Summary of work in the first half of the year and work arrangements for the second half of the year

In the first half of the year, in the face of the historical opportunity of the revitalization strategy of the old industrial bases in Northeast China and the issue of “agriculture, rural areas and farmers”, and the glorious situation of the complex and ever-changing grain market, our company implemented in-depth in the group company. Under the guidance of the strategic concept of “two major industries and four major systems”, we have consistently exerted our existing industrial advantages and actively explored market resources, and achieved certain results in the construction of the three leading industries and new projects. The following is the report on the work in the first half of 2005 and the work arrangement in the second half of the year:

I. Summary of work in the first half of 2005

Main financial indicators

As of the end of May, the company achieved sales income of 20.1 million yuan and a loss of 5.85 million yuan, of which the industrial limited headquarters lost 320,000 yuan, the grain business loss was 3.91 million yuan, the composite material loss was 420,000 yuan, and the actual development loss was 1.2 million yuan. Changchun Henkel investment income; business operating expenses of 4.84 million yuan; management costs of 1.96 million yuan; financial expenses of 1.23 million yuan; no new dead accounts occurred this year.

Main business situation

1. Food management

The grain purchase work was successfully completed. Under the influence of factors such as rising food prices, reduced corn production, quality and farmers' reluctance to sell, the grain purchase situation in 2003-04 is more complicated than in previous years. Under the unified guidance of the Group's grain purchase work conference, our company adheres to the principle of “early mobilization, early hands-on, more grain collection, and good grain collection”, seizes the opportunity, timely and appropriate acquisition, and adjusts according to market dynamics six times. The purchase price has reached the goal of collecting low-cost and high-quality grain with limited funds. During the acquisition period of nearly 5 months, our company has acquired a total of 131,000 tons of corn, 0.8 million tons of rice, and second-class quality grain accounted for more than 86%. The high quality completion of the acquisition work not only guarantees the national and local storage and storage tasks, but also reserves some grain sources for trade work.

The food trade work started well. Affected by the spread of bird flu epidemic at the beginning of the year and the introduction of railway transportation capacity and the introduction of road transport overload restrictions, the difficulty of grain management has further increased this year. To this end, under the guidance of the Group's "integration of domestic and foreign trade" business policy, our company actively promotes export supply and domestic market development by strengthening measures such as high-quality grain procurement and combination of fire and transportation. After many efforts, our company exported a total of 30,900 tons in the first half of the year, 6,000 tons in domestic trade, and realized a gross profit of 2.9 million yuan.

Safety regulations for food storage. In 2004, our company's total grain storage exceeded 100,000 tons. It has 65,000 tons of corn stored in China, 20,000 tons of rice in the state, and 20,000 tons of corn in the land. In order to scientifically and rigorously do a good job in the management of reserve grain, our company strictly manages according to the management rules and standards of the reserve grain company. In the drying work, in view of the fact that this year's general grain moisture is high and requires secondary drying, but the drying capacity is limited, our company guarantees the smooth completion of the drying work through the combination of equipment drying and drying of the site. In the daily management work, our company strictly abides by the "one, three, seven, fifteen" inspection system, that is, "the custodian checks once a day, the custodial team checks for three days, the leader of the warehousing inspection seven days, the library director and all The inspection of the petrochemical personnel in 15 days has further strengthened the monitoring and census of the grain situation. In the inspection process of the storage grain storage of the company's Jinhe Grain Depot in May 25th, the Jinhe Grain Depot was well received by the inspectors for its comprehensive and meticulous basic work and business processes.

The food transportation and rotation work is of high quality and efficiency. In the first half of the year, our company has dispatched a total of 46,000 tons of corn under the condition of extremely tight railway capacity. In order to complete the shipping work with high quality, our company has strengthened the management of the shipments based on the scientific experience of last year's experience and lessons. Through the strengthening of education, rewards and punishments, rational division of labor, and irregular sampling, the company has comprehensively improved the preparation team. And the quality of the work of the shipping team. In the whole process of transportation, there was no delay in loading, and after the operation, it was clean and clean, which created a good corporate image while reducing the loss of shipping. According to the arrangement of the China Grain Storage Jilin Branch in the number of indica rice rotation from May 16 to 25, our company sent 8,349 tons of rice in Gaogezhuang, Huairou County, Beijing, and 840 tons of japonica rice per day, creating a history of shipping in Jilin. Another miracle, which was highly praised by Jilin Branch and its customers, has won a good reputation for the company and created considerable economic benefits.

