The cycles of time engrave the trajectory of development, marking a new future. In 2023, CECEP vigorously advanced various tasks during the Year of Capacity Enhancement, ensuring improvements in quality and efficiency, reform of state-owned enterprises, technological innovation, market expansion, and other key areas, demonstrating new and remarkable achievements. CECEP strives to take the lead in high-quality development.
Improving both quality and efficiency, continuously consolidating the foundation for high-quality development
At the 2024 Annual Work Conference held on January 16th, Party Secretary and Chairman Song Xin pointed out, "We must continuously optimize the group's business layout and structure, strengthen and expand the scale of the main business, promote the concentration of limited resources towards strategic emerging industries and advantageous enterprises, vigorously develop new fields and new tracks, accelerate the formation of new productive forces, constantly enhance the added value of enterprises, and strive to achieve a development where investments bring returns, enterprises generate profits, employees earn incomes, and the country gains tax revenue. We must effectively improve the quality and efficiency of the group's development."
Beating the drum and sounding the horn, thousands of sails compete. Since 2023, CECEP has conducted in-depth research and compiled the Work Plan for Developing Strategic Emerging Industries. It has made every effort to develop strategic emerging industries related to the main business, undertaking multiple tasks in key areas such as integrated circuits, industrial software and new energy in the central SOE industry revitalization initiative. It has opened up new fields and tracks for development, shaping new momentum and advantages for development.
Further deepening resource integration is also one of the important measures to promote the accelerated development of strategic emerging industries. CECEP is accelerating the structural adjustment of its main business and has completed the internal integration of its affiliated Industrial Energy Conservation Co., Ltd. and the listing restructuring of the waste management sector. Each integration, with far-reaching impact, demonstrates new ideas for structural adjustment and effectively enhances the value creation capability of business sectors.
Quality and efficiency are the lifeline for the survival and development of enterprises.
To achieve quality improvement and efficiency enhancement, it is necessary to promptly eliminate unnecessary bloating, reduce wasteful consumption, and unleash the potential of every fundamental unit. CECEP continuously promotes "lean and fit" practices, consistently intensifying efforts in reducing two types of funds, law-based collection, pressure reduction of legal entities, governance of loss-making enterprises, and cost reduction, allowing enterprises to operate in a streamlined manner. The efforts to reduce legal entities have been deepened, with 76 entities being cleared and exited throughout the year, reviving 4 dormant enterprises, totaling 80 entities, a 100% increase compared to 2022. Precise measures have been taken to address losses, resulting in a decrease of 9 loss-making entities compared to the same period last year, a 1.95 percentage point decrease in the proportion of loss-making entities, and a 13.80% decrease in loss amount year-on-year. Vigorous progress has been made in reducing the two types of funds and law-based collection, with a total recovery of overdue receivables of over 1.683 billion RMB accumulated over two years. Simultaneously, refined management has been extensively promoted, continually improving the efficiency of the group's electronic procurement platform. Diversified financing channels have been expanded, with the subsidiary company CECEP Solar issuing 1 billion RMB in carbon-neutral and technological innovation dual-labeled green corporate bonds, and CECEP Wind-power issuing 1.5 billion RMB in carbon-neutral green technology innovation corporate bonds, leading to continuous improvement in asset operation quality and profit-generating capabilities.
To achieve improved quality and efficiency, it is even more important to effectively prevent risks and establish a solid security shield for enterprise development. CECEP is actively carrying out various special initiatives for energy conservation, identifying and blocking risks and management loopholes, establishing a sound long-term mechanism for risk prevention. We are accelerating the construction of a compliance management system, solidly promoting the integrated development of laws, compliance, internal control, auditing and accountability. By addressing both the symptoms and root causes and implementing comprehensive measures, we are effectively enhancing the level of safety and environmental protection, and adding stronger sustainability to our development.
In the midst of the flowing water, it is the right moment to vigorously row. CECEP aims at the long term, shifting the focus of development to effectively improve quality and efficiency. We strive to achieve unity in the quality, structure, scale, speed, efficiency and safety of development, laying a solid foundation for building a world-class industrial conglomerate on energy saving, environmental protection and healthcare.
Upholding fundamental principles and breaking new ground to unleash the vitality of enterprise development
In the past year, CECEP achievements in energy-saving technology and innovation have been frequently reported, creating numerous "firsts" and "record-breaking" accomplishments. These include the successful testing of the largest thrust liquid rocket engine test stand in Asia, the operation phase of the largest-scale domestic dry anaerobic treatment of kitchen waste project, and the official launch of the first domestic internet carbon asset management and verification platform developed independently.
