Red Lion Group Holds 2026 Business Work Conference

On February 3, the Red Lion Group held a business conference in 2026. Zhang Xiaohua, Chairman of the Group, made a speech entitled "Strengthening Innovation Drive, Building Agile Organization, Improving Operating Quality and Achieving Resilient Growth", summarized the main achievements in 2025, deployed the objectives and tasks of the "Fifteenth Five-Year Plan" period and 2026, mobilized all employees to work together and make positive progress to achieve high-quality development of "cement + polysilicon".

Zhang Xiaohua pointed out that we should adhere to long-term doctrine and do difficult and correct things. The "15th Five-Year Plan" period is the key period for the domestic manufacturing industry to make great strides towards the world, as well as the transition period for industry shuffling and restructuring. The industry concentration continues to increase, and excellent enterprises have great opportunities. We should use growth to face changes, face the future and advance the layout.

Focus on improving the quality of operation and steady operation. Build the ability to better meet the needs of users, create excellent products and services; build the ability to adapt to complete market competition, form the ultimate cost advantage through technology-driven; build the ability to adapt to changes in external rules, and operate in accordance with the law. Focus on strengthening the main cement industry and develop steadily. We should do a good job in mergers and acquisitions of domestic projects, enhance regional synergy, speed up the layout of overseas projects, enhance the ability of international operation, and transform from "going out" to building factories overseas into a truly international enterprise. Focus on the main business of polysilicon and improve efficiency. Asia Silicon continued to promote quality improvement, cost reduction and efficiency enhancement to enhance competitiveness, and actively participated in the "anti-involution" work of the polysilicon industry to improve the efficiency of the industry and enterprises. Maintain good financial indicators and sufficient cash flow to win the future through the cycle.

Zhang Xiaohua pointed out that 2026 is the first year of the 15th Five-Year Plan. Looking at the first year in five years and the overall situation, it is particularly important to do a good job this year. The guiding ideology of the Group's work in 2026 is to adhere to the core values of "customer-centered, value creator-oriented, long-term struggle", strengthen technology-driven, deepen continuous improvement, improve quality, reduce costs and increase efficiency, implement the sales strategy of "regional policy", promote project-based operation, and build an agile organization. We will make every effort to promote the effective improvement of quality and reasonable growth of quantity in the operation of the Group. Key tasks in 2026:

First, improve the efficiency of the whole process of business activities and ensure the quality of operation with the advantage of efficiency. Efficiency is to achieve the maximum output with the least input of resources and time. The competition of products and services is essentially the competition of enterprise efficiency, "competition in the market, strength in the factory". It is necessary to shift from local cost control to systematic optimization of the whole value chain. Improve the efficiency of the whole process of business activities, eliminate all activities that "do not create value", and let the process return to the "essence of business". Efficiency advantage has "multiplier effect", when enterprises improve efficiency through process optimization, resource integration and technological innovation, it can not only enhance innovation ability, reduce costs, but also enhance market response speed and customer satisfaction.

Second, do a good job of product segmentation, differentiation, high-end, to create greater value for customers. Customer demand has shifted from general type to subdivision, and from ordinary demand to high quality. Product subdivision is the basis for meeting different customer needs. It is necessary to complete the task objectives of high-quality series cement as planned, do a good job in customer demand mining and continuously promote new product development, create excellent products and services, and provide customers with more than expected value.

Third, do a good job of data-driven and quantitative analysis to enhance the ability of business entities to create cash flow. The increase of net operating cash flow is the source of enterprises, and the creation of cash flow is to create value. From "qualitative analysis" to "quantitative analysis", the core of "quantitative analysis" lies in "explicit" of vague problems and "data" of implicit risks. Use data to make decisions, break down difficult problems into problems, break down problems into topics, break down topics into specific work, and turn policy issues into technical issues. Five quantitative analyses should be done every month to convert the analysis results into specific objectives and measures to ensure that the measures are in place and form a closed loop.

Four, we should further promote energy conservation, carbon reduction and consumption reduction, and achieve endogenous growth. Endogenous growth is achieved by tapping internal potential, improving efficiency, upgrading technology and optimizing products, rather than relying on market improvement and increasing investment to achieve growth. We should further promote energy conservation, carbon reduction and consumption reduction, and drive growth by "practicing internal skills".

Fifth, increase R & D investment and promote the deep integration of artificial intelligence and cement industry. Technology-driven is the real growth and the important support of endogenous growth. Artificial intelligence, as a general technology, is changing the whole society just as electricity changed the society, and data has become as important a resource as minerals. We should promote the deep integration of artificial intelligence and cement industry, build a world-class concrete technology center, carry out basic technology research and application technology research, provide technical services for end users of key projects, mixing stations and channel markets, and make the technical level of the group leap from "following" to "running side by side" and then to "leading".

