In the first half of the year, Jinhang Titanium Industry thoroughly implemented the new development concept, actively integrated into the new development pattern, closely focused on the development strategy requirements of CNMC Oriental, and was committed to building a new type of technology-based enterprise. The company stimulated the vitality of employees through deepening reforms and achieved a profit of 5 million yuan. It has achieved cumulative profits for the first time since it was put into production in 2009. The results of the reform are gradually emerging, and the reform dividends are accelerating.
In October 2020, Xi Zhengping, Secretary of the Party Committee and Chairman of China Nonferrous Group, went to Jinhang Titanium Company for on-site research and guidance, emphasizing that the company must overcome technical difficulties, solve practical problems in the industry, keep a close eye on the military market, and work together to promote the healthy development of the titanium industry. The main leaders of CNMC Oriental personally supervised the key work of Jinhang Titanium Industry, the functional departments strongly supported it, and the reform measures such as equity incentives were implemented. Driven by various favorable conditions, all the cadres and employees of Jinhang Titanium Industry were excited and worked together to run at an "accelerated" pace around the annual operating goals.
Seize market opportunities and enhance competitiveness. We closely followed the annual sales plan, seized high-quality contracts, strengthened communication with key customers, and worked hard to obtain incremental orders from old customers. The military sales business maintained a sustained growth momentum, with the amount of important-use contracts increasing by 90% year-on-year in the first half of the year. At the same time, we strengthened the trend analysis of sponge titanium raw materials and decisively locked in prices when the raw materials of products were at a low level, laying the foundation for product profit increase. Among the 16 categories of products sold this year, the gross profit contribution of niobium titanium and titanium alloy products showed a good situation of keeping pace with each other.
Strengthen scientific research and tackle key problems, and achieve significant innovation and efficiency gains. Taking the "Military Order" as an important starting point, a technical research team was established to optimize and improve the process. The yield of niobium-titanium alloy products for superconducting increased by 4% compared with last year's average yield, and the unit manufacturing cost dropped by 28% year-on-year. The cost dropped significantly and effectively Hedging the negative impact of RMB appreciation. Relying on the "Military Order" to tackle key problems, we organized and carried out the process improvement work of "increasing yield and reducing cost". The casting workshop adopted refined operation measures such as reducing electrode plates during final melting, and the yield of type 4 ingots increased by 1.2% on average; the forging workshop increased the high-temperature area by increasing Return forging reduces the number of fires and the amount of polishing, and the yields of the six main products are increased by an average of 3.6%, with a total efficiency increase of nearly 2 million yuan.
Pay close attention to technological innovation and cultivate new driving forces. Relying on the technical team to conduct research and development closely around market demand, we strive to increase the categories of advantageous products and train new economic growth points; among the 5 internal and external projects currently running, high-strength thin-walled precision titanium alloy strips have passed 4 rounds of process tests , has mastered and optimized the process, and has provided a total of 620 kilograms of qualified samples. It is currently solving the problems of surface "white spots" and roughness interval control, and strives to achieve batch shipments in the third quarter; titanium aluminum niobium alloy rods for additive manufacturing have been successively Breaking through the difficulties in the casting and forging process, 430 kilograms of samples were provided to users, which passed the evaluation test, and a new order of 2 tons was received. It is expected to exceed the project design indicators; the 100 kilogram sample order of high-performance titanium alloy pipes passed 2 rounds of process tests and was prepared Products that meet user requirements have been shipped to users for subsequent testing and evaluation.
Promote deepening reform and stimulate internal vitality. Since the beginning of this year, CNMC Orient has decided to implement equity incentives with Jinhang Titanium as a pilot. While implementing equity incentives, special performance awards are set up. Incentive targets can receive special performance awards based on their investment behavior and special contributions to the company's development, including the achievement of company performance goals and personal assessment goals. Through the implementation of equity incentive policies, the company further mobilizes the enthusiasm and creativity of technical and management personnel, so that outstanding management talents and technical personnel can be "retained", enhance the company's core competitiveness, improve the interest sharing and risk sharing mechanism of employees, companies and shareholders, and fully mobilize the initiative and enthusiasm of core backbones.
Optimize the company structure and improve the management level. We earnestly implemented the "three-fixed" work requirements, adjusted and reduced the number of people in auxiliary management positions to make the workload more reasonable; based on production changes, we revised the company's performance appraisal system, implemented a "ladder system" output performance appraisal, encouraged the production workshop to maintain stable production and exceed production to complete the target tasks, and implemented a "double incentive" system for the overproduction part, constantly stimulated the vitality of employees and promoted efficiency improvement. In the first half of the year, the output of the melting and casting workshop increased by 145% year-on-year, and the output of the forging workshop increased by 57% year-on-year; around key tasks, we made advance plans and arrangements in process material preparation, spare parts reserves, equipment maintenance, etc., and made every effort to ensure the reliable delivery of important orders and the continuity of production. We carried out a pilot project of single-listed assessment in "one post and one department", and carried out piece-rate single-listed assessment in the melting and casting machining positions. With the reduction of 3 people in the machining positions, the monthly machine addition volume was close to that before the reduction, and achieved good results; we made full use of the group's special award policy for reducing losses and increasing profits, and set up special key areas of "development awards" and "efficiency awards" for sales personnel in the marketing department. The quantity and quality of orders have been significantly improved, laying the foundation for the company's continued profitability.
Party history learning and education promotes the company's development. Since the launch of party history learning and education, Jinhang Titanium has strengthened special studies and carried out reading classes, learned from history and practiced it, focused on goals, tasks and key tasks, and effectively transformed learning results into work motivation and work performance. Highlight the leading role of party building, lead the company to keep its original aspirations in mind, remember its mission, strengthen its will, and inspire its spirit, actively seize market opportunities, and strive to resolve contradictions and problems in production and operation. With the "1+N" model, the effective integration of party building and business work is achieved, providing political guarantees for the healthy development of the company.
Jinhang Titanium has achieved outstanding results. The cruel market has tempered their strong and unyielding will. The harmonious and warm environment and nutritious soil nourish their infinite potential for continuous innovation and enterprising.
