In close alignment with the deployment of the “Safety and Quality Month” campaign, we will earnestly implement the “Safety and Quality Month” initiative.

— A Report on the Group Office’s Organization of a Special “Safety and Quality Month” Campaign Across Departments To effectively implement the Group’s deployment requirements for the “Safety and Quality Month” campaign and closely align with the Group’s theme—“Upholding the Safety Bottom Line and Building Superior Quality”—the Group Office convened a special meeting on the afternoon of April 12, attended by all departmental staff. The meeting was joined by Li Xin’er, Vice Chairman of the Group Trade Union, along with a total of 16 administrative and logistics personnel from the Office. The meeting reviewed the Office’s performance during the first quarter, identified existing issues, outlined plans for the next quarter, and discussed how to leverage the momentum of “Safety and Quality Month” to advance various tasks. Vice Chairman Li Xin’er offered recommendations for improving safety and sanitation conditions at the headquarters office complex and the canteen building, providing detailed feedback on specific safety and hygiene concerns and working with attendees to devise solutions. He also scheduled surprise inspections in the near future. Meanwhile, Ma Li, Director of the Office, provided a thorough explanation of the “Interim Measures for Innovation and Excellence Selection and Recognition of Yuegong Holding Group,” encouraging all participants to think creatively, develop action-oriented proposals centered on their respective roles, and strive for excellence. To ensure thorough implementation of the meeting’s spirit, on the afternoon of April 19, the Group Trade Union and the Group Office, together with relevant departments of the Zhejiang Company, conducted an unannounced inspection addressing the issues raised at the meeting. The inspection covered areas such as the guardhouse, multi‑storey parking garage, electric scooter parking area, dormitory buildings, and the canteen. While the corrective measures taken proved effective, certain problems persisted—for instance, hygiene conditions in the dormitories, water‑boiling rooms, and the canteen’s cleaning facilities. In particular, unauthorized wiring and improper use of electrical appliances were still observed in the dormitories. During the inspection, Vice Chairman Li Xin’er emphasized the need to further strengthen accountability and ensure that all improvements are fully implemented.


Strengthen quarterly objectives; drive development through innovation.

——The Yuegong Group’s First-Quarter Economic Performance Analysis Meeting Held in Shandong On April 9, the Yuegong Group convened its first-quarter 2017 economic performance analysis meeting in Pingyin, Shandong. A total of 28 participants attended, including group executives, heads of major departmental divisions, general managers of each subsidiary, and key operational teams. This quarterly meeting was centered around the theme “Strengthening Quarterly Goals and Driving Development through Innovation.” During the session, general managers of each subsidiary presented summaries of their first-quarter achievements and outlined objectives for the second quarter, engaging in open exchanges. Meanwhile, various departments within the group reported on their work along respective functional lines, clarifying issues and discussing them with the subsidiaries. President Ren Qiliang delivered a review of the first quarter’s performance and set forth specific requirements for the second quarter, while Chairman Chen Bailiang of the Board of Directors offered concluding remarks. At present, Yuegong is undergoing a critical phase of reform, innovation, and transformation. The convening of this meeting played a positive role in facilitating information sharing, exchanging best practices, aligning thinking, boosting morale, and rallying collective efforts. In his address, President Ren commended the hard work and progress made by all subsidiaries and departmental units, noting that overall performance during the first quarter had been characterized by “stable operations and positive changes.” However, he also highlighted four areas of concern, urging everyone to adopt a unified mindset, clearly recognize the current situation, and make thorough preparations for ongoing reforms and transformations. He encouraged participants to maintain a long-term vision, leveraging the Group’s two initiatives—“Innovation and Pioneering” and “Safety and Quality Month”—to enhance both individual and team learning and management capabilities, thereby accelerating growth and supporting the company’s strategic transformation. Furthermore, President Ren laid out five specific requirements for the second quarter, calling on everyone to seize new opportunities, dare to think, act, and adapt, and persistently push forward to achieve the goal of completing half of the tasks by mid‑second quarter. Finally, Chairman Chen expressed satisfaction with the progress made across all fronts during the first quarter, while also articulating the core priorities and key elements of the Group’s reform, innovation, and transformation efforts. He emphasized three major thematic objectives the Group aims to accomplish over the next five years. In the face of current market challenges, he urged everyone to focus on the business opportunities these conditions present, remain undaunted by difficulties, maintain unwavering confidence, and persevere with a commitment to incremental improvement every day. By continuously learning and challenging themselves, they can ensure the successful implementation of the Group’s development strategy and move steadily toward the goal of becoming a “small giant” in the steel structure sub‑sector. On the morning of April 9, 2017, all attendees of the Group’s first-quarter economic performance analysis meeting, accompanied by General Manager Luo Yinchang, Assistant General Manager Chen Kuanli, Engineering Department Manager Luo Xingchang, and others, visited and studied the CJ (Liaocheng) Frozen Food Project site. The CJ project is a key annual initiative of the Liaocheng Municipal Government in Shandong Province and represents Yuegong Steel Structure’s first turnkey contract project in the region. Located in the Liaocheng Economic and Technological Development Zone, the project covers a total floor area of 26,802 square meters, comprising a comprehensive production building, material storage facilities, pump houses, guardhouses, and other ancillary structures. With a total investment of RMB 169.0177 million, construction officially commenced on February 12, 2017, with an overall schedule of 160 days. To uphold the “Quality Yuegong” standard, the project leadership team, led by Luo Yinchang, focused intently on achieving the goals of “high quality, excellence, and efficiency,” drawing upon the experiences and best practices of leading general contractors. They organized themed activities emphasizing “competing on quality to create superior projects, competing on safety for civilized construction, and competing on efficiency for timely progress,” effectively uniting the workforce, igniting enthusiasm among frontline workers, and enhancing safety, quality, and schedule management. This fostered a strong atmosphere of “competition, learning, catching up, and surpassing,” significantly accelerating project progress. After reviewing the project’s construction organization and current conditions, President Ren Qiliang commended the team’s efforts thus far, stressing that all members must remain vigilant and continue striving to meet planned milestones while ensuring site safety, ultimately satisfying the client and reassuring the supervising engineers. He further instructed the team to document and distill the lessons learned from the CJ project’s civilized construction and robust safety‑quality management practices, creating replicable models to serve as exemplary benchmarks. Following the site visit, attendees spent the afternoon exploring Dongchang Lake, a renowned local attraction in Liaocheng, providing a welcome respite for body and mind. Amidst scenic views and cheerful conversation, participants felt closer than ever before. This economic performance analysis meeting marks yet another fresh start, offering glimpses of a future where everyone rolls up their sleeves and energetically presses ahead in 2017. Let us look forward to what lies ahead!


