On April 14, Shandong Heavy Industry Group convened its Q1 2025 Economic Performance Review Conference in Jinan, to thoroughly implement the guiding principles of the 20th National Congress of the Communist Party of China, the Second and Third Plenary Sessions of the 20th Central Committee, and the "Two Sessions", as well as to fully align with the strategic decisions of the provincial Party committee and government. The meeting summarized and analyzed the Group’s first-quarter economic performance, assessed the current internal and external environment, and strategically planned for the second quarter to further advance the Group’s high-quality development. Man Shengang, Party Secretary and Chairman of the Group, delivered a keynote address. Wang Zhijian, Deputy Party Secretary and General Manager, reported on the Group’s operational performance, while Ye Jianjun, Deputy Party Secretary and Director, presided over the meeting.

In the first quarter, Shandong Heavy Industry focused on enhancing internal management and improving efficiency, while expanding market presence and strengthening brand influence. Despite facing a dual challenge of sluggish international market momentum and intensified domestic competition, the Group achieved steady growth in both revenue and profit, setting a strong tone for the year and maintaining a favorable trajectory of high-quality development. Notable highlights included: Strengthened growth momentum in the domestic market and an expanding leading edge; Stable and resilient performance in overseas business amid risk challenges; Accelerated product upgrades driven by technological innovation; Continuous improvement in Party building and a vibrant corporate culture.

Man Shengang noted that while Shandong Heavy Industry faces a landscape of both opportunities and challenges, certain fundamentals remain unchanged. Despite the increasing uncertainty, instability, imbalance, and unpredictability in the global economic and trade environment, the strategic potential of the global market remains vast, the long-term positive trajectory of China’s economy is unchanged, and the Group’s confidence and resolve to overcome difficulties and drive reform and innovation remain steadfast. He emphasized that leadership teams at all levels must develop a clear understanding of the broader dynamics—grasping both the timing and the momentum, recognizing both risks and opportunities. They must remain clear-headed and rational, maintain strategic composure, and take initiative with confidence and purpose. In navigating a complex and ever-changing environment, the Group must adopt a dual approach: upholding core principles and strategic consistency in the face of change, while also responding to change with adaptability and innovation when circumstances demand it. By doing so, the Group can act in alignment with the trends, harness momentum, and rise to new heights—continually enhancing the foresight, agility, and precision of its decision-making and execution.

Man Shengang emphasized that all cadres and employees across the Group must carry forward a spirit of unrelenting dedication, constant pursuit of leadership, and unwavering drive to excel, and go all out in the second quarter to ensure that all key operational indicators for the first half of the year exceed expectations across the board.

Remain committed to striving for leadership in the domestic market, with the courage to compete and the determination to lead the industry. Leverage the synergy between complete vehicles/machinery and power systems, enhance full-value-chain marketing, standardized channel operations, and key account development, aiming to achieve dual growth in sales volume and market share, as well as improvements in product structure and profitability.

Remain committed to optimizing export strategies, by planning early and proactively pursuing breakthroughs in incremental growth. Accelerate efforts to promote diversification, localization, branding, and synergy in overseas markets, enhance global operational capabilities and risk management, and ensure sustained and rapid export growth.

Remain committed to strategic transformation and upgrading, by advancing toward new technologies and intelligent development. Speed up the deployment in new energy, digitalization, and aftermarket services, break through habitual thinking, outdated models, and rigid mechanisms, and promote the construction of an industrial ecosystem through self-reform, systematic design, and open collaboration.

Remain committed to improving quality, reducing costs, and enhancing efficiency, through precise and meticulous operational control. Deepen the implementation of the “quality, innovation, and cost-reduction” initiative, benchmark against world-class standards, increase investment in critical resources, and enhance the competitiveness of products in terms of quality, technology, and cost.

Remain committed to strengthening management through rigorous systems, and effectively unleashing entrepreneurial vitality. Improve the modern corporate governance system with Chinese characteristics for State-Owned Enterprises, and establish a mechanism that integrates high ambition, strong incentives, and strict discipline, creating a dynamic and healthy development environment.

Remain committed to using learning and education as an opportunity, to deepen the improvement of work style with firm discipline and solid actions. Advance the study and implementation of the Central Eight-Point Regulations, integrate it with the rectification of feedback from provincial inspections, and continue to strengthen Party leadership to provide strong guarantees for high-quality development.

Subsidiaries under the Group delivered work reports at the meeting. Attendees included mid-level and senior executives from Group headquarters, as well as assistant general managers and above from all secondary-level subsidiaries.