Record of Reform and Development in the First Year of Mixed Reform of Shandong Expressway Dejian Group Co., Ltd
Shandong Expressway Dejian Group (hereinafter referred to as Dejian Group or Company), formerly known as Dezhou Construction Company established in 1953, was restructured into a private enterprise in 1999. In its 68 year development history, Dejian Group has always been a backbone enterprise in the construction industry in Texas. Entering a new era, how can we seize the opportunity and stride forward on the new journey of high-quality development? Dejian Group resolutely chose the development path of mixed ownership reform.
On April 12th of this year, Dejian Group completed the mixed ownership reform, and Shandong High speed Resources Group controlled Dejian Group through capital increase and share expansion, with a shareholding ratio of 51%. Dejian Group has become a mixed ownership enterprise controlled by state-owned capital, with a registered capital of 1.061 billion yuan. On September 10th, the company officially changed its name to Shandong Expressway Dejian Group Co., Ltd. and entered the market with a brand new name and attitude.
2021 is the first year for Dejian Group to complete the mixed ownership reform. The company has made steady progress and developed steadily in the face of complex internal and external environmental challenges, and has delivered satisfactory results: achieved a year-on-year increase of nearly 20% in output value, achieved a net profit growth rate exceeding the output value growth rate, signed new contracts worth over 10 billion yuan, and embarked on a new journey of development in the 14th Five Year Plan from a high starting point.
Integrated Development
Realize more standardized management
Mixed ownership reform, where 'mixed' is capital and 'changed' is management. 'Mixing' is form, 'changing' is essence.
Shandong Expressway Group is an advanced enterprise in the field of investment, construction, and operation of infrastructure such as transportation in China. It has strong brand influence, rich industrial resource advantages, and outstanding core competitiveness. Dejian Group has 22 years of experience as a private enterprise and has shaped professional advantages and mastered the basic skills of competitive development through the ups and downs of the market economy. How to fully combine the two advantages is the most concerned issue for both shareholders and has become a key focus of the new Party Committee, Board of Directors, and management.
After the mixed ownership reform of Dejian Group, we carefully sorted out the corporate governance and production and operation system, promoted the "reform" of management through the "mixed ownership" of capital, actively benchmarked advanced enterprises in the industry, and established rules of procedure including the "Three Heavy and One Large" Implementation Rules, Party Committee Rules of Procedure, and Board Meeting Rules in accordance with the modern corporate governance system. We comprehensively revised the standardized management system of the enterprise, signed employment agreements for the management team, and signed term management performance responsibility agreements. The system and mechanism transformation of the mixed ownership reform of enterprises was completed in 6 months, which not only retained the operational vitality of the original private enterprises, but also integrated the standardized management of modern state-owned enterprises, achieved complementary advantages, strengths and weaknesses, formed an inclusive and integrated corporate culture, and built the "four beams and eight pillars" that support the "sailing a new journey and continuing to write a new chapter" after the mixed ownership reform.
Strong breakthrough
Moving towards a broader market
In the first year of mixed ownership reform, Dejian Group adhered to the business positioning of "rooted in Dezhou, based in Shandong, radiating to the whole country, and facing the world", while determining the sixteen character business policy of "seeking progress while maintaining stability, regional combat, investment and construction linkage, and concentrated breakthroughs". The company fully combined its existing professional advantages and credit advantages with the resource advantages and platform advantages of Shandong Expressway Group, effectively improving customer levels and striving to expand market areas, achieving significant results.
Since the beginning of this year, the company has steadily expanded its regional market. The layout work of key regional operating institutions has been successfully completed in Shandong Province. The second headquarters located in Yinfeng Wealth Plaza, Lixia District, Jinan City has officially started operation, and landmark projects have been landed in areas such as Luxi, Lunan, and Ludong. The market outside the province has made new progress in promoting the coordinated development of Beijing Tianjin Hebei, serving the new era of western development to achieve new achievements, and integrating into the Chengdu Chongqing economic circle to achieve new breakthroughs. Among them, the newly signed contracts in the Xinjiang regional market this year reached 1.15 billion yuan.
In the new development process of integrating into the international and domestic dual circulation, Dejian Group has overcome the impact of the global epidemic by leveraging its brand advantage of being listed as one of ENR's "250 largest international contractors in the world" for five consecutive years. With the pioneering spirit of "opening the way when encountering mountains and bridging bridges when encountering water", Dejian Group has laid out in Latin America, the Middle East, and Asia on the basis of deep cultivation of traditional advantageous markets. It has successively signed contracts for the P5 package civil engineering project of Saudi Arabia's King's Port Land Island, the 1320MW coal-fired power plant coal transportation part civil engineering project in Aisaram, Bangladesh, and the Saint Rose High School teaching building project in Guyana, achieving a transformation of international business from going out, going in, and then going up. In March of this year, the Sudan National Club project won the China Construction Engineering Luban Award (Overseas Project), becoming the only overseas project selected by Shandong construction enterprises.
