Extraordinary Creation |Transfar Synthetic Material Holds 2024 Annual Summary and Recognition Conference as Well as 2025 Work Mobilization Conference

At 13:18 on January 24, the 2024 Annual Summary & Commendation Conference and 2025 Work Mobilization Conference was solemnly held in the 4th Floor Large Conference Room of Transfar Synthetic Material. Centered on the theme "Embarking on a New Rubber Journey in 2025", the event gathered more than 200 participants, including Qu Yaping, President of Transfar Chemistry and Chairman of Transfar Synthetic Material; Wang Zida, General Manager of the Finance Department of Transfar Chemistry and Chief Financial Officer of Transfar Synthetic Material; Wang Changyin, General Manager of Transfar Synthetic Material, as well as all levels of management and staff. Attendees jointly reviewed achievements in 2024 and envisioned prospects for 2025.

Wen Qiang, Deputy General Manager of Transfar Synthetic Material, presided over the conference.

At the conference, Wang Changyin, General Manager of Transfar Synthetic Material, first delivered the 2024 Work Report and 2025 Work Mobilization Speech. He comprehensively reviewed the work outcomes of 2024: the company achieved full production and full sales throughout the year, consolidating the fundamental business foundation, and continuously deepened overseas layout. Efforts to boost output and expand application scenarios of rare earth rubber were steadily advanced, laying a solid foundation for further market expansion and promotion of new-grade products. The much-anticipated 120,000-ton Rare Earth Polybutadiene Rubber Project succeeded in one-off startup, realizing efficient commissioning featuring immediate full-load operation upon startup. A laboratory team was successfully established, greatly strengthening technological capacity and clarifying directions for scientific and technological innovation, with phased important progress made in developing differentiated products. Remarkable results were achieved in transforming safety culture, and environmental, health & safety (EHS) capabilities kept improving. Output efficiency was guaranteed through optimization and upgrading of production facilities. The "Hundred-Million Revenue & Tax Project" was solidly promoted, with policy applications and tax planning carried out in parallel. Team building and organizational atmosphere were further optimized, market influence continued to expand, and brand effects increased significantly. Meanwhile, General Manager Wang Changyin defined the business performance targets for 2025 and put forward key priorities for the year: sustain full production and full sales, and optimize customer and product mix; fully drive product development toward differentiation, high-end positioning and serialization; leverage the New Thinking Strategy to strengthen dual driving forces of technology and market; restructure the safety culture system and advance systematic management; elevate overall organizational competence to align with business strategies. He emphasized that multiple challenges remain in safety management, technological breakthroughs and product industrialization, calling on all staff to make concerted efforts.

Subsequently, Wang Fengwei, Deputy Secretary of the Party Branch and Deputy Director of the Administrative Office of Transfar Synthetic Material, delivered a report on Party-mass work, summarizing the achievements in 2024. In ideological guidance, diverse activities were organized to study the spirits of various meetings, effectively enhancing staff cohesion. In supporting business operations, multiple key initiatives were implemented, with Party members fully playing exemplary vanguard roles. For harmonious labor relations, team restructuring was promoted, employee care was delivered, and active participation in social co-construction was arranged. In 2025, under the leadership of the Group Party Committee and guidance of the Industrial Party & Mass Affairs Office, the Party, Trade Union and Youth League of Transfar Synthetic Material will continuously strengthen self-development. Following the "5456" Party-mass work model proposed by the Chairman, the team will innovate working methods, deeply integrate Party building with business operations, and continue activities including special tackling projects led by Party members. The team will reinforce integrity development to foster a clean corporate atmosphere, improve operational mechanisms, scale up employee care, pool staff wisdom, leverage the leading role of the Master Craftsman Studio, deepen the mentor-apprentice system, and deliver systematic training for new employees.

Wu Mingjun, Director of the Administrative Office and Chairman of the Trade Union, read out the list of award recipients. In 2024, all employees forged ahead with aligned goals, bringing forth a cohort of outstanding role models, innovation stars and advanced teams. They interpreted the spirit of forging ahead with practical actions and made vital contributions to the development of Transfar Synthetic Material. Li Yongsheng, Assistant General Manager of Transfar Synthetic Material; Wang Zida, General Manager of the Finance Department of Transfar Chemistry and CFO of Transfar Synthetic Material; and Qu Yaping, President of Transfar Chemistry and Chairman of Transfar Synthetic Material, presented awards to outstanding individuals and teams respectively.

