Review on the Management of Beihua Company’s 2022 Annual Board of Directors
() The business review of the Board of Directors in 2022 is as follows:
I. The industry in which the company is located during the reporting period.
The company shall comply with the disclosure requirements of the construction machinery industry in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.3-Disclosure of Industry Information.
Special industrial pump industry: the slurry pump produced by the company is used to transport slurry containing abrasive solid particles, which is widely used in mining, electric power, metallurgy, coal, phosphorus chemical industry and other industries. With the rising demand for purified phosphoric acid, the phosphorus chemical market has maintained a steady and rising trend. With the increasing demand of new energy batteries, electronic-grade phosphoric acid, food-grade phosphoric acid and other phosphorus chemical industries, it also drives new development opportunities for upstream phosphorus chemical enterprises. The spare parts in the mining and metallurgical markets are frequently replaced, with large market capacity and broad prospects. With the upgrading of existing pumps and replacement of spare parts, the market demand for maintenance services has also increased steadily.
In 2023, there will be strong demand for flue gas desulfurization, phosphorus chemical industry, energy-saving pump and sintered ceramic pump. The company will seize the market opportunity and promote the transformation and upgrading of the service market, and gradually shift from single-machine equipment production to an integrated supply system of "pump+start-stop control+remote monitoring+adaptive adjustment".
The company shall comply with the disclosure requirements of the chemical industry in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.3-Disclosure of Industry Information.
Cellulose and its derivatives industry: taking cellulose as raw material, reacting with esterifying agent and etherifying agent respectively, cellulose esters and cellulose ethers can be obtained, and the nitrocellulose products of the company are cellulose esters. The global market demand for nitrocellulose is basically stable. At present, 90% of civil nitrocellulose products are used in the paint and ink market. In the coating industry, the demand for oily coatings, such as nitrocellulose paints, has declined under the influence of multiple factors. With the constant changes in the global economic environment and safety and environmental protection situation, the overall demand still exists. In terms of ink industry, it has maintained a rapid growth trend in recent years. The main demand is high-quality products with low nitrogen and viscosity, high quality and good fluidity. It is expected that it will maintain a rapid growth momentum in the future. According to the industrial development trend, the demand for high-end ink products in downstream industries in the domestic market will increase. Due to the persistent global instability, international military conflicts and the anti-terrorism situation, the demand for energetic cotton has increased in recent years. In 2023, the domestic demand of nitrocellulose showed a slight growth trend, and the international market demand showed a steady trend.
Chemical defense and environmental protection industry: The global activated carbon industry is facing the challenges of increasingly strict requirements for environmental protection, energy saving and emission reduction and rising labor costs, and the overall market growth is weak. The foreign trade market of activated carbon continues to be weak, and the domestic activated carbon market is in the transition period from the introduction period to the growth period. The demand for activated carbon products in downstream areas is increasing rapidly, especially under the strategic goal of "carbon neutrality" and "peak carbon dioxide emissions", which has a good development space in the future. The domestic low-end market of personal protective products has overcapacity, and the homogenization competition is intensified; High-end markets such as fire protection, coal mine, chemical industry and rescue emergency have great room for growth; In the fields of civil air defense policy adjustment, industrial special protection and emergency protection, the standard and quality are improved, and the demand for individual protection and upgrading of civil air defense filters is obvious; New air defense filters, air purifiers, fresh air systems, industrial toxic and harmful gas purification devices, smoke purification devices and filter carbon plates are expected to form new pillars. In recent years, as the country has accelerated the introduction of stricter standards and policies for pollutant discharge and treatment in air pollution prevention, water pollution control and soil pollution remediation, it has provided a broader market space for adding and upgrading existing environmental protection equipment. Coupled with the influence of national economic development, environmental protection policy guidance, industry technological innovation and other factors, China’s environmental protection industry as a whole has developed rapidly, and environmental protection equipment products have shown a growth trend.
It is estimated that in 2023, as the domestic economy continues to pick up, the demand for activated carbon, catalysts and environmental protection equipment will recover steadily, and there will be a steady growth trend in the future with the support of policies and the positive response of the market.
II. Main businesses of the Company during the reporting period
The company shall comply with the disclosure requirements of the construction machinery industry in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.3-Disclosure of Industry Information.
During the reporting period, according to the Guidelines for Industry Classification of Listed Companies issued by China Securities Regulatory Commission (revised in 2012) and the results of industry classification of listed companies issued by China Securities Regulatory Commission, the industry of the company was "manufacturing-chemical raw materials and chemical products manufacturing"; According to National Economic Industry Classification and Code (GB/T 4754-2017), the industry code of the company is 2614, organic chemical raw material manufacturing.
