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At present, faced with a complex and changing external environment as well as the internal demands arising from profound changes in the industry, Shandong Energy New Materials Company is taking the \"Year of Five Integrations for Improvement\" as its key strategy. Adhering to the strategic direction of \"optimizing operations, ensuring stability, increasing growth, and improving quality and efficiency\", the company is pooling efforts through integration within industrial chains, unlocking new potential through reforms, and strengthening its advantages through party building, with the goal of delivering impressive results in terms of high-quality development by 2025. Focusing on strengthening the industrial foundation and promoting integration within industrial chains to drive improvement, since the beginning of this year, the New Materials Company has taken on the mission of helping Shandong Energy Group achieve growth and advancement. It has adhered to focusing on its core business and engaging deeply in industrial activities, considering industry development and upgrading as the basis for the company’s survival and strength. To date, it has established an industrial structure characterized by distinct features, complementary advantages, and coordinated operations across various chains, thereby laying a solid foundation for the company’s high-quality development. The core new materials industry is being strengthened, with significant progress being made in high-end chemical new materials. Focusing on breaking through key technologies and overcoming foreign monopolies, new material companies continuously work to extend, enhance, and strengthen their supply chains, increase investment in research and development, and improve existing assets while expanding their scale. Qixiang Tengda’s flagship product, methyl ethyl ketone, maintains the world’s highest production and sales volume ； Dongchen Ruisen’s long-chain nylon has overcome key technical barriers; its production capacity for nylon elastomers ranks third in the world… Seizing the opportunities presented by the transition to green energy, new fiber composite materials are emerging rapidly. Shandong Fiberglass has successfully developed high-modulus wind turbine yarns through independent research and development, and these yarns have passed full-scale blade tests, providing critical material support for the localization of large wind turbine blades. The three major transformation projects have reached full operational capacity; the degree of intelligence in the production lines exceeds 80%, and the share of high-end products in total production has risen to 37%. A total of 30,000 tons of high-modulus and ultra-high-modulus wind turbine yarns were sold this year. Focusing on the development of green and low-carbon industrial parks, calcium-based new materials are being brought into full production to generate benefits. By leveraging regional resource advantages, the new materials company has established a complete industrial chain that spans from ore mining to high-end nano-calcium carbonate production, thereby creating a green and low-carbon demonstration park in Shandong Province that generates annual revenues of over 50 million yuan. Among them, the nano-calcium carbonate production line achieved joint commissioning in advance, and currently enables flexible production of calcium oxide, calcium hydroxide, and nano-calcium carbonate. Efforts have been made to develop and strengthen emerging industries, with remarkable achievements in the research and development of optoelectronic new materials. Since the start of research and development on perovskite solar cells at the end of 2024, the team managed to raise the conversion efficiency of perovskite photovoltaic cell modules to a level leading in the industry within just 8 months. They met the provincial-level scientific and technological targets 20 months ahead of schedule, achieving a leap from following others to keeping pace with them, and even taking the lead in certain areas. Focusing on improving management efficiency, the new materials company delves into a \"three-dimensional approach\" to strengthen its internal capabilities. In the face of fierce market competition, it promotes the implementation of \"six precisions and six improvements\" across the entire value chain and throughout the industry, seeking systematic solutions in the areas of cost reduction, efficiency improvement, and value addition, thereby enhancing overall operational quality and efficiency. Focus on reducing costs and making the most of existing resources. The new materials company promotes the implementation of policies such as \"practicing thrift and strictly controlling costs\" as well as the \"ten cost-saving initiatives\" in a thorough and effective manner. Adhering to the overall strategy of \"focusing on the ends, controlling the middle, and reducing costs\", it carries out competitions aimed at cutting costs and improving efficiency, thereby achieving genuine cost reductions with tangible results. Since the beginning of this year, the company has significantly reduced its variable costs, the \"three types of expenses\", and the funds that can be controlled by various levels of management; by implementing the \"six fixed\" management principles, it has saved more than 50 million yuan in labor costs. Seek breakthroughs in the aspect of “promotion,” and drive improvement through targeted optimization. New Material Company proactively compares itself with leading enterprises in the industry, formulates strategies for improvement, enhances synergies, and continuously boosts its profitability. Qixiang Tengda followed the example of Hualu Hengsheng and optimized its organizational structure, reducing the number of departments by 25% and the number of employees in those departments by 51% ； By actively adapting to the complex and volatile foreign trade environment, exports have maintained steady growth, with cumulative exports from January to October increasing by 23% on a year-on-year basis. Expand opportunities through growth, and activate existing assets to generate benefits. The new materials company made active efforts to utilize its idle assets, achieving a total amount of 220 million yuan, thus exceeding the set targets ； 2.96 million yuan worth of backlogged inventory was cleared, and the disposal of waste materials generated nearly 18 million yuan in benefits. Meanwhile, the company strengthened its policy research and implementation capabilities, resulting in tax savings and efficiency gains worth 290 million yuan. Strengthening the integration of Party building and corporate culture to harness the collective efforts of all employees for development. Guided by the “dual integration and dual innovation” Party building model, the New Materials Company promotes a profound transformation of the “Party building +” model from mere “tangible coverage” to “effective implementation,” thereby injecting strong red momentum into the company’s development. Ideology and culture bring people together. The New Materials Company continues to carry out the educational campaign titled “Unite and Move Forward, Work Together for Development,” which enhances the emotional, ideological, and cultural cohesion among its employees and staff ； Building on the \"Five Transformations, Five Increases, and Five Improvements\" initiative, more than 200 educational and practical activities themed \"Five Knowledges, Five Guarantees, and Five Dares\" as well as \"Transforming Work Styles, Ensuring Safety, Striving for Efficiency, and Promoting Development\" were carried out, reaching over 9,800 participants. The concept that \"our company is great, and with a great company, we become even better\" has taken root in people’s minds. The party-building brand continues to be strengthened. The New Materials Company focuses on building a learning-oriented Party organization; it organized 78 people to participate in training for key instructors of the learning-oriented Party organization ； We have thoroughly carried out the “Ten-Hundred-Thousand” initiative aimed at leveraging Party building to drive corporate reform, complemented by ten special action plans. As a result, 29 pioneers in this endeavor, 10 youth task forces dedicated to overcoming challenges, and 10 demonstration sites for the “Transform, Ensure, Strive, Promote – Setting Examples” program have been identified. This has fostered a strong atmosphere throughout the company, one characterized by diligence and capability, unwavering commitment to achieving goals, and a focus on ensuring safety while maximizing efficiency. People’s livelihood protection ensures broad-based benefits. The New Materials Company places great emphasis on caring for its employees. Through measures such as establishing a assistance fund and conducting visits to needy families, it has provided aid to 69 disadvantaged households this year, distributing a total of 136,000 yuan in relief funds ； The activities of “bringing coolness in summer” and “bringing warmth in winter” are carried out on a regular basis, with over 300,000 yuan worth of supplies distributed… The sense of happiness and belonging among employees continues to increase. Going forward, the new materials company will continue to rely on Party building as a guiding force, maintain its strategic focus, strengthen its existing advantages, and address its weaknesses. With the four industrial clusters as its foundation and intelligence and high-end development as its driving forces, it will move forward at full speed toward becoming a first-class new materials industry group.