The 2020 Semi-annual Summary Meeting for the Operation of Kangda EP is held grandly in Luyi, Henan, the hometown of Laozi
On August 1, 2020, the 2020 Semi-annual Summary Meeting for the Operation of Group Company was held grandly in Luyi, Henan, the hometown of Lao Zi. The meeting was presided over by President Duan Linnan and attended by more than 60 people, including Group leader Li Zhong (via video and telephone), Xiao Aiguo, Tao Hua, Fang Xuequan, Lyu Fucai, directors and deputy directors of the Operation Department, Investment and Development Department and General Department, general managers of water companies, Mr. Cao of China Water Property Group Limited, special guest Mr. Fang Di and General Manager Chen Le of Luyi Yinlong Plant. Zhai Jie, deputy county mayor of the People's Government of Luyi, and Zhu Ming, director of Luyi Housing and Urban-Rural Development Bureau, extended their congratulations in the meeting.
At the beginning of the meeting, Director Zhu Ming first delivered a speech, expressing a warm welcome to all the guests of Kangda EP who came from afar for investigation and exchange in Luyi, Henan, the hometown of Lao Zi, a historic city. In the meantime, Director Zhu Ming highly praised the projects of water supply, drainage, reclaimed water, river management and real estate invested and operated by China Water Affairs Group Limited in recent years. The successful implementation of these projects in Luyi largely contributed to the improvement of the urban eco-environment and local people's life. The open Luyu, where the river is clear, the riverbank is green and the landscape is beautiful, warmly welcomed everyone here and congratulated the meeting beforehand on its success.
Soon afterward, Vice Chairman Xiao Aiguo, on behalf of Kangda EP, expressed his gratitude to the leaders of Luyi Government for participating in the meeting out of their busy schedule. He also expressed his gratitude for the favorable business environment provided by the CPC Luyi County Committee and the People's Government of Luyi, and leaders at all levels in Luyi for their concern and support for environmental protection enterprises. As a holding company subordinated to China Water Affairs Group Limited, Kangda EP will always stay true to the original aspiration and founding mission, consistently adhere to the vision of "contributing to society with water-oriented principles", strengthen cooperation with the government, and work together to create a win-win future.
According to the agenda, the participants first listened carefully to the introduction of Luyi's humanistic history and development and the report "Improve Plant Appearance and Employees' Mental Outlook" given by Chen Le, general manager of Luyi Water Supply Company subordinated to China Water Affairs Group Limited. Then they listened to a speech delivered by Fang Di, vice chairman of Zhoukou Yinlong Water Service Company, titled "Mutual Contributions Between the Enterprise and Employees". Vice Chairman Fang Di shared his experience in co-developing with the company and hoped that every employee of China Water Affairs Group Limited and its affiliated holding companies will cherish the platform set up by the enterprise, value their own jobs, and strive to practice the commitment of "contributing to society with water-oriented principles".
The approach of promoting learning by examination to meet practical needs promoted general managers of project companies to act in line with their duties.
Subsequently, 43 general managers of the operating companies took the examination on the "Franchise Agreement" and "Equity Transfer Agreement", and the examination was followed by a satisfactory result with 93% of managers passing the examination. Among them, Li Yong, general manager of Bay Water Affairs Co., Ltd. (China), ranked first with an excellent mark of 87 points. The approach of promoting learning by examination to meet practical needs enabled general managers of project companies to know the business well, producing a positive demonstration effect.
Conduct group discussions to solve problems in the Shandong region in a timely manner
On the afternoon of August 1, in light of the problems in Liangshan, Linqing, Gaomi, Dong'e, such as the delayed collection of water fees in arrears, equipment overhaul, sludge disposal, up-to-standard discharge, and construction to commercial operation in some project companies, President Duan personally presided over a Special Meeting for Shandong Region, attended by Vice Chairman Xiao, Vice President Lyu and 18 general managers from Shandong region. In the meeting, they entered into a discussion on solutions to effectively collecting water charges, implementing equipment overhaul as soon as possible to remove a hidden danger, and ensuring up-to-standard discharge. At the same time, the meeting stressed that each project company should do well at "Franchise Agreement operation, fixed assets operation and government-enterprise public relations management".
Visit Luyi project to experience the enterprise culture of "contributing to the society with water-oriented principles" at zero distance
According to the meeting arrangement, participants paid a visit to the water supply and discharge project in Luyi invested by China Water Affairs Group Limited in the afternoon. During the visit, they experienced the successful operation mode of Luyi company at zero distance. The delegation was warmly greeted by personnel of project companies in Luyi.
