CMEC Group Headquarters Holds 2025 Annual Performance Review Meeting for Senior Executives before the Board of Directors

CMEC Group Headquarters Holds 2025 Annual Performance Review Meeting for Senior Executives before the Board of Directors

Recently, CMEC Group Headquarters (China Machinery Engineering Corporation, or CMEC) convened its 2025 Annual Performance Review Meeting for Senior Executives before the Board of Directors. The meeting was chaired by Wang Bo, Party Secretary and Chairman of the Company. Attending the meeting were Fang Yanshui, Director and General Manager; Guo Weihua, Wang Yuqi, and Huang Guofu, external directors appointed by SINOMACH; Dong Jianhong and Zhang Guangyuan from SINOMACH's Supervision Office; Xiao Jun, Secretary of the Discipline Inspection Commission; Xie Ke, Chen Fan, and Chen Jun, Vice General Managers; Tian Zheng, Chief Financial Officer; and Huang Kaili and Qian Xuegang, Assistants to General Manager.

A group photo of the senior executives attending the 2025 Annual Performance Review Meeting

Looking back on the past year, under the leadership of its Board of Directors, CMEC thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China and the fourth plenary session of the 20th CPC Central Committee, and resolutely carried out SINOMACH's reform directives. The Company's executive leadership focused on the strategic transformation toward becoming a "technology-driven, specialized engineering company," deepening divisional reforms, implementing the "Three New" development approach, and optimizing its overseas business layout-thereby continuously strengthening its new advantages in international operations. Despite an exceptionally challenging external environment, the Company achieved resilient growth: newly signed contract value and cumulative uncompleted contract value both continued to rise, operating cash flow increased significantly, and legacy issues were progressively resolved, ensuring stable operation of the Company's core business.

Board of Directors Affirms Management's Performance

At the review meeting, members of the Board of Directors and leaders from SINOMACH's Supervision Office listened to performance reports from seven senior executives regarding their 2025 duties. In line with their Business Performance Responsibility Agreements and key responsibilities, the executives reported on the progress of all assessment indicators, systematically reviewed actual achievements in their respective areas, candidly addressed existing weaknesses and shortcomings, and proposed targeted improvement measures along with their key work plans for 2026.

The Board of Directors fully affirmed the dedication and operational results delivered by the senior management team over the past year. It noted that, amid complex market conditions, the executive management had proactively risen to challenges, maintained overall operational stability, steadily advanced key initiatives, and largely met expected core performance targets. The Board expressed its expectation that the management team will continue to focus on business model innovation, optimization of the governance of accounts receivable and inventory, and lean cost control-emphasizing profit generation backed by cash flow-to further solidify the company's development foundation and comprehensively enhance the quality of growth.

Board of Directors Outlines Priorities for the Opening Year of the "15th Five-Year" Period

In his concluding remarks on behalf of the Board of Directors, Wang Bo noted that, facing profound adjustments in the international engineering contracting industry and the gradual weakening of the company's traditional advantages, CMEC has called upon all staff and workers to embrace a spirit of "second entrepreneurship" to confront emerging challenges head-on.

During the "14th Five-Year" period, under the correct leadership of SINOMACH and the Company's Board of Directors, the executive leadership proactively guided all employees to achieve significant progress across six key areas: strengthening political accountability, enhancing group-wide management, improving the operational effectiveness of CMEC Group Headquarters, advancing project risk prevention and control, establishing a robust science and technology system, and actively supporting SINOMACH's overarching strategic objectives. These efforts have laid a solid foundation for the company's transformation and development.

Looking ahead to the new stage of development, Chairman Wang outlined three key requirements for the next phase of work:

First, formulate sound strategies to be effectively implemented during the 15th Five-Year Plan. All units must build upon the "Four Strategic Reorientation Directions," translate strategic thinking into concrete actions, and persistently advance toward the goal of becoming a technology-driven, specialized engineering company.

Second, deepen reforms to unleash the intrinsic vitality of business divisions. The company will continue to advance divisional compensation reform to stimulate business dynamism through institutional innovation. At the same time, it will strengthen risk prevention capabilities, enhance project governance effectiveness, and efficiently integrate market resources to cultivate differentiated professional competencies and boost overall competitiveness.

Third, build a stronger workforce and implement "lean and robust" management. Clear accountability for production and operations must be reinforced. The company will comprehensively roll out the "General-as-Platoon-Leader" approach (the "senior leaders on the front lines" accountability model) to shift management focus closer to the front lines, building lean and highly efficient business teams. This will ensure rapid decision-making and agile responsiveness within divisions, continuously reinforcing CMEC's competitive edge in overseas markets.

Wang Bo emphasized that as the company enters the new cycle under the 15th Five-Year Plan, it must fully integrate the CPC Central Committee's requirement to establish a correct view of performance achievements into all aspects of its 2026 work. The quality of high-level development outcomes will serve as the ultimate measure of how effectively the executive management fulfills its term-based contractual responsibilities-ensuring a strong start and solid foundation for the new five-year plan.