New Year Address at the Group Company’s 2017 Spring Festival Gathering

Zhang Xiangyang

(January 25, 2017)

　　Comrades:

　　The golden monkey lingers in the bountiful year, while the colorful phoenix sings joyfully in the prosperous spring. As families reunite and the whole nation celebrates together, we have gathered here to mark the Spring Festival of the Year of the Rooster. First of all, on behalf of the Board of Directors, the Party Committee, and the General Manager’s Office of our Group, I would like to extend warm New Year greetings and best wishes to all our employees and their families, to our model workers and retired staff, and to those who have remained steadfast at their posts and worked tirelessly on overseas construction sites during the holiday! Happy New Year to everyone!

　　The year 2016 was an extraordinary one—and a year of severe challenges for our Group. Over the past year, the global economic landscape remained highly complex and volatile, the domestic economy continued to decelerate, the construction market remained sluggish, and competition intensified. Faced with this intricate and demanding environment, the Board of Directors, the Party Committee, and the General Manager’s Office of the Group led all employees and cadres in steadfastly focusing on transformation and upgrading as the central theme, accelerating structural adjustment as the main thread, and adhering to the overarching principle of seeking progress while maintaining stability. With unified efforts across the organization, we pressed forward with determination, rose to challenges, and worked tirelessly to successfully achieve all 2016 economic and technical targets and work assignments, thereby sustaining the enterprise’s steady and healthy development. The successful completion of key economic and technical indicators and work tasks in 2016 also marks a strong start to the implementation of the Company’s 13th Five-Year Plan.

　　I. Steady Growth in Operating Performance. In 2016, total revenue reached RMB 16 billion, up 5.47% year on year; financial settlement income amounted to RMB 16.748 billion, an increase of 35% over the previous year; profit and tax totaled RMB 830 million, up 18.6% year on year; per-employee income also increased substantially compared with the previous year, and key economic indicators all hit record highs.

　　II. Steady Progress in Both Domestic and International Markets Throughout the year, the company undertook a total of 405 domestic projects, with contracted project value reaching RMB 13.195 billion, up 6.7% from the previous year. The North China market—represented by Beijing, Tianjin, and Hebei—as well as the East China market—represented by Shanghai, Nanjing, Suzhou, Wuxi, and Nantong—and the South China market—represented by Hainan and Guangdong—all recorded steady progress. The Beijing Branch exceeded RMB 4 billion in newly signed contract value for the year, setting a new all-time high; the Third Branch actively expanded into markets outside its home region and successfully secured the RMB 700 million Wenzhou WM New Energy Intelligent Vehicle Project in Zhejiang Province; meanwhile, the Wuxi Branch achieved breakthroughs despite challenging conditions, surpassing its annual target for newly signed contract value. Market share in specialized construction areas such as installation and interior decoration continued to grow steadily. Overseas, the company undertook a total of 12 projects. In Zimbabwe’s non-Chinese foreign aid contracting projects, our company ranked first among Chinese engineering contractors in both the number of projects undertaken and the total contract value. Furthermore, the company’s first overseas four-star business hotel invested in Sudan—the Nantong Hotel in Sudan—has officially opened and is currently operating smoothly. Registration procedures for the company’s Ethiopian subsidiary have been largely completed, and the company has successfully won its first tender in Ethiopia: a 200,000-square-meter earthworks project for a Chinese-owned ceramics enterprise. Construction on ongoing projects in Senegal and Tanzania is progressing smoothly, while efforts to advance in the Mozambican market have focused on completing the final stages of existing real estate projects. Overall, the expansion of overseas markets is proceeding steadily.

　　III. Corporate Management Reaches a New Milestone The entire company has proactively responded to the national tax reform shifting from business tax to value-added tax, transformed its mindset, clarified responsibilities, and made vigorous arrangements while pooling collective efforts to carry out all tasks in a solid and systematic manner. This ensured a smooth transition between the old and new tax systems and the successful implementation of the business-tax-to-VAT reform. The company completed the integration of the three certificates into a single business license and reissued all relevant qualifications, thereby creating the necessary conditions for successfully applying for general contracting qualifications for power engineering construction. As a result, the company’s business operations and market conduct have been further standardized and rectified, with remarkable results in credit evaluation management. In the first half of 2016, the Nanjing branch achieved a perfect score in its credit evaluation, ranking first among 3,391 residential construction firms in the Nanjing market. Meanwhile, the Group was awarded the title of “Contract-Abiding and Credit-Respecting Enterprise” by the State Administration for Industry and Commerce for the first time, and was also recognized as a “AAA-rated Credit Enterprise” in the 2016 Corporate Credit Evaluation and as a “Model Enterprise for Integrity in China’s Engineering Construction.”

