On April 16, China State Construction Engineering Corporation (CSCEC) held the 2020 first-quarter operational analysis meeting in Beijing through video conferencing. The meeting thoroughly reviewed the company’s operational performance in the first quarter of the year and developed work plans for the forthcoming period.
In the COVID-19-haunted first quarter, CSCEC gradually resumed work and production and strived to minimize the adverse impact of the epidemic on operation. The company’s infrastructure and overseas business rose against the trend, while its reform of state-owned enterprises made steady progress. Zhou Naixiang, chairman of CSCEC, said he fully recognized the efforts made and the positive results achieved by the company in response to the challenges presented during the COVID-19 outbreak, and expressed his heartfelt gratitude to the employees.
Zhou Naixiang, chairman of CSCEC, speaks during CSCEC's operational analysis meeting of Q1, 2020. (Photo: Agencies)
Zhou pointed out that the second quarter will be a critical period for the production and operation of construction enterprises and a pivotal stage of the year for the completion of the company's annual operational goals. All CSCEC subsidiaries should coordinate tasks and schedules to ensure successful completion of the annual missions.
The first mission is to prevent and control the COVID-19 pandemic during operations. Precise and effective measures should be taken on a routine basis to ensure domestic epidemic control, with especial efforts dedicated to the detection of asymptomatic cases and to the Beijing area. In response to the COVID-19 outbreak worldwide, the CSCEC headquarters will provide strong support to its overseas subsidiaries and projects for epidemic control in regards to providing epidemic prevention guidance, distributing epidemic prevention supplies, and guaranteeing financial support. Overseas subsidiaries should improve prevention and control measures as well as emergency plans, optimize psychological counseling service for employees, and ensure the stability of the workforce.
The second mission is to pay special attention to marketing. Priority should be given to expanding key markets, as the company concentrates its resources on vigorous expansion of business in key regions and urban agglomerations, thriving to ensure the company's market dominance in these cities and areas. Special efforts should be made to explore possibilities with the “New Infrastructure” projects to boost sustainable development of the company.
The third mission is to ensure the steady development of the real estate business. The CSCEC headquarters should undertake detailed and concrete support measures to help the subsidiaries to ease the existing pressure regarding collection of outstanding sales payment, land acquisition, and financing.
The fourth mission is to deliver contracted projects on time and on budget. To ensure that production proceeds steadily after resumption of work, management at all levels must promptly locate existing problems and help finding solutions. Each project management department and its direct supervising authority should make scientific adjustment to production plans, in order to maximize the recovery of the construction period and cut cost while maintaining quality and safety. Relevant overseas subsidiaries should attach great importance to timely delivery of overseas projects, and comply with local government requirements to make construction arrangements, perform on-site epidemic control, implement project construction, and mitigate compliance risks. The payment of wages to the contracted migrant workers should also be made in a timely manner.
The fifth mission is to implement major reform tasks. Following the mission of building a world-class company with solid business performance, international competitiveness, industry influence, brand power, and soft power, CSCEC headquarters should refine and issue an indicator system and a set of performance evaluation criteria as soon as possible, and accelerate the preparation of the company’s 14th “Five-Year” strategic plan. CSCEC subsidiaries must take the responsibility of implementing the pilot projects of the reform and strive to make breakthroughs this year.
The sixth mission is to prevent and mitigate risks. Efforts should be made to raise awareness on safety in production, implement safety management regulations, and create a positive environment for production and operation. CSCEC subsidiaries should continue to improve the company’s cash flow profile, ensure project settlement and confirmation, wind up sales of the real estate business, and focus on rectifying inefficient and loss-making subsidiaries to ensure stable cash flow. Close attention must be paid to investment risks by following up existing projects, mitigating potential risks in a timely manner, and working through risk factors when launching new projects.
Zheng Xuexuan, president of CSCEC, emphasized that all subsidiaries should strengthen their confidence in battling the epidemic as well as in accomplishing the annual goals, raise risk awareness, make emergency plans, and meet major challenges. Zheng said that, in the second quarter of 2020, the company should concentrate staff and mobilize resources to expand the market vigorously.
At the meeting, CSCEC Vice President and Chief Financial Officer Wang Yunlin made the first quarter operation analysis report for 2020, summed up the performance of the company’s first quarter operations, pointed out the existing problems that need to be solved, and proposed four guiding measures for CSCEC’s work in the second quarter as follows. First is to adhere to the result- and budget-driven approach to business, achieve mid-year budgeting goals on main business indicators, and lay a solid foundation for achieving annual budgeting goals. Second is to further promote the resumption of work and production of CSCEC projects both at home and abroad, catch up on project agenda and stay with it. Third is to focus on solving problems and continue to promote high-quality development. Fourth is to work devotedly toward the three-year deleveraging target of the company.