Vice General Manager Wang Peng provided a detailed interpretation of the document, delving into the deeper meaning behind cost reduction and efficiency enhancement. He emphasized that cost reduction and efficiency gains should not be simply equated with "layoffs, pay cuts, or cost control"—instead, they should be viewed as a profound transformation in management and a fundamental reshaping of organizational value. At its core, cost reduction hinges on "lean principles," which involve optimizing resource allocation, eliminating non-value-added waste, and maximizing resource recycling to achieve cost optimization. Meanwhile, boosting efficiency relies heavily on "innovation"—driven by process improvements, workflow reengineering, and technological breakthroughs—to continuously enhance overall productivity. Wang Peng pointed out that cost reduction and efficiency enhancement are not only effective strategies for addressing market challenges but also critical pathways for companies to build long-term competitive advantages. Ultimately, the goal is to drive profit growth and help enterprises move up the value chain. Additionally, he shared best practices from within the industry—such as optimizing internal template systems, leveraging BIM technology, and fostering innovative construction methods—that have successfully delivered significant cost savings and efficiency gains. Encouraging all project teams to embrace the mindset that "all costs can be reduced, and all efficiencies can be improved," Wang urged everyone to translate these objectives into concrete actions tailored to their specific roles and responsibilities.

On the afternoon of August 17, 2025, the company held a grand kickoff and deployment meeting for the "Cost Reduction and Efficiency Enhancement Initiative in the Production Process," leveraging its regular Sunday safety production meeting. During the meeting, participants studied the "Notice on Launching Cost Reduction and Efficiency Enhancement Activities in the Production Process" (Zhongyu Office [2025] No. 48) and discussed the specific arrangements and tasks ahead. The meeting was chaired by Vice General Manager Wang Peng, while Executive Vice General Manager Zhao Jiren delivered an important keynote speech. Representatives from all project departments, heads of relevant divisions, and key personnel from related business units attended the event.

The meeting noted that, in the context of increasingly fierce industry competition, reducing costs and boosting efficiency have become critical strategic initiatives for companies aiming to enhance their core competitiveness and achieve sustainable growth. This special initiative focuses specifically on the production process, as it is the area where the company consumes the most resources, incurs the highest costs, and holds the greatest potential for efficiency improvements. Therefore, systematically advancing lean management practices and driving innovative transformations is of paramount importance.

Vice General Manager Wang Peng provided a detailed interpretation of the document and delved into the deeper meaning behind cost reduction and efficiency enhancement. He emphasized that cost reduction and efficiency gains should not be simply equated with "layoffs, pay cuts, or cost control"—instead, they should be viewed as a profound transformation in management and a fundamental重塑 of organizational value. At its core, cost reduction hinges on "lean principles," which involve optimizing resource allocation, eliminating non-value-added waste, and maximizing resource recycling to achieve cost optimization. Meanwhile, boosting efficiency relies heavily on "innovation"—driven by process improvements, workflow reengineering, and technological breakthroughs—to continuously enhance overall productivity. Wang Peng pointed out that cost reduction and efficiency enhancement are not only effective strategies for addressing market challenges but also critical pathways for companies to build long-term competitive advantages. Ultimately, the goal is to drive profit growth and help enterprises move up the value chain. Additionally, he shared best practices from within the industry—such as optimizing internal template systems, leveraging BIM technology, and fostering innovative construction methods—that have successfully delivered significant cost savings and efficiency gains. Encouraging all project teams to embrace the mindset that "all costs can be reduced, and all efficiencies can be improved," Wang urged everyone to translate these objectives into concrete actions tailored to their specific roles and responsibilities.

In his speech, Executive Deputy General Manager Zhao Jiren further emphasized the systematic and long-term nature of the initiative, while outlining five specific requirements: First, ensure full integration by embedding cost awareness and a results-oriented approach throughout the entire process—from production planning to project completion and acceptance. Second, prioritize quality above all else, minimizing—or ideally eliminating—rework and rework-related issues through rigorous process control, widespread adoption of standardized construction practices, and the effective use of quality management tools. Third, strengthen training initiatives: the company will organize a series of workshops, technical competitions, and cross-industry exchanges to enhance employees' skill levels and foster their innovative capabilities. Fourth, refine the incentive mechanism: the company will introduce complementary reward programs to recognize teams and individuals who propose practical suggestions, achieve technological breakthroughs, or deliver significant economic benefits. Finally, accelerate project implementation—each project team must develop a detailed action plan, clearly assigning responsibilities and setting timelines, while regularly reporting progress and maintaining thorough documentation for future reference.

To ensure the effective advancement of the initiative, the company has established a special leading group headed by General Manager Liang Wang. The group’s office is located within the Production Technology Department, creating a robust two-tiered coordination mechanism linking the company and project teams. The initiative will comprehensively cover all ongoing construction and operation & maintenance projects, with a particular focus on eight key areas: production schedule control, optimized personnel management, enhanced efficiency of machinery and equipment, meticulous material management, innovative process technologies, achieving first-time quality excellence, and robust safety risk prevention. Additionally, the company will introduce a "Cost Reduction and Efficiency Enhancement Project Filing System" and launch an "Annual Achievement Evaluation Program." By recognizing top performers, sharing best practices, and rewarding outstanding contributions, the company aims to continuously foster a positive culture where "everyone focuses on cost management, and efficiency is pursued in every aspect of our operations."

The convening of this meeting marks a significant step forward for Zhongyu Construction Group as it moves toward driving intrinsic growth and transforming into a more refined, efficiency-focused management model. Reducing costs and boosting productivity is not only an urgent response to current market challenges but also a critical initiative for building the core capabilities needed to ensure the company’s long-term, sustainable development. Moving forward, each project team will swiftly take action by developing detailed implementation plans and actively rolling them out. Meanwhile, the company’s leading task force will closely monitor progress on the ground, providing hands-on guidance and support to ensure that these efforts deliver tangible results—thereby injecting strong momentum into the group’s ability to meet its annual targets and achieve high-quality, long-term growth.

Publicity Department, Zhao Rong