Sixth, implement continuous improvement in depth and consolidate the "basic skills" of enterprises. Continuous improvement is a process for enterprises to constantly find and solve problems, and a process of self-discovery, self-improvement, self-cultivation and self-improvement for each process, each equipment, each link and each work. We should better play the role of grass-roots organizations in continuous improvement and make continuous improvement a good habit for managers at all levels and every employee. The implementation of "small improvement, big reward", all the "small improvement" accumulated, is a "big change, big progress". The most valuable work is long, slow, little by little change. All miracles happen slowly, and small things accumulate over time and eventually become huge changes.

Seventh, we should adhere to the high standard construction of the project and achieve a reasonable increase in quantity. In accordance with the requirements of "first-class technology, first-class energy efficiency indicators, first-class environmental image, first-class competitiveness after commissioning, and overall controllable investment", we will do a good job in the high-standard construction of Dongjia Phase II, Xuyong Red Lion and Maitreya Red Lion projects to ensure timely commissioning. Do a good job in mergers and acquisitions of domestic projects to generate synergistic value. Do a good job in the layout of overseas projects, and obtain projects through "mergers and acquisitions + transformation and upgrading".

Eighth, enhance professional competence and build a high-quality workforce. The new situation needs more professional staff, so we should strengthen the introduction of highly educated professionals, improve the professional competence identification system, and enhance the professional competence of departments. We should implement a salary strategy that is higher than average level of the industry, respect employees, stimulate their vitality, let them contribute their wisdom and share the fruits of enterprise development.

organizational capability is fundamental to deal with the uncertainty of external environment. In the era of traditional industrialization, the external environment is relatively stable, functional organizations emphasize the division of labor and specialization of departments, emphasize "hierarchy, control, command and execution", expand the scale through standardization in the incremental market, and form enterprise advantages. At the same time, it is difficult for functional organizations to coordinate across departments, and there is a "departmental wall", which is responsible for superiors rather than customers and business. In the era of uncertainty, industry and market are volatile, complex and ambiguous, and it is difficult for functional organizations to cope with external uncertainty and customer differentiation needs.

At present, most domestic manufacturing industries are facing "28 differentiation", and 20% of enterprises have unlimited opportunities. Excellent organizations can seize the opportunity. We should focus on the construction of internal organizational capacity, accurately find the positioning of differentiated value of enterprises, constantly reconstruct the core competence of enterprises, use artificial intelligence, improve efficiency, and achieve the ultimate product, service and cost performance, so as to win the future.

In an age of uncertainty, it is agile organizations that stand out. Agile organization has the characteristics of "flat organization, elite members and decentralized execution", and completes work through the way of "task, authorization and self-drive" to improve organizational efficiency and overall competitiveness.

Deterministic work, such as supply chain management, production organization, workshop site and other standardized work, is carried out according to "strategic business, business process, process IT-based, IT data-driven". The process is the best practice, the crystallization of years of experience and wisdom of outstanding talents. The process carries business control, allowing ordinary people to do extraordinary things, so that new employees can continue to improve and move forward on the arms of their predecessors.

Uncertain work, such as projectization of key work and key issues, through project-based operation, clear objectives, time nodes, concentration of superior resources, to achieve cross-sectoral, cross-professional, cross-level efficient collaboration. We will further promote Six Sigma and improve the quality and efficiency of the project team. The department is the capability center, and the project team directly delivers customer value, so that the key work and key issues can be completed with high quality.

Highly uncertain work, such as key market expansion, new technology research and development, needs to form an agile decision-making mechanism, often the front-line team grasps the most detailed information, relying on layers of reporting and decision-making, which will inevitably lead to decision-making lag. It is necessary to establish a large team composed of small teams, replace the traditional hierarchy with "small team autonomy + large team collaboration", and form an overall synergy while maintaining flexibility. By giving real responsibility and autonomy to the operational level, they will also think like the top management and take responsibility for the results, thus stimulating the greatest creativity and enterprising spirit. The essence of management is to maximize people's goodwill and potential.

All work should adhere to the principle of "customer first, efficiency first, success first". Customers are the source of all our revenue, and meeting customer needs is the most important priority. Efficiency is to achieve maximum output with minimum input, which is the root of net cash flow of enterprises. "Getting things done" is the starting point and foothold of all work. The division of labor, process and regulations themselves are for "getting things done". When the division of labor, process and regulations are not suitable for "getting things done", they can break through the regulations.

It is necessary to build an agile organization so that highly uncertain work can also be carried out efficiently. The main managers should achieve "six directness", and the functions of headquarters should shift from "control" to "empowerment". On the premise of clear rules, they should give full authorization to the front line as far as possible to form a working mechanism of "front-end independent decision-making + backstage efficient empowerment". Important work and key links have shifted from "business division" to "cognitive division". We should create a concise, efficient, equal and Frank communication mechanism, break down hierarchical barriers, make information transmission more efficient and direct, and use efficiency advantages to ensure the quality of operation. The goal

of 2026 is encouraging and inspiring. All employees should show courage, stimulate the vitality of ten thousand horses, maintain non-stop energy, strengthen innovation drive, build agile organization, improve the quality of operation, achieve resilient growth, and strive for the high-quality development of the Group's "cement + polysilicon" dual main business!