All the employees and their family members,

 

The unusual year of 2015 is drawing to a close and 2016, a year of opportunity and challenge awaits us. We wish for the health and happiness of all of your loved ones in the new year.

 

In the past year, we saw unprecedented industry grimness and challenging annual target, as well as our efforts and resolutions. We comprehensively carried out deepened reform, we comprehensively strengthened Party discipline, we comprehensively governed the company in accordance with the law, and we overcame all and each difficulties and challenges, and kept our production lines in run and our employees in stability. It is estimated that in the year of 2015 the company produced 10.25 million tons of steel in total and made revenue of RMB 90.8 billion Yuan; the proportion of sold steel products was 100%; and 810,000 tons of stainless steel among all 4.01 million tons were exported to overseas market.

 

We have survived the tough year with our joint endeavors. We would like to express our grand respect and sincere appreciation to the contribution of our staff, to the support from our Party and governments of all levels, and particularly to the assistance and support from our clients.

 

The year of 2016 is the kicking-off year for the company’s “thirteenth five” plan as well as a critical year for our successful survival battle. We will adhere to the guidance of 18^th National Congress and the 3^rd, 4^th, and 5^th Plenary Sessions of the 18th Central Committee of the CPC, follow the spirits reflected in President Xi Jinping’s speeches, carry out the strategy of “four comprehensives”, and build up in mind the new concept of “five developments”. We will, as required by the 7^th session of the tenth plenary session of Shanxi Provincial Party Committee, comprehensively strengthen the party building; we will insist on reform, innovation, value operation, product variety and quality optimization, benchmarking, and rule of law; we will resolve the market pressure, motivate our managers, inspire our staff; we will continue our battle against sluggish economy and build our competitiveness under new norms. Our target for the coming 2016 is to produce 10.4 million tons of steel, including 4.2 million tons of stainless steel; to gain revenue of RMB 90 billion Yuan, and to end the loss and make profit.

 

In the new year, we must keep our faith in the survive battle. The past tough year has seen a strong and willful TISCO team, who fights against adverse circumstances bravely. New challenges are to be encountered as the economy remains sluggish. We must keep our faith in our strategy, our culture, our team and our ability, while prepare ourselves for a long-term campaign. We must joint our efforts, unite our endeavor, and take pragmatic actions to reach our annual target.

 

In the new year, we must lift our competitiveness in terms of product variety and quality, as those two serve as the knack of life and the weapon of victory for a company. We must focus on the perfectness of the product variety and quality, follow the trend of reform in supply side, strengthen our capability in technological innovation, solidify our awareness of “product variety and quality comes first”, elaborate the responsibility terms and examination rules, so as to widen the variety range and elevate quality level in an all-around way, take product variety and quality as the commanding elevation to embrace the “blue ocean”.

 

In the new year, we will continue our step in carrying out and expanding diversified development, as it has become a necessity for steel industry. We must push forward our strategy of diversified development with more courage and more actions. We will, under the guidance of extending industry chain and elevating value chain, put further attention to important sectors, reform the structure, optimize the resource configuration, carry out new business mode, explore new market, looking for new competitiveness and profit gaining point, and make the diversified businesses and steel mainstream become a substantial support to each other.

 

In the new year, we will comprehensively deepen the reform in every field. We will further liberalize the operation mechanism, so as to force each unit to broke the closure and carry out value management. We will further deepen reform in marketing mechanism, strengthen “dual manager system” in marketing team, keep alert to the market, respond to customers agilely, promote the smooth coordination of market, technology, production and service, supply products and services with good cost performance, create new demands and guide the consumption upgrade. We will carry out the reform in “three systems” in a deeper way, constitute a flexible mechanism in terms of workers’ employment, managers’ promotion and the payment, and give more motivation to human resource. We will further the reform in mixed ownership, optimize the company structure, and improve management efficiency.

 

In the new year, we will substantially drive the strict governance of the party. We will, in an earnest manner, implement the “two obiligations”, carry out the eight regulations initiated by the central government, eliminate the “four undesirable work styles”, practice the “three stricts and three steadies”, promote the “six right cure”, and build a cadre team which is “loyal, clean and reliable”. We will build a culture atmosphere which “encourages innovation, tolerates failure, and opposes conservatism”. We will promote those who are capable and accountable, remove those who are unable or unwilling to complete duties, motivate the cadres in all level to be responsible, positive and active.

 

Colleagues, let us be faithful to our target, keep up our spirit, screw up our courage, and win a positive position, favorable vantages, and a promising future for the company.

 

Wish everyone a happy new year and a happy family, and wish you all the best!

 

Wish TISCO an everlasting business and sustainable development!