The first domestic internet carbon asset management and verification platform developed independently by CECEP has officially launched online.
The new round of state-owned enterprise reforms prioritizes technological innovation in the construction of a modern industrial system and the establishment of a new development paradigm. CECEP efforts have always adhered to innovation-driven development, adopting multiple measures to shape new development advantages.
On one hand, efforts are being made to increase research and development (R&D) investment and continuously achieve new breakthroughs in technological advancements. In 2023, CECEP accumulated a total of 1.814 billion RMB in R&D funding, with an R&D intensity of 3.24%. Eight new provincial-level or higher R&D platforms and 12 high-tech enterprises were established. The integrated technology for comprehensive water environment management in small watershed developed by CECEP Guozhen was selected for the National Green Low Carbon Advanced Technology Achievement Catalog of the Ministry of Science and Technology in 2023. Valiant was included in the State-owned Assets Supervision and Administration Commission's original technology source site for Attention Worthy enterprises. CECDADI led and participated in the approval of two key national research and development projects of the Ministry of Science and Technology. CECEP Central China Industry Development, CECEP Solar, Valiant and China New Era Group Corporation jointly undertook 10 provincial and ministerial-level scientific research projects, with four subsidiary companies taking the lead. CQEC, CECEP Central China Industry Development and CNEPG each received one provincial and ministerial-level scientific research award, advancing the path of technological innovation and industrial innovation.
On the other hand, innovative mechanisms are being implemented to promote the application and transformation of technological achievements, actively fostering new driving forces. CECEP strengthens top-level design of scientific and technological innovation, and has formulated multiple institutional documents such as the Key Points of the Engineering Project for Enhancing Technological Innovation Capacity (2023-2025). A group company expert committee and four professional committees have been established, and the first batch of five professional research institutes have been established. The CECEP Science and Technology Innovation Investment Company has been established to accelerate the efficient allocation of resources, optimize the innovation ecosystem, and further promote breakthroughs and transformation of technological achievements.
The production workshop of CECEP Valiant is recognized as a national-level enterprise technology center and a national-level "green factory".
In 2023, the nationwide action to deepen and enhance the reform of state-owned enterprises sounded the "starting gun". Since the launch of the action, CECEP has embarked on a new round of reform with high starting points and high standards, continuously enhancing its ability to tackle reform challenges.
"We need to focus on practicality and actual results in our reform measures. We should not carry out reforms just for the sake of reform. The key is to prioritize strong points and address weaknesses in order to promote the improvement of operational efficiency and quality," said Liu Jiaqiang, Deputy Secretary of the Party Committee and General Manager of CECEP.
CECEP has developed distinctive, innovative and pragmatic reform plans and work records, progressively solidifying responsibilities at each level. It has formulated assessment methods for the action of deepening and enhancing the reform, fully leveraging the role of assessment as a "command baton". Furthermore, it has actively promoted the deep and practical implementation of the Double Hundred Action and the Science and Technology Reform Action. These efforts aim to ensure that the quality of reform tasks is excellent in both substance and form.
In 2023, CECEP successfully completed various reform tasks with high quality. Its subsidiary CQEC was recognized as a benchmark Double Hundred Enterprise. CECEP Solar Zhenjiang Company was selected as a Science and Technology Reform Demonstration Enterprise and included in the Ministry of Industry and Information Technology's list of demonstration projects for the integration of new generation information technology and manufacturing industry development in 2023. Yantai Gem Chemicals Co., Ltd. was evaluated as an accelerating construction world-class Leading Demonstration Enterprise and achieved impressive results in areas such as technological innovation and market-oriented reforms.
As the ship reaches the middle of the river, the current becomes more urgent; when sailing in deep waters, one must not slacken the pole. With the accelerated deployment and implementation of the new round of state-owned enterprise reform and enhancement action, CECEP will constantly create a new atmosphere. Focusing on improving core competitiveness and enhancing core functions, it will strive to build a modern new state-owned enterprise that meets the requirements of China's modernization.
Shouldering responsibilities and providing solid support for national strategies
As a central enterprise specializing in energy conservation and environmental protection, CECEP has always actively practiced Xi Jinping Thought on Ecological Civilization and the development concept of Lucid waters and lush mountains are invaluable assets. It strives to deeply integrate the promotion of ecological civilization construction with its main responsibilities and core business, bravely assuming the role of a pioneer and a main force in serving major national strategies.
On December 21, 2023, CECEP released its first Environmental, Social and Governance Report (2022 Annual Report), showcasing its role as a committed practitioner and active participant in ESG responsibilities. The report fully demonstrates its commitment, vision and determination to protect the ecological environment and contribute to the construction of a beautiful China.