Conduct contingency plan drills to enhance emergency response capabilities.

“Report to General Manager Gao: there’s a fire in the assembly workshop!” “Activate the fire emergency response plan immediately!” With these words from Deputy General Manager Gao Yanbin, the various teams within Shandong Company’s Manufacturing Department systematically launched their fire‑emergency drill. The material‑handling team, the component‑assembly team, and the painting team evacuated through the north and south doors of the workshop under the guidance of safety officers; the maintenance team initiated an emergency stop and promptly shut off the gas‑station valves; meanwhile, the assembly team, led by team leader Li Kui (who also serves as the part-time safety officer), carried out fire‑extinguishing operations. This scene unfolded during a fire‑emergency drill—one of the events held as part of Shandong Company’s “Safety and Quality Month” on April 10. This fire‑emergency drill conducted by Shandong Company’s Manufacturing Department focused on training employees in the proper use of firefighting equipment, the planning and marking of emergency evacuation routes, basic fire‑safety knowledge, and the execution of the emergency plan. Its aim was to enhance the relevance, practicality, and operability of the emergency response plan, strengthen employees’ self‑protection awareness and inter‑team coordination, improve their ability to handle emergencies through self‑rescue and mutual assistance, and establish an emergency rescue mechanism characterized by unified command, rapid response, and efficient operation.


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Effectively carry out two initiatives to promote two areas of improvement.

On the morning of March 28, Group President Ren Qiliang visited the Machinery Company to review the implementation of the “Safety and Quality Month” campaign and the Innovation and Excellence Awards program. The company’s General Manager Ai Shenghui, Executive Deputy General Manager Wang Zhongyou, and Deputy General Manager Ying Xiaodong attended the meeting.