They were deeply impressed by the water supply, sewage, reclaimed water and direct drinking water projects invested by China Water Affairs Group Limited in Luyi, as well as the Luye Canal, the moat, river environmental governance and real estate projects. The Water Supply Plant is in a beautiful environment in a wide green area. The work sites and laboratories, which feature clear identification and company regulation on the wall, were in good order. The sewage treatment sedimentation basin, disinfecting tank, dehydration machine room, ventilator room and dosing room were in order. The expansion project of raising the discharge standard of reclaimed water is in full swing, which shows the full enthusiasm and persistent pursuit of workers for their work and water career. The clear river water, white jade railings and bluestone railings on both sides of the river complementing each other and the music fountain by the moat allows people to enjoy a pleasant life in Luyi. The "Shuirun Series", a real estate project with three residential properties, further strengthens the resolution of China Water Affairs Group Limited to improve Luyi people's living environment and urban appearance. The excellent construction and management philosophy of projects in Luyi made us feel the entrepreneurs' broad mind of "contributing to society with water-oriented principles". Luyi showed us the successful practice of the continuous extension of the water industry chain. It not only effectively improves the local urban environment and benefits the people, but also greatly enhances the ability of enterprises to respond to the market. As the saying goes, a small sign can indicate a great trend. Projects in Luyi made the general managers participating in the meeting see the great mind and responsibility of the investors, and the prospects and development directions of the enterprise's future business. With the fruitful exchanges with peers, it's been a worthwhile trip.
The semi-annual summary meeting of Kangda EP continued the next day. Three vice presidents, Tao Hua, Fang Xuequan, and Lyu Fucai, delivered keynote speeches successively. Vice President Tao recalled the initial situation in Luyi. With more than a decade of hard work in Luyi, despite all kinds of hardships, China Water Affairs Group Limited has finally realized the continuous extension of the industrial chain and the synchronous increase in social benefit and economic benefit. It was heart touching to witness the gradual advancement of the integration of urban and rural water supply and enjoy the beautiful street view.
Vice President Fang Xuequan briefly reviewed the course of struggle and management philosophy of China Water Affairs Group Limited in promoting construction projects in Luyi. China Water Affairs Group Limited has excellently fulfilled its commitment of "contributing to society with water-oriented principles"!
Vice President Lyu Fucai made a passionate speech. Regarding the current fee dilemma faced by enterprises in Shandong, he asked all general managers to build up confidence, instead of surrendering to difficulties. General managers should broaden the mind to figure out solutions by learning from Luyi model and concentrate on developing the industrial chain. At the same time, he emphasized the basic literacy of professional managers and the importance of loyalty and conscience as professional managers. General managers of water companies were required to be loyal to both capital and investors.
Vice Chairman Xiao Aiguo delivered the Report on the Operation of Kangda EP Water in the First Half of 2020 in the meeting, motivating the operating staff to stick to the principle of "pulling together to achieve remarkable progress in water affairs by consolidating the foundation and strengthening operations management." He said that in the first half of this year, under the unified leadership and strong support of the Group's management, the operation management mechanism has been gradually improved, and certain achievements have been made in the operation. During the COVID-19 outbreak, operating companies have taken various measures for joint epidemic containment, which has ensured zero infection among employees and their families across the Group. Companies have achieved phased victories in the fight against the pandemic. Facing the extremely severe flood control situation in the Yangtze River and Yellow River basins this year, operating companies have stuck to their posts and actively organized production, which has brought phased success in flood prevention. The Group Company hereby expressed its heartfelt gratitude to all employees and general managers for their hard work.
With the concerted efforts, all operating companies basically achieved up-to-standard discharge and successfully completed set tasks in the operation of water affairs in the first half of the year.
He stressed that in the second half of the year, further efforts in strengthening production safety and up-to-standard discharge will be put into the operation of water affairs. That's the red line of operation. Besides, the collection of water charges is still the core mission in work. We should fully launch the major overhaul plan to ensure safe production, and make every attempt to implement various tasks including the shift from construction to commercial operation, price adjustment and post-audit, laying a solid foundation for the work in the second half of 2020 and 2021.
President Duan, briefed on the work reported by division headers and Vice Chairman Xiao Aiguo, shared the group’s intention of holding the meeting in Luyi based on the vision of China Water Affairs Group Limited “contributing to society with water-oriented principles” and put forward new requirements for work in the second half of the year.
