Baosteel metal Wang Qiangmin: focus on "one magnesium first" to create a good world of magnesium

The strategic upgrading of the Group has aroused strong repercussions in Baosteel Metals. Baosteel Metals held a management seminar and a staff Congress at the first time to convey the spirit of the conference and forge a consensus. Baosteel Metal agreed that for the new material plate of Baosteel Metal, it has ushered in an unprecedented strategic opportunity. The next stage strategy of Baosteel will further focus on "one magnesium first", positioned as "lightweight solution supplier, the main force of Baowu new materials", with the mission of "building China's magnesium industry and jointly creating a good world of magnesium". With "becoming a global magnesium industry leader" as the vision, around the country to develop advanced manufacturing industry, meet the needs of national strategy and pillar industries, coupled with the iron and steel manufacturing industry, To provide users with magnesium, aluminum, steel comprehensive material solutions. Baosteel should accelerate to become an excellent enterprise with 10 billion revenue and 1 billion profit.

Baosteel metal has a maxim that "the realm determines the pattern". The spirit of enterprise is the concrete embodiment of the realm and the deepest character of the enterprise, which will determine how high and how far the enterprise will go. The sixteen-character enterprise spirit of the Group is particularly important to the current "hard struggle and re-entrepreneurship" of Baosteel Metal. Baosteel Metal has formulated a specific implementation plan to implement the "Baowu spirit" and company values into the practice of hard work of Baosteel Metals. First, we should cultivate the feelings of the family and the country, maintain the true character of "steel serving the country", courageously shoulder the mission responsibility, make every effort to build the "China magnesium industry", and put the "great man of the country" into practice. Second, on the road of hard work, "opening and integration" is a necessary way. Baosteel should integrate the leading enterprises in the magnesium industry and rely on the influence of Baowu brand, technology accumulation and ecosystem support to promote the rapid development of strategic business. Third, we should carry forward the spirit of "strict and demanding". This is not only the genetic code of Baosteel metal, but also the requirement of facing complex external environment and daring to self-revolution. Fourth, we should firmly grasp the goal orientation of "casting strength", maintain strategic determination, strengthen strategic determination, realize the vision goal of the global magnesium industry leader at an early date, and contribute Baosteel metal to Baowu to become a world-class great enterprise.

In 2022, Baosteel will strive to achieve a business income of more than 10 billion yuan, a total profit of more than 400 million yuan, a ROE of 6.5% and a 60% quartile on the new journey of "one magnesium first". This year, Baosteel will do a good job in five key tasks:

First, it is necessary to further expand the layout of the magnesium industry. The most important thing in the layout of the magnesium industry in 2022 is to quickly form the influence of the magnesium industry through mergers and acquisitions. Now that the goal is clear and the path is clear, the next step is to implement it well. Secondly, we should make every effort to promote the construction of Anhui Baomeng and other key projects. With an investment of more than 12 billion yuan, this project is currently the largest investment project in the group's new materials sector. when completed, it will become the largest magnesium smelting and magnesium alloy base in the world. The project officially started at the end of last year, and full construction must be carried out this year. Although Baosteel has limited experience in the construction and operation of magnesium projects and faces great challenges, only by facing the difficulties can we break the cocoon and become a butterfly. Third, we should seize the time window of carbon peak and quickly promote the layout of magnesium industry at home and abroad. The key point is to focus on the rapid layout, orderly promotion and step-by-step implementation of resources, security and deep processing of magnesium. At the same time, it will also study and promote the overseas layout of the magnesium industry and speed up the development of globalization.

