8 Since early this month, Zhang Xiangyang, Chairman of the Group, has led a headquarters inspection and research team to conduct on-site visits across all subsidiaries and within each department of the headquarters, overseeing the implementation of work plans adopted at the Group’s Second Session of the Sixth Workers’ Congress and the Twenty-Second Shareholders’ Meeting, and reviewing progress made in the first half of the year. Zhang Zhongda, General Manager of the Group, Zhong Yiming, Deputy Secretary of the Party Committee, and other leaders accompanied the team during these field assessments.

Chairman Zhang Xiangyang emphasized that, in the face of a complex and challenging macroeconomic environment and a period of profound restructuring in the construction industry, the entire company must adhere to the overarching principle of seeking progress while maintaining stability and achieving advancement through concrete action. It should fully leverage its comparative advantages, strengthen its core competitiveness, and rigorously implement the eight-character business guideline of “shrinkage, cost reduction, capability building, and international expansion.” By adopting innovative approaches to market development, resolutely preventing and defusing major risks, deepening the refined management of engineering projects, and bolstering its talent pool, the company will strive to achieve all annual objectives and ensure the sustained, steady, and healthy development of the enterprise throughout the industry’s adjustment cycle.

8 From the 3rd to the 17th of the month, the research team conducted a series of centralized field visits to all subordinate units, employing a hybrid online–offline approach. Members of each unit’s leadership team, department heads, and selected project managers presented reports on key areas such as business development, risk mitigation, project cost control, and cost reduction and efficiency enhancement, with the research team providing detailed feedback on each.

After hearing work reports from domestic subsidiaries, Chairman Zhang Xiangyang fully commended the phased achievements each unit has attained in overcoming challenges amid industry-wide pressures since the first half of the year. He extended warm regards to all cadres and employees and put forward five key requirements: First, innovate business strategies and seize development opportunities. Treat operations as the cornerstone for survival and growth; conduct rigorous market analysis, boldly explore new avenues while making prudent decisions; strengthen capabilities in preparing commercial and technical proposals; and continuously improve operational quality. Firmly advance the transformation toward self‑operated projects, expanding their share; deepen engagement in local markets, actively identify and cultivate project leads, and vigorously tap into the construction sector. Second, tackle existing risks and strictly curb emerging ones. Conduct a comprehensive inventory of high‑risk projects, accelerate the settlement and collection of outstanding payments, tighten cash‑flow management, and appropriately resolve disputes involving subcontractors and suppliers. Closely monitor the implications of new judicial regulations, skillfully employ legal tools to manage litigation, and implement closed‑loop cost control for projects. Strengthen front‑end project reviews, hold management teams accountable for risk oversight, and prevent new operational risks at the source. Third, deepen refined project management and implement end‑to‑end oversight. Integrate cost planning and contract management early on, leverage information technology to achieve full‑cycle cost control, unlock potential for cost reduction and efficiency gains, and build a competitive edge through low‑cost operations; establish a meticulous on‑site management system covering every stage and every role. For jointly operated projects, align with self‑operated management standards, enforce transparent, granular oversight, and mitigate all types of operational risks. Fourth, rigorously pursue cost reduction and efficiency improvements, and practice strict frugality. Optimize staffing levels and enhance labor‑management practices; tightly control non‑essential operating expenses such as office supplies, travel costs, and business entertainment; and strictly limit unnecessary expenditures. Fifth, strengthen the talent pool and boost team effectiveness. Refine performance appraisal and incentive mechanisms, encourage young employees to hone their professional skills; leverage the pivotal role of branch leadership teams, reinforce internal management accountability, and cultivate a cadre of dedicated, resilient, and capable professionals.

After hearing work reports from the overseas headquarters, all overseas branches, management offices, and project teams, Chairman Zhang Xiangyang commended the achievements of the company’s overseas operations in the first half of the year and expressed his heartfelt gratitude to all overseas employees for their hard work. He pointed out that, amid downward pressure on the domestic construction market, it is essential to leverage the comparative advantages of our overseas business, steadfastly implement the new round of the “Going Global” strategy, consolidate existing market footholds in key countries, and strike a balance between business development and risk management to drive high‑quality growth of our international operations. He outlined four key priorities: First, take the lead in business development and solidify the foundation of our overseas markets. Remain committed to established overseas markets, selectively pursue new projects under controllable risk conditions, concentrate resources on strengthening our competitive markets, and clearly define our local market positioning. Second, strengthen refined management to ensure projected project returns. Enhance cost planning and process control, effectively manage change orders and claims, and close the settlement loop; rigorously enforce tender review procedures, reinforce coordination between headquarters and frontline overseas teams, address managerial bottlenecks, and make every effort to reduce unnecessary costs. Third, adopt a risk‑averse mindset and fortify our defenses against overseas operational risks. Integrate risk management throughout the entire business cycle, establish a robust closed-loop mechanism for risk identification, assessment, and mitigation, and hold individuals accountable at every level, ensuring early identification, timely warnings, and prompt responses to safeguard the security of our overseas operations. Fourth, build a strong pipeline of internationally‑oriented talent. Intensify professional training for overseas management personnel, cultivating versatile international engineering professionals who are both business‑savvy and skilled in management; meanwhile, overseas leadership teams must foster unity and collaboration, pooling their strengths to overcome challenges.

8 From the 18th to the 24th of the month, the research team conducted a centralized review of all departments at headquarters. Department heads and on‑duty staff individually reported on their performance from January to July, focusing on implementing the key directives issued at the Group’s major meetings. In line with the “ensure survival, pursue development” strategy, they outlined plans to streamline departmental functions and strengthen professional training, thereby further enhancing their capacity to manage, guide, supervise, and support subordinate units. The responsible leaders and the research team provided on‑site feedback, and Chairman Zhang Xiangyang delivered a concluding address.

Chairman Zhang Xiangyang commended the headquarters’ functional departments for their effective performance in the first half of the year, noting that the headquarters has successfully fulfilled its role as the company’s central command center and ensured the implementation of all strategic decisions. At the same time, he identified existing weaknesses and shortcomings across various business lines and outlined three key requirements for the headquarters’ work: first, strengthen learning and in-depth study to enhance the professional competence of staff; second, vigorously conduct research and field investigations, revise and refine the institutional framework, and solidify foundational management; and third, earnestly transform the work style, pay close attention to operational details, and improve the quality and efficiency of service delivery.

During the course of the field investigation, Chairman Zhang Xiangyang repeatedly stressed that the entire company must maintain a clear understanding of the extremely complex and challenging circumstances facing the construction industry today, and strengthen both ideological and practical awareness of the imperative to “ensure survival while pursuing development.” We must adhere to the principle of seeking progress while maintaining stability, making steady advances through concrete action, overcoming difficulties with determination, and forging ahead with resilience—using the certainty of our own work to address the uncertainty of the external environment. All units and departments are required to promptly identify and rectify the issues uncovered during inspections and surveys, ensuring immediate implementation of corrective measures; they must rigorously ensure that all strategic directives are effectively put into practice, strive to achieve the year’s objectives and tasks, resolutely win the battle for the enterprise’s survival and development, and energetically promote the company’s sustained, stable, and healthy growth.

(Finance Department, Shi Jinjin)