The order farming work has achieved results. Order agriculture is an important way to improve the industrial structure and achieve the connection between production and sales. With the implementation of the national “direct subsidy” policy and the implementation of the policy of increasing farmers’ income, the timing of developing order agriculture has matured. In accordance with the unified deployment of the “Complete Order Agriculture” of the Group Company, our company has signed an order contract of 6,579.5 hectares in 18 villages and villages around the Jinhe Grain Depot at the beginning of the year for the excellent grain variety and stable production of the Huapi Town in Jilin City. . With the support of the Huapichang Town Government, the Huapichang Town Agricultural Station and other departments, the order work has been implemented well. At present, the seed setting amount is 268,231 kg, and the pre-sale volume is 65,795 tons.

The grain storage infrastructure has been continuously improved. In the first half of the year, the Jinhe Grain Depot completed the 4,000-square-meter reservoir area greening project, and the 2000 square meters wind and rain shed and 10,000 square meters floor special fund construction project are under construction; the rice processing workshop equipment purchase and installation work has been basically completed. Trial production is expected at the end of June. In addition, the gold grain warehouse in 2002 was completed in mid-April through the acceptance of the relevant departments at the national and provincial levels. The two-stage expansion project of the blonde grain warehouse has been successfully completed.

2. Industrial projects

Composite Materials Co., Ltd. is ready for production preparation and is now in production. After a year of rest, Composite Materials Co., Ltd. officially resumed production in May this year. In order to ensure the smooth progress of production and sales, the composite materials company has done a lot of basic work in the first half of the year. Firstly, for the problem that the combined light granary does not have a matching warehouse cap, the steel-wood structure warehouse cap is designed and manufactured by itself, and the product package is improved. The function enhances the market competitiveness of the product; the second is to establish high-quality and low-cost raw material procurement channels through multi-party bidding in the case of the general increase in domestic raw material prices; the third is to thoroughly overhaul the machinery and equipment, and to carry out the work for the laid-off workers. Two weeks of physical training and business training, so that every worker is familiar with the operating procedures and quality standards to ensure that the products meet the quality standards; Fourth, coordinate with the users in advance, arrange transportation and sales plans to ensure fast sales in the second half of the year. Conducted in an orderly manner. Due to the solid foundation work, the composite materials went smoothly after the production resumed in May. By the end of May, a total of 4,908 combined light-weight warehouse plates were produced.

Changchun Henkel's market development and relocation and expansion work were frequently reported, and business performance continued to climb. In this year's auto market price cuts, Changchun Henkel's main customer FAW-Volkswagen has reduced the supplier's supply price in an all-round way. Changchun Henkel's operating results are still slightly higher than the same period last year. As of the end of May, Changchun Henkel products achieved sales income of 61.61 million yuan and profits and taxes of 13.89 million yuan. The achievement of such performance was mainly due to the successful development of the Changchun Hangao New Market and the substantial increase in product output after the new plant was put into use. In the development of new markets, Changchun Henkel products successfully entered the Dalian and Anshan steel markets, officially supplying Dalian Krupp and Anshan Iron and Steel, and Changchun Henkel also signed a supply agreement with Changchun Changling Coating Line. Prepared for the supply project of FAW-Volkswagen No. 2 Plant. In the construction of the new plant area, the preferential policy of reducing and exempting the urban construction supporting fee of 130,000 yuan was obtained, and the construction of the 3,465 square meters PVC workshop and the 405 square meter integrated station building was completed and officially put into use. In the first half of the year, the PVC workshop produced 1,000 tons of products. , to create an output value of 15 million yuan. At present, the second phase expansion project of Changchun Henkel has been fully launched. The construction permit of 2,092.64 square meters office building and 4,368 square meters PT workshop has been issued by the High-tech Zone Construction Bureau and is expected to be completed and delivered for use at the end of September.

