On August 13, Cai Jiaomin, Party Secretary and Chairman of Zhongyuan Dahua Company, led a delegation to Shenma Shares for a focused visit and exchange aimed at deepening reforms of state-owned enterprise systems and mechanisms. Wang Hefu, Deputy Secretary of the Party Committee of Shenma Shares, warmly received the visiting team. The two sides held a symposium to share in-depth insights into their reform experiences and explore pathways for high-quality development of state-owned enterprises.

Wang Hefu extended a warm welcome to Cai Jiaomin and his delegation. He noted that Zhongyuan Dahua and Shenma Shares are both key chemical enterprises under the China Pingmei Shenma Group, sharing similar industrial foundations and a common development mission, and have maintained close cooperation over the years. In recent years, Shenma Shares has set its sights on becoming a world-class enterprise, continuously dismantling institutional and systemic barriers and deepening reforms of its internal management system. As a result, a series of reform measures have been implemented and yielded tangible results, steadily enhancing the company’s operational efficiency and the level of supply-chain collaboration.

At the symposium, Wang Hefu provided a detailed overview of the nylon business segment’s integrated operational framework and the functioning of its division‑level management system, with particular emphasis on the implementation strategy and tangible results of the “chain leader + factory‑based” reform. Centering on key pillars such as unified, end‑to‑end supply‑chain oversight, streamlined integration of upstream and downstream resources, and market‑oriented operation of production units, he systematically explained how the reform has addressed bottlenecks across the industrial chain and unlocked synergistic efficiencies. In the areas of human resource management and compensation, he shared practical insights on competitive recruitment and appointment of managerial personnel, contractual management of executives, differentiated performance appraisal, and the establishment of a market‑driven remuneration system. By dismantling rigid seniority‑based promotion practices, the reform has created clear pathways for both upward and downward mobility; meanwhile, compensation policies have been aligned to favor frontline workers, critical technical roles, and high‑performing core contributors, linking pay to performance and rewarding excellence based on results. These measures have effectively energized the intrinsic motivation of cadres and employees to innovate and deliver, translating institutional strengths into distinct competitive advantages for the industry.

After listening to the briefing, Cai Jiaomin highly commended Shenma Shares’ systematic reform achievements. He noted that, amid a complex and volatile market environment in the chemical industry, deepening institutional and mechanism reforms is an indispensable path for state-owned enterprises to overcome developmental challenges and bolster their growth momentum. Shenma Shares’ reform initiatives—covering division‑based operations, supply‑chain coordination, talent recruitment and management, and compensation and incentive systems—are well aligned with industry realities and offer strong lessons for others, providing a valuable reference model for Zhongyuan Dahua as it advances its own internal reforms. Moving forward, Zhongyuan Dahua will carefully review and incorporate the insights gained from this exchange, tailor its management structure and refine its incentive mechanisms to suit the specific characteristics of its coal‑chemical sector, and continuously enhance its market‑oriented operational capabilities.

The two sides also engaged in an in-depth exchange of views on such topics as industry development trends, cost control, supply-chain collaboration, and talent‑development initiatives. They unanimously agreed that the two enterprises should continue to strengthen their coordination, establish regular channels for sharing best practices, draw on each other’s reform strategies, and work together to overcome developmental challenges. With the goal of “quality improvement and upgrading,” they will make every effort to elevate the overall strength of both companies to a new level, thereby making fresh and even greater contributions to the Group’s accelerated pursuit of high‑quality development objectives.

Heads of relevant departments from both companies attended the symposium. Following the meeting, Cai Jiaomin and his delegation conducted on-site visits to Nylon Technology Co., Ltd. and Curtain Fabric Development Co., Ltd.