As a model of reform and innovation in the field of materials in China
Experience of Reform and Innovation of China National Building Materials Group
and future planning initiatives
"magazine of excellence" around the development of innovation
An exclusive interview with Zhou Yuxien, Secretary of the Party Committee and Chairman of the Board of Directors of the Group
Small material to take you to see!

The full text is as follows:

China National Building Materials Group
We are on an innovative path.

Yingcai magazine reporter Ding Jingzhi

For the full year 2020, net profit increased 35% year-on-year, total profit increased 30% year-on-year, net cash flow from operating activities reached 70 billion yuan, up 8% year-on-year, and net profit, compensation, interest and taxes and fees contributed 87.5 billion yuan to the society.

China Building Materials Group in 2020 results, in the case of a slight decline in total revenue, profit margin growth of more than 30%, which is enough to show that the high-quality development of China's building materials has begun to bear fruit.Revenue and profit increased significantly in the first quarter of 2021.

In order to achieve this result, China National Building Materials Group has overcome the impact of the epidemic, the economic downturn and the volatility of demand. As the world's largest comprehensive building materials industry group, the world's leading new materials developer and integrated service provider,China Building Materials Group has been on the Fortune 500 list for 10 consecutive years, ranking 187th in 2020. In addition, China Building Materials has increased its brand value from 84th to 269th among Brand Finance's top 500 global brand values in 2021. The group's social value and brand value have been recognized by the world.

At the same time, the multi-industry value of China's building materials continues to highlight, with cement, commercial mixed, gypsum board, glass fiber, wind turbine blades, cement glass engineering and technical services and other businesses ranking first in the world. And the new materials business includes ultra-thin electronic glass, high-performance carbon fiber, lithium battery diaphragm, ultra-high voltage electric porcelain and so on are also in the lead in China.

zhou yuxian, secretary of the party committee and chairman of the board of china national building materials group, mentioned,"China National Building Materials Group is moving towards a road of innovation. This road of innovation is not only scientific and technological innovation, technological innovation, but also mechanism innovation, management innovation and business model innovation." This may be the reason why the group has achieved many industry leaders.

And accelerate to become a world-class material industry investment group, give full play to its own industrial advantages, break through the blockade of material technology "stuck neck", and at the same time continue to deepen reforms, China National Building Materials is moving towards the realization of the mission and dream of "materials to create a better world" Step forward.

Material innovation big "breakthrough"

Constantly conquer the "card neck" new materials, to achieve self-reliance and self-improvement

Innovation is an inexhaustible driving force for the development and progress of the country and the nation. China National Building Materials Group has its unique advantages in technological innovation and is the vanguard of innovation in the field of materials. The group has 26 national scientific research institutes, 38000 researchers, 13500 valid patents, and has won 6 first prizes for national scientific and technological progress.

In 2020, China Building Materials Group's new materials business will achieve revenue of nearly 80 billion billion yuan and profit of nearly 10 billion yuan, accounting for 20% and 45% of the Group's total revenue and profit respectively. As a "hidden player" in the field of new materials, the new materials business has become the high-speed growth engine of China Building Materials Group.

In the complex international situation, my country's new material field is facing the challenge of "stuck neck". At the same time, this field is also strongly encouraged by the country, so opportunities and challenges coexist.

Zhou Yuxian mentioned that China National Building Materials has made considerable achievements in its new material business. First, it has undertaken some strategic research projects of the country, such as Beidou Navigation and Chang'e -5, which serve the country. On February 22, General Secretary Xi Jinping met with representatives of the participants in the Chang'e -5 mission and visited the exhibition of the results of the lunar exploration project. There were 1 scientist from China Building Materials Group and 3 new material products.

China Building Materials Group's new material industry is booming

A large number of "stuck neck" new materials conquered by China National Building Materials Group are a powerful guarantee for serving the national strategy and achieving self-reliance.For example, the 0.12mm ultra-thin electronic glass developed by China National Building Materials has changed the "world map" of ultra-thin glass technology, forcing foreign companies to cut prices many times, ensuring the safety of the national electronic information display industry, and greatly meeting domestic needs. Benefit the people's livelihood.