　　Significant efforts were made to advance project management planning, and standardized on-site construction management was further deepened, yielding notable results in project management planning and standardization at the Beijing Branch. Substantial improvements were achieved in foundational management, team building, refined management, and risk control capabilities. The company’s integrated quality, environmental, and occupational health and safety management system is operating smoothly, with both contract performance and quality compliance rates reaching 100%. Overall, the workplace safety situation remains stable and under control, with no major or above-level work safety incidents occurring throughout the year. A total of 32 provincial-level or higher “Civilized Construction Sites” (and “Customer-Satisfied Projects”) and 39 municipal-level “Civilized Construction Sites” were recognized, and the company was awarded the title of “Advanced Unit for Work Safety in the Construction Industry of Jiangsu Province” for 2016. Outstanding achievements were also attained in quality improvement, with 12 provincial-level high-quality projects and 28 municipal-level high-quality projects completed; the mechanical and electrical and fire protection works for the IKEA Home Furnishings Mall in Xi’an, undertaken by the Installation Company, received the China “Installation Star” Award; and the interior decoration project for the Emergency Department and Internal Medicine Wards of the First People’s Hospital of Huai’an, executed by the Decoration Company, was honored with the “China Construction Engineering Decoration Award,” in addition to two other provincial-level high-quality decoration projects.

　　IV. New Achievements in Talent Management Throughout the year, the company recruited a total of 49 graduates from colleges and universities, conferred one researcher-level senior professional title, 10 senior professional titles, and 53 intermediate professional titles, and added 36 registered Grade-I Construction Engineers and 81 registered Grade-II Construction Engineers. By the end of 2016, the company had 20 researcher-level senior professionals, 147 senior professionals, 298 intermediate professionals, and 598 junior professionals; it also had 286 Grade-I Construction Engineers and 294 Grade-II Construction Engineers, thereby providing strong talent support for the company’s structural adjustment and transformation and upgrading.

　　V. New Achievements in Science, Technology, and Informatization Over the past year, the Group has continued to vigorously implement its strategy for technological innovation and informatization, comprehensively advancing the overall development of these areas with remarkable results and abundant outcomes. Specifically, the Group obtained four national invention patents and three utility model patents; was recognized as one National Outstanding QC Team, five Provincial Outstanding QC Teams, and 31 Municipal Outstanding QC Teams; and completed four demonstration projects for the application of new technologies. In addition, the Research Institute of Science and Technology successfully concluded the Ministry of Housing and Urban–Rural Development–approved research project on “Mechanisms Underlying the Enhancement of Durability and Life Prediction of Recycled Concrete.” The Group’s BIM Technology Center was established and has actively conducted personnel training and related technical research. Furthermore, the electromechanical and fire protection engineering project for IKEA Home Furnishings in Xi’an won the “Best Application Expansion Award” at the inaugural Jiangsu Province Installation Industry BIM Technology Competition, while the BIM-based fine-decoration project for the office tower of Tianjin Baoli Building secured the second prize in the Tianjin Haihe Cup Construction Engineering BIM Application Competition. Through collaboration with leading enterprises in Nantong, the construction of an industrialized prefabricated building base has entered the preliminary planning and implementation phase. Meanwhile, progress in informatization has also been made: the Company’s Information Center server room has undergone a comprehensive upgrade and renovation; the Group’s videoconferencing system has been officially launched and is now in operation; the Group’s NC financial management system, EHR human resources management system, and OA collaborative office system have all been continuously refined; and the PM integrated project management information system has completed pre-launch requirements modeling and software development.

