Yongsheng Gas

　　 I. Project Background

　　This project fully leverages the region’s abundant natural resources and its advantageous geographical location. Situated adjacent to Xi’an Longji Silicon Industry, it can directly supply argon and nitrogen gases—making it a complementary industry for Xi’an Longji Silicon Industry itself. At the same time, Yongsheng Gas is committed to ensuring a stable gas supply to all enterprises within the Baoshan Industrial Park’s various sub-parks. Taking the western Yunnan market and neighboring countries as entry points, and backed by a standardized production base, Yongsheng Gas manufactures a wide range of industrial and liquefied gases, addressing both the demand for industrial gases in industrial development and the local shortage of liquefied gases. This initiative creates synergistic benefits for enterprises, users, and society at large, contributing to the cultivation of distinctive local industries, the strengthening of leading enterprises, and the increase in residents’ incomes and prosperity within the project area. Following the 2019 Yunnan Province Gas Conference, the project received widespread acclaim from industry insiders. Through the concerted efforts of the company’s management and staff at all levels, Baoshan Yongsheng Gas has established a significant market presence in western Yunnan. Among the five prefectures in western Yunnan, Yongsheng Gas has secured an overwhelming market position thanks to its distinct geographic advantages. With convenient transportation and high-quality products, the company has firmly captured the market in the western Yunnan region. Under conditions of equal resource availability, Yongsheng Gas achieves higher resource utilization rates, aligning with the General Secretary’s environmental sustainability philosophy that “lucid waters and lush mountains are invaluable assets.” Ultimately, this approach enables the company to achieve sustainable development.

　　 II. Basic Information

　　The completed and operational project of Longling County Yongsheng Gas Co., Ltd. is a 30,000 m³/h air separation plant for the production of oxygen, nitrogen, argon, and other gases (Phase I). The total land area is approximately 66,666.67 m², equivalent to 100 mu. The land area for Phase I is 40,639.72 m², or 60.96 mu. Currently, the company has 38 employees, including 2 senior-level chemical engineers, 10 with bachelor’s degrees, 6 with associate degrees, 10 with technical secondary school diplomas, and 10 with high school diplomas. All staff members hold various qualification certificates, and their technical qualifications meet the relevant requirements of national standards for production safety technology. The air separation oxygen generation unit produces 7,300 Nm³/h of oxygen, 1,700 Nm³/h of nitrogen, and 256 Nm³/h of argon. Annual output includes 71,600 m³/a of liquid oxygen (including medical-grade oxygen), 14,600 m³/a of liquid nitrogen, and 2,700 m³/a of liquid argon.

　　It is a specialized liquid gas production plant located in Baoshan City, Yunnan Province—a privately-owned enterprise integrating both production and sales. The plant utilizes domestically advanced cryogenic production equipment and has been legally approved by relevant national authorities to engage in the following business activities: manufacturing of other basic chemical raw materials—production and sale of compressed nitrogen, compressed carbon dioxide, compressed argon, compressed oxygen, liquefied nitrogen, liquefied argon, liquefied oxygen, and liquefied carbon dioxide; procurement and sale of mineral products; road transportation of general goods; and road transportation of hazardous materials.

　　The total investment amounts to approximately 170 million yuan, of which about 150 million yuan is allocated to fixed-asset investment for the project construction, and about 20 million yuan is designated for working capital. The project is expected to generate an output value of roughly 110 million yuan.

　　 III. Market and Sales Performance

　　1. Current situation of the customer’s target market

　　The company’s products are primarily supplied to prefectures and cities in western Yunnan, including Baoshan, Dehong, Nujiang, Dali, and Lincang. The company’s main target customer markets fall into two broad categories:

　　1.1 Silicon Plant

　　Within Yunnan Province, there are numerous silicon plants. When these plants engage in the deep processing of silicon, they rely on oxygen for refining. As a result, oxygen has become an indispensable component in silicon processing. Each time silicon is refined, five cylinders of oxygen are required to produce one ton of high-quality silicon. Given the large number of silicon plants in Yunnan—particularly in the Baoshan region, where there are dozens of such plants—the demand for oxygen has historically exceeded supply, creating a promising market outlook. Currently, the sales prospects for oxygen are exceptionally favorable. As silicon is an essential raw material for manufacturing rockets and semiconductors today, the silicon industry boasts strong market potential. While the silicon industry is rapidly thriving, the supply of oxygen has become an integral part of its success. Therefore, at present, our largest market is the silicon industry.

　　1.2、Hospital

　　Across the country, hospitals serve as public infrastructure, with larger hospitals located in every region, city, and county. At the same time, hospitals have a tremendous demand for oxygen—often requiring oxygen therapy to provide patients with even the most basic respiratory support. As a result, the hospital market holds promising growth prospects.

