On December 29, SDE 2024 Work Conference was held in Tai'an. The conference summarized the work of 2023 and pointed out tasks for 2024, mobilized various levels of units and staff to promote industrial development, and implemented actions to enhance the SOE reforms. By virtue of new industrialization to create new production forces, SDE aims to promote green, low-carbon, and high-quality development, and moves faster to become a clean energy supplier and a world-class enterprise. Li Wei, Secretary of the CPC Shandong Energy Committee and Chairman of SDE, delivered a speech titled “Implementing Actions to Deepen Reforms & Moving Faster to Become a Clean Energy Supplier and a World-Class Enterprise”. Zhang Baocai, Deputy Secretary of the CPC Shandong Energy Committee, Director and General Manager of SDE, presided over the meeting.
Li Wei emphasized that in 2023, facing formidable challenges such as sluggish macroeconomic recovery and choppy market dynamics, we focus on “Four Annual Programs”, “Five Unshakable Principles”, and "Seven Major Issues”. With challenges ahead, a set of practical reforms were introduced and enabled new progress on all fronts. There are "Ten Highlights" on the overall work: achieving new strides in comprehensive strength, making significant steps on the transformation of traditional industries, preparing new room for emerging sectors, optimizing the Group-wide control model, deepening reforms in three crucial systems, unlocking new potential for corporate development, further improving the dual-drivers of industry and finance, cementing new strengths in key tasks, gaining momentum in safety and environmental protection, and taking on a new face as a harmonious company.
Li Wei summed up the experience from "Six Key Focuses" over the past 3 years after the merger, with safety production as the "fundamental premise", restructuring and integration as the "central theme," deepening reforms as the “key move”, strengthening the core business as the “entrusted mission”, continuous improvement as the “enshrined pursuit”, and the Party’s development as the "guiding guarantee". Li Wei underscores that these Focuses not only represent invaluable experience distilled from the merger, but also form the fundamental principles for high-quality development which we must scale up and carry forward.
Li Wei took the pulse of current opportunities and challenges, and laid out key economic indicators for 2024 and the goal of becoming a world-class enterprise in next three years. He called for making the most of development opportunities, policy advantages, current trends and market opportunities. It is as crucial to act proactively to prevent risks and challenges lying ahead.
Another concentration is to create a "New SOE in Four Aspects" by 2025, which takes the lead in comprehensive strength, industrial development, efficiency and profits, green and low-carbon development, and openness & inclusiveness. Efforts should also be made to intensify reforms in SOE enterprises, promote further restructuring, enhance the integration of industry and finance, optimize human resources, and deepen risk prevention and control, so as to stabilize the economic foundation and open the door to better development.
Li Wei emphasized that to achieve the goals and tasks for 2024, we must focus on six major aspects: strengthening the core business, transforming operation methods, deepening reforms, fostering innovation, preventing risks, and enhancing Party-building leadership.
I. Refine the core business. This means shifting the energy sector towards the green and low-carbon, diversification and complementarity, the high-end chemicals and new materials sector towards chain extension and clustered development, the modern logistics and trade sector towards standardized operations and improved efficiency, and the high-end equipment manufacturing sector towards further integration, specialization and innovation.
II. Transform the development approach. Advocating the overall planning from three dimensions of “points, lines, and surfaces”, we shall shape the leading companies as enhanced points, reinforce the value chain as refined lines, and foster clusters as expanded surfaces. This entails the optimization in regional layouts, financial sectors, project investments, asset quality, product structure, and income structure.
III. Deepen SOE reforms. We shall carry out the “Five Reforms” in corporate governance, streamlining administration, three-system reforms, collaborative control, and integration, in order to modernize corporate governance and improve core competitiveness.