Since its listing, the company has given full play to the role of the capital market platform, continuously promoted the adjustment and upgrading of industrial structure, and stabilized the "multi-main business" industrial structure of cellulose and its derivatives industry with nitrocellulose as the core, chemical protection and environmental protection industry based on activated carbon, and special industrial pump industry with slurry pump as the core.
(a) the main business.
During the reporting period, there were no major changes in the company’s main business and products.
Cellulose and its derivatives industry: The company can produce three series, four wetting agents and more than 80 brands of nitrocellulose products, which are widely used in the fields of national defense weapons and equipment, overseas civilian bullets, coatings, inks and celluloid products, and have grown into a nitrocellulose manufacturer with the most complete product spectrum and product extension in the industry. The marketing network covers more than 50 countries and regions in Asia, Europe, Africa, the Middle East, South America, North America and Oceania. It is an "excellent supplier" of the world’s top 500 companies, such as Akzo Nobel in the Netherlands, Sunchem in the United States, Bayer in Germany and Diaison in Japan. Since 2004, it has continuously maintained the leading position in production and sales scale in the world.
Chemical defense and environmental protection industry: Shanxi Xinhua Chemical Defense Equipment Research Institute Co., Ltd., a subsidiary of the company, is the only research and production unit of chemical, biological and chemical defense equipment in China. Since the establishment of the factory, the Institute of Chemical Defense Equipment has been concentrating on the field of protection and environmental protection, extending the concept of integrity and quality policy to the first behavior concept focusing on customers, positioning the mid-to high-end market, devoting itself to the development of chemical defense and environmental protection industries based on activated carbon, and serving national defense security and national economic construction. The products have reached the internationally renowned and domestic leading level, and it is a leading enterprise in China’s carbon-based catalyst, coal-based activated carbon, industry and hazardous chemical protection.
Special industrial pump industry: Xiangyang 525 Pump Industry Co., Ltd., a subsidiary of the company, integrates R&D, manufacturing, sales and service. It is a state-level high-tech enterprise and a state-level "little giant" enterprise specializing in special innovation. The company has more than 40 years of experience in research, development and manufacturing of slurry pumps and advantages in casting core materials. Its products are widely used in environmental protection fields such as thermal power, phosphorus chemical industry, mining industry, metallurgy, etc., and it has maintained a leading position in the market segment of pumps for flue gas desulfurization and phosphorus compound fertilizer for a long time.
(two) the production and operation of the main products
1. Main products and production
(1) Main products
(2) Process flow of main products
Cellulose and its derivatives industry:
The production process of nitrocellulose series products is as follows:
Chemical defense and environmental protection industry:
The production process flow of gas mask body is described as follows:
2. Main business models
Compared with the previous reporting period, the company’s main business model has not changed significantly.
(1) Cellulose and its derivatives industry: As a leading enterprise engaged in nitrocellulose production and sales, the company has a complete procurement, production and sales system.
① purchase mode
The company has long-term experience in raw material procurement, storage and transportation and stable supply channels, and has a deep understanding of the price changes of various bulk raw materials related to nitrocellulose.
About 70% of the company’s demand for main raw materials is signed with suppliers in large quantities, and the remaining 30% is purchased immediately according to the market price, which ensures the supply guarantee of demand and maintains certain flexibility. At the same time, the company adopts a multi-supplier system for any kind of bulk raw materials, which is conducive to obtaining price advantage and ensuring supply.
Based on the analysis of past budget implementation and future market conditions, the company determines the sales plan and marketing strategy for the next year, and determines the product production plan for the next year on this basis, and then calculates the required quantity according to the unit consumption data of various raw and auxiliary materials, and determines the procurement plan for the next year by combining the analysis of the future market conditions of raw materials. In actual implementation, the monthly purchasing plan is determined and adjusted in time according to the monthly production plan, material inventory quantity, annual purchasing plan and the analysis of current market conditions. According to the purchase application received every month, the purchasing department makes inquiry and negotiation with suppliers, and finally reaches a purchase agreement and implements it.
② production mode
At present, the company has two nitrocellulose production bases in Luzhou and Xi ‘an. The company organizes production according to the order situation and adjusts the operation plan according to the market changes to fully meet the needs of market customers. The company has carried out flexible transformation of the production line, which can adjust the process and implement "quick production change" according to the different needs of customers, and mass produce products that meet the national standards and are customized according to the individual needs of users; Through the adjustment of some technological processes, meet the needs of customized customers; For users with special needs, special raw materials and special production technology are designated to meet the different product quality requirements of customers.
