Forging Ahead Together in the New Era, Writing a New Chapter for Sanhe

Working Together to Advance in the New Era, Penning a New Chapter for Sanhe

Another year of pioneering and striving, ushering in a new chapter of innovative development. At this beautiful moment of bidding farewell to the old and ushering in the new, on behalf of the company's Party and administrative leadership team, I extend New Year's greetings and the most sincere regards to all employees who have weathered challenges and grown with the company throughout the year, to the families of employees who have silently supported the company's progress, to our partners who have worked hand-in-hand with us, and to leaders and friends at all levels who have long cared for and supported the company's development!

In 2018, we adhered to the development keynote of "seeking progress while maintaining stability," and our operating performance "shone brightly." Over the past year, we have united our efforts and forged ahead with determination, achieving a new historical high in our main business. We boldly innovated our business model, engaged in joint development and operation with central enterprises and listed companies, vigorously promoted and leveraged the company's resource advantages, and successively partnered with multiple listed companies in consortiums to win bids for PPP and EPC projects, rapidly enhancing the company's comprehensive strength and market influence. Throughout the year, contracts totaling 1.2 billion yuan were signed, and operating revenue exceeded 1 billion yuan for the first time.

In 2018, we continuously improved our management level, achieving "refined management" in construction production. Project management models were continuously innovated and optimized, implementing differentiated management for projects of different types and regions. Various fine management measures were promoted in synergy, achieving institutionalized and process-oriented management of project contract review, signing, and utilization. Performance elements such as project progress, quality, safety, operations, and risks were properly managed and precisely controlled, continuously enhancing the project's performance and value creation capabilities. The company was awarded the honorary title of "Advanced Collective in Shaanxi Provincial Labor Competition," and the Engineering Management Department was honored with the "National Worker Pioneer" title, receiving grand commendation at the "Shaanxi Provincial Celebration of International Labor Day and Commendation Conference."

In 2018, we intensified efforts in technological innovation, and our investment in technology yielded "fruitful results." Throughout the year, we completed the compilation of 15 construction methods, acquired 4 invention patents, 1 utility model patent, and 6 software copyrights, and received 6 "National Excellent Quality Management Group for Engineering Construction" awards. Significant progress was made in the application for national high-tech enterprise status, and innovative work such as the compilation of various construction methods, patent inventions, scientific papers, and QC achievement declarations took substantial steps forward.

In 2018, we highly prioritized safety supervision, ensuring that safety and quality were "maintained." The company consistently maintained a strong focus on safety, resulting in a stable and orderly safety situation throughout the year, with zero production safety accidents. Various supervision systems, such as safety WeChat groups and regular inspections, were solidly implemented. Safety production standardization work was deeply carried out in water conservancy, highway, municipal, and housing construction projects. We were awarded the "Ankang Cup Excellent Unit," and five construction sites respectively received the honorary title of "2017-2018 Shaanxi Provincial Water Conservancy Construction Project Civilized Construction Site." We firmly established the safety bottom line with a spirit of craftsmanship.

In 2018, we forged ahead with innovative reforms, making enterprise management "agile." We continuously optimized the company's organizational structure, following the principle of "streamlining staff without reducing efficiency" in organizational reform. We integrated, downsized, and closed inefficient departments, while increasing, enriching, and strengthening departments and agencies that facilitate the implementation of the company's strategic plan, thereby stimulating the company's intrinsic potential. We accelerated the formation of a talent team that is "sufficient in number, excellent in quality, reasonable in structure, and professionally matched," creating a "vibrant and more open" talent development environment. We established a mechanism for selecting and employing personnel where "middle managers can be promoted or demoted, and ordinary employees can be hired or leave." Throughout the year, a total of 14 Class 1 construction engineers, 1 professor-level senior engineer, 1 registered safety engineer, and 1 cost engineer were introduced, changing the structure of the talent team and adding sufficient momentum for development.

In 2018, ideological and political work was strong and effective, and Party building, spiritual civilization construction, and corporate culture construction were "vibrant." Taking the creation of "Five-Star Branches" as a starting point, we effectively played the role of "frontline fighting fortress," elected new Party branch leadership bodies, and carried out charitable donation activities to enhance the cohesion and support of the company's Party branch. The company fostered a strong culture of efficiency, adherence to rules, justice, and integrity, where impartiality, avoidance of factionalism, and mutual accountability became the norm. Overcoming numerous obstacles, we successfully obtained the property certificate for the office building, earned the honors of "Model Civilized Unit" in the water conservancy system, "3·15" National Credit System "AAA-level Credit Enterprise," and "AAA-level Honest Operation Demonstration Unit," and were successfully elected as the third president unit of the Shaanxi Provincial Water Conservancy Engineering Association. The soft power of spirit and culture became an important guide and strong support for the healthy development of the enterprise.

Behind every weighty honor in 2018 lies the courage and strength of each of our employees to take responsibility and strive diligently, reflecting the indomitable spirit and relentless pursuit of Sanhe people. Our collective is fearless and progressive, united and strong. Among our frontline teams, there are comrades who endure loneliness, brave severe cold and scorching heat, fighting year-round in the Gobi Desert of Xinjiang; comrades in Sichuan and Jilin construction sites who bear heavy burdens, overcome difficulties, and resolutely safeguard the company's interests; comrades in Fuping Zhuangli, known as "desperate workers," who build regional brands for the company; comrades in the Shanyang and Heyang project departments who work diligently and build solid buildings; and many comrades who "sacrifice their small families for the greater good," "sweat on sunny days and get muddy on rainy days," stationed at various cooperative projects. There are also comrades in business development who bravely venture into the market and dare to be pioneers; comrades in quality and safety supervision who are impartial, strictly manage quality and safety, and escort the company's development; comrades in cost and contract management who diligently study, strive for excellence, and strictly adhere to standards; comrades in the finance and capital department who manage finances well, keep accurate accounts, and "painstakingly manage the household" for the company's development; and comrades in human resources and the office who operate efficiently, provide high-quality services, and serve as important strategic support for the company's leap forward. Everyone, with their hard work and remarkable achievements, profoundly interpreted the rich connotation of dedication to work, vividly demonstrated the upward and positive spirit of Sanhe people, and conveyed the positive energy of Sanhe people's struggle.

Harvest comes from struggle, and achievement lies in responsibility! Struggle makes us more united and more diligent; development fills us with confidence and high spirits. The hard work and efforts of 2018 have written a magnificent chapter in the company's grand history of development. We are more resolute about the path of development, clearer about the ideas for development, and more confident about the prospects for development!

Standing at a new starting point, looking forward, the promising year of 2019 beckons us. A new magnificent journey, a new path forward, and new development spaces are calling us to advance. The entire company must work together with one heart, rise to challenges, and with the courage to dare and try, the determination to work hard, the wisdom of self-innovation, and an unyielding spirit, build high-quality projects for the new era, establish "Sanhe Construction Group," and present a gift for the 70th anniversary of our motherland!

The old year has unfolded a thousand layers of splendor, and the new year will advance a hundred feet further. Once again, I thank all comrades for their year of dedication, and wish everyone a Happy New Year and family reunion! May Sanhe soar in development and achieve new glories!

Party Branch Secretary, Shaanxi Sanhe Construction Engineering Co., Ltd.

Executive Director

General Manager   Wang Xiaoping

February 4, 2019