He said that Luyi, with abundant prominent figures, is the hometown of Lao Zi. "Water nourishes all but never struggles for its own benefits. It flows where others dislike, and is thus the closest to Tao, the way. It lives at an appropriate place, being calm and unfathomable. It treats people with sincerity, friendliness and selflessness, and abides by its word. It is well organized in governance, and good at giving full play to its ability and seizing opportunities in action,” according to Lao Zi. The vision of China Water Affairs Group Limited “contributing to society with water-oriented principles” points the way for us. We carry out water supply and drainage projects, achieve the integration of water supply and drainage, and benefit the people, which contributes to society in itself. The visit and study are carried out in Luyi this time, because there is a complete water-related industrial chain integrating water supply, drainage, reclaimed water, and environmental governance, and a good government-enterprise collaboration relationship has been established. The Luyi model is the epitome of the future development model of China Water Affairs Group Limited. The field visit helped enlighten all in the future work and enhance the sense of belonging and pride. President Duan also put forward new requirements for the operation of the Group in the second half of the year, including plant appearance, equipment overhaul, salary adjustment, industrial chain extension, chemical reagent procurement, and refined management.
Mr. Li Zhong, the chairman, delivered an important speech from Hong Kong via video connections to attendees at the meeting, given the outbreak of COVID-19.
The speech consists of three parts: the performance of China Water Affairs Group Limited, the status and goals of Kangda, and new requirements for the general managers of the operating companies.
He said that the fiscal year report of China Water Affairs Group Limited for 2019 was published on July 31, which shows that the company takes the lead in all sectors. The revenue reaches RMB 8.7 billion, a record high, the net profit RMB 2.2 billion, the total assets nearly RMB 45 billion, and the return on net assets 18%, for which the company has achieved the "two centenary objectives" ahead of schedule. Kangda's total assets in 2019 totaled RMB 16.9 billion, net profit RMB 330 million, and return on net assets 8.2%. Despite its increase over 2018, Kangda was much under-performed than China Water Affairs Group Limited in various areas. He also pointed out that after China Water Affairs Group Limited took control of Kangda EP in 2019, the sewage treatment sector has been completely transferred to Kangda. From the perspective of China Water Affairs Group Limited, the general managers of Kangda's operating companies have undertaken great responsibilities and missions during the future development of China Water Affairs Group Limited.
When talking about the operation of Kangda, Mr. Li Zhong said that as of July 2020, failing to fully collect the fees was still a prominent problem, which, if not handled immediately, will directly affect the sound operation of the company. The companies which collected 100% of water fees in the first half of the year were highly acknowledged including Yucheng, Shangqiu, Linyi, Hebi, Jiyuan, Fengxian County of Xuzhou, Suzhou, Jixi, Tianjin Ninghe, Qunli of Harbin, Suihua, and Ma’an of Huizhou. Two companies, Gaomi Lvyi Sludge and Weifang Binhai, were severely criticized for failing to create revenue from January to July this year.
In terms of requirements and tasks of the general managers of the operating companies, Mr. Li Zhong pointed out:
The concept of 2+2 refers to the safe and up-to-standard operations, and reasonable and timely charging, plus the transfer of projects under construction to operation and market expansion. It marks an unavoidable responsibility for and courage of every general manager. We cannot work passively. We should make full use of the platform built by the Group and complete our work properly with China Water Affairs Group Limited as the support. Every core executive working with China Water Affairs Group Limited should be of one heart and one mind and go in the same direction, but not vice versa. Every general manager is expected to be the disseminator of positive energy and source of power for the development of the Group, so as to drive it forward at a high and steady speed.
We firmly believe that Kangda has changed and will go beyond. It will, together with China Water Affairs Group Limited, be among the leading ones in water affairs in China. China Water Affairs Group Limited, with a processing capacity exceeding 20 million tons, ranks third in this regard in China. According to the latest data released by the International Water Association, China Water Affairs Group Limited ranks first in terms of profitability per ton of water and return on net assets. I sincerely hope that all of us will make outstanding contributions to the common water business.
The two-day meeting was tightly scheduled and detailed. There were explanations, publicity, examinations, visits, studies, discussions, summaries, reports, exchanges, and interactions. The management reported on the operation in the first half of the year, made summaries, recognized the performance, pointed out the existing problems sharply, and clarified the tasks, goals and direction for the second half of the year. The Luyi model enables the general managers of Kangda's project companies to notice the gap and generate hopes for future development and the orderly extension of the industrial chain. The concept of 2+2 proposed by the Group management is accurate and practical. The leaders gave speeches with distinct themes, clear tasks, and focuses, displaying their sense of responsibility and passion. This semi-annual summary meeting not only put pressure on general managers, but also helped them enhance confidence.
We should brave the tide and set sail at the best moment! We firmly believe that, under the correct leadership of the Group’s management, and with the great support from China Water Affairs Group Limited and the meeting in Luyi as an opportunity, Kangda’s operating companies will reach a consensus and adhere to the vision of “contributing to society with water-oriented principles”. By strengthening sewage treatment and related business and value-added services and based on the extension of the water-related industrial chain, Kangda will embrace leapfrog development. All agendas were completed, and the meeting was successfully held and achieved the expected goals.