③ Sales model
Guided by the modern channel management concept, the company adopts a compound mode of channel operation combining direct selling and distribution, giving full play to the advantages of various modes and maximizing channel efficiency.
First, direct sales to high-quality customers at home and abroad
The company implements direct selling strategy for big customers and special customers. The direct selling model has the advantages of short channels, strong channel control, timely information collection and quick response to market changes, especially competitors’ competitive strategies, timely service and strong terminal price controllability. The company gives priority to meeting the requirements of large customers and special customers in product supply, technical services and special services, and gradually cultivates large customers into strategic partners.
The second is the distribution model.
The company implements the first-class dealer model in areas with scattered distribution, medium (small) and dense scale, conventional products and large service radius, which plays a role in covering a wide range and buffering business risks, and can also reduce sales costs and benefit end customers.
The third is foreign trade sales.
The company mainly carries out nitrocellulose export business by means of self-operated foreign trade export, supplemented by port trade export.
(2) Chemical defense and environmental protection industry
① purchase mode
The material procurement of Chemical Defense Equipment Research Institute is mainly divided into centralized procurement and market procurement. The main raw materials, auxiliary materials and accessories for production are mainly purchased in a centralized way, or purchased in a qualified supplier’s market. The rest of the raw materials, cooperative fittings and general standard materials shall be submitted to the demand plan by each production unit, and after being audited by the material center, they shall be purchased at their own fixed point or by market comparison, and the purchase price will fluctuate with the change of market price.
② production mode
The products of Chemical Equipment Research Institute are produced according to the order requirements, and the company organizes and dispatches the production in a unified way, and issues the production operation plan every month. The plan is to decompose the feeding, output and tooling of each product component into various production units, and each production unit organizes the production according to the plan.
③ Sales model
First, the special ordering products and air purification and environmental protection products of the Institute of Chemical Defense Equipment mainly adopt the direct selling mode.
The second is the domestic sales of activated carbon products of Chemical Defense Equipment Research Institute, and the implementation of one-stop service in key industries such as water purification, cement, steel, nonferrous metals, etc., mainly through team research and project bidding. Catalyst and impregnated carbon products are mainly sold by direct sales. Foreign sales are mainly self-export, while developing e-commerce business model.
Third, the protective equipment products of the Institute of Chemical Defense Equipment are divided into individuals and collectives. Among them, personal protective equipment products are generally distributed by the company and distributed by local distributors. At the same time, e-commerce network sales are developed and logistics delivery is arranged in a unified way. Collective protective equipment is mainly sold by authorized independent dealers.
Reasons for major changes in raw material prices compared with the previous reporting period
Cellulose and its derivatives industry: the price of cotton linter, the raw material of refined cotton, rose to the highest price of 10,500 yuan/ton in the past ten years from the end of 2021 to the beginning of 2022, and then gradually adjusted back, resulting in the market price of refined cotton in the first half of 2022 being higher than that in the second half.
Third, the core competitiveness analysis
During the reporting period, the company’s core competitiveness has not changed significantly, mainly as follows:
1, the scarcity of special qualifications
At present, the scientific research and production in China’s military industry are approved in advance, and the company has special qualifications in the military industry and corresponding production support capabilities. The scarcity of special qualifications enhances the company’s core competitiveness.
2. Industry position and brand advantage
Cellulose and its derivatives industry: since 2004, the company has maintained the leading position in the production and marketing scale industry and is one of the three executive committees of the World Nitrocellulose Manufacturers Association. The company has four categories of refined cotton nitrocellulose, wood pulp nitrocellulose, nitrocellulose lacquer flake and nitrocellulose solution, and the whole system product spectrum of wetting agents such as ethanol and isopropanol, which can provide customers with personalized customized products. With brands such as "SNC", the marketing network covers more than 50 countries and regions, and the brand recognition is high. Nitrocellulose series products occupy more than 50% in the domestic market and more than 20% in the international market.
Chemical defense and environmental protection industry: the company’s chemical defense and environmental protection industry series products are undertaken by the wholly-owned subsidiary Chemical Defense Equipment Research Institute. The Institute of Chemical Defense Equipment is the only "double-protection army" enterprise in the scientific research and production of chemical defense equipment in the national defense industry, and the backbone enterprise in the research and development and manufacture of chemical defense equipment. It has a national mobilization center for gas masks and collective protective equipment, a first-class metering station for chemical defense in the national defense science and technology industry, and its equipment covers all arms and services. It also provides advanced space purification and emergency protection equipment for shenzhou spaceship and Tiangong space stations, making an important contribution to national defense. The market share of activated carbon products is about 15%, the market share of catalyst products based on activated carbon is about 25%, the market share of civil air defense filters is about 25%, and the market share of export masks is over 80%.