By constructing express trains in the old industrial bases in Northeast China, the development and project development of crop straw comprehensive utilization projects are progressing smoothly. The crop straw comprehensive utilization project is one of the “five series” in the “153 Project” of the Group. It is a high-tech project that develops and produces green buildings and decorative materials with agricultural residual fibers such as straw and straw as the main raw materials. The project was strongly supported by the group company. In the first half of the year, the preparation and reporting of the basic materials for the construction of the old industrial base of Jilin Province was successfully completed. At the same time, the pre-examination of the project by the provincial and municipal environmental protection bureaus and the Changchun City of Industrial and Commercial Bank of China were completed. The People’s Square Sub-branch granted credit to the project. At present, the project has been submitted to the Provincial Planning Commission for approval by the group company.

Business management

1. The implementation of the “Management Measures for Employees' Percentage Awards” has achieved remarkable results. In order to strengthen the enterprise management system and establish and improve the modern enterprise management system, since 2004, our company has fully implemented the “Management Measures for Employee Percentage Awards”. After a year and a half of revision and supplement, the "Measures" assessment content is more comprehensive and mature, and has now become an important measure for our company to strengthen enterprise management. Since the implementation of the Measures, scientific and effective introduction of restraint and incentive mechanisms into practical work has played a positive role in promoting serious work discipline and improving work efficiency. In the first half of the year, our company continued to use the principle of openness, objectivity and timeliness to accumulate 93 people, plus 6 points, and delisted 2 people. We built a pragmatic, efficient and rigorous team with strict discipline.

2. The role of departmental functions has been effectively strengthened. In view of the insufficient supervision and unclear role of some functional departments, this year, our company has strengthened the refinement of the division of functions among various departments, and quantified the main tasks of the whole year to various departments, so that the departments have clear objectives and clear tasks in their work. Pressure and power coexist, which has a good effect. In the past six months, the links between various departments and the grassroots have been strengthened, and the phenomenon of work going through has been reduced. The coordination between departments has been close, and the issue of shirking responsibility has been basically eliminated. The work style of enterprises is more practical, and the work efficiency and problem-solving ability are all A substantial increase.

3. The work of saving money and increasing efficiency has been carried out in depth. Since the beginning of this year, our company has continued to scientifically manage various expenses and save a lot of money for the company. First, in the acquisition process, while ensuring quality, the acquisition cost is strictly controlled. Only the blonde grain warehouse saves more than 600,000 yuan. Second, it reduces overall temporary employment, implements new piece-rate wage standards for temporary workers and monthly use approval. The system saves wages and expenses; the third is the basic maintenance. The composite materials company saves the company more than 30,000 yuan by repairing the deep well pump and replacing the trench cover. The fourth is the low-cost purchase of coal and consumable materials. , saving about 200,000 yuan. Through the accumulation of various aspects, we can ensure that funds can be used more effectively and reduce the burden on the development of enterprises.

4. The chief of the safety control work is unremitting. Safe work is a long-term job that focuses on prevention. In view of the painful lessons of the 2.15 incident in Jilin Zhongbai Commercial Building, this year, according to the relevant regulations of the “Jiliang Group Safety Management Regulations”, our company further strengthened the management of safety work, and carried out safety production and safety to the grassroots units six times. Fire prevention, security, anti-theft, and capital security are the contents of the inspection. At the same time, more than 170 fire extinguishers of various types are repaired and purchased, and 80 fire-fighting equipment such as fire rafts and barrels are purchased. In addition, our company has signed the "Safety Responsibility Letter" with the main responsible persons at the grassroots level, and has uniformly formulated the "Safe Production Emergency Plan" to make the safety management work more perfect and standardized.

