Meeting Held to Review First-Half Work and Outline Second-Half Plans for Xindafang

　　Identify shortcomings, shift thinking, solve problems, and pursue development.

　　Xindafang News: In August, Xindafang held two meetings—one to review and summarize the first-half work and another to outline plans for the second half—during which participants jointly reviewed and summarized the achievements of the first half, identified shortcomings, distilled lessons learned, and laid the groundwork for the smooth attainment of the year’s objectives.

　　On August 8–9, Zhang Zhihua, Chairman and President of the company, Chen Hao, Executive Vice President, Gao Huijie, Vice President, and other senior executives attended the inaugural semi-annual work conference. The company’s “Document No. 1” serves as the guiding framework and set of objectives for all employees’ year-round work. During the meeting, each center and department reported on the progress made in the first half of the year and outlined the key priorities for the second half, in alignment with their respective responsibilities and in light of Document No. 1. The conference also included a discussion of the most salient issues facing each department, during which preliminary solutions were proposed.

　　On August 22, the company once again held a first-half work conference attended by senior executives and middle-level managers. During the meeting, Zhang Zhihua stated that global economic uncertainty, domestic inflationary pressures, and the policy of monetary tightening have all placed higher demands and posed greater challenges to the company’s development. Although the international and domestic political environment and economic situation improved slightly in the first half of the year, they remain more severe than we had anticipated. Overall, while the company did not achieve its set targets for the first half, it nevertheless attained certain results—achievements that were hard-won given the difficult market conditions. The tasks ahead in the second half are even heavier and the pressure even greater; he urged everyone to identify the root causes, draw lessons from experience, address existing problems, ensure that similar mistakes are not repeated and that we do not retrace the same misguided paths, thereby laying a solid foundation and charting a clear course for the next phase of work. In the second half, the company will focus on the following key areas:

　　First and foremost, we must build a learning organization to further enhance corporate management. He stated that Xindafang has benefited from the favorable policies of the past thirty years of reform and opening-up, as well as from the economic downturn and the crisis of overcapacity. We seized the opportunity presented by the boom in high-speed rail to achieve rapid growth; however, the era of loose, unstructured management in the high-speed rail sector will never return. The market economy demands meticulous, refined management. Therefore, it is imperative that we establish a learning organization, strengthen our core competitiveness and overall competitive edge, and adapt to the evolving needs of the market. At present, the company is at a critical juncture in its development, making it essential to promote transformation and upgrading and to carry out strategic adjustments and optimizations. Given the ever-changing global, national, and corporate landscapes, all employees must intensify their learning, expand their knowledge, and hone their skills. From the company’s perspective, we should study and draw on the management practices of leading enterprises; yet such learning should not be mere replication or copycatting. The key is to ground our efforts in the company’s actual conditions and translate what we learn into sound working principles, effective methods, concrete initiatives, and tangible results. Each individual must, in light of their job responsibilities and scope of work, diligently acquire relevant professional knowledge, enhance their professional competence, and strive to become a true expert in their field.

　　Second, it is necessary to enhance the personal qualities of management personnel, especially mid-level managers.

　　department. The quality of managerial personnel is a critical factor determining the development of any enterprise. At present, our company is in a strategic period of transformation and upgrading, making it all the more crucial to seize this opportunity, build on momentum, and enhance the overall competence of our management team. Among them, middle-level managers—who serve as the bridge between top management and frontline staff—are particularly important: they must not only fully grasp the guiding principles and convey company decisions accurately and comprehensively to employees, but also tailor implementation to local conditions and effectively support frontline teams in executing tasks with precision. For example, amid a market crisis, the company resolutely implemented a substantial across-the-board salary increase in the first half of the year to safeguard the earnings of front-line employees. The challenge, then, is how to communicate the company’s vision clearly, demonstrate its sincerity, inspire and motivate employees, and rally everyone to work in unison with the company to overcome these difficult times—this is precisely what middle-level managers need to learn and put into practice.

　　Third, it is imperative to build a grassroots team that is capable of execution and willing to take responsibility. The grassroots

　　Employees constitute the vast majority of those who truly translate “execution” into concrete action, serving as the cornerstone of the company’s development. For frontline staff, execution is a matter of survival: without the ability to execute, no matter how strong one’s technical skills may be, one holds little value. Employees who understand and embrace execution are responsible and high-performing; they approach their work with enthusiasm and optimism, and even when faced with obstacles, they persist in thoughtful problem-solving to identify effective solutions and ultimately achieve objectives. Taking responsibility is also an essential quality that every frontline employee must possess: when challenges arise, they do not shirk accountability, engage in finger-pointing or bureaucratic wrangling, or make excuses. Instead, they step up, assume responsibility, and take ownership. Only such employees can faithfully implement every corporate decision, task, policy, and procedure. It is precisely these highly executable, accountable individuals who are indispensable to the company’s continued growth and success.

　　Fourth, we must align our thinking and recognize the operating environment in which the company finds itself, locally.

　　Individual interests must always be subordinated to the overall interests of the team, the organization, and the company; no behavior that places personal or departmental interests above these collective priorities will be tolerated. We must constantly remember that we are one big family, and our shared success or failure affects every single one of us. Therefore, all employees must cultivate a mindset in which “the company’s interests come first,” and under all circumstances—whether at the senior or frontline level—safeguarding the company’s interests must be their top priority. As employees, you must recognize that you are an integral part of the company: only when the company thrives can you thrive as well. In essence, the enterprise serves as a platform for the collective survival and development of all its members. If we compare the operation of the enterprise to a game of chess, the principles of putting corporate interests above all else, aligning internal actions with market realities, and ensuring that local considerations serve the broader strategic goals, are akin to the “big-picture thinking” that guides a chess player. Only by clearly distinguishing between the “big” and the “small” can employees make sound trade-offs: only by appropriately sacrificing localized gains can they secure overall success.

　　Zhang Zhihua stated that the national economy showed a slowdown in the first half of the year. Despite the government’s steadfast commitment to maintaining stable growth while adjusting the economic structure, and although the manufacturing PMI has edged up slightly—indicating signs of recovery—enterprises continue to face substantial survival pressures. Market pressures are compelling firms to strengthen internal management, unlock potential through better management, and drive efficiency gains by optimizing managerial practices. We must seize this opportunity to identify shortcomings, rethink our approach, resolve outstanding issues, and elevate our management capabilities—only in this way can we secure new avenues for development.

　　At the conclusion of the meeting, in accordance with the Company Performance Target Management Measures and the requirements set forth in Document No. 1 of the Company, and taking into account the respective responsibilities of each department, the heads of all centers and departments signed the Departmental Performance Target Accountability Agreements with the Chairman on the spot. These agreements represent the tasks and performance targets assigned by the Company. The Company requires that each department, based on its specific operational realities, cascade and break down the annual work objectives into actionable, tiered targets, aligning them effectively with monthly work plans. In particular, these objectives must be closely integrated with the Company’s key oversight initiatives, project management efforts, and KPI metrics, so as to develop detailed, feasible work plans that ensure the comprehensive implementation and successful achievement of the annual work objectives.

　　Signing annual target responsibility agreements with all departments is one of the Company’s key initiatives this year to strengthen accountability and enhance execution. The Company will use these agreements as the basis for annual performance evaluations and the selection of outstanding units and individuals. The formalization of these agreements will provide robust assurance for further clarifying responsibilities, improving work efficiency, and ensuring the comprehensive completion of all business objectives.