Self-developed and industrialized high-performance carbon fiber helps domestic large aircraft manufacturing

Before, the supply of high-strength carbon fiber was controlled by Japanese and American enterprises such as Toray Group and Hector for a long time. However, the C929 large aircraft independently developed by China needs about 25 tons of high-strength carbon fiber for a single fuselage. After more than 10 years of huge investment, China Building Materials has finally realized the technological research and development and industrial mass production of high-performance T700, T800 and T1000 carbon fiber, filling the gap of high-end technology in China and strongly supporting China's aerospace industry. Last month, China building materials carbon fiber business in the domestic CR929 project fuselage and tail structure joint definition phase start-up meeting was selected in the domestic large aircraft CR929 project in the rear fuselage, rear fuselage front section and rear section of the three work packages.

Zhou Yuxian mentioned, "Such a project may not be profitable for 5 or 8 years, and it also requires a lot of capital investment, but the social and economic benefits of the technological breakthrough of carbon fiber are extremely far-reaching."

The innovation of CNBM in the field of new materials has always adhered to the principle of balance and unity of strategic rationality and economic rationality. It must not only fulfill the country's political responsibilities, but also have benefits for enterprises.The company's main product technology is also constantly upgrading iteration, for example, in 2020 the group's annual revenue of wind power blades is about 13 billion yuan, in the world's largest on the basis of further technological breakthroughs, 86m long full glass fiber wind power blades successfully installed. What is more worth mentioning is that this technology is completely transformed by scientific and technological achievements, constantly upgrading and iterating, and becoming the first in the world step by step.

At the same time, the group's high-precision materials are also helping new infrastructure. The company's electronic-grade glass fiber spun yarn, alkali-resistant glass fiber, low-dielectric glass fiber, high-strength and high-modulus glass fiber and other products sell well all over the world. Among them, low-dielectric glass fiber can meet the technical needs of 5G communications and other electronic information industries for key basic materials.

The copper indium gallium selenium photovoltaic glass and cadmium telluride power generation glass developed by the group have become a major boost to "2030 carbon peak and 2060 carbon neutrality". The photoelectric conversion rate of photovoltaic modules of copper indium gallium selenium photovoltaic glass has set a world record, reaching 19.64. The world's largest single-scale thin film photovoltaic building integrated application demonstration project using cadmium telluride power generation glass has obvious carbon reduction effect, with cumulative power generation exceeding about 11 million kilowatt hours and saving about 4700 tons of coal, reduce carbon dioxide emissions by about 10600 tons.

8.5 Generation TFT-LCD Ultra-thin Float Glass Substrate Production Line Thin Film Photovoltaic Building Integrated Application Demonstration Project

CNBM has also made other breakthroughs in new glass materials, including 0.03mm flexible foldable glass, 5.0 neutral borosilicate medicinal glass for vaccine bottles, 8.5 generation TFT-LCD glass substrates, and high aluminum cover glass.

At the same time, the lithium battery separator of CNBM is also a new material that breaks through the "stuck neck". It is the last key material for the localization of lithium battery materials, and makes a positive contribution to the country's new energy batteries and new energy vehicles. In addition, membrane technology products also include multifunctional seawater desalination membrane, air purification membrane, ceramic flat membrane, etc.

At present, the new material business of China Building Materials is moving towards high-end, mass production, and globalization. Related listed companies include China Jushi, which makes glass fiber, Beixin Building Materials, which makes new building materials such as gypsum board, and Sinoma Technology, which makes wind power blades. Enterprises have developed into invisible champions in the world.

The breakthrough of these new materials has led to quantitative and even qualitative changes in the country's industrial development, and even directly changed the supply structure and cost structure of the industry.

High-quality development "breakthrough"

If the cement of China National Building Materials continues to optimize and improve, the group's comprehensive competitiveness will definitely undergo qualitative changes.

"We have always stressed that scientific and technological innovation is not only the innovation of new materials, but also the power of innovation to further enhance the competitiveness of basic building materials." Zhou Yuxian told the "talent" reporter.

Basic building materials is the ballast stone business of China National Building Materials Group, but it is a cyclical industry and is in a fully competitive market. How to improve its own anti-cyclical ability and enhance the competitiveness of products is a compulsory course for enterprises. China's building materials are moving towards high-end, green, intelligent direction, and constantly push products to the extreme.

Panoramic View of Udongde Dam

China Building Materials is a well-deserved cement king. The cement sector is the ballast stone business of China Building Materials, which provides more than half of the group's cash flow and profit support. At the same time, cement engineering accounts for more than 65% of the global market. Zhou Yuxian mentioned that special cement is the direction of our vigorous development. Last year, China Building Materials Group's low-heat cement was applied to the Wudongde Hydropower Station dam, the fourth largest hydropower station in China and the seventh largest in the world. This is the world's first super-high arch dam with low-heat cement concrete pouring. "Seamless dam" became possible and created a miracle in the history of dam construction in the world.