Special industrial pump industry: the company’s slurry pump series products are undertaken by the holding subsidiary pump company. The pump company has more than 40 years of R&D and manufacturing experience, and it is the only enterprise in China that introduces foreign design and manufacturing technology of corrosion-resistant and wear-resistant pumps and special steel smelting and casting technology. Has the advantage of core material casting and participates in the formulation of national standards for special steel materials. There are more than 30 series and more than 650 product specifications, which can meet the individual needs of customers. "525 and Map" is a national well-known trademark, and "525" brand slurry pump is a famous brand product in Hubei Province, which is exported to more than 42 countries and regions. The domestic market share of slurry pump in phosphate compound fertilizer pump is 70%, and that of flue gas desulfurization pump is 40%.
3. Advantages of technological innovation
Cellulose and its derivatives industry: the company’s R&D center is the cellulose product development center of Ordnance Group. According to the roadmap of scientific and technological development, the top-level design of R&D system for process innovation, product innovation and application innovation has been studied and formulated, and technological innovations such as drying technology of nitrocellulose chips and semi-automatic packaging of nitrocellulose have been promoted in an orderly manner; Complete the application of low viscosity nitrocellulose flooding packaging technology upgrade production line. The project "Technology and Application of Nitrocellulose Efficient and Continuous Acid Flooding Washing" has passed the appraisal of scientific and technological achievements and reached the international advanced level. "Key Technology and Application of Safe and Green Manufacturing of Energetic Cotton" has passed the scientific and technological achievements appraisal of Ordnance Group, and the overall technology has reached the international advanced level.
Chemical defense and environmental protection industry: Chemical defense equipment research institute is the first-class metrological technical institution of chemical defense in national defense science and technology industry and the testing and testing institution of China People’s Liberation Army’s military product finalization test, and has been recognized as a national high-tech enterprise and a national enterprise technology center; The first batch of intellectual property cultivation enterprises in Shanxi Province won the first prize of the National Science and Technology Progress Award; In 2022, it was approved as "Shanxi Key Laboratory of Filtering and Purification Materials" and Shanxi Porous Adsorption Materials Engineering Research Center. Re-identification of high-tech enterprises passing smoothly. The Metrology and Testing Center of Chemical Defense Equipment Research Institute was selected into the list of weapons and equipment testing institutions of the Equipment Development Department of the Central Military Commission and successfully passed the CNAS laboratory accreditation re-evaluation. It has more than 300 sets of internationally advanced scientific research and test instruments such as scanning electron microscope, X-ray diffractometer, plasma emission spectrometer, Raman spectrometer, thermogravimetric analyzer and GC-MS, and an innovative team of more than 300 scientific and technological personnel. He has participated in the national "863" plan, manned (), high-tech projects and other major national special tasks; Presided over the formulation of more than 60 national standards, military standards and national industry standards for chemical defense equipment, with more than 200 patents and more than 100 invention patents, and won more than 20 scientific and technological progress awards at or above the provincial and ministerial levels, which improved the contribution rate of new products; It has a perfect scientific and technological research and development system of "eight institutes and one center".
Special industrial pump industry: the pump company was successfully selected as a national key "little giant" enterprise, and the R&D center was recognized as the enterprise technology center of Hubei Province. Around the strategy of "transformation and upgrading", develop a full range of centrifugal slurry pump products, and form a multi-variety slurry pump product pattern; Guided by market demand, we accelerated product research and development, completed the design and development of 53 new pump types, such as composite ceramic chemical slurry pump and sintered ceramic pump, continuously optimized metal materials, developed and verified ceramic materials, and reserved composite materials. Among them, "Key technology and industrialization of efficient and reliable slurry pump based on wear-resistant working conditions" won the second prize of scientific and technological progress of the group company.
4. The market operation ability has been continuously improved.
Cellulose and its derivatives industry: build a platform, implement hierarchical and authorized management, strengthen marketing functions, and play a synergistic effect. The marketing network has a wide coverage, and the channels are effectively maintained, controlled and standardized, realizing professional and personalized customized sales, realizing the transformation from "selling products" to "operating markets", further improving the market operation ability, maintaining the domestic market share above 50% and the global market share above 20%.