Party building and corporate culture construction

1. Strengthen team building and give play to leadership. In order to build a strong leadership team, our company will create the maximum benefit of the enterprise as the fundamental task and main standard of the team's recommendations, and carry out the activities of “learning, doing, and creating”. On the "learning", the party committee of our company organizes a theoretical study every quarter, learns from books, and learns from practice. On the "doing", the company's party committee has carried out "responsibility for the group and responsibility for all employees. The company is responsible for the future development of the company, carrying out tasks for each leader, and publicizing the completion of its work at the end of the year, which has promoted economic work; in addition, it has launched a "three ones" activity, that is, monthly visits to care about once, Actually solve the difficulties once and eliminate the outstanding problems once, and further enhance the enthusiasm of the team; in the "creation", the leadership team always adheres to the application of learning, and can use theoretical knowledge to overcome difficulties and guide practical work, to promote business operations. The development of the company and the steady growth of the economic benefits of the company provide a strong organizational guarantee.

2. Establish a typical model and play the role of example. In accordance with the Notice of the Party Committee of the Group on the "Notice on the Selection and Appreciation of the "Top Ten Female Employees of Jiliang" and the "Notice on Calling for the Selection of the Program for the Publicity and Education of the People and the Spirit of the Jiliang People" The party committee of our company has extensively collected the outstanding figures and examples of the company, so as to unearth the advanced figures and typical examples that can reflect the entrepreneurial spirit of Jiliang Group's “Beyond Today”. After revision, we reported the group company at the end of April, and extensively publicized the construction of the Jinhe Grain Depot and the outstanding deeds of Zhang Lianzhi and others. Through the development of the “Selection of Trees” campaign, a good atmosphere of “comparing, learning, catching up, helping, super” and “everyone contributes to the enterprise” has been formed within the company, mobilizing all employees to become reform pioneers. The enthusiasm has a strong role in shaping and demonstrating the cultural image of Jiliang people and Jiliang enterprises, and improving the competitiveness and comprehensive strength of enterprises.

3. Strengthen ideological construction and exert synergy. The development of an enterprise depends on the joint efforts of all employees. Only by letting employees form a sense of belonging to the enterprise can they give full play to their ingenuity and contribute to the development of the enterprise. In the past six months, we have adhered to the implementation of humanized management, sincerely exchanged sincerity, and changed our feelings with sincerity. We have visited the employees of the extremely poor and the condolences of the sick employees four times, and the principle of “taking the employees from the employees” Established the Archives of Extraordinary Workers and Mutual Aids, and truly set out the practical problems for employees based on the actual situation of employees, so that employees can establish the belief that “the company is mine, I am the enterprise”, and the employees are consciously The company's interests are in the first place, and the sense of responsibility for contributing to the company. In this year's grain purchase, drying, and transportation work, some grain store employees took the initiative to give up the rest day, and some even did not return home once in half a year. The atmosphere of who contributes more and who gives more than one is growing. In addition, in early May this year, the party committee of our company carried out the collection activities of professional ethics, social morality, family virtue norms and corporate management mottos. At present, we have received nearly 100 rumors and maxims. Issued in the form of a briefing. Through the development of activities, while establishing a profound cultural heritage, it also established an ethical environment of integrity management, thereby enhancing the overall quality and comprehensive competitiveness of the enterprise.

Second, the situation analysis of enterprises in the second half of the year

Favorable factors facing enterprises

1. In the first half of the year, the agricultural work of the order was solid, providing a relatively stable grain source for the grain purchase in the second half of the year. At the same time, it also accumulated experience for expanding the order scale, developing the leasing system and the stock market system.

2. After the Jinhe Grain Depot Rice Deep Processing Project is completed and put into production, it will bring certain economic benefits to the enterprise in combination with the National Reserve Rice Rotation and the Group's Brown Rice Export Business. It will have positive significance for expanding the business space and improving the industrial chain. At the same time, the project will also become a preliminary test of our company's shareholding system reform, laying the foundation for the future institutional reform of the company.

3. The success of the simple construction of the loan in 2004 will ensure the significant improvement of the composite material in the second half of the year. At the same time, the successful development of the combined light granary supporting warehouse cap will further enhance the market competitiveness of the product, and strive for the simple opening loan in 2005. Have a more positive impact.