In addition to special cement, there are also innovative products in other building materials fields, such as gypsum board with functions of aldehyde purification, humidity control, electromagnetic absorption, etc., as well as dragon brand paint for painting Tiananmen Square, and high-quality waterproof materials for rushing to Huoshen Mountain Thunder Mountain Hospital. These building materials are constantly moving towards high-end through technological upgrading, seizing the commanding heights of technology.

In addition, the level of intelligent upgrading and digital transformation of industrial production lines has also been improved. Last year, CNBM built a green and environmentally friendly intelligent cement factory in the south of Huaikan. There are more than 10000 monitoring points in the whole line, including sensor monitoring of energy, temperature, safety, emissions and other aspects, which are summarized into the automation control of the whole cloud platform. All indicators have reached the world's advanced level, greatly improving labor productivity and production efficiency.

Huaikan South Intelligent Cement Factory

The field of basic building materials lies not only in technological innovation, but also in technological innovation. At the beginning of last year, a famous French cement company updated and upgraded a cement production line that had been in operation for more than 60 years. The factory pipeline is complex, the drawings are incomplete, and the construction is required on the premise that the old line is not shut down, which is very difficult. China Building Materials sent unmanned aerial vehicles to collect structural data by laser scanning, generate point cloud models, send them back to Beijing, and then carry out three-dimensional design. Factory installation has also achieved a high degree of consistency between on-site construction and intelligent simulation. The final delivery to the French side is a digital smart factory with a full life cycle.

At present, the coverage rate of the operation and management system independently established by China Building Materials has reached 65.6, 67 enterprises have implemented the standard of integration of the two, 3 national intelligent manufacturing pilot demonstration projects, and 80 production lines in the world have been managed by intelligent industry. Behind such achievements are BIM technology independently developed by CNBM, artificial intelligence at the edge of cement, industrial vision algorithms, and intelligent systems based on this.

Zhou Yuxian mentioned, "There are only a handful of intelligent production lines in our more than 300 cement production lines, and there are still too few such intelligent production lines. If the cement of China Building Materials continues to be optimized and improved, then the overall competitiveness of China Building Materials will definitely undergo a qualitative change."

Along with the Central Economic Work Conference will do a good job of carbon peak, carbon neutral as a key task, Zhou Yuxian believes that China's building materials should be the building materials industry green to reduce carbon development of the vanguard.

In 2019, there will be 9.8 billion tons of carbon emissions in the country, of which the building materials industry accounts for 20%. As the only central enterprise in the building materials industry, China Building Materials is duty-bound. In order to truly implement the goal of greening, China National Building Materials proposed four specific measures. First of all, reduce carbon emissions, reduce carbon and carbon through technical means, improve personnel efficiency, replace fossil fuels with clean energy and renewable energy, and co-dispose solid waste to reduce carbon emissions from the source; secondly, give full play to the group's technology Advantages, develop new energy industries, such as increasing investment in photovoltaic glass, and contributing technical strength to the integration of photovoltaic buildings; the third is to carry out carbon asset management, use market means to promote carbon emission reduction; fourth, aiming at the group's mine assets, we are committed to the storage and utilization of carbon dioxide in the development process, and make technical reserves for carbon neutrality.

central enterprises deepen reform

Reform is a long-term battle, which cannot be achieved overnight, but should be carried out step by step.

China National Building Materials Group is the vanguard of the reform of central enterprises, and the reform is also a powerful weapon to promote the rapid development of China National Building Materials Group. Since 2007, China National Building Materials Group has carried out large-scale joint reorganization through mixed ownership, which has become the industry giant today. In the current new round of state-owned enterprise reform, China National Building Materials Group is a state-owned capital investment company and other 9 reform pilots.

China National Building Materials Group has established the guiding principle of "4335", clarified its main business, sorted out its strategy, and formulated 5 types of 8 incentive "toolboxes" to stimulate and mobilize the enthusiasm of key employees.In the guiding principle of "4335", there is a concept design from "managing assets" to "managing capital", and equity management is realized by adjusting the corporate governance structure and sending directors and supervisors. Last year, China National Building Materials Group has been exploring the realization of equity management by sending directors and supervisors, and has also established a team of directors and supervisors to explore the ability of directors to exercise power on behalf of shareholders, and to truly manage the liquidity of capital and the collection of income.