Chemical defense and environmental protection industry: the marketing system has been continuously improved, the incentive mechanism for the development of civilian products market has been established, and a series of management measures such as sales incentives and management have been revised to continuously improve the market-oriented operation ability of civilian products. Signed a cooperation agreement on activated carbon technical service and brand license, and brand marketing took a substantial step.
Special industrial pump industry: the layout of "manufacturing+service-oriented enterprises" has been transformed and upgraded, the diversified construction of sales channels has been promoted and new breakthroughs have been made. According to the strategic development orientation of "wide field, deep level and internationalization", the transformation effect to the mine metallurgy, foreign trade and maintenance service market has been obvious, and the operation scale and quality have been steadily improved.
5. Construction of core backbone team
The company has completed the tenure system and contractual management of managers, increased the incentives for key personnel, optimized the employment structure, and implemented diversified employment patterns, differentiated and market-oriented salary distribution. Strengthen the introduction of high-end talents, optimize personnel allocation, and improve the talent growth and evaluation system. In 2022, he was selected as 2 scientific and technological leaders of the group company, 2 young scientific and technological leaders and 1 young talent visiting program. Constantly improve the system of employee compensation and welfare security, ensure that the salary distribution is tilted towards the core talents, give full play to the role of salary incentives, enhance the sense of acquisition and happiness of core talents, fully mobilize the entrepreneurial enthusiasm, initiative and creativity of employee officers, and further enhance creativity and market competitiveness.
Fourth, the main business analysis
1. Overview
The year 2022 is a crucial year for the implementation of the "14th Five-Year Plan" strategy, and an intensive year for further promoting compliance management. The company earnestly implements the "1+5" strategy, fully implements the spirit of the annual board meeting, and promotes key tasks such as safe production, quality improvement, equipment guarantee, party building, etc., so as to achieve steady improvement of operating quality, smooth operation of safety and environmental protection, effective operation of internal control and comprehensive risk management system, no major safety, environmental protection and quality accidents, no leakage and theft, and no adverse events disclosed by the media.
During the reporting period, the company realized an operating income of 2,558,664,885.79 yuan, a year-on-year decrease of 2.84%; The net profit attributable to shareholders of listed companies was 93,028,429.68 yuan, a year-on-year decrease of 23.45%; The net assets attributable to shareholders of listed companies were RMB 2,854,198,262.85, up by 4.78% from the beginning of the year, and the earnings per share was RMB 0.17, down by RMB 0.05 year-on-year.
(1) Focus on the main business and fully complete the supply and service guarantee.
First, the product supply guarantee was fully completed, and the contract performance rate reached 100%; Second, the product manufacturing technology has been steadily improved, and the upgrading of the energetic cotton packaging production line in Luzhou base has been accelerated; Promote the research on the application technology of high purity energetic cotton in high energy and low sensitivity. Third, the after-sales service of products is completed efficiently, and the cellulose and its derivatives industrial organization has completed the after-sales visit service and technical benchmarking of energetic cotton users, and continuously improved the quality and service guarantee level; The chemical defense and environmental protection industry has improved the service guarantee system of chemical defense equipment, provided after-sales service to more than 10 users, and completed relevant services in a timely and efficient manner, which has been recognized by many users.
(2) Systematically promote safety management and build the cornerstone of high-quality development.
First, carry out the investigation of potential safety risks in a down-to-earth manner. The company conscientiously implemented the "Five Re-evaluations" Special Work Plan for Production Safety Accidents, formed a "List of Rethinking, Re-recognizing, Re-analyzing and Re-evaluating Problems", established enterprise standards for production safety in production lines, and promoted the "all-level, all-process, all-factor and all-staff participation" process management; Fully implement the requirements of the "Nine Checks". Second, strengthen risk identification around "technology, site and change". Focus on the technological process and the whole production process, systematically identify and analyze the safety risks, and form a risk distribution matrix diagram and a control measures implementation table. Third, the effectiveness of environmental protection operations continued to improve. The company actively promoted peak carbon dioxide emissions and carbon neutrality, and completed the annual carbon emission verification.
(3) Strengthen quality management in an all-round way, and improve service guarantee ability.
