with universities, so that these talents can put their abilities to good use” ； On the other hand, emphasis is placed on internal talent development. Through initiatives such as the reserve cadre training program and incentives like education allowances, efforts are focused on nurturing young backbones, ensuring that talents remain within the organization and can grow professionally. Strengthening the operational foundation to achieve simultaneous improvements in production and sales: In the current highly competitive chemical industry, where the market environment is complex and volatile, maintaining stable production, improving operational efficiency, and expanding market share have become the key priorities for companies aiming to solidify their foundations for development. The Meilan Group will firmly maintain control over its operations, achieve a balance between production and sales based on standard capacity and standard costs, consolidate the foundation of its production and business activities, and focus on advancing four key tasks. First, it is to enforce the main responsibilities of the business unit in terms of production, sales, and operations, by clarifying the operational goals and assessment requirements ； Second, strengthen the performance management in terms of safety and environmental protection, and ensure that the main responsibilities for these areas are fulfilled at every level ； Third, carry out regular equipment maintenance and daily upkeep with high quality to ensure the long-term stable operation of the installations ； Fourth, deepen market planning and layout to actively create new prospects for market development. In addition, the Meilan Group will strengthen its market functions, enhance market planning and strategy development, keep a close eye on market trends, fully understand customer needs and consumption growth patterns, and use high-quality market strategies to better guide sales efforts. It aims to achieve its annual sales targets through 120% effort in customer acquisition. Accelerate digital transformation to empower management and production advancement. Digital transformation is a key driver for improving corporate management efficiency and upgrading production processes. By 2026, Meilan Group will accelerate its digital transformation, focusing on two key areas: management informatization and the development of smart factories, in order to promote progress in enterprise management and production technologies. In terms of information management, the Meilan Group will advance the enhanced use of core business functions such as ERP annual targets and business analysis, to achieve seamless integration between ERP payment and receipt information and ICBC’s treasury system ； Advance the application and expansion of the predictive maintenance function on the FLOW platform, to enable the display of ERP exception reports in FLOW, the linkage between maintenance costs and equipment, and closed-loop management of major MES alarms through FLOW. In terms of the development of smart factories, the Meilan Group will proceed in accordance with the annual plans established, fully implementing advanced process control technologies (APC). It will steadily advance the implementation of zero-manual operation projects, adhering to the principle of advancing each project once it is ready. Through the construction of smart factories and zero-manual operation projects, the group aims to continuously improve the intrinsic safety level of its facilities, optimize the workforce structure and enhance work efficiency, thereby effectively reducing the company’s labor costs. Improve the institutional framework to achieve comprehensive management. Lean management is the key approach for enterprises to reduce costs, increase efficiency, and improve quality. By 2026, the Meilan Group will take continuous improvement of the institutional framework, comprehensive deepening of institutional management, targeted addressing of management weaknesses, and elimination of management disparities as its core tasks. It will strive to achieve full coverage in terms of institutions and management, and promote efficiency improvements through refined control mechanisms, thereby providing a solid and reliable institutional foundation for the group’s high-quality and sustainable development. With the goal of achieving \"comprehensive coverage in systems and management,\" the Meilan Group will develop specific improvement plans to refine its system framework, increasing the total number of systems to 1,200 in order to strengthen the foundation of management. Meilan Group regards the improvement of projects as a key task for the year. Meixin and Jiuhong have identified a total of 20 projects for ongoing improvement this year, thereby providing a solid foundation for the implementation of lean management and the enhancement of corporate efficiency. In addition, the Meilan Group will establish evaluation and reward systems for continuous improvement projects, introducing two categories of awards: project awards and project organization awards. By focusing on these continuous improvement projects, a regular evaluation mechanism will be put in place, and periodic assessments of the effectiveness of these projects will be conducted. Projects that achieve significant results will be appropriately rewarded, thereby stimulating the enthusiasm of all employees to participate in improvement efforts and to innovate proactively. Author: Zhou Yubin, General Manager of Meilan Chemical Group Co., Ltd