　　2. Market Expansion Directions

　　2.1 Internationalized Market

　　Baoshan is located along a key route of the Belt and Road Initiative. With strong support from national policies, it continues to grow and develop steadily. Taking itself as the starting point and building on the foundation of the Belt and Road Initiative, our company is gradually expanding the reach and scope of its products to neighboring countries. The Belt and Road Initiative—shortened to B&R—is an abbreviation for the “Silk Road Economic Belt” and the “21st-Century Maritime Silk Road.” In September and October 2013, Chinese President Xi Jinping separately proposed the initiative to build a “New Silk Road Economic Belt” and a “21st-Century Maritime Silk Road.” Relying on China’s existing bilateral and multilateral mechanisms with relevant countries and leveraging well-established, effective regional cooperation platforms, the Belt and Road Initiative seeks to draw upon the historical symbolism of the ancient Silk Road, uphold the banner of peaceful development, and actively foster economic partnerships with countries along the routes. Together, we aim to build a community of shared interests, a community of shared destiny, and a community of shared responsibility characterized by political mutual trust, economic integration, and cultural inclusiveness. Through the Belt and Road Initiative, our company can continuously expand its scale while also driving the economic development of surrounding regions, creating more job opportunities, and promoting the sustained growth and prosperity of local economies.

　　2.2 The “Internet Plus” Model

　　Increase corporate profits through “Internet Plus” sales. In today’s rapidly evolving internet landscape, businesses must keep pace with the times to thrive. Among Shenglong Gas’s newly acquired customers, a large number of online users have become its target audience. To align with this trend, Shenglong Gas needs to adopt and integrate the C2B model driven by the internet. At the same time, given the current development context, it should also embrace an F2C sales model—this approach will enable Shenglong Gas to best meet consumer demands. Ultimately, as it continues to grow, Shenglong Gas can closely align itself with the times and ensure its own sustainable development.

　　Based on the company’s current production and operational status, the daily output of combined gas upon startup reaches approximately over 250 tons. Calculating based on an annual operating period of 300 days, the annual output of combined gas amounts to roughly over 75,000 tons. This translates into annual sales revenue of approximately 91.24 million yuan, tax payments of about 9.806 million yuan, and a net profit of roughly 26.0931 million yuan.

　　 IV. Product Information

　　Leveraging its own unique conditions and taking advantage of various preferential policies offered by the state, the company has seized opportunities to engage in the production and sales operations of industrial oxygen, medical oxygen, nitrogen, argon, high-purity gases, mixed gases, as well as carbon dioxide and dissolved acetylene. This strategic adjustment of the industrial structure, tailored to the company’s actual circumstances, has opened up new avenues for growth and brought about significant economic benefits. It also provides employment opportunities for laid-off workers, their family members, and their children, thereby alleviating the social burden and yielding substantial social and economic benefits. Such efforts are essential for driving industrial expansion, boosting employment, and promoting the comprehensive socio-economic development of local areas. As China’s reform and opening-up continue to deepen and the national economy achieves sustainable development, the pace of urbanization has greatly accelerated. This not only boosts local fiscal revenues but also spurs rapid growth in various industrial enterprises and related sectors such as hospitals throughout the city, creating more than 110 new jobs and providing employment opportunities for laid-off workers and rural surplus labor.

　　Make rational use of local advantageous resources, enhance the overall economic strength and economic efficiency of industrial enterprises throughout the city, drive the development and technological advancement of other industries in the city, and strive to achieve energy conservation and emission reduction.

　　 V. Company Development Plan

　　The company will continue to adhere to a market-driven approach, ground its efforts in practical and hardworking dedication, and leverage scientific management as a means to fully harness its unique strengths. It will also keep introducing and assimilating new technologies, using advanced technologies to upgrade traditional industries, continuously developing software and hardware products with core competitiveness, and steadily enhancing its brand’s influence within the industry. The company aims to become a first-class gas production and operation enterprise in Yunnan Province.

　　Building on its existing business, the company will leverage its R&D team and technological strengths to maintain leadership in technology, talent, and management. It will intensify efforts in researching and developing new products and expanding into new markets, further refine its product and service support systems, continue to boost marketing efforts for its core products, and steadily strengthen the development of its sales network to effectively broaden market reach. At the same time, the company will keep optimizing its product mix, enhancing product competitiveness in the market, scaling up its operations, and consolidating its integrated R&D, production, and sales operating model. The company will also strengthen its corporate culture development, improve its corporate governance structure, and achieve shared growth and prosperity for shareholders, customers, employees, and the company itself.