First, the quality awareness of all staff has been steadily improved, quality warning conferences have been organized, quality exposure stations have been set up, and effective measures have been taken to strengthen quality process control, so that the overall situation has remained stable. Second, the quality inspection and rectification has achieved results. Solidly carry out the special quality rectification work of "immediate action", improve the system of "Quality Rewards and Punishment Measures" and "Quality Management Assessment Measures" and the mechanism of quality information sharing and rapid disposal, enhance the quality awareness of all kinds of personnel at all levels, improve the quality responsibility list of each post, firmly establish the concept of "doing things right once" and "everyone’s work quality is 100 points", and compact the quality responsibility of post personnel. Third, the quality management system has been continuously improved. Give full play to the traction and guidance of quality indicators, and form a quality management system with the whole process, all elements and full participation. The cellulose and its derivatives industry has adjusted the annual quality index from a single dimension to a multi-dimensional system of 17 indicators in five aspects; The protective equipment manufacturing industry revised 45 quality management system program documents, formulated a systematic process technology improvement and upgrading plan, and formed an enterprise process management domain system tree; The slurry pump manufacturing industry has improved 21 quality index systems in scientific research and technology.
(4) Adhere to innovation-driven development and promote the transformation of key technologies.
First, the work of technological innovation has been steadily advanced. Insist on focusing on the main business, further promote technological innovation such as process technology improvement and product application research, and set up 87 scientific research projects throughout the year (including 21 cellulose and its derivatives industries, 59 chemical protection and environmental protection industries, and 7 slurry pump manufacturing industries), with an investment of 117 million yuan in research and development. Second, new progress has been made in product innovation. The cellulose and its derivatives industry will strengthen foreign cooperation, and continue to promote the manufacturing technology of small-energy and energetic nitrocellulose and the research of ultra-nano-structured bacterial nitrocellulose products. The chemical defense and environmental protection industries have strengthened the research and development of new products, and the civil air defense passive poison alarm has completed the functional prototype development and environmental test. The high-performance honeycomb activated carbon has passed the technical appraisal and put it on the market. The special industrial pump industry independently researched and developed 12 types of sintered ceramic pumps, actively developed new high wear-resistant and corrosion-resistant special materials and casting technology, and promoted the development of new products such as energy-saving and efficient slurry pumps.
(5) Give full play to market advantages and steadily improve business quality.
First, the market operation ability continued to improve. Optimize the business strategy of cellulose and its derivatives industry, strengthen cooperation with many world-renowned companies, continuously consolidate the market position, and effectively enhance the market competitiveness of products. The chemical defense and environmental protection industry has innovated the marketing mode, formulated the regional manager management system and regional manager marketing mechanism, promoted the steady growth of civilian products income with stepped personalized incentive policies, and promoted the large-scale operation steadily with the double-wheel drive of key account strategy and brand marketing strategy. The special industrial pump industry has successfully won tens of millions of orders by integrating market resources and actively participating in the bidding for new market projects through various means such as leveraging development; Seize the new opportunities in the phosphorus chemical market, phosphorus chemical orders increased year-on-year. Second, international operations are progressing steadily. The cellulose and its derivatives industry has intensified its international market development and customer service, adding 13 customers including Israel to consolidate its international market share and improve its international operation quality. The chemical defense and environmental protection industry has further promoted international operation, and high-end customized activated carbon has become a qualified supplier for a customer in the UK. The special industrial pump industry firmly seized the opportunity of the "Belt and Road" market, signed a large mining order such as a project in Indonesia, and entered Montenegro, South Korea and other markets for the first time, and achieved new results in international operation. Third, the service-oriented market has achieved initial results. Cellulose and its derivatives industry insists on promoting service upgrade, changing from the traditional "order-taking mode" to "customer-operating mode", deepening cotton liquid production cooperation and continuously consolidating market share. Chemical defense and environmental protection industries should improve their price management methods, establish product cost models, and implement the market strategy of "one product, one policy".Promote the marketing mechanism of regional managers and further improve the market service level. Excellent achievements have been made in the development of ceramic pump, a key new product in the special industrial pump industry, with 380 new users of "Know Pump" system.
(6) Strengthen the construction of talent team and enhance the vitality of enterprise development.
First, comprehensively strengthen training and education. Solidly carry out a series of special trainings such as the lecture hall on safety production system, lectures on "Safety on the podium", "Five Re-education", "Twenty Prevention" and "Digital Intelligence Manufacturing" for company leaders. Continuously improve employees’ safety, quality awareness and quality ability. The second is to continuously optimize the personnel structure. Focusing on the development needs, one doctoral student, 34 master students and 32 undergraduates were introduced throughout the year, of which graduates from 211 and 985 key universities accounted for more than 50%. Actively promote the construction of high-level scientific, technological and skilled personnel. One person co-opted as the key skill leader of the group company and obtained the professional skill level qualification of the national special technician. One person co-opted as the scientific and technological leader of the group company and two people co-opted as the young scientific and technological leader of the group company. The third is to promote the reform of the salary system. Actively promote the performance-oriented modern enterprise salary distribution system, formulate the Measures for the Administration of Total Wages, strengthen the linkage between salary and important annual indicators and tasks, and highlight the performance goal orientation. Pay attention to process incentives, establish the Management Measures for Performance Appraisal of Special Tasks of Functional Management Departments and the Management Measures for Incentive of Key Projects of Industrial Development, timely assess the completion of key tasks and special tasks on a quarterly basis, and give full play to the role of performance appraisal and incentive. Formulate scientific and technological incentives and management measures for scientific and technological innovation teams in the chemical defense equipment industry, promote the construction of scientific and technological innovation teams and reform the salary system, and further highlight the salary-oriented role.