4. After the completion of the second phase expansion project of Changchun Henkel, the production capacity will be further increased, which will make up for the losses caused by the price reduction to a large extent and ensure the continuous economic growth of the enterprise. At the same time, the strong demand for surface technology materials after the construction of the FAW-Volkswagen No. 2 plant construction project will also bring a broader sales space to Changchun Henkel.

5. The transformation of the old industrial base in Northeast China has made the “Crops and Straw Comprehensive Utilization Project” a more favorable development opportunity. If it can win relevant preferential policies and construction funds, it will become a new bright spot to expand the scale of business groups.

6. The transformation of the old industrial base in Northeast China and the favorable opportunity for the listing of the China Industrial and Commercial Bank will make the loan burden of more than 20 million yuan left by the old industry possible in the core of the policy, which will become the best to quickly and completely get rid of the debt burden of the old industry. way.

Unfavorable factors facing enterprises

1. The grain management situation is complex and changeable. It is expected that the export supply will remain tight in the second half of the year, while the domestic trade work is affected by factors such as tight grain supply, low capital, insufficient capacity and limited purchasing power in the southern market.

2. Due to the large number of new projects in our company in recent years, the maintenance costs of large-scale machinery and equipment and the repayment of old industrial loans and interest have caused great pressure on the company's capital turnover.

3. With the increase in the amount of grain reserves, the serious shortage of drying capacity of the existing drying towers in the grain depot has become a hidden danger of food security. In particular, the drying system of the blonde grain depot has uneven precipitation during this year's drying work. After drying, falling off, etc., and serious broken problems, it is urgent to carry out transformation.

4. The prices of raw materials such as halogen powder and light-burned powder, especially steel, required for the production of combined light granaries have been greatly increased, resulting in an increase in product costs and a relatively low operating profit.

Third, work arrangements for the second half of the year

guiding ideology

In accordance with the spirit of the 2005 meeting of the Group, with efficiency as the center, market-oriented, and the aim of “enterprise efficiency increase and employee income increase”, we will seize historical opportunities, strive for various preferential policies, strengthen management, deepen reform, and do a good job in food and foreign trade. , spot trading, order farming and industrial project development and construction, the company's work is done, and fully completed the annual profit index of 6.3 million yuan.

Work arrangements and measures

1. Food management work

In terms of trade, we will strive to achieve 80,000 tons of corn, 10,000 tons of rice, and 3 million yuan of gross profit. There are three main measures: First, establish a direct sales point in the southern sales area. In view of the convenient transportation, the development of the feed industry and the aquaculture industry in the high-capital development zone of Zhenjiang Dantu District, our company plans to lease the Jinang material storage and transportation in Dantu District, Zhenjiang, Jiangsu. The company is in the warehouse of the high-capital development zone, as the direct sales point of our company in the southern sales area. The high-capital development zone is only 10 kilometers away from Zhenjiang City. The 312 National Highway and Shanghai-Nanjing Railway pass through the boundary. The Runyang Bridge is located a few kilometers to the east. The northern Yangtze River faces Yangzhou. The deep and shallow water terminals can be docked. The large wheel of several hundred tons to 10,000 tons has a very advantageous geographical position. In the local rental warehouse, the first-storage and post-sale corn trade can not only obtain huge economic benefits during the peak corn sales period from May to September in the year, avoiding the grain trade price difference between the north and the south, but also occupying and consolidating On the basis of the Zhenjiang, Changzhou and Yangzhou corn markets, it will continue to radiate to southern Jiangsu, northern Jiangsu, Shanghai, Zhejiang and Fujian, and open up and expand the domestic market. In addition, it can rely on local convenient transportation conditions with export indicators. Providing and stocking grain for export is a three-pronged approach; second, establishing a grain source base and a stable customer base in high-quality grain-producing areas, and purchasing high-quality corn based on high-quality grain; Based on this, we have established a stable and close cooperative relationship with Jilin Fuel Ethanol Co., Ltd., in order to save 8,000 to 10,000 tons of corn as a breakthrough point, and strive to achieve the goal of providing raw corn for the company's fuel ethanol project.