　　 VI. Human Resource Development

　　The company will flexibly adjust its organizational structure in line with the development of its business operations, accelerate talent acquisition, build a professional workforce, and refine its internal talent pool and promotion mechanisms. We will also speed up the skills and business training for young employees and develop a reserve of young managerial talent. The company plans to formulate targeted training programs to strengthen the technical and operational skills of young employees. Through mentorship by experienced senior staff and theoretical knowledge training, we aim to help young employees quickly master practical skills and become capable of working independently in their roles. We will optimize the setup of functional departments, rationally allocate personnel according to departmental responsibilities, and further improve the “fixed positions and fixed staffing” system.

　　At the same time, we will establish a reserve mechanism for cultivating young managerial and technical talents, identifying and nurturing young managers who are both responsible and highly competent in both character and ability. We will provide them with platforms to fully leverage their talents through job rotations, internships, and assistant positions. Combined with a performance evaluation system, we will create a fair and transparent career advancement pathway for outstanding young employees who are ambitious, talented, and eager to achieve professional success—enabling them to progress from regular staff members all the way up to assistants, team leaders, department heads, and eventually senior management positions. Moreover, we strive to foster a healthy competitive environment among employees, thereby promoting the collective improvement of their overall capabilities.

　　Establish and improve the employee performance appraisal system. The company plans to leverage professional human resource tools to develop and refine a robust employee performance appraisal system. This system will serve as a channel for the company to gain insights into employees’ work capabilities and performance, providing a more objective basis for employee rewards and promotions. At the same time, it will help employees better understand their own strengths and weaknesses, motivating them to continuously improve.

　　Develop targeted assessment methods tailored to the characteristics of different job roles and management levels within the company, making full use of advanced human resource assessment tools to establish a quantified, objective, fair, and scientifically sound assessment system. Strengthen the foundational work of human resources, and in accordance with the natural laws governing the development of organizations, advance to higher levels of strategic planning, performance evaluation, and human resource development, gradually moving toward an even higher echelon.

　　 7. Innovate corporate management concepts and enhance the level of enterprise management.

　　By introducing advanced management concepts from both domestic and international sources, we will promote the integration and transformation of the company’s business processes and organizational structure, shorten the management chain, and achieve a flatter management model. We will draw on the best management practices and experiences of leading companies in related industries, deepen internal management reforms, and place particular emphasis on strengthening financial management, cost management, and quality management. We will also enhance the company’s informationization efforts in management, improve management efficiency, and facilitate the transition of the company’s standards toward becoming industry standards. This will help the company shift toward becoming a strategic decision-making center, a financial settlement center, a capital operations center, and a technology R&D center. Furthermore, we will refine the company’s internal decision-making and risk-prevention mechanisms, thereby establishing a new management system characterized by clear responsibilities, well-defined powers and duties, smooth operations, and sound institutional frameworks. Such a system will provide institutional support for adjusting and optimizing the company’s structure, preserving and enhancing its asset value, and driving the company’s economic growth and development.

　　 8. Building After-Sales Service Capabilities

　　Service capability refers to the ability to meet both the explicit and latent needs of customers in specific market segments. For a long time to come, the company will place particular emphasis on developing pre-sales, in-sales, and post-sales service activities. During the project engagement phase, the company’s business personnel, based on the project’s characteristics, customer requirements, and construction process specifications, will produce products that precisely meet the customers’ needs.

　　The quality of after-sales service determines users’ attitudes toward the company and also influences the company’s reputation among customers. Timely resolution of issues encountered by users requires a well-supported team of after-sales service personnel, ensuring that the company’s products can provide customers with more suitable gases—thus fostering brand loyalty and opening up new markets.

　　 9. Vigorously promote corporate culture development and actively foster the corporate spirit.

　　Strengthen corporate culture development to enhance the enterprise’s cohesion, centripetal force, and core competitiveness, enabling company employees to feel a sense of belonging within the workplace. Select effective approaches to bolster corporate culture development, striving to create a unique corporate culture that reflects the fundamental interests of employees, promotes a healthy, positive, and trustworthy atmosphere of harmony. Cultivate employees’ identification with and sense of belonging to the company, transforming the company’s fine spirit, philosophies, and core values into shared values and a harmonious cultural environment. Actively nurture the corporate spirit, refine business philosophies, and shape the company’s image. By integrating corporate culture into internal management practices, Shenlong Gas will embody its business philosophy and cultural essence in institutionalized operational procedures and management standards.

　　In short, in the course of future development, we will fully leverage local policy advantages, uphold a strong sense of mission and responsibility, and continue as always to deliver products and services that satisfy our social and customer stakeholders. We will expand our production capacity, strengthen our company, create new achievements, and showcase a fresh, dynamic image. We will consistently adhere to the guiding principles of "safety first, environmental protection within limits, and quality assurance," ensuring safe production, emphasizing energy conservation and emission reduction, and pursuing a low-carbon economy. We will properly balance the relationship between the company’s stage-specific development and its continuity, carefully summarize our past experiences and achievements, and develop comprehensive master plans, specialized industrial plans, and functional plans.