(7) Continue to deepen reform and development and improve the level of compliance management.
First, fully complete the three-year action of state-owned enterprise reform. Complete 8 major and 61 minor tasks involved in the company in an all-round way, and effectively optimize the modernization of management system and management ability; Solidly carry out quality improvement and efficiency improvement actions, and complete 40 tasks involved in benchmarking world-class management improvement actions. The chemical defense and environmental protection industry takes the Environmental Protection Equipment Research Institute and the Activated Carbon Division as the pilot, formulates the incentive scheme for sharing the operating results with employees, and strengthens the incentive orientation of heroes based on contribution. The second is to continue to play the role of audit supervision. Carry out work supervision around inventory management, the implementation of safety production process management, and the performance of duties of various personnel at all levels; The third is to further promote the compliance management of listed companies. 92 rules and regulations on information disclosure, system management and contract management were revised, and 38 systems in related party transactions, fund-raising management and legal compliance were established and improved to effectively prevent and resolve risks and ensure enterprises to operate in compliance with laws and regulations; Organize "Dong Jiangao", related shareholders and key personnel to participate in corporate governance training of listed companies to enhance their awareness and ability of compliance management; Through special internal control inspection, internal audit, discipline inspection and supervision, we will jointly promote the effective operation of the internal control system and continue to promote the optimization of the management system and compliance management in key business areas of the company. The fourth is to improve the basic system of company secrecy, carry out special work such as WeChat leak rectification and encore substitution, and successfully pass the qualification of confidentiality; Complete the construction of network security monitoring and early warning platform, 056 platform and online behavior audit system.Improve the level of network security management.
(8) Adhere to the guidance of party building and unite development and forge ahead.
First, political construction is more solid. Resolutely implement the spirit of the important instructions of the Supreme Leader General Secretary and the decision-making arrangements of the CPC Central Committee, profoundly understand the decisive significance of "two establishment", strengthen "four consciousnesses", strengthen "four self-confidences" and achieve "two maintenance". Improve and perfect the "first topic" mechanism of the party Committee and implement the requirements of "two consistency". The party Committee of the company held 87 party committees throughout the year, and the party Committee discussed 201 decisions and 108 pre-research discussions; The Party Committee’s theoretical study center group was organized to study for 15 times and focus on discussion for 6 times, which further improved the political judgment, political understanding and political execution of Party organizations at all levels and party member cadres. Second, the leadership of party building is more prominent. A high-quality party congress was held, and a new party committee and discipline inspection committee were elected, which laid an organizational foundation for promoting the deep integration of party building work and modern corporate governance. We will implement practical paths such as "Party Building+Safety" and "Party Building+Quality", and carry out the activity of "party flag Flying High at the Grass-roots Level" regularly to promote the deep integration of party building and business, and transform the political, organizational and mass advantages of party building into reform and development efficiency, thus boosting the company’s high-quality development. Third, discipline construction is more rigorous and powerful. Strengthen safety production, rectify political supervision on quality, tighten responsibility chain, and help enterprises develop healthily. Actively build a large supervision system, work together to carry out joint supervision and inspection, and realize the sharing of supervision results.
V. Prospect of the Company’s Future Development1. Company development strategy
The company will adhere to the guidance of the Supreme Leader’s Socialism with Chinese characteristics Thought in the new era, insist on strengthening the military’s first responsibility and innovation-driven, further optimize the industrial layout and product structure, and form a "multi-main business" industrial structure with nitrocellulose series products as the starting point, anti-chemical and environmental protection industries based on activated carbon, and special industrial pump manufacturing industries with slurry pump series products as the core. The quality and efficiency have been continuously improved, and the ability of scientific and technological innovation has been significantly enhanced. The technological level and value creation ability have been improved, the level of managing enterprises according to law has been comprehensively improved, the comprehensive deepening of reform has achieved results, the management level has been significantly improved, and the innovation driving ability of technological innovation, mechanism innovation and management organization innovation has been actively cultivated to actively adapt to the new normal of economic development.
