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Outside directors of China National Building Materials Group Visited and Conducted Research on Enterprises inn Anhui and Zhejiang Province

2016-05-24

From May 17 to 20, in order to gain a better understanding of the development of the transformation and upgrading of the Group's enterprises under the new normal state, Zhao Xiaogang, Chen Jinen, Zhao Jibin, Lu Xiaoqiang, Zhu Yanfu and Peng Xuefen, Outside directors China Building Materials Group, went to Anhui, Zhejiang and Hefei, visited and conducted research on Hefei Cement Research & Design Institute and Triumph Hefei New Energy Company, China Jushi Co., LTD and other sub-enterprises, learn about the production and operation, reform and restructuring of energy materials, research and design and new materials sectors. Peng Shou, Chairman of Triumph Science & Technology Co., LTD, Zhou Yunfeng, President of Hefei Cement Research & Design Institute, Zhang Yuqiang, General manager of China Jushi Co., LTD and Guang Zhaoyu, Secretary of the Board of China National Building Materials Group and comrades from relevant units accompanied the research.

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While visiting CNBM (Hefei) New Energy Co., Ltd. and CNBM Tongcheng New Energy Materials Co., Ltd. affiliated to Triumph Science & Technology Co., LTD, outside directors listened to the report of the production and operation of the enterprises in 2015 and first four months of this year, and learned more about the ultra-white calendaring glass production process and market prospects, conducted on-site research on the operation of kiln I five-line solar photovoltaic glass production line. Outside directors fully affirmed Triumph Science & Technology Co., LTD, new energy materials industry platform of the Group, achievements in independent research and development, integrated manufacturing and photovoltaic glass. Outside directors pointed out that the Fifth Plenary Session of the 18th Central Committee had incorporated "green" into the five development concept, and said that the green development was the idea and practice, and actions speak louder than words. Triumph Science & Technology Co., LTD actively implements the green development concept, researches and develops green low-carbon energy-saving environmental related technologies with independent intellectual property rights, produces renewable energy-related products, and made a major breakthrough. Outside directors encourage leaders of enterprises to speed up reform and innovation, determine to forge ahead, keep perseverance and do a solid job in the work, grasp the market opportunities of developing photovoltaic industry, and strive to become the most competitive leader in the industry.

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While visiting Hefei Cement Research & Design Institute, outside directors surveyed the production base of Hefei Zhongdu Machinery Co., Ltd., and learn about the production and management and implementation of employee stock ownership of Hefei Cement Research & Design Institute. Outside directors fully affirmed sound production and operation performance of Hefei Cement Research & Design Institute in the serious excess capacity of cement industry and commended their digital reporting materials. Outside directors pointed out that Hefei Cement Research & Design Institute is an Institute with glorious history and has made important contributions to the development of China's cement industry. Hefei Cement Research & Design Institute is also an enterprise that first carries out mixed ownership reform of the enterprise, and the market mechanism brought about by reform gives a strong driving force for development. In the current market environment,  Outside directors hoped Hefei Cement Research & Design Institute Hefei can continue to increase scientific and technological innovation, maintain the technological leading edge; improve the reform initiatives in accordance with the spirit of 1 + N series of norms, sum up the staff shareholding experience and further standardize staff shareholding market; do a good job in market development, and actively explore non-cement business, maintain a steady and rapid development momentum and make new contributions to the development for the Group.

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While visiting China Jushi Co., LTD, the outside directors listened to the report on the production and operation of the Jushi group, asked the progress and internationalization of the project in the Egypt, and learnt about the achievements and experiences of the Jushi Group operated in mixed ownership. The outside directors of made a high degree of evaluation on Jushi Group's achievement. The Jushi Group, under the leadership of Zhang Yujiang, had grown into a fiberglass manufacturer with world's largest scale and most advanced technology from an enterprise with annual production capacity of less than 10,000 tons, and become a model of implementing mixed ownership economy. China Jushi Co., LTD's achievements contribute to the powerful advantages of mechanism brought about by the mixed ownership economy, diversified ownership structure through effective checks and balances, scientific and standardized decision-making mechanism, the playing of role of entrepreneurs, effective method that integrates party organization into the corporate governance structure, implementation of market-oriented talent selection mechanism, and implementation of management mechanism for comprehensive assessment. China Jushi Co., LTD led the innovation of China's full competition in the field of state-owned capital and private capital cross-shareholding, mutual integration and common development for state-owned enterprises, accumulated valuable experiences in implementing mixed ownership system.

Through this study and research, the outside directors of the Group had more in-depth understanding of "Three New" sectors' industrial development, restructuring of scientific research institutes, enterprise' efficiency improvement and cost reduction, and had firm confidence of "Four Changes" and "Three curves" development model in the process of implementing transformation and upgrading of Group.

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