　　VI. New Achievements in Corporate Culture and Brand Building The company has thoroughly studied and implemented the spirit of the 18th National Congress of the Communist Party of China, as well as the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee, along with the important speeches of General Secretary Xi Jinping. It has also carried out in-depth “Two Studies, One Action” study-and-education campaigns, striving to enhance the political awareness, overall-consideration awareness, core-awareness, and alignment-awareness of Party members, cadres, and employees; to strengthen their ideals and convictions; to ensure their loyalty to the Party; to foster a clean and upright work style; to encourage them to step up and take responsibility; and to fully leverage their role as pioneers and models. These efforts have elevated Party building to a new level, further consolidating the collective wisdom and strength of the entire company and providing fresh spiritual impetus for structural adjustment and transformation and upgrading. Meanwhile, the development of corporate cultural platforms has been strengthened: the Nantong Construction Engineering News and the company’s official website were respectively awarded the Silver Page Award for Newspapers in the National Engineering Construction Industry and the Outstanding Website Award. The company’s brand influence continues to grow; over the past year, it has successively received such prestigious honors as “ENR Top 250 Global International Contractors,” “Top 500 Private Enterprises in China,” “Top 80 Chinese Contractors,” “Top 100 Most Competitive Enterprises in China’s Construction Industry,” “National Outstanding Construction Enterprise,” and “Jiangsu Province’s Dual Top 100 Enterprises in Construction Industry Competitiveness (in the categories of Overall Strength and Overseas Construction Business).”

　　Against the backdrop of a sustained macroeconomic downturn and a challenging construction market, these achievements have been hard-earned. They are the result of the sound leadership and unwavering support from higher-level Party committees, government authorities, and industry regulators; the strong and decisive leadership of the Group’s two-tier management teams; the unity and tenacious efforts of all employees and cadres; and the understanding and support of employees’ families. For this, we would like to express our heartfelt gratitude and highest respect to everyone!

　　The year 2017 is a pivotal year for implementing the 13th Five-Year Plan and for deepening supply-side structural reform. Both the domestic and international environments will become increasingly complex and intricate. At the macroeconomic level, the contradiction between overcapacity and the need to upgrade the demand structure remains acute; the painful adjustments associated with the “three reductions, one cut, and one supplement” initiative continue; endogenous growth drivers remain weak; the economic downturn has yet to bottom out; and the construction industry’s reform and development are facing unprecedented challenges. We must maintain a clear head at all times and fully recognize that 2017 will bring greater difficulties, heavier tasks, and greater responsibilities. We must strengthen our sense of potential danger and, with firmer confidence, higher morale, and unwavering determination, rise to the challenge, work hard, and continue to shoulder the mission of ensuring the enduring vitality of the Group’s century-old enterprise. In doing so, we will promote the sustained, steady, and healthy development of the company and deliver outstanding results in celebration of the successful convening of the 19th National Congress of the Communist Party of China.

　　The overarching work guideline for 2017 is as follows: fully implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee; coordinate and advance the “five-sphere integrated plan” and the “four-pronged comprehensive strategy”; firmly establish and conscientiously apply the new development philosophy; and proactively adapt to the new normal of economic development. We will adhere to the general principle of seeking progress while maintaining stability; deepen reform and drive development through innovation; adjust the economic structure and accelerate transformation and upgrading; implement the “going global” strategy; strengthen risk management and control to ensure the safe and sound development of enterprises; focus on enhancing the quality and efficiency of development; enhance the overall competence of the workforce; bolster the core competitiveness of enterprises; and improve their ability to withstand risks, thereby ensuring the sustained, steady, and healthy development of enterprises.

　　In accordance with the aforementioned goals and requirements, and with coordinated planning across all tasks, the following eight areas of work must be vigorously advanced in 2017:

　　(1) Accurately grasp the new normal and pursue development through earnest and pragmatic efforts.

　　At present, China’s economic development has entered a new normal, characterized by the painful overlap of three distinct phases: a shift from high-speed to medium-high-speed growth, a deceleration in fixed-asset investment, and ongoing optimization and upgrading of the economic structure, with accelerated transformation and modernization of traditional industries and conventional manufacturing processes. The drivers of growth are also shifting from factor- and investment-driven models to innovation-driven ones. This new economic normal marks the end of the era of across-the-board expansion in the construction industry and the advent of an era of stock-based competition, in which the redistribution of market share has become the dominant mode of competition. The nature of market competition is transitioning from relationship-driven dynamics to capability-driven competition. Meanwhile, the state remains committed to deepening reform, continuously unlocking policy dividends, and advancing major development strategies such as new urbanization, the Belt and Road Initiative, coordinated development of the Beijing–Tianjin–Hebei region, and the Yangtze River Economic Belt. At the same time, transformative changes in construction practices—such as the PPP model, prefabricated construction, “Internet Plus,” and green construction—are gaining momentum, opening up vast new prospects and opportunities for the industry. We must clearly recognize the overarching trends, maintain strong confidence, act in alignment with these trends, and take proactive measures to propel the company’s reform and development to a higher level, thereby laying a solid foundation for its long-term growth.