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Seeking advice from Spring

With willows drooping like silken threads and the earth renewed, March brings warmth to the human world. On the morning of the 28th, Chen Bailiang, Chairman of the Group’s Board of Directors, visited the Machinery Company to inspect and guide its operations. He was accompanied by Jin Fei, Chairman of the Machinery Company, and Wang Zhongyou, Executive Deputy General Manager, who provided a detailed briefing during the visit. After touring the office spaces and production workshops, Chairman Chen commended the company’s performance in the first quarter and outlined four key requirements for its future development: First, strengthen talent cultivation and reserves. In addition to actively recruiting high-caliber professionals, the company must also focus on retaining top talent by further refining its performance appraisal system—linking compensation directly to individual achievements and work efficiency. Through effective incentive mechanisms, systematic training programs, and engaging employee activities, the organization should foster an enthusiastic, motivated, and upward‑moving workplace culture. Second, continuously expand into new market segments for Yuegong multi‑storey parking systems. The company should intensify R&D efforts, consistently introducing cutting-edge models that meet market demands and create new sources of growth. At the same time, it must boost distributor enthusiasm and enhance accounts receivable management. Third, shift mindsets and innovate approaches. Particularly in technological upgrades, the goal should be to improve production capacity and operational efficiency. When selecting and purchasing new equipment, avoid prioritizing price alone; instead, choose the best options—high quality, high performance, and excellent cost‑effectiveness. Fourth, prioritize employee well-being and build a “Happy Yuegong.” Create a harmonious work environment that meets employees’ legitimate needs—for example, by improving the quality of staff meals, diversifying menu offerings, and enhancing flavor profiles, thereby further elevating overall job satisfaction. Chairman Jin Fei of the Machinery Company presented a comprehensive report to Chairman Chen on the status of the company’s current key projects and critical tasks. He noted that the Machinery Company is currently in its startup phase, actively seeking its strategic positioning. Guided by the Group’s vision of “Quality Yuegong” and “Happy Yuegong,” as well as the corporate culture of “Passion, Grandeur, Harmony; Carefulness, Cooperation, Proactiveness,” the company adopted the values of “Pragmatism, Openness, and Effectiveness” in 2017. These principles call for an open-minded approach, breaking free from rigid constraints, securing more contracts, focusing on the successful execution of large-scale projects, standardizing internal management, and relentlessly striving toward greater efficiency, profitability, and innovation grounded in practicality.


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Foster team spirit and deliver high-quality projects.

Since the commencement of the Yichang Yuexing International City project, under the leadership of installation team leader Chen Xiaofei and through the concerted efforts of every team member, the installation crew has not only completed the contracted construction tasks on time and to the highest quality standards but also ahead of schedule, earning high praise from the client—a remarkable achievement. During the installation phase, the project coincided with the period surrounding the Spring Festival. Faced with challenging site conditions, a tight schedule, a complex surrounding environment, and the added pressure of the holiday season, Chen Xiaofei frequently worked overtime, proactively coordinated resources, and efficiently allocated team assets. Each team member demonstrated unity and collaboration, rising to meet every challenge. With a total of 298 parking spaces, the team invested 420 man‑hours—averaging just 1.4 hours per space—while ensuring zero safety incidents. They delivered the installation work ahead of schedule, with exceptional quality and efficiency. Their performance in production organization, construction coordination, and on‑site management earned repeated commendations from the client. The spirit and outstanding results displayed by Chen Xiaofei’s team have effectively enhanced the company’s public image. We are confident that our installation team will continue to excel, delivering more high‑quality projects across provinces nationwide, achieving world‑class engineering milestones, and laying a solid foundation for the further development of Yuegong’s automated parking systems.


Uphold the safety baseline and deliver a premium Yuezong experience.

