Yunnan Construction Investment: Enhancing Core Driving Force, Bursting with Vigor, Promoting High-Quality Development through Deep-Level Reforms

7 Mid-month, inside the production workshop of Anning Aluminum Alloy Formwork Intelligent Manufacturing Industrial Park of Jiancai Technology Company, the sound of machinery roared, a scene of bustling activity. On the conveyor belt, a row of fully automatic robots waved their arms, precisely grasping aluminum materials and handing them over to the welding robots in the next process. Amidst the electric arc light, motor sounds, and the sound of metal breaking, piece after piece of smooth aluminum formwork was processed, packaged, and sent to the front lines of multiple projects. At the other end of the workshop, production lines for aluminum alloy doors and windows, concrete mixing stations, and prefabricated houses have been set up.

2023 In August, the Group integrated the original Jiancai Technology Company and Construction Machinery Company, whose main businesses were highly similar, to promote the focus, integration, and centralization of its main businesses, as well as the integration of services and cost reduction, enhancing the company's ability to survive and develop. The integrated Jiancai Technology Company has created a "two main and multiple auxiliary" product series with "aluminum alloy formwork + external climbing frames" as its core, and aluminum alloy doors and windows, glass curtain walls, concrete mixing stations, prefabricated houses, and chemical building materials as supporting products. The machinery and equipment and personnel from the three production areas in Chuxiong, Jinning, and Guizhou were concentrated and relocated to the Anning Industrial Park. This greatly optimized the production site, significantly reduced production costs, significantly improved production efficiency, continuously enhanced market competitiveness, and allowed multiple businesses to end their history of long-term factory rentals. Employees have experienced a greater sense of happiness and belonging.

In recent years, the Group has adhered to the guidance of Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, upheld the banner of deepening reform, focused on the overall requirements of "management, development, poverty alleviation, and reform," placed high-quality development, this "hard truth," in a prominent position, and used deepening reform, this "key measure," as a working approach. It has adhered to the direction of market-oriented reforms, tackled risk prevention and high-quality development simultaneously, and comprehensively promoted the implementation and effectiveness of various reform tasks, making the pace of high-quality development with internal improvement even more solid.

NO.1

Strategic Guidance for Transformation: Answering the Development Question

The Group has unswervingly implemented the core concept of "development is the key to solving all problems, and high-quality development is the hard truth of the new era." Closely following the province's "3815" strategic blueprint, with a forward-looking vision and long-term perspective, the first Party Congress proposed the "3512" development goal of "improving quality and efficiency in 3 years, strengthening internal substance in 5 years, and creating a first-class enterprise in 12 years." It carefully crafted a grand development blueprint covering timelines, roadmaps, and task lists, clarifying the goals for the enterprise's deepening reforms and leapfrog development.

2022 Since [year], the Group has led the new direction of development with the "three major transformations" of profound changes in development concepts, transformation and upgrading of development methods, and reshaping of main and advantageous industries.

From the work main line of "seeking progress while maintaining stability, and seeking improvement while progressing" to "promoting stability through progress and improving quality while progressing," it has witnessed the Group's transformation from pursuing quantity to pursuing quality and efficiency, demonstrating the Group's strategic determination to transform from "large but not strong" to "better and stronger."

Actively adapting to the new normal, implementing precise policies of "investing in some areas and not others," shifting from investment-driven development to a balanced emphasis on improving core competitiveness and market-oriented development, transforming efforts to develop through unreasonable debt into development with "profitable revenue and cash profits," actively creating and cultivating incremental cash flow, and pursuing endogenous cash balance, injecting new vitality into the sustainable development of the enterprise.

The Group's main and advantageous industries focus on "three main businesses" of construction engineering construction, infrastructure project investment, and modern logistics, playing "three advantageous cards" of overseas business, modern logistics, and industrial services, laying a new growth track for the enterprise's high-quality development with internal improvement.

Based on the new development stage, the Group firmly grasps the pulse of the times, vigorously promotes enterprise transformation, and actively develops emerging industries.

The Yunnan Provincial Rental Housing Management and Operation Co., Ltd. was established to serve the investment, construction, and operation of guaranteed rental housing in the province. Currently, 19 rental housing projects are being implemented, with 38,000 units of housing resources collected.