In terms of order farming, the first is to implement the “direct subsidy” policy in accordance with the regulations, and actively strive for the preferential policies of leading enterprises in order farming; the second is to strengthen the tracking and management of order farming, in order to gradually expand the order area and expand the order varieties. , carry out experience in compact order farming.

In terms of the management of reserve grain, the first is to strictly store the grain storage of the country and the land in strict accordance with the overall requirements of the reserve grain company, and strive to create maximum benefits for the enterprise. Second, in accordance with the management requirements of the grain storage, do a good job in the grain storage of the grain. The rotation of 15,000 tons of national reserve corn; the third is to organize the gold grain warehouse to prepare for the standardized management inspection of the Central Storage Grain Jilin Branch; the Jingang Grain Depot is doing a good job of “one-four-nothing” grain depot construction, and strive to pass the province The Grain Bureau accepted the acceptance of the grain storage capacity of the reservoir; the fourth was to actively strive for the national and local grain reserve tasks in 2005.

In terms of grain storage construction, the first is that the Jinhe Grain Depot is a new grain depot, the infrastructure construction is still not perfect, but the construction funds are in short supply. We will spare no effort to support the national special construction funds and improve the grain storage construction as soon as possible; The drying tower of the grain storage warehouse will be rebuilt to meet the storage requirements.

2. Original investment projects

While ensuring the quality of the products, the composite materials will do a good job in production and supply of products in a timely manner, and constantly improve after-sales service, and strive to produce 70,000 pieces of light body silo boards throughout the year. In addition, we actively coordinate with the provincial government, the Provincial Planning Commission, the Provincial Finance Department, the Provincial Agricultural Development Bureau, the Provincial Grain Bureau and other relevant units and departments to fully strive for the support of the combined light weight granary in 2006 for the simple construction of the loan and the full-time preferential interest policy. Ensure the continued development of composite materials.

While Changchun Henkel completed the construction of the expansion project on schedule, it continued to do a good job in the consolidation of the existing market and the development of new markets, especially the supply market of the FAW-Volkswagen No. 2 plant project, and strive to achieve a profit of 20 million for the whole year. yuan.

3. New project construction work

Due to the large investment in crop straw comprehensive utilization project, it is difficult for independent development of enterprises. Therefore, our company will actively seek for partners and expand financing channels while fully striving for the project to be established in the northeast old industrial base reconstruction project. The Group is requested to give support to the start-up funds and related policies so that the project can be put into operation as soon as possible and create benefits.

The Jinhe rice processing project was commissioned and put into operation before the end of June. During the year, 6,800 tons of brown rice was processed and the profit was 600,000 yuan. At the same time, taking the form of enterprise holding and employee shareholding, we will explore the mixed ownership system in the construction of the company's mechanism, laying a good foundation for the next group system reform.

4. The legacy of the old industry

We will strive to make more than RMB 26 million of loans left by the core consumer industry in the policy area, and strive to use the existing assets of the Tianhe Grain Depot and the office buildings of the Jingang Grain Depot North Office to offset some of the loans, and digest the bad assets left by the old industry. . At the same time, we will continue to track the compensation situation of the dispute between Tianhe Grain Depot and Dehui Zuo Bamboo Rice Purchase and Sale Contract, and auction the remaining aged rice in Tianhe Grain Depot to do our best to recover the economic loss.

5. Party building and corporate culture construction work

Under the unified leadership of the party committee of the group, the activities of “learning, doing, and creating” were carried out in depth, and the team building was strengthened; the “building meritorious service” activities were carried out to strengthen the building of party members; the “tree-shaped education” activities were carried out to strengthen the construction of the workforce; Continue to improve the construction of corporate ethical environment, further improve the corporate credit system, and use emotional incentives as the main way to strengthen the sense of belonging of employees; in addition, give full play to the advantages of the party, regiment, and trade union organization, take activities as the carrier, and use education and training as a means. Strengthen the construction of corporate culture, and transform the achievements of corporate culture into the core competitiveness of the enterprise, fully stimulate the potential of the enterprise, ensure that the enterprise wins the initiative in the future competition, and realize the all-round development of the enterprise.