In the FREP Management & Profit Simultaneous Improvement Activity, goal achieving and effectiveness obtaining depend on leadership enhancement, delicate organization, strengthening measures and sound implementation.

Since May, the whole company work together, take responsibilities and demonstrate leadership and execution ability to fully implement management & profit improvement measures and to reverse the loss situation. And the Management & Profit Simultaneous Improvement Activity witnessed so many inspiring scenes and prompting improvement---flawless on-site operation, process flow optimization, gross margin improvement, cost reduction, potential exploration and benefit improving etc., reflecting the entire FREP united together to conquer all the obstacles.

Implementation, Slogan to Action

Facing the severe market situation and benefit challenging, fully carrying out Management & Profit Simultaneous Improvement Activity following the company’s deployment has squarely became the centrality of this year. And because of this, implementing 5 KFA priorities, reinforcing the gross margin improvement actions, exploring potentials and improving profit through leadership and execution ability improvement, became conscious action of all the employees. At present, there is a consensus throughout the company that Benefit is the basis of enterprise’s existence and development, despite challenges and problems we confronted with, we can seize the opportunity and reverse the lose situation only by implementing concrete work, since the fleeting opportunities will never favors people in word but not in deed. Therefore, “implement, implement and implement” has transformed from concept, slogan and plan to actual actions as the Simultaneous Improvement Activity carrying out, pushing by the strong willingness of management and performance improvement.

There is solid unity throughout the company in the reinforcement of leadership and work responsibilities, steadily push forward the execution of each measurement. The management held 1 OOP Special Meeting, 4 Management and Profit Improvement Steering Committee Meetings, 2 Business Reviews, 3 Gross Margin Improve Plan Meetings and 6 Business Teams Accountability Meetings since May, and organized on-site meeting in three Business Teams respectively to develop and implement specific management profit improvement works; each department organized the work meticulously and cooperated cross-functionally focusing on the 5 KFA, in particular, the personnel form manufacturing, procurement, technique, planning, sales and finance formed a taskforce, who communicate and coordinate with each other to timely adjust the crude oil procurement, units load and product structure according to the market need and operation reality, adding value to progress of emphasizes like gross margin improvement, energy efficiency optimization and aviation kerosene export; each Business Team work tightly oriented for flawless operation and benefit improvement, adopt measures of site management  enhancement, manufacturing organization optimization, unit potential excavation, energy/material consumption reduction, aiming at promoting the detailed management level and unit operating performance. Significant results are obtained by the following measures: utilize PE super condensation technology, control the use of outsourcing LNG, establish technical-economic indicator management system, include nitrogen usage in the energy management, improve the furnace efficiency, optimize the selection of ethylene feed, maximize the FCC unit load and reuse facility etc. All the above solidly prove that the Management and Profit Simultaneous Improvement Activity bring new changes to FREP also prove that a blooming style of benefit-focus, enaction-advocate, effectiveness-purchase and implementation- emphasize.

Implementation, Results in Turning Losses into Gains

Any implementation needs correspond to specific object and approach. And for now, the Management Profit Simultaneous Improvement Activity which carried out in full wing has certainly acted as the main approach of the “Turning Losses into Gains”.  All levels of management and employees actively participate in the work of income increasing and expenditure reducing, cost reduction, exploring potentials and improving profit and gross margin improvement, interpreting that the simultaneous activity has make preliminary achievement. In the past few months, the economic and technical indicators like Energy Intensity Index (EII), Comprehensive Merchandise Rate, and Unit Energy Consumption cost are all have some improvement. The Fuels Module continuously making profit in May and June, which is the first time of successive profiting since 2011. The gross margin increase month by month, there was a RMB 100 million increases in May compared with April, and RMB 30 million more in June than May; In June, we made profit even after dealt with the exchange losses and gains in account, creating the best month operating performance since January 2011.

Efficiency, not only an objective reflection of the company operation status, but it is all a fusion of the effort made by all the staff through hard working. Now, we can confirmedly say that FREP already put a firm foot in the undertaking of turning loses to gain with the motivation of the Management Profit Simultaneous Improvement Activity.