Yunnan JianTou Green and Beautiful Development Co., Ltd. was established to seize the opportunity of Yunnan Province's three-year action plan for urban and rural greening and beautification, actively participating in the construction of a green and beautiful Yunnan, vigorously expanding the "green +" model, and striving to create a new growth point for "green JianTou."

Yunnan JianTou Seventeenth Company was reformed and renamed Company One, improving the company's name sequence system, optimizing the internal organizational structure, stimulating development vitality, continuously improving the level of independent operation, and steadily improving the quality and efficiency of production management.

The original Yunnan Water Investment Water Supply Investment Co., Ltd. was upgraded and renamed Yunnan JianTou Water Supply Investment Co., Ltd., effectively serving the implementation of Yunnan Province's two "three-year action" projects for urban and rural water supply. 3142 rural water supply guarantee projects were completed, and urban-rural water supply integration projects were fully launched.

The operation branch of Yunnan Construction Infrastructure Investment Co., Ltd. was upgraded to a higher management level. Currently, it operates 16 highways (sections) with a total mileage of 1047 kilometers. It has won the annual assessment of highway road condition services in the province for three consecutive years and compiled and published the province's first local standard for highway service.

The integration of former secondary enterprises such as the Twelfth Company, Eighteenth Company, and Infrastructure Company was successively implemented, promoting asset restructuring, personnel integration, and organizational optimization, using the power of reform to open up new paths for loss-making, distressed, and developing enterprises.

2023 Since [year], the Group has incorporated the construction of "quality JianTou, green JianTou, digital JianTou, clean JianTou, and happy JianTou" into its overall development, clarifying its lofty mission of "building a better life and investing in a happy future." It has achieved qualitative leaps and steady quantitative growth, successfully taking the first step towards the "3512" development goal, laying a solid foundation for high-quality development, and fully playing its role as the "pillar" of the province's construction industry.

NO.2

Strengthening Resource Integration: Catalyzing Synergistic Effects

Amidst the clarion call for deepening state-owned enterprise reform, the Group has steadily and resolutely promoted management innovation and efficiency improvement and internal resource integration. The efficient aggregation of resources has unleashed strong internal vitality and development momentum in the complex economic situation, presenting a positive development trend.

Continuously building a "four-type headquarters," promoting the transformation of the headquarters' central functions to strategic control, policy research, learning and innovation, and practical services.

Strengthening the management network, achieving refined and integrated management, building a highly efficient and innovative service-oriented management system, integrating investment and operation functions, merging risk and legal affairs departments, greatly improving decision-making efficiency and risk prevention and control capabilities, and providing solid institutional guarantees for the long-term development and market competition of the enterprise.

With the strategic wisdom of "1 + 1 > 2," accelerating the movement of resources towards the main business and towards advantageous sectors.

The original municipal general contracting department and highway and bridge general contracting department were integrated to establish the municipal highway and bridge department, achieving organizational streamlining and cost reduction. It is estimated that this will directly save 27 million yuan this year.

The integration and restructuring of Jiancai Technology Company and Jianji Company promoted the streamlining of organizational structures and business processes, optimized the allocation of production resources, gradually released the momentum of reform, and significantly enhanced the market competitiveness of products and services.

The management of the Xiangyun Fortune Industrial Park railway dedicated line was optimized, further promoting the flow of resources in the logistics sector and industrial synergy, helping the Group to play its "modern logistics" advantage card.

Proactively addressing the new situation in the real estate market, precisely adjusting strategic layout, integrating its real estate sector, focusing on three directions: high-quality market-oriented projects, asset revitalization projects, and land-for-debt projects, improving the closed-loop development, sales, asset operation, and property management industry chain, JianTou XueFu, and ChunCheng. Hua Fu and other multiple boutique projects have been launched with strong sales, helping the group maintain its 2022 position as the No. 2 real estate sales company in Yunnan in 2022 and 2023.