Link:

China National Building Materials Group "4335" Guiding Principles
"4", establish four concepts, namely, the concept of good management of equity, the concept of deepening reform, the concept of innovation-driven, and the concept of marketization;
"3", the establishment of three closed-loop systems, namely, a closed-loop system of incentive and restraint mechanisms with compensation as the core, a closed-loop system of investment management before and after investment, and a closed-loop system of comprehensive supervision and management before and after investment;
"3", to achieve three changes, namely, the management of enterprises to the management of capital, building materials to integrated materials, the local market to the global layout of the transformation;
"5", to create a "five forces" enterprise, that is, competitiveness, innovation, control, influence, anti-risk ability.

China National Building Materials Group Headquarters "4335" Guiding Principles
"4", establish four concepts, namely, the concept of good management of equity, the concept of equity management through the corporate governance structure, the concept of equity management through the dispatch of directors and supervisors, and the concept of capital flow and income collection;
"3", the establishment of three closed-loop systems, namely, a closed-loop system of incentive and restraint mechanisms with compensation as the core, a closed-loop system of investment management before and after investment, and a closed-loop system of comprehensive supervision and management before and after investment;
"3", three continue to be firmly adhered to, namely, the idea of reform, the concept of innovation, the principle of marketization;
"5", to clarify the five major functions of the headquarters, namely, strategic guidance, resource allocation, capital operation, risk prevention and control, and party building.

"In the course of practice, there are also many problems. This model, which places high demands on directors, not only to exert their own professional judgment, but also to listen to the opinions of the group, which challenges the professional competence of directors." Zhou Yuxian mentioned.

In addition, the corporate governance mechanism and equity diversification structure also need to be improved. In the three-year reform action plan of state-owned enterprises, it is mentioned that the shareholders' meeting, the board of directors and the management level should be improved, and the majority of external directors should be implemented.

Zhou Yuxian mentioned, "Some of our companies have not established a board of directors, and some companies have a board of directors, but there is no diversification of equity. Naturally, there is no majority of outside directors."

CNBM should also actively and steadily promote the mixed reform of wholly-owned secondary enterprises and wholly-owned technology-based enterprises below the second level within the group, and accelerate the diversification of equity, so as to stimulate the growth momentum of enterprises. For example, Kaisheng Technology had a sales revenue of about 10 billion yuan and a profit of about 1 billion yuan last year. By diversifying its equity and improving its governance structure, the company can run faster and farther in the journey of developing new glass materials. China Building Materials General Institute is the "cradle of science and technology" in the building materials industry. It is necessary to continue to deepen reform, stimulate innovation vitality and strengthen the transformation of scientific research achievements.

Three-year Action Plan for Comprehensively and Deeply Promoting the Reform of State-owned Enterprises

On April 15, China National Building Materials Group convened a quarterly meeting of the three-year reform action to systematically deploy the reform work in accordance with the "4335" guiding principles. At the meeting, Zhou Yuxian stressed the implementation of five work measures: first, standardize the construction of the board of directors, realize that the board of directors should be built as much as possible, and implement the functions and powers of the board of directors; second, promote the tenure system and contractual management of management members, comprehensively sign the "two books and one agreement", focusing on strict assessment and rigid fulfillment; third, vigorously promote the market-oriented employment mechanism, so that employees can enter and leave, positions, and pay can increase and decrease; fourth, improve the incentive and restraint mechanism, implement the closed-loop system of human resources management, and promote the implementation of medium-and long-term incentive tools; fifth, actively and steadily deepen the reform of mixed ownership, relative to the holding of mixed ownership enterprises to implement differentiated control, and further stimulate vitality.

In the guiding principle of "4335", CNBM has a clear and specific positioning for the headquarters, including strategic guidance, resource allocation, risk prevention and control, capital operation and party building. As for strategic guidance, Zhou Yuxian mentioned, "it is not only necessary to write a strategic plan, but also the most important thing is to draw the track of each business company, whether the plan is long-distance running or short-distance running. For example, carbon fiber enterprises have lost more than 10 years and only generated net profit in the last year. Such a track is suitable for long-distance running".

Zhou Yuxian believes that reform is a long-term battle, which can not be achieved overnight, but should be carried out step by step.

In the newly released "Corporate Culture Manual" of China National Building Materials Group, the corporate mission of "Materials Create a Better World" has been added. Focusing on this mission, China National Building Materials Group continues to break through and make breakthroughs through innovation, and is committed to providing high-end, intelligent, environmentally friendly, and safe high-quality products and high quality services, promoting better economic and social development, and accelerating the cultivation of global competitiveness. On the new journey of the world-class material industry investment group, forge ahead and write a new chapter!