　　Under the new circumstances, effectively carrying out all tasks related to corporate structural adjustment and transformation and upgrading represents a major test of the competence, capabilities, and work style of leading bodies and cadres at all levels. Leading cadres at all levels must demonstrate steadfastness, creativity, a sense of responsibility, and a commitment to effective implementation. Steadfastness means focusing on the principal contradiction and unswervingly advancing structural adjustment; creativity means keeping pace with the times and diligently exploring new avenues; a sense of responsibility means courageously assuming accountability and concentrating on resolving new challenges; and effective implementation means ensuring that planning is practical, progress is concrete, and results are tangible, thereby achieving new accomplishments in development. Leading cadres at all levels must guide the broad workforce in firmly seizing the initiative in the enterprise’s reform and development, overcoming current difficulties and challenges, and promoting the enterprise’s sustained, stable, and healthy growth.

　　(II) Accelerate structural adjustment and promote transformation and upgrading

　　This year marks the deepening phase of supply-side structural reform. As a traditional pillar industry of the national economy, the construction sector likewise faces numerous challenges—such as loose management, overcapacity, and suboptimal quality and efficiency—and must therefore undergo the test of supply-side structural reform to meet and support the new demands of national economic development and social progress. This represents both a market revolution and a process of fundamental reshuffling among construction firms. To this end, we must remain committed to the objectives of mitigating operational risks, expanding market share, and enhancing quality and efficiency; focus on strengthening core competencies and broadening growth opportunities around our principal business; and make concerted efforts to adjust and optimize our operating structure. First, we should deepen our presence in the traditional markets of the eastern, northern, and southern regions while actively developing markets in the central and western regions and the Northeast; overseas, we should increase our geographic footprint. Second, we should proactively create conditions to expand the proportion of directly managed projects, improve project profit margins, and bolster the core competitiveness of our main business. Third, we should vigorously increase the share of specialized construction services such as installation, interior decoration, and steel structures, while simultaneously extending our operations into new areas including municipal engineering, new-energy projects, environmental protection projects, underground utility tunnels, and sponge-city initiatives. Fourth, on the premise of effective risk control, we should pursue capital operations in a proactive yet prudent manner to enhance the preservation and appreciation of our assets.

　　During the 13th Five-Year Plan period and for the foreseeable future, the investment-driven economic stimulus model centered on real estate will gradually fade, while the PPP model—focused on delivering public goods in urban infrastructure—has been elevated to a national strategy. The PPP model will profoundly transform the industrial chain and profit models of construction firms, inevitably becoming the “new normal” for the infrastructure construction sector. By engaging in PPP projects, construction companies will see their revenue streams extend and expand both upstream and downstream, shifting from a single-source profit base in construction execution to end-to-end profitability spanning investment and financing, design, procurement, and operations. Construction firms that rely solely on engineering contracting will find their operating space increasingly constrained; unless they adapt to these market shifts by shifting their profit focus toward the front and back ends of the value chain, they risk being at a disadvantage in the next round of industry consolidation. To this end, we must proactively prepare for the advent of the PPP boom, closely monitor and thoroughly study the policies and regulations issued by the state for implementing PPP projects, establish specialized functional departments, vigorously cultivate multidisciplinary talent with expertise in law, economics, finance, and project management, strengthen our capacity to participate throughout the entire lifecycle of PPP projects as a private-sector partner—including planning, design, investment and financing, construction, operation and maintenance, and handover—and enhance our ability to integrate and leverage social resources, thereby fully mobilizing the enterprise’s overall operational capabilities.