Integrating high-quality tourism resources, using its Yunnan Provincial Tourism and Health Industry Investment Co., Ltd. as a carrier, carrying out brand-oriented, group-oriented, and standardized reforms of 12 hotels, creating a diversified hotel brand lineup integrating high-end business, leisure tourism, hot spring resorts, ethnic characteristics, and cultural tourism health preservation. Participating in the vivid practice of "A Life Called Yunnan," Dongfeng Rhyme has been established as a national AAAAA-level tourist attraction and a provincial-level tourist resort in Yunnan, selected as an excellent case of rural revitalization in 2023 and a provincial-level civilized tourism demonstration unit, Nandian Yunyin and Muxing Valley have been listed as provincial-level health preservation demonstration projects, using a new development model of deep integration of agriculture, culture, health, and tourism, creating a new cultural tourism business card serving the whole province and facing the world.

Precise policy implementation, using "eight special actions" to address key issues.

2022 Since 2022, the group has completed the cleanup and withdrawal of 58 legal entities and the upgraded management of equity in 126 affiliated enterprises, compressing the management levels to within three levels, greatly simplifying the management structure, significantly reducing operating costs, and opening up new paths for enterprises to travel light and move forward efficiently.

NO.3

Improving the Governance System and Enhancing Management Efficiency

The group has always adhered to the Party's leadership over state-owned enterprises, working hard to improve the corporate governance structure and build a "top-to-bottom, organically connected" system, continuously revising and improving the "three major and one major" and pre-research item lists, compiling the decision-making powers of the Party committee, board of directors, and management on major matters into a list, incorporating reform requirements into the company's articles of association and system, forming a corporate governance structure with clear responsibilities, mutual checks and balances, and coordinated operation, and continuously improving the level of enterprise management.

The Party's leadership runs through the entire process and all aspects of corporate governance, promoting the "two-way entry and cross-appointment" of the Party organization and the board of directors and management, fully implementing "incorporating Party building into the articles of association" and "including as many as possible," promoting the deep integration of Party building and production and operation, and giving full play to the role of Party committees at all levels in "setting direction, managing the overall situation, and ensuring implementation," setting the right course for the group's development.

"Establishing boards of directors as required" full coverage, ensuring that external directors constitute the majority, focusing on the requirements for building a strong team, establishing a talent pool for external directors and corresponding management systems, fully implementing six key powers of the board of directors, the number of sub-enterprises reaching 100%, the operation of the board of directors at the sub-enterprise level is more standardized and efficient, and the boards of directors at all levels are showing stronger effectiveness in "setting strategies, making decisions, and preventing risks."

Promoting the implementation of the board of directors' authorization of matters to the management, ensuring that the management performs its duties in accordance with the law, efficiently implementing the decisions of the board of directors, ensuring that implementation is carried out at all levels, responsibilities are assigned to individuals, and follow-up supervision is conducted, the feedback mechanism to the board of directors operates smoothly, and the executive power of the general manager's office has been significantly enhanced, and the management's "planning operations, ensuring implementation, and strengthening management" operating mechanism is standardized and efficient.

Currently, term-based contractual management of the management team is being implemented across the board in the group's enterprises at all levels, the asset management responsibility system is effectively linked to the term-based contractual system, the reform of the operating mechanism is entering the fast lane, recruitment and employment are fully open, the competition-based recruitment of management personnel, the adjustment of the last-ranked, and the exit mechanism for incompetence are gradually being improved, the performance appraisal of all employees is fully implemented, and the incentive effect of the differentiated salary distribution system has been significantly improved.

In the face of fierce competition, only those who reform and innovate will succeed. Yunnan JianTou Group was born from reform and will surely prosper through reform. On the new journey, the group will be guided by the spirit of the 20th National Congress of the Communist Party of China, closely follow Yunnan Province's "3815" strategic development goals, set the group's "3512" development goals, continue to promote the integration of Party building into production and operation, continue to carry out reform to the end, thoroughly implement the special work of streamlining the organization, compressing management levels, and reducing the number of legal entities, persistently do a good job in risk management, deeply promote the construction of a compliance system, carry out benchmarking actions for world-class value creation, use the tremendous power of reform and innovation to create a vibrant situation of development, contribute JianTou's strength to the Yunnan chapter of Chinese-style modernization, and greet the successful convening of the Third Plenary Session of the 20th Central Committee of the Communist Party of China with outstanding achievements in reform and development.