Hu Wangming takes the reins as acting chairman at the China Iron and Steel Association. Baowu's strategic path, encapsulated in "Four Modernizations" and "Four Have," unfolds during a thematic exchange at CISA's sixth membership meeting. Amid global challenges, Hu Wangming's presentation outlines Baowu's resilience and strategic measures, spotlighting the industry's potential and commitment to high-quality development.
The China Iron and Steel Association (CISA) recently elected Hu Wangming as acting chairman during its sixth membership meeting in Beijing. Simultaneously, the seventh CISA Council session unfolded, delving into Xi Jinping's economic conference spirit and addressing the steel industry's challenges and future development. Hu Wangming, Secretary of the China Baowu Party Committee and Chairman, actively participated in this pivotal meeting.
A thematic exchange, featuring leaders from major steel enterprises, including China Baowu, offered insights into high-quality development practices. Hu Wangming's presentation, titled "Advancing Baowu's High-Quality Development through 'Four Modernizations' and 'Four Have,'" unveiled Baowu's strategic approach.
Hu Wangming emphasized the steel industry's stability and contributions to China's economy despite facing a complex environment. Baowu's journey in 2022 saw a downturn, with significant operational lag in the first half. However, a strategic shift in the latter half, focusing on "Four Modernizations" (technological innovation) and "Four Have" (astute management), led to a remarkable recovery. Baowu achieved a crude steel production of 130.77 million metric tons, operating income of $11.03 billion, and a total profit of $31.61 billion, meeting annual targets set by the State-owned Assets Supervision and Administration Commission.
Under Xi Jinping's guidance, Baowu embraced the imperative to transform from a "leader" to being "strong." The focus on becoming strong and excellent prioritizes strength, aligning with Xi's emphasis on innovation. Baowu recognizes that achieving strength relies on technological innovation. The "Four Modernizations" (high-end, intelligent, green, and efficient development) responds to Xi's call for industry transformation.
In an era of stock competition and marginal profit development, Baowu concentrates on astute management. The "Four Have" principles—having orders, marginal production, profitable income, and cash profits—become crucial. Baowu emphasizes value creation, efficiency, and cost-effectiveness, aligning with the principles of "cash is king."
"Four Modernizations" and "Four Have" complement each other, enhancing Baowu's innovation and value creation abilities. These strategies equip Baowu to confront market challenges, navigate industry cycles, and fulfill its core function in line with national strategies.
Hu Wangming's election and Baowu's strategic revelations signify a commitment to high-quality development. The "Four Modernizations" and "Four Have" principles, driven by resilience and innovation, position Baowu to lead in the steel industry. As 2024 unfolds, Baowu's strategies serve as a beacon for navigating challenges, fostering growth, and contributing to the national agenda.