Contract Management
Fully stimulate endogenous motivation
If the mixed ownership reform has promoted the identity reconstruction of companies from a systemic perspective, then contractual management has truly stimulated the vitality of enterprises from a mechanistic perspective.
The signing and implementation of the project contract are supervised by the company headquarters, which has more practical effects than the target responsibility letter, making the final realization of the project more guaranteed and enhancing the trust of project management personnel in profit realization and distribution. Our project management personnel have become project shareholders, greatly improving their work enthusiasm. When it comes to contractualization, Guo Jilong, the project manager of the Taitousi resettlement community construction project, is full of confidence.
In August of this year, Dejian Group began to implement project contract management, which the company attaches great importance to and details various work. The project contract specifies in detail the requirements for the establishment of the project department, economic and management goals, as well as the responsibilities and rights of the company and the project department. It also stipulates the proportion of risk fund payment, cash mechanism, and fund interest, fully mobilizing the enthusiasm of the project department and making the company and the project department a mutually beneficial and career community.
Since the implementation of project contract management, the awareness of contract among all employees has been enhanced, the project team has been trained, and it is truly conducive to building the project department into the "brand center, benefit center, and talent training center" of the enterprise, inspiring the fighting spirit of all employees and enhancing their confidence in development. Taking the Zouping urban heating pipeline network project undertaken by the municipal branch as an example. The project department is driven by contract management, with a reverse schedule, scientific organization, and meticulous construction. We strictly control the quality, safety, and technology of the project, working day and night for 90 days, and have achieved the first completion and use of municipal projects that started at the same time in the local area, laying the foundation for ensuring normal heating for the local people this winter. For this reason, Zouping State owned Assets Investment Holding Co., Ltd. recently sent a thank-you letter to Dejian Group to thank the company for its efforts and contributions in the construction of the Zouping heating pipeline network project.
As of the end of December, the company has implemented contract management for all 76 newly started projects, including civil engineering general contracting projects and professional contracting projects such as installation, decoration, and foundation, accounting for approximately 30% of all ongoing projects. The company's party committee, board of directors, and management attach great importance to this work. Our goal is to achieve 100% contractual management for new projects in the future. With the completion and delivery of existing projects, we aim to achieve contractual management for all ongoing projects within two years, "said Zhao Jianqiang, secretary of the company's party committee and chairman.
Party building guidance
Leading and escorting the development of enterprises
Adhering to the leadership of the Party and strengthening Party building are the roots and soul of state-owned enterprises. Dejian Group is rooted in the land of Qilu, with red genes integrated into its bloodline. The company's party committee adheres to the concept of "strengthening party building is productivity", takes the learning and education of party history as an opportunity, and takes the construction of "strong party branches" as the starting point. Each branch holds high the banner of "party member vanguard" and "youth assault team", deeply implements the "party building" project, promotes the integration of party building with engineering quality, safety production, standardization construction, scientific and technological innovation, and uses high-quality party building to promote the improvement of production and operation quality and efficiency, as well as the healthy development of the company.
Since the beginning of this year, the company has incorporated party building work into its articles of association, unifying the strengthening of party leadership and the improvement of corporate governance, further clarifying the legal status of party organizations in corporate governance. We have established and improved regulations and systems such as the "First Agenda" system for Party Organization Meetings, the "Party Committee Theory Learning Center Group Learning System," and the "Party Committee Member Contact Point System," further enhancing organizational leadership.
The company solidly carries out Party history learning and education. We have formulated and issued the "Implementation Plan for Party History Learning and Education" and the matching table; Organize a knowledge competition on party history; Organize 45 party members and cadres to receive red education at the Revolutionary Memorial Hall in the Hebei Shandong Border Region, and invite professors from the Party School of the Municipal Party Committee to give special guidance lectures to enterprises; Organize a speech competition on "Learning Party History, Strengthening Beliefs, and Comparing Responsibilities", and carry out theme propaganda activities with rich content to create a good atmosphere for learning Party history, comparing responsibilities, and promoting development in the company.
Donated a total value of over 3.7 million yuan for epidemic prevention and control.
Since the implementation of the "mixed ownership reform", Dejian Group's project management and performance capabilities have been further improved, with more than 100 provincial-level and above quality awards and scientific and technological achievements added. The ability to control funds has significantly improved, the financing structure is becoming increasingly perfect, and the financing channels are well connected, which has accumulated strong momentum for the sustained scale expansion of enterprises. Enterprise risk management and hidden danger control are strong and effective, with remarkable achievements in technological innovation and engineering excellence.
Practice has fully proven that embracing reform is the only way for enterprise development, continuous innovation is the driving force for enterprise takeoff, and strategic planning is the winning weapon for enterprise stability and long-term success. Dejian Group is full of hope, sailing with the wind. A more magnificent picture of the new era has unfolded
