On September 10, Jiaozuo Area convened a meeting to analyze the operations quality during the period from January to August 2019. The meeting was attended by General Manager Yuan Jianguang, Chief Financial Officer Zhang Tao, and deputy directors and leaders above the middle level from water plants in the area.

      At the meeting, CFO Zhang delivered a report on the production goal completion of Jiaozuo First Plant, Second Plant and Wanfang Plant. From January to August, all the plants ran very well, with basic completion of fee collection goals, desired net profits, and operating cost controlled to a relatively low level. The Company sees stable and promising development.

      Jiaozuo First Plant, Second Plant and Wanfang Plant respectively reported their production and cost control in the first eight months, and proposed better advice for the control after target cost decomposition. The meeting also further defined the responsibilities and division of labor of relevant workers.
      General Manager Yuan Jianguang made a speech. According to him, following the mobilization of China Water Affairs Group Limited, Kangda is getting rid of difficulties by virtue of a series of reforms and integration. As new management concepts and performance assessment modes are implemented in depth and flat management framework is increasingly mature, Kangda is ushering in a new round of opportunities through continued technical innovation and industrial chain improvement. However, the external situation is still grim. For example, the government gets fewer taxes, enterprises are under great financial pressure, environmental checks are frequent, and there are many management risks. That leads to more difficult fee collection and higher production cost. On the premise of conforming operations, Kangda has shrinking flexibility. That makes fine management necessary.
      General Manager Yuan urged departments and leaders at all levels to perform duties bravely, actively and earnestly; find feasible and smart solutions and work scientifically and efficiently to fully promote innovative technology and management; implement fine management throughout production and control costs in meticulous detail; make early plans, take concrete measures, and tackle major challenges to achieve the annual profit goal set by the Group. Yuan also made specific arrangements for safety production, performance assessment, 6S management in office environment, relocation auditing of the First Plant, and the acceptance of the national debt pipe network project.