CECEP releases its inaugural Environmental, Social and Governance Report (2022 Annual Report).
ESG has become an important criterion for assessing whether listed companies have a sense of social responsibility. Since the beginning of this year, ESG special reports from state-owned enterprise (SOE) listed companies have been disclosed at an accelerating pace. In light of this, CECEP hosted the 2nd China Climate Investment and Financing International Symposium and took the lead in compiling the Guidelines for ESG Information Disclosure of SOE Holding Listed Companies. This initiative aims to promote continuous improvement in ESG governance and risk management capabilities among SOE listed companies and to demonstrate leadership and set an example in the capital market.
ESG, as an investment philosophy and corporate evaluation standard that focuses on environmental, social and governance performance, complements and mutually reinforces the concept of "dual carbon" (carbon emissions peak and carbon neutrality), driving each other forward.
As the "dual carbon" initiative progresses, CECEP continues to promote low-carbon technological innovation. It has independently developed and launched the Heng Carbon Cloud mini-program, creating a comprehensive data service platform for the green and low-carbon sector. This platform empowers various fields in carbon asset management with intelligent capabilities. The company has also facilitated the completion of the first domestic public data application for green environmental products through on-exchange transactions. This initiative guides more social capital to invest in the green environmental industry, supporting the implementation of "dual carbon" targets for local and industry enterprises.
ESG has become an important criterion for assessing whether listed companies have a sense of social responsibility. Since the beginning of this year, ESG special reports from state-owned enterprise (SOE) listed companies have been disclosed at an accelerating pace. In light of this, CECEP hosted the 2nd China Climate Investment and Financing International Symposium and took the lead in compiling the Guidelines for ESG Information Disclosure of SOE Holding Listed Companies. This initiative aims to promote continuous improvement in ESG governance and risk management capabilities among SOE listed companies and to demonstrate leadership and set an example in the capital market.
ESG, as an investment philosophy and corporate evaluation standard that focuses on environmental, social and governance performance, complements and mutually reinforces the concept of "dual carbon" (carbon emissions peak and carbon neutrality), driving each other forward.
As the "dual carbon" initiative progresses, CECEP continues to promote low-carbon technological innovation. It has independently developed and launched the Heng Carbon Cloud mini-program, creating a comprehensive data service platform for the green and low-carbon sector. This platform empowers various fields in carbon asset management with intelligent capabilities. The company has also facilitated the completion of the first domestic public data application for green environmental products through on-exchange transactions. This initiative guides more social capital to invest in the green environmental industry, supporting the implementation of "dual carbon" targets for local and industry enterprises.
CECEP Techand is involved in the comprehensive ecological management project of the Xihe River Basin in Chenzhou, Hunan.
As each governance project is implemented, CECEP has further developed several key comprehensive solution scenarios, such as Dual Carbon Program Formulation + Customized Services, Ecological Environmental Remediation + Clean Energy, Green and Low-carbon Development of Industrial Parks + Full Lifecycle Services, and Big Data + Precise Environmental Governance. These solutions have been promoted and applied in multiple regions, reshaping the green landscapes one after another and using a green brush to write new chapters in local development. Among them, the Huangshui River Basin in Qinghai and the Western Ecological Barrier Zone of the Capital have been successfully selected as part of the third batch of national projects for integrated protection and restoration of mountains, rivers, forests, farmland, lakes, grasslands and deserts.
CECEP Guozhen is involved in the Huanle Wastewater Treatment Project in Xining City, Qinghai Province.
During the recently held 2024 annual work meeting, Liu Jiaqiang pointed out that 2024 will be the year for CECEP to improve quality and increase efficiency. The company will focus on the following seven areas of work: first, prioritizing achieving high-quality and stable growth as the primary task and aiming to fulfill the annual targets from a higher standpoint; second, placing great emphasis on expanding market development efforts and continuously deepening domestic and international business layout; third, considering effective risk prevention and control as of utmost importance and continuously strengthening the foundation for high-quality development; fourth, taking serving national strategies as a political task and better leveraging the strategic support role of state-owned economy; fifth, giving top priority to enhancing the effectiveness of scientific and technological innovation and accelerating the development of new advantages for high-quality growth; sixth, considering deepening reforms as the fundamental driving force and fully activating the momentum for high-quality development; seventh, consistently implementing refined management and comprehensively enhancing the level of systematic management.
Honing is the only way to achieve excellence, and steadfast practice leads to great accomplishments. We will face difficulties head-on, strive with all our might, strengthen our sense of responsibility, and accelerate the construction of a world-class energy-saving, environmental protection, and health industry group.