——The Group Deeply Implements the Fifth “Safety and Quality Month” Campaign Morning briefings, banner displays, cautionary education, fire drills, management training… Starting April 1, the Group’s fifth “Safety and Quality Month” campaign commenced as scheduled. Since the beginning of April, in accordance with the spirit and requirements outlined in the Group’s Notice on Launching the “Safety and Quality Month” Campaign, the entire Group has coordinated unified arrangements. Each subsidiary and department has closely focused on the campaign theme—“Uphold the Safety Bottom Line, Build Superior Quality”—firmly embracing the quality management philosophy of “survival through quality, development through products.” Efforts have been intensified to standardize and institutionalize safety and quality practices at production and construction sites, while advancing meticulous management. A series of educational and promotional activities—including themed lectures, emergency response drills, and quality analysis sessions—have been widely and thoroughly carried out, driving the “Safety Production Month” campaign to a climax: Zhejiang Company established a leading group for the “Safety and Quality Month” campaign and held a solemn yet concise launch ceremony on April 1. It initiated a series of educational and publicity activities, strengthened public opinion guidance, and heightened all employees’ awareness of the importance of safety and quality work. In conjunction with 6S initiatives, routine inspections were reinforced, with plans for regular comprehensive checks across production areas, offices, and construction sites. These inspections identified potential hazards and assessed the implementation of safety measures, rigorously addressing safety and quality risks in foundational, structural, and enclosure-related processes. Notably this year, Zhejiang Company integrated quality and safety efforts with QC activities, planning to tackle common quality issues such as water leakage prevention, reducing the consumption of welding torch tips, minimizing defects in submerged-arc welding repairs, improving submerged-arc welding productivity, and increasing material utilization rates in Deli engineering projects through targeted QC problem-solving. Shandong Company adopted the slogan “Full participation by all personnel, throughout all processes, and from every angle,” emphasizing innovation and practical effectiveness. To further strengthen safety and quality responsibilities at all levels and enhance overall safety and quality awareness and competence, Shandong Company aimed to achieve the goal of “using campaigns to drive work and months to propel years,” thereby ensuring the sustained stability and improvement of the company’s safety and quality performance. Beginning at the end of March, the Manufacturing Department convened a mobilization meeting, formed an activity task force, installed quality scoreboards and defect exposure boards, collected and compiled materials on safety and quality incidents into bound volumes, and conducted educational outreach via electronic screens, bulletin boards, quality‑issue analysis meetings, emergency response drills, process discipline inspections, and guest lectures. On the safety front, leveraging the opportunity presented by standardized safety production acceptance criteria, the company implemented a comprehensive approach—“full coverage, zero tolerance, strict enforcement, and emphasis on results”—systematically organizing, tidying up, and rectifying everything from basic management systems to on-site positioning, equipment, facilities, safety passageways, and working environments. Drawing upon the mature experience of the Liaocheng Xijie project in civilized construction and safety‑quality management, Shandong Company developed model practices for wider dissemination, serving as exemplary benchmarks. In terms of quality, the company launched QC team activities, focusing tightly on key positions and critical stages to achieve significant improvements in product quality. Concurrently, aligning with the Group’s Innovation and Excellence Measures, Shandong Company formulated plans to compete for both quality and safety awards, using the “Safety and Quality Month” campaign to facilitate the implementation of these initiatives. Mechanical Company actively put measures into practice, ensuring that the “Safety and Quality Month” campaign was effectively carried out. Departments, particularly the Manufacturing and Engineering Divisions, conducted a retrospective review of recent safety and quality incidents to identify underlying risks. They held safety and quality analysis meetings to trace the root causes of previously encountered problems, conducting thorough analyses and imposing appropriate accountability and penalties. For recurring safety and quality issues, special meetings were convened to pinpoint causes and devise concrete, effective corrective actions. The company invited full-time safety officers to share lessons learned from accidents, instilling in safety managers the guiding principle: “Better to endure criticism than to hear cries of distress.” Additionally, more than ten specialized safety training sessions were planned for frontline production and construction workers, achieving 100% coverage. Comprehensive inspections covering safety, quality, and 6S management were organized across departments, workshops, and installation sites; identified issues were systematically sorted, and advanced models in quality and safety management were highlighted to lead broader improvements, thus propelling the “Safety and Quality Month” campaign toward tangible results. Kaifeng Chemical established a “Safety and Quality Month” Leading Group to implement the campaign. Banners and slogans were hung, posters displayed, and various forms of communication—including blackboard newspapers and wall posters—were fully utilized to ensure extensive publicity and broad participation. Safety production training sessions were conducted, with multimedia tools employed to create PPT‑based safety lesson plans, and company‑wide safety knowledge workshops held. Emphasis was placed on key facilities and critical positions, reinforcing essential safety awareness among all employees. Employees also participated in unit‑organized safety knowledge competitions. A thorough review of each department’s compliance with safety regulations and the condition of production equipment and facilities was undertaken, with all staff conducting self‑inspections of their personal protective gear. Potential hazards were promptly eliminated, preventing fatigue‑related and rule‑breaking operations that could lead to accidents. Simultaneously, emergency rescue drills were actively conducted, and the progress of the “Safety and Quality Month” campaign was evaluated to enhance employees’ ability to respond effectively to unexpected incidents. With the launch of the “Safety and Quality Month,” all employees of Kaifeng Chemical will further deepen their understanding of “safety and quality,” eschewing superficiality and formalism to establish routine management of these vital aspects. The Group has designated April as “Safety and Quality Month” for five consecutive years. Every April, all subsidiaries and departments across the Group take proactive steps to organize diverse safety and quality activities. Even at the very outset of this year’s campaign, mass‑participation events and exchanges have already captivated employees, with popular safety‑production publicity and educational programs resonating strongly. Through banners, bulletin boards, training sessions, warning simulations, and hazard inspections, a positive atmosphere has been fostered, encouraging everyone to engage with the “Safety and Quality Month” initiative. Moving forward, each company will build on this strong start, adopting more accessible, straightforward approaches—leveraging morning and work meetings—and integrating QC problem‑solving and innovation‑driven activities to systematically execute the month-long program. The aim is to firmly embed safety and quality awareness in every employee’s mind, address existing gaps in this field, and ensure that the “Safety and Quality Month” campaign, launched in April, continues to resonate deeply within hearts and minds.


