Rechsand Technology Group 2023 Work Summary and Commendation Conference

Conquering difficulties together, bidding farewell to the old year, innovating and developing to welcome the new year

Dear Academician Ding, Director Li, Chairman Mei, and Professor Liu, dear colleagues at Renchuang:

Hello everyone!

First of all, on behalf of all employees of Renchuang, I would like to express my heartfelt gratitude to the four experts for their arrival! On behalf of the investors of the company and the top management, we extend warm congratulations and high respect to all the members of the award-winning team who have just won the award! Congratulations to all the newly hired members of the operations team! Thank you also for your trust in the company and my personal trust! Thank you for gladly accepting the management innovation initiative of all employees being laid off and re competing for positions. Based on the company's development needs and personal strengths, we actively participate in the competition for relevant positions. We have just been successfully hired and signed an annual target responsibility agreement. From now on, we will work together, work together, work together, innovate and drive high-quality development, and work together to enter a new era of the sand industry.
       In the past year of 2023, the global economy was in a recession, and China was also unable to avoid it, especially our private real economy was struggling! Therefore, our company, Renchuang Group, has also encountered the most difficult year since its establishment 30 years ago. The main manifestation is that the market demand is not strong, and it is extremely difficult to receive sales payments, resulting in difficulties in capital turnover. However, since the outbreak of the epidemic in 2020, we have persisted in not laying off employees or lowering salaries, and have tried to overcome difficulties through innovative development, which has made it even more difficult. It is precisely because of this that we rely on the power of innovation, unity, and collective wisdom to overcome difficulties, solve problems, overcome difficulties together, turn dangers into opportunities, and not only fail, but also stand more vibrant in the capital region! What is particularly commendable is that we have achieved extraordinary results one by one! For example, our oil and gas business unit has successfully solved the problem of deep well shale gas extraction in the Southwest region of PetroChina and Sinopec by promoting a new technology product - shale gas development using a composite support agent material with the function of "self suspension, self resistance reduction, and self hydrolysis". This has significantly reduced construction pressure, ensured construction safety, and increased production compared to traditional ceramic particles, We have achieved the overall goal of reducing costs and increasing efficiency at the headquarters of PetroChina and Sinopec, and have successfully applied more than 20 wells throughout the year, doubling the annual sales volume of our oil and gas business unit. For example, our ecological business unit adopts our independently innovated silicon sand honeycomb water storage and self purification technology system, which not only creatively completed the construction of the rural domestic sewage treatment demonstration project in Shangzhuang Village, Haidian District, but also successfully passed the acceptance of relevant government departments and received praise from the government and industry experts! We have successfully constructed and operated the Longtan West Lake -- the combined sewage discharge outlet regulation, storage and purification treatment demonstration project, which played a good role in the heavy rainstorm in Beijing last year. The total cumulative regulation, storage and flood volume in the flood season reached more than 200000 cubic meters. And the third-party detection showed that the 24-hour inflow water quality reached more than 970 COD, which exceeded the design standard 500 limit by 100%, The various indicators of 24-hour natural purification water quality are still better than the national standard IA. This situation has received high praise from the Beijing Municipal Party Committee and Government. The deputy mayor in charge of water affairs has issued instructions to "optimize, replicate, and promote" this technology. Therefore, new demonstration projects such as Tonghu Street in Tongzhou District have been launched this year. For example, the Shaxing Agricultural Business Unit constructed an ecological sponge paddy field construction project in the abandoned mining area of Fuyang District, Hangzhou City. Not only did it successfully meet the higher ecological construction requirements of environmental supervision, but it also passed the acceptance inspection of all parties. The project not only received praise from all walks of life, but also won the commendation of Zhejiang Province for its high-quality ecological effect. The successful construction of the project will play a good demonstration and leading role in the national ecological environment construction, and contribute to China's ecological environment construction, To firmly grasp the rice bowl in our own hands, we have contributed the strength of Renchuang people! Of particular note is the newly established Sand Building Division, which boldly explores and innovates, Through the enclosure structure system, roof planting waterproofing system, and fresh air system of rainwater energy pool Due to the breakthrough of existing architectural design standards and the reluctance of the architectural design institute to produce design drawings, the three major systems underwent disruptive innovation. As a Renchuang person, our independently formed construction team, fearless of difficulties and relying on the power of intelligence, continuously improved and perfected on-site manual operations. Finally, on December 10, 2023, the enclosure structure and exterior facade construction of the main project were successfully completed, and we received visits from leaders and experts Good reviews. For example, we welcomed the members of the New Palace Museum North Campus Construction Leadership Group led by the Party Secretary of the Palace Museum to the Renchuang Building for on-site inspection. They were impressed by our innovative achievements and gave high praise. After discussion, they decided to partially use our innovative sand building achievements to serve the construction of the New Palace Museum North Campus.

Looking back at the leap of 2023, it can be said that we have overcome the difficulties together and bid farewell to the old year. Looking forward to 2024, the Renchuang people who have withstood the harsh winter test will be full of joy in "innovating and developing to welcome the new year".

In 2024, the overall policy of Renchuang Technology Group's work remains to "open up resources and reduce costs, focus on key areas, divide labor and cooperate, and innovate and develop". We will further promote three major transformations, namely, from a single technological innovation to a coordinated innovation of technology production management culture; Transforming from individual authoritative management to team institutionalized management; Transforming from single product management to collaborative management of products, integrated solutions, and technology brand culture. Especially on the basis of doing a good job in honing internal skills mentioned above, the company has officially entered the stage of "intellectual property operation" from the strategic level. Its main purpose is to fully leverage the advantages of independent innovation, organically integrate the innovation chain with the industrial chain, initiate innovative research projects, form products and integrated solutions for social problems, and then invest and incubate independently, from technology to products and engineering applications, create demonstration projects, and cultivate and develop emerging markets, Synchronize the research and development of product standards and engineering specifications, and comprehensively promote mixed ownership reform cooperation with like-minded state-owned enterprises or central enterprises. We will systematically build a technology innovation and production management system with Renchuang's unique characteristics, taking Huawei as an example and benchmark, and learning to innovate and surpass!

      This year's main tasks include:

      1) The interior decoration and fresh air system construction of Renchuang Building must be fully completed by June this year, and it is planned that some areas can enter the office in July;

      2) In the second half of the year, we will host the first Sand Industry Innovation Forum at Renchuang Building;

      3) Plan to complete at least one successful case of cooperative mixed ownership reform this year;

      4) Formally launch the industrialization of "sand health preservation" related reserve technologies and operate under the "Heart and Harmony" brand.

      5) According to the requirements of the Ministry of Science and Technology, we will carry out the restructuring of the National Key Laboratory for the Utilization of Silicon Sand Resources.

      As for the business goals of each business unit this year, we have just signed a target responsibility agreement with the relevant person in charge, so we will not elaborate on it here.

      After the correct route is determined, cadres are the determining factor. Whether our goals for this year can be successfully achieved depends on our new operations team, and on each and every one of us, leading by example, daring to take on responsibilities, fighting bravely, demonstrating and leading all creative people, working together to strive for our ideals! Of course, the realization of our goals and ideals cannot be achieved without the care, support, and assistance of experts and leaders present and absent!

      Our Renchuang company was born, developed, and strengthened through innovation! We will also move forward in innovation, never change our original intention, and achieve rebirth through Nirvana! We have confidence and the ability to lead the development of the world sand industry, with benevolence and dedication, and innovation to benefit the world!

                                                                                                                                                                                February 18th, 2024