　　(3) Vigorously implement the “Going Global” strategy

　　Building on our established and mature country-specific markets in Africa, we will intensify efforts to develop newly opened markets in countries with relatively favorable political and economic conditions, such as Ethiopia, Tanzania, Kenya, and Côte d’Ivoire, with the aim of securing project implementation and execution. On this basis, this year we will also prioritize expanding into the Vietnamese market in ASEAN and the Sri Lankan market in South Asia, striving for breakthroughs in securing new projects; strengthen communication and collaboration with large Chinese enterprises that are expanding overseas, seeking to jointly implement overseas projects; align with the national call for deepening reform of foreign aid programs by actively bidding for turnkey foreign aid projects, with the goal of achieving new breakthroughs in this area; closely monitor exchange-rate fluctuations and enhance financial management of foreign-exchange gains and losses; reinforce the management and operation of overseas investments to continuously improve our overall competitiveness in international operations; and accelerate the development of a tiered talent pool for overseas assignments, working diligently to cultivate an internationally oriented workforce that is proficient in management, skilled in business operations, adept at communication, and well-versed in the rules governing the international contracting market and overseas investment activities.

　　(4) Implement the strategy of invigorating enterprises through science and technology and accelerate innovation-driven development.

　　At present, both domestic and global economies are in a downturn, industry performance continues to decline, and homogeneous competition is intensifying, compelling every ambitious enterprise to adopt a strategic perspective in assessing its own position, to grasp the overarching trends, to formulate a holistic development strategy, and to pursue large-scale initiatives. To implement innovation-driven development, the most fundamental task is to harness technological innovation and information technology as the primary drivers, strengthen independent innovation capabilities, fully unlock the immense potential of science and technology as the primary productive force, and strive for simultaneous growth in quality and efficiency while pursuing substantive, intrinsic development. This is the only viable path for construction firms to confront the new normal of the economy and the supply-side structural reform. Enterprises must formulate medium- and long-term strategies for technological innovation and development centered on their core business, focusing on the promotion and application of national-level construction methods, green construction demonstration projects, and the creation of high-quality, exemplary projects; increase investment in science and technology; establish and refine corporate research-and-development incentive mechanisms; foster advances in both technological progress and management innovation; and cultivate proprietary technologies, specialized construction strengths, and independent intellectual property rights. Proactively aligning with the trend toward low-carbon economic development, enterprises should vigorously conduct research on prefabricated building construction technology systems, develop a pool of skilled professionals in the management of such technologies, and accelerate the establishment of industrialized construction bases; at the same time, they should actively develop and apply energy-saving, land-conserving, water-saving, material-saving, smart, and environmentally friendly technologies. Furthermore, enterprises must robustly implement an informationization strategy and fully embrace the wave of digital transformation. This year, they should continue to provide BIM training for staff, deepen research on BIM technology, and expand its application; building on ongoing integration of OA office, financial, and human-resources systems, they should launch an integrated information system for VAT reform and comprehensive project management, thereby advancing the refinement of VAT reform implementation and project management; and they should vigorously promote the use of the “Zhucaili” e-commerce platform for procurement of construction materials and equipment, improving the efficiency of project material procurement, reducing procurement costs, and striving to drive corporate transformation and upgrading through technological and information-based innovation.

　　(5) Deepen refined management to promote quality improvement and efficiency gains.

　　The increasingly fierce competition in the construction market has made advance financing and price-cutting discounts standard practice for project undertakings, leading to a sharp contraction in project profit margins. At the same time, the company’s cost-control mechanisms and incentive systems remain imperfect, resulting in uneven profit margins across subsidiaries and among projects within the same subsidiary, with substantial room for further cost optimization. To address these challenges: first, we must foster a company-wide awareness of meticulous cost management, further refine and improve the institutional framework for cost management at all levels, across all processes, and for every position, thereby strengthening foundational management and honing our internal management capabilities; second, we should take the implementation of the business-tax-to-VAT reform, the comprehensive project management system, and the procurement and commercial platform as opportunities to continuously streamline management and operational processes, achieve precise cost control at every stage of the construction process, and effectively reduce consumption of labor, materials, and equipment; third, each subsidiary must firmly assume primary responsibility for controlling material, labor, rental, and subcontracting costs, hold regular project-cost analysis meetings, rigorously assess economic accountability for each project, reward excellence and penalize underperformance, and hold project managers and other relevant persons accountable—both financially and otherwise—for losses arising from deficiencies in project management. Furthermore, the entire company must firmly embrace the mindset of enduring prolonged fiscal austerity, vigorously uphold the glorious tradition of “running the enterprise with diligence and frugality,” strictly control all expense categories, particularly non-productive expenditures such as business entertainment, travel, and office expenses, practice strict economy and thrift, and eliminate extravagance and waste. We must earnestly launch initiatives to increase revenue and reduce expenditure, strengthen performance evaluation and reward-and-punishment mechanisms for cost and expense management, and ensure that all expenses are kept within reasonable limits.

