天地科技:天地科技关于2024年度“提质增效重回报”行动方案(英文版)

Tiandi Science & Technology Co., Ltd
Action Plan of “Improve Quality and Efficiency
and Safeguard Returns”in 2024
Seeking guidance from the gist of the 20th National Congress of the
CPC, the 3rd Plenary Session of the 20th National Congress of the
CPC, and the annual Central Financial Work Conference, Tiandi
Science & Technology Co., Ltd (herein after referred to as
“TDTEC”or the "Company")faithfully fulfills the requirements that
the PRC State Council and the Shanghai Stock Exchange put
forward in the "Opinions on Further Improving the Quality of Listed
Companies" and the "Initiative on Launching Special Actions to
Improve Quality and Efficiency and Ensure Returns for Listed
Companies on the Shanghai Stock Exchange," respectively. To this
end, TDTEC has formulated its "Action Plan of ‘Improve Quality
and Efficiency and Safeguard Returns’ in 2024", which is reviewed
and approved at the 14th meeting of its 7th Board of Directors. The
contents of the Plan are as follows.
1. A Strong Core Business to Constantly Promote High-Quality
Development
The Company has established Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era as guidance for its
action to implement relevant work arrangements made by the
State-owned Assets Supervision and Administration Commission
(SASAC) of the PRC State Council and relevant decisions adopted
at the 20th National Congress of the CPC, the 3rd Plenary Session
of the 20th National Congress of the CPC, and the annual Central
Financial Work Conference. It has put into practice the "1245"
development idea and has steadily increased its composite
strength and gained significant momentum in pursuing high-quality
development. Since entering into the 14th Five-Year Plan period
(2021–2025 period), the Company has achieved continued strong
operating performance: The average annual growth rate of its
operating revenue is 13.4%; that of its net income attributable to the
parent, 20%. Its profitability and operating efficiency have been
remarkably improved: The return on equity ratio has been
increased to 10.9% from 7.8%; the receivables turnover ratio, to 3x
from 2.2x. In 1H 2024, the operating revenue reaches RMB14.89
billion, up 2.3% year-on-year; the net income attributable to the
parent totals RMB1.53 billion, up 10.5% year-on-year.
The Company will continue focusing on its core business and
advancing actions to create value and enhance its value-creation
capacity.It will make unremitting efforts to pursue reasonable
improvement in both quality and quantity. With the
above-mentioned improvements and enhanced ability to judge the
macro environment and industry trends, it will be able to timely
optimize its business strategy and achieve better performance in
terms of efficiency, gross income, net income, net income
attributable to the parent, return on net assets, total labor
productivity, operating cash flow, R&D investment intensity,
sci-tech output efficiency, and asset-liability ratio. By continuously
expanding the increment and tapping the potential, it will maximize
its performance and step up its management, esp. marketing
management, cash flow management, brokerage fee management,
accounts receivable management, and inventory management. It
will reduce its cost and expenditure and increase its asset turnover
ratio through fine management methods. It will drive value creation
via strengthened budget management, business-finance
integration, and total cost management.
2. Strengthened Sci-Tech Innovation to Maintain Leading
Position in Industrial Technology
To fulfill the entrusted mission of safeguarding China's energy
security and promoting innovation in coal science and technology,
the Company takes sci-tech innovation as its core development
ideology and makes solid progress in building itself into a leading
high-tech enterprise, an original technology source, and a sci-tech
force of national strategic significance, striving to actualize
high-level self-reliance in science and technology. Since 2021, the
Company has worked hard to ensure that its top-level design
achieves its intended goals. It has formulated and implemented its
"Top-Level Design for Sci-Tech Innovation" and accelerated the
construction of an innovation system with a clear division of labor
and orderly integration of elements. Its R&D intensity has grown
from 7.2% to 8%, and continuous breakthroughs have been made
in the fields of advanced technology and high-end equipment. New
equipment, materials, and software have been adopted and timely
updated, constantly setting new records with improved
performance. Relevant application effects have remained positive,
which has remarkably improved efficiency. At present, the
Company boasts 122 provincial- and ministerial-level laboratories,
engineering research centers, technical research centers, and
inspection and testing pla