-cellulose and its derivatives industry, adhere to scientific and technological innovation and systematic development, take strengthening the military as the first responsibility, stabilize the industrial scale, take structural adjustment as the basis, and realize the dual drive of high quality and integrated layout of the whole industry chain, so as to enhance the matching degree between industrial value and industrial status.
-Chemical defense and environmental protection industries to promote the systematic development of chemical, biological and chemical defense equipment. Vigorously develop the diversified civilian products industry direction with the core technology of activated carbon, expand the environmental protection industrial chain with activated carbon as the basic material, vigorously develop the protection and environmental protection industry, and realize the technology and market leadership through structural optimization and adjustment and transformation and upgrading of development mode.
-Special industrial pump industry, promote market transformation and product upgrading, build a full range of slurry pump products, basically cover the relevant market fields of slurry pumps, build a special industrial pump industry with the most complete product series, the highest technical level and the largest scale in China, build a national-level "little giant" enterprise specializing in specialty and innovation, and form well-known brands at home and abroad.
2. The Company’s business objectives and working ideas in 2023.
The year 2023 is the first year to study and implement the spirit of the 20th Party Congress, and it is also a crucial year to promote the capacity building of digital intelligence manufacturing. Under the guidance of Socialism with Chinese characteristics Thought of the Supreme Leader in the New Era, the board of directors of the company will fully implement the spirit of the 20th Party Congress, adhere to the general tone of striving for progress while maintaining stability, adhere to the systematic concept, build a bottom line for safe production, strictly observe the red line of quality control, speed up the adjustment of industrial structure, regard comprehensively promoting scientific and technological self-reliance as the "key measure" to solve the development problems, and take accelerating the construction of digital intelligence manufacturing capacity and laying a good "four major battles" as the fundamental policy for long-term stability. Open up the "first mile" of the original innovation of basic research and the "last mile" of the transformation of scientific and technological achievements and the application of industrial marketization, and promote the high-quality development of Beihua Co., Ltd. with tangible results. In 2023, the company’s initial business objectives are: to achieve operating income of 2.554 billion yuan and total profit of 87.98 million yuan. Focus on the following tasks: First, complete the security tasks in an all-round way and further promote industrial integration and development; Second, adhere to the security development strategy and keep the security situation stable; The third is to implement the strategy of winning by quality and enhance the quality value; Fourth, focus on the strategy of strengthening enterprises with talents and give full play to the efficiency of human resources; The fifth is to adhere to the innovation-driven development strategy and promote the high-quality development of enterprises; The sixth is to promote the strategy of digital intelligence project and improve the modernization level of production line; Seventh, strengthen market operation and consolidate market position; Eighth, strengthen daily basic management and lay a solid foundation for high-quality development; Nine is to adhere to the leadership of party building and unite the strength of forge ahead.
3. Capital demand and plan
In 2023, the company will focus on the annual production and operation objectives, strengthen internal management, increase the recovery of accounts receivable, do a good job in the connection between production and sales, reduce inventory and speed up capital turnover. First, the funds needed for the company to carry out its main business will be mainly its own funds; Second, raise funds to ensure the normal operation of fundraising projects.
4. Risk analysis
First, market risk: the company is still facing a complicated international situation, and the trend of anti-globalization is more obvious. The global industrial chain and supply chain are facing a major impact and the risks are increasing. Affected by global economic fluctuations and monetary policy changes in developed countries, the exchange rate fluctuates greatly, which may adversely affect the company’s international trade business. The traditional market demand is shrinking, the Sino-US trade dispute is affected, and market uncertainties are increasing. In order to effectively reduce the impact of shrinking industry demand on the company’s product sales market, the company will fully guarantee special orders, continue to implement strategies such as "differentiation" and "one household, one policy", consolidate domestic and traditional markets, and open up foreign trade and new markets. Second, the risk of reform and business transformation: there are still some problems within the company, such as the lack of understanding of reform, the insufficient endogenous motivation of reform, the immature modern enterprise system with China characteristics and the market-oriented operating mechanism, and the effectiveness of reform in promoting development needs to be further improved. In the next step, the company will accelerate the implementation of various reform measures, continuously optimize the industrial layout and product structure, continuously improve the quality and efficiency, continuously enhance the ability of scientific and technological innovation, continuously improve the technological level and value creation ability, continuously improve the management level, and actively adapt to the new normal of economic development.