　　(6) Strengthen risk management and control to ensure the safe development of enterprises.

　　At present, both the domestic and international economic landscapes are highly complex and volatile, with downward economic pressure expected to persist for an extended period. Market competition is intensifying, profit margins in the real economy continue to decline, regulatory oversight across industries is tightening, and corporate operational risks have reached unprecedented levels. It is imperative to remain vigilant in times of stability, uphold a problem-oriented mindset, and proactively identify and address salient risk issues. To mitigate business risks at the very source—namely, the procurement of engineering projects—it is essential to rigorously adhere to the company’s contract review procedures for all projects, regardless of size. This entails a thorough assessment of project reliability, payment terms, profit potential, as well as the client’s financial strength, payment capacity, and creditworthiness. At the same time, careful due diligence must be conducted on the financial standing, integrity, and management capabilities of partner teams, so as to minimize decision-making risks associated with project acquisition. With regard to potential cash-flow challenges that may arise in a small number of ongoing projects, all subordinate units must conduct early screening, promptly identify such issues, and take swift corrective action, thereby maintaining proactive control over risk prevention throughout the project lifecycle. Furthermore, for those contractor teams that have demonstrably exhibited weak financial resources, limited managerial competence, low integrity, and a high incidence of litigation and disputes, once any outstanding issues from earlier phases of projects have been properly resolved, they must be resolutely and decisively phased out.

　　The responsibility for workplace safety is of paramount importance. On December 18, 2016, the “Opinions of the CPC Central Committee and the State Council on Promoting Reform and Development in the Field of Workplace Safety” (hereinafter referred to as the “Opinions”) were officially issued. The Opinions set forth specific reform measures in five key areas: improving and implementing the workplace safety responsibility system; reforming the safety regulatory and supervisory system; vigorously advancing law-based governance; establishing a safety prevention and control system; and strengthening capacity-building for basic safety safeguards—thereby charting a clear “roadmap” for future reforms in the national workplace safety sector. All levels of the company must study the Opinions carefully, gain a profound understanding of their essential spirit and core content, and translate that spirit into conscious actions that refine our working approaches and reinforce our implementation measures. At the same time, we must draw deep lessons from the tragic “11·24” collapse of the cooling-tower construction platform at the Fengcheng Power Plant in Jiangxi Province, firmly embrace new development concepts, adhere to safe development, and steadfastly uphold the inviolable red line that development must never be achieved at the expense of safety. With the primary focus on resolutely preventing major and above-level production safety accidents, we will continue to follow the principle of putting safety first, prioritizing prevention, and adopting comprehensive management, while strengthening risk control in workplace safety. First, we will continue to recruit and hire professional safety management personnel from universities and other sources to reinforce the front lines of construction, intensify training and performance assessments, and strive to build a team of workplace safety managers that is appropriately sized, highly qualified overall, and rich in both specialized knowledge and practical experience. Second, we will fully implement the workplace safety responsibility system at all levels, establish a sound and effective safety responsibility network, and achieve a safety responsibility management system in which all employees participate, support, and oversee workplace safety. Third, we will strictly enforce rewards and penalties in accordance with the company’s newly revised “Measures for Rewards and Penalties for Safe and Civilized Construction,” thereby strengthening accountability and assessment for workplace safety and promoting the effective operation of the enterprise’s workplace safety evaluation system. Fourth, we will vigorously advance pre-construction safety planning and standardization efforts, with particular emphasis on the management and control of major hazard sources and critical process links. For key projects and those with weak management foundations, we will conduct targeted inspections and provide focused assistance, resolutely preventing major and above-level production safety accidents, making every possible effort to curb ordinary production safety accidents, and ensuring the enterprise’s sustained and safe development.

　　(7) Strengthen team building and develop a high-caliber management team.