The second is to improve the quality of operation in an all-round way. At present, the overall management quality of advanced metal products and lightweight components of Baosteel is not high, especially the profitability of advanced products business needs to be enhanced, and overseas business is also facing greater difficulties and challenges. This is the focus of the next step of business improvement. On the one hand, we must strengthen the ability to find the difference and pursue the extreme. In 2022, the center of gravity will be further moved down, the company's standard index system and incentive mechanism will be optimized and improved, the evaluation results will be combined with labor competition, and the potential of each unit, marketing, procurement and cost will be tapped actively and continuously. At the same time, it is necessary to optimize the stock assets and capital structure and improve the efficiency of assets. On the other hand, it is necessary to greatly improve labor efficiency. While promoting intelligence and fewer people, we will spare no effort to optimize the manpower structure and improve efficiency. Otherwise, it is impossible for Baosteel Metal to "save money, make money and be valuable", and there is no way to promote employees to be "rich, idle and interesting". Then it is necessary to consolidate the management system. The core is to continuously improve the management and control mode of "one headquarters and multi-base", build three platforms, strengthen three centers, integrate marketing, procurement, finance and manpower control, create an enabling headquarters, and concentrate operations to the headquarters. build an intelligent manufacturing base.

The third is to deepen reform in an all-round way and really stimulate vitality. There are three key areas of reform this year. First, after the completion of the mixed reform of Baumak Science and Technology and other units, we should step up efforts to promote the landing of the differentiated management and control mode. To "mix" is to "change". Whether the change is good or not depends on whether the differentiated control is effective or not. Differentiation control, where is the main point of the difference? That is, take the party building as the lead, the differential governance mechanism as the core, the differentiated management mechanism and differentiated management model as the supplement, the differentiated supervision system as the guarantee, the five-in-one, collaborative support. The second is to improve corporate governance. It is necessary to further clarify the boundaries of the powers and responsibilities of the main bodies of governance, establish a system of authorization to the management level, promote the construction of the authorization system of molecular companies, and implement the six functions and powers of the board of directors. The third is the reform of the market-oriented management mechanism, and the core is the "three system reforms". At present, the metal "up and down" mechanism of Baosteel has been initially established, but there is still a big gap between "being able to enter and exit, increase and decrease", so it is necessary to change the system and system so as to realize the reform and break the situation.

The fourth is to increase the intensity of scientific and technological innovation. First of all, we must continue to improve the construction of technological innovation platform. Complete the construction of the R & D laboratory of the technology center, improve the construction of the D.Metal platform; further expand the cooperation with the group's internal and external R & D resources to jointly tackle the key technologies of the magnesium industry chain; and strengthen the technological collaborative innovation and joint R & D efforts with Yunhai Metal. Secondly, we should continue to increase investment in technological innovation and speed up technological innovation in the field of magnesium and magnesium alloys. Vertical pot magnesium smelting technology, catalytic carbon reduction magnesium smelting technology and other smelting technologies should achieve breakthroughs. The development of magnesium alloy materials or technologies such as heat resistance, flame retardancy, extrusion, high thermal conductivity, high strength and toughness die casting magnesium alloy, semi-solid forming and so on must also be achieved. The carbon emission intensity of magnesium industry is relatively high, so Baosteel metal must carry out forward-looking planning and layout in the technology and process of carbon reduction and carbon reduction. Third, it is necessary to speed up the construction of intelligent factories. In particular, it is necessary to speed up the promotion of magnesium reduction workshop smart manufacturing and platform fewer people project, implement the old line automation transformation, master bottom magnesium can technology and related automation solutions.

Fifth, strengthen the party's leadership and party building to provide a strong political guarantee for high-quality development. It is necessary to strengthen theoretical arms and strengthen political construction. Integrate the party's leadership into governance and management, and promote the resonance of party building and management on the same frequency. We should do a good job in the "three bases" construction, explore the establishment of a party organization management model suited to the "one headquarters, multi-base" management model and the development direction of intelligent manufacturing, and strengthen the exploration and practice of party building in mixed ownership enterprises and overseas enterprises. We will further implement the requirements of strictly administering the party and consolidate the "two responsibilities."

Despite the great challenges, all the staff of Baosteel have the confidence, ability and the courage to work hard. They will certainly live up to the expectations of the group company and meet the victorious convening of the 20th CPC National Congress with excellent results.