As the representative of outstanding individuals, Luo Siqin shared her work experience over the past year under the theme "Strive Hand in Hand, Achieve Self-worth". She recounted her anxiety facing various challenges at the early stage, perseverance to overcome difficulties together with colleagues, and vision for sustained progress with firm conviction. Her sharing inspired every participant present.

Hao Dajin, representative of the advanced team, told the inspiring story of the No.1 Polybutadiene Workshop Team, a group capable of tackling tough missions. At critical moments, team members rose to challenges, responded rapidly and fought side by side to deliver excellent results, demonstrating strong team cohesion and combat effectiveness.

All departments signed the 2025 Performance Responsibility Letters at the conference, clarifying work objectives and responsibilities for the new year and laying a solid foundation for smooth delivery of all tasks.

In addition, a lucky draw session created a relaxed and pleasant atmosphere on site.

Towards the end of the conference, Qu Yaping, President of Transfar Chemistry and Chairman of Transfar Synthetic Material, delivered a concluding speech:

First, Forge Ahead for Remarkable Achievements and Collaborate to Build Industry Benchmarks. When the operating rate of the whole industry hovered at only around 60%, the 120,000-ton project of Transfar Synthetic Material achieved one-off startup and stable operation, setting an industry benchmark. The coordinated efforts of marketing, production and R&D teams supported active customer development, efficient production organization and innovation-driven quality improvement, generating considerable profits. At the Group and Industrial Annual Commendation Conference, the company won multiple major awards thanks to outstanding performance, demonstrating comprehensive strengths in teamwork, business innovation and operation management.

Second, Face Risks and Challenges squarely, and Plan Ahead for Sustainable Growth. ① Safety Risks: The company boasts an annual capacity of 270,000 tons with room for further expansion. The workforce consists of many new young employees. The chemical industry features high professional barriers, and staff require time to accumulate experience. Current safety management has loopholes including inadequate implementation and insufficient training, which demands high attention. ② Operational Pressures: Product price gaps fluctuate sharply with drastic price swings between 2024 and 2025. The sluggish petrochemical sector with low operating rates and shrinking profits weighs on product prices. Futures markets and new trading models bring fierce impacts, while complex global trade conditions increase difficulties in operational risk control. ③ Talent Gaps: The existing talent pool can sustain daily operations, yet lacks sufficient capability to cope with future risks and challenges when benchmarked against world-leading enterprises. Long-term corporate development requires rational talent echelon construction. Deficiencies in talent reserve and training systems threaten sustainable development.

Third, Define Directions for a New Journey and Make Targeted Layouts to Boost Development. ① Technological Innovation: Move away from low-price competition and pursue differentiated strategies to satisfy customized customer demands and realize flexible production. Increase R&D investment to develop distinctive products and lift added value. ② Global Expansion: Press forward with global strategy beyond simple product export. Integrate global resources, set up overseas subsidiaries and teams to explore suitable global operation models. ③ Management Upgrade: Establish a full-process quality management system, optimize supply chain management, enforce strict safety regulations, advance intelligent manufacturing and build a benchmark enterprise. ④ Business Expansion: Plan new development platforms, break capacity constraints, explore new projects, research material applications in emerging sectors and march toward the 10-billion-yuan business target.

Fourth, Upgrade Capabilities to Consolidate Foundations and Strengthen Organizational Building for Progress. ① Update Mindset: Benchmark world-class enterprises, absorb advanced experience, abandon conventional concepts, embrace new ideas and promote transformation and upgrading of business models. ② Talent Cultivation: Strengthen competency development, formulate improvement plans targeting deficiencies in technology, production, marketing and brand building, optimize talent echelon construction, clarify career paths for employees. Develop high-caliber competitive talent teams via internal training, external recruitment and building knowledge inheritance systems.

The conference concluded successfully amid the singing of the Transfar Anthem. This event comprehensively summarized Transfar Synthetic Material’s work in 2024 and clarified development directions and targets for 2025. All participants were greatly inspired. They will devote themselves to work in the new year with greater enthusiasm and high morale to jointly strive for the high-quality development of the company.