　　When talent thrives, enterprises thrive. Accelerating corporate structural adjustment and transformation and upgrading hinges on building a strong talent pool. In line with the company’s 13th Five-Year Development Strategy, we must innovate our human resource management philosophy, clearly define medium- and long-term HR objectives and key tasks, and expedite the establishment of a modern HR management system and business-process framework. We will comprehensively deepen career planning and management for all employees, maximize the realization of their potential, strive to align corporate development needs with individual career aspirations, and thereby convert human-resource value-added into human capital. We will actively draw on and adopt advanced modern HR management tools and methodologies, such as the Balanced Scorecard (BSC) and KPI-based performance appraisal, refine and improve evaluation methods for managerial personnel, enhance the relevance and practicality of assessments, conduct comprehensive, multi-level evaluations of all employees, and apply assessment results in a scientifically sound manner to salary adjustments, job reassignments, training and development, and promotions. This will fully mobilize employees’ initiative and unlock their potential, thereby improving the optimal allocation of human resources. Furthermore, we will continue to refine the HR management information system and organizational management framework, enhance the HR management skills of leaders at all levels, and work diligently to build a high-caliber management team.

　　When young people are strong, the enterprise is strong. Securing our youth means securing the future of the enterprise; therefore, cultivating a robust pipeline of young talent must be given a more prominent place in our overall talent management strategy. We must continue to vigorously and systematically implement the “mentor–apprentice” pairing program, fully leveraging the mentoring role of senior employees to guide and support their younger counterparts, thereby providing a vital link and bridge for the seamless handover between new and experienced staff and accelerating the development of young talent. We should steadily and orderly select cadres from among young employees who have gained rich experience through frontline operations and management, demonstrated emerging capabilities, shown resilience and dedication in their roles, and consistently performed with diligence and integrity. By establishing comprehensive talent profiles, conducting objective assessments from multiple perspectives, and implementing competitive selection processes, we can identify and appoint young leaders who truly possess both moral integrity and professional competence. We will then entrust them with greater responsibilities to spur their growth, and through multi-level, diversified on-the-job training and exposure to a variety of roles, gradually develop them into high-caliber, versatile, professional managers, thus ensuring a smooth and orderly succession of young cadres at the grassroots level. Furthermore, by setting up WeChat and QQ groups for individual units and projects, as well as OA platform mailboxes, we can promptly and accurately monitor the ideological trends and attitudes of young talent in the digital age. Leaders at all levels should engage in regular communication and dialogue with young employees—discussing work, aspirations, and life—and provide timely care and assistance to those facing challenges. Party, administrative, trade union, and Youth League organizations must work together in a coordinated manner to foster a positive environment that values and cherishes talent. In addition, we should widely organize cultural and sports activities that are popular, engaging, and tailored to the characteristics of today’s youth, so as to cultivate their aesthetic sensibilities, promote physical and mental well-being, and strengthen their sense of loyalty and belonging to the enterprise.

　　(8) Strengthen corporate culture development and promote the harmonious development of the enterprise.

　　We will continue to thoroughly study and implement the spirit of the 18th National Congress of the Communist Party of China, as well as the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee, and the important speeches of General Secretary Xi Jinping; consolidate and build upon the achievements of the “Two Studies, One Action” campaign; closely align Party building work with the realities of the enterprise’s reform and development; fully leverage the vanguard and exemplary role of Party members and the fighting fortress role of Party organizations at all levels; and provide strong organizational and ideological guarantees for the enterprise’s structural adjustment and transformation and upgrading. We will strengthen the Nantong Construction Engineering News and the official website, carry out extensive corporate culture-building activities, vigorously cultivate and practice socialist core values, guide employees in establishing sound professional ethics, observing discipline, and upholding ethical red lines. Corporate culture publicity must disseminate positive energy, promote the mainstream theme, and strive to create a harmonious atmosphere characterized by integrity, fairness, and collaborative pursuit of development, thereby uniting the wisdom and strength of all employees in the great endeavor of “adapting to the new normal, forging new advantages, reaching new heights, and achieving new accomplishments.”

　　Comrades, the new year carries new dreams, nurtures new hopes, and inspires the Nantong Construction Workers to write a new chapter! As spring sows the seeds and autumn reaps the harvest, let us join hands and stand shoulder to shoulder, marching in step with the spirit of spring. Let us take the aspirations of our vast ranks of cadres and employees for a better life as our shared goal, roll up our sleeves and work hard, and carry out all tasks related to the reform and development of our enterprise in a solid and pragmatic manner—so that together we can create an even brighter future for Nantong Construction!

　　Finally, I wish you all a happy Spring Festival, good health, family happiness, smooth work, and success in all things!

　　Wishing Nantong Construction Engineering a bright and prosperous future!

　　Thank you, everyone!