Emphasizing form over substance

——Zhejiang Company Launches “Safety and Quality Month” In accordance with the spirit of the Group’s “Notice on Conducting the ‘Safety and Quality Month’ Campaign” and its specific requirements, a company-wide “Safety and Quality Month” initiative has been launched this month. To strengthen all employees’ awareness of safety and quality, Zhejiang Company held a solemn yet concise launch ceremony on April 1. Early in the morning, all staff members of the Manufacturing Department gathered energetically, unfurling a banner reading “Thoroughly Implement the ‘Safety and Quality Month’ Campaign.” Team leaders, section supervisors, and senior management from the Manufacturing Department delivered brief presentations and mobilization speeches, clearly communicating the campaign’s objectives and expectations to everyone. They also outlined concrete plans and requirements tailored to actual production conditions. Following this, all mid-level and senior managers of Zhejiang Company convened in the conference room for the official launch of “Safety and Quality Month.” General Manager Hua Yuwu, drawing on the company’s recent operations and the unique characteristics of each department, delivered a comprehensive mobilization address. He broke down the campaign’s goals and requirements into actionable steps, offering insightful commentary based on engineering case studies as well as the current realities of manufacturing, installation, and office work—balancing high‑level principles with practical relevance. This approach provided a vivid and engaging safety and quality education, yielding excellent results. Safety and quality are not only essential for the company’s development but also vital to every employee’s personal well-being. While content is crucial, effective delivery is equally indispensable. We sincerely hope that this format will further enhance all employees’ awareness of safety and quality. Moving forward, the company will conduct thorough safety and quality inspections across all departments, using “Safety and Quality Month” as an opportunity to carry out a comprehensive, all‑encompassing review—leaving no blind spots—in order to drive progress in all aspects of our operations.


Care in Action, a Bright Future Ahead

——The Group’s Zhejiang Region Conducts Annual Employee Health Checkups “People first” is the guiding principle behind Yuegong’s development, and employee health serves as the foundation that propels this enterprise forward. To earnestly implement the “Happy Yuegong” initiative, safeguard employees’ physical well-being, encourage healthy lifestyle habits, and enhance their quality of life and health literacy, the Group recently organized its 2017 annual health checkups across the Zhejiang region in accordance with the provisions of the “Yuegong Group Employee Health Checkup Management System.” This round of health screenings covered all employees in the Group’s Zhejiang operations. The examination package was comprehensive, including standard physical exams, chest X-rays, abdominal ultrasound (covering the liver, gallbladder, pancreas, spleen, and kidneys), routine electrocardiograms, and a 22-item biochemical panel. Given the diverse industries and dispersed job roles among companies in the Zhejiang region, the Group meticulously planned and coordinated the screening schedule to ensure both production and medical examinations proceeded smoothly. It also distributed health‑check cards in advance, provided clear instructions on precautions, and assigned dedicated personnel to oversee every step of the process. Following the screenings, the Health Examination Center of the Affiliated Hospital of Shaoxing University of Arts and Sciences prepared a comprehensive health assessment report for each employee. Taking advantage of this opportunity, the Group Office further refined employee health records, promptly updating tracking data on individual health conditions, enabling staff to gain timely insights into their own health status and thereby promoting early prevention, early detection, and early treatment. Over the years, Yuegong Group has tirelessly pursued the vision of a “Happy Yuegong,” consistently prioritizing employee health as a key component of this mission. In addition to regular health checkups and occupational disease screenings, the Group has invested heavily in strengthening workplace safety measures and improving living conditions—building new employee cafeterias, renovating recreation rooms, conducting annual environmental assessments, regularly opening audiovisual halls, and organizing team‑building activities. These efforts have allowed Yuegong employees to experience the warmth of the Yuegong family, boosting their enthusiasm for the company and their commitment to their roles, fostering a harmonious atmosphere of mutual dedication—“the company for me, and I for the company”—and significantly enhancing employees’ sense of belonging.


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