Ⅳ. Secure breakthroughs in innovation. With a focus on key organizations and key areas, SDE will conduct strategic plannings and implement comprehensive measures to promote the “integration of data and industries” in innovative digital transformation, develop “self-reliance” in core technologies innovation, adopt “hybrid model of bringing in + cultivating” in talents mechanism innovation, secure “systematic and integrated management” on the management innovation of “Carbon Peaking & Carbon Neutrality”, realize “high efficiency and expanded quantity” in terms of production innovation, and achieve “lean management” for operation management innovation. The goal is to transform innovation into the driving forces for development, and convert the core advantages into advantageous powers for development. Ⅴ. Safeguard the risk baseline. It is imperative to strictly control risk and safeguard the “lifeline”, it is required to ward the “high-voltage power line” for ecology and environment protection, and it is also essential to weave the “web” that guarantees the strict compliance audit. By monitoring the external business environment, SDE shall strive to forge a safe and stable environment for development. Ⅵ. Strengthen the leadership of the CPC. SDE will act on the Themed Education of Xi Jinping Thought on Socialism with Chinese Characteristics in a New Era, explore the fully-integrated, realistic, innovative and effective party building model, exercise full and strict governance over the party by implementing the ten measures, solidly advance the building of a harmonious enterprise, actively shoulder responsibilities and take a down-to-earth approach at work, and ensure high-quality development through high-quality party building.
Li Wei requested that SDE at all levels should concretely perform their respective duties, implement concrete measures, allocate all the responsibilities, solidly advance all the key tasks at the end of 2023 and the beginning of 2024 so as to usher in a good beginning for 2024. The economic operation shall come first and foremost. In reference to the arrangement at the annual work conference, SDE at all levels shall conduct early planning and deployment, and take early actions to ensure a good beginning of 2024. It is imperative to stay alert for safety, enhance efforts on examining and resolving safety hazards and ensure safety production. It is also necessary to do well in the management of pubic sentiment and nip the hazards in the bud. It is also a must to carry out anti-corruption education and celebrate the new year in a clean and upright atmosphere.
Li Wei called on organizations at all levels to stay united, look ahead, take concerted efforts for development, be devoted to the cause of SOE reform and upgrading, and promote “green, innovative and intelligent transformation” so as to fully complete all the annual tasks for 2024. In addition, Shandong Energy Group will strive to cultivate itself into a brand new SOE that features “new development mode, new corporate governance, new operation mechanism and new business structure”, take innovative approaches and shoulder major responsibilities so as to build a world-class enterprise, and contribute to Shandong in advancing the Chinese-styled modernization.
Zhang Baocai requested that organizations at all levels should precisely understand the work requirements and responsibilities, and ensure the implementation of all deployments through concerted efforts and excellent leadership. It is required that all parties should highlight the key tasks, and orderly divide and arrange the work responsibilities. It is a must to precisely decompose and fully implement the work requirements of “strengthening the major industries, transforming the development patterns, deepening reform, securing breakthroughs in innovation, preventing risks and promoting party building” and drive the all-round improvement through breakthroughs in key areas. On the basis of deepening SOE reform, seeking further improvement after the merger and reorganization, integrating industry and finance, improving HR management, and enhancing risk prevention and control, SDE should also fully enhance safety production, improve operation & management and promote enterprise reform with the determination of resolutely completing all the annual goals and targets so as to strongly support the building of a world-class enterprise.
At the conference, Li Wei and Zhang Baocai respectively signed the Letter of Responsibilities on 2024 Safety & Operation Targets with responsible persons of secondary subsidiaries separately.
Zhang Ruoxiang, Member of the Standing Committee of the CPC Shandong Energy Committee, and Vice General Manager of Shandong Energy Group, delivered the key messages stipulated in the Central Economic Work Conference, and the 5th Plenary Session of the 12th CPC Shandong Provincial Committee & the CPC Shandong Provincial Economic Work Conference. Liu Jian, Member of the Standing Committee of the CPC Shandong Energy Committee, and the Vice General Manager of Shandong Energy Group presented the key guidance regarding the 2024 Safety Production. Ru Gang, the Vice General Manager and the Chief Auditor of Shandong Energy Group conveyed the core message of 2024 Operation Evaluation Policy.
The Conference was held via a video link. Participants of Shandong Energy Group Senior Management include Jiao Qisheng, Yue Jianghua, Liu Qiang, Yang Zaichang (CFO), Ding Haicheng(the external director), Sun Xikui, Zhu Qingrui, as well as Xu Xichao.
