Embracing Change, Advancing Together—A Memoir of Jinbang Company’s Transformation Journey in 2018 In southern China, after several days of persistent drizzle, the region finally welcomed gentle breezes and bright sunshine, heralding a radiant spring. The year 2019 marks the 40th anniversary of China’s reform and opening-up policy, as well as the 24th year since Jinbang Company was founded. With the arrival of spring, Jinbang Company is taking another step forward in its development and innovation. Over the past year, the company introduced the Advantage‑Driven Management approach, initiated institutional reforms, and clarified its strategic direction. Internally, it encouraged all employees to offer suggestions and ideas, promoted lean manufacturing, and steadily advanced optimization efforts across production operations, logistics and warehousing, marketing and sales, corporate culture, recruitment, and talent development. Riding on the favorable winds of profound change, we are poised to meet even greater challenges and seize new opportunities. 1. [Proactively Seeking Change, Launching Institutional Reform] Today, external competition has become extremely fierce. New economic concepts such as Internet Plus, intelligent manufacturing, green environmental protection, and big data are gaining momentum, placing mounting competitive pressure on traditional labor‑intensive manufacturing industries. The plastics industry is gradually becoming more standardized; the government places increasing emphasis on environmental protection; raw material prices continue to rise; and labor costs are climbing ever higher. If companies fail to adapt to these changes and promptly transform and upgrade, they risk being eliminated by the market. As the saying goes, “Change brings progress; progress ensures longevity.” Proactively seeking change and adapting to evolving circumstances is the inevitable choice for traditional plastics manufacturers in today’s economic climate. To align with the new economic and social landscape and enhance the company’s competitiveness, Jinbang hired Mr. Wu Guangchen, the founder of the Advantage‑Driven Management method and a renowned management expert, as a consultant, thereby introducing this innovative approach. Chairman Luo Fuxing, drawing on the company’s current situation, presented the “Twenty‑Eight Recommendations” to core executives, officially kicking off a comprehensive management transformation at Jinbang. In May 2018, the company established a Management Transformation Leadership Group, formed a Human Resources team directly overseen by the Board of Directors, and launched the Jinbang Business School. This reform aims to fundamentally stimulate individuals’ initiative and creativity, primarily by boosting employee motivation, cultivating a corporate culture that maximizes both organizational and individual strengths, and establishing modern management systems that effectively leverage the advantages of both employees and the company. Ultimately, the goal is to fully inspire, nurture, and harness human initiative and enthusiasm, unlock latent potential, and achieve the scientific, rational, and harmonious development of both people and the enterprise. 2. [Encouraging All Employees to Offer Suggestions, Promoting Lean Production] To encourage employees to apply their ingenuity, voice their ideas, and make the most of their talents, guiding the company’s production and management toward deeper refinement, Jinbang implemented a Rationalization Suggestion Program starting in September 2018. During that year, the company adopted 130 suggestions, completed 109 improvements, and currently has 21 ongoing improvement projects. Practical recommendations from frontline staff were duly valued and put into practice, enhancing the effectiveness of on-site management and strengthening employees’ sense of involvement. Meanwhile, the production workshops carried out the following modifications to machinery: Machine No. 1 upgraded its conveyor belt, resolving difficulties in cleaning rollers 2 and 3; replaced the main roller, reducing crystal spots on sheets and improving product quality; and installed a metal detector to prevent damage to rollers caused by metal contamination. At the base of the double rollers of Machines No. 1 and No. 3, collection trays were added to minimize material waste; Machine No. 3 also had its laminating unit redesigned, making film changes easier and cutting down on waste. On the auxiliary equipment of Machine No. 4, baffles were installed to prevent oil droplets from landing on the sheets. Machine No. 5 received an enlarged hopper, significantly lightening workers’ physical burdens. The slitting machine was modified to solve the technical issue of whitening in finished products, enabling the company to meet the requirements of certain high‑end customers. The production workshops continuously upgraded their equipment, aiming not only to improve product quality but also to boost production efficiency. 3. [Expanding Overseas Markets, Strengthening Brand Building] Enhancing the development and nurturing of premium clients. To better serve customers, the sales and customer service teams refined their workflows, optimized team structures, clarified responsibilities, and gradually defined performance‑based incentives, thereby stimulating employees’ autonomy and professionalism. The sales team, together with the Technical Quality Department, focused on analyzing pain points among key clients, examined annual cases of quality anomalies, gathered customer feedback, and formulated plans for operational optimization and market expansion over the coming year. To support the company’s strategic growth, broaden business channels, and expand its customer base, the Sheet Sales Department, building on its existing import‑export license, added value‑added processing and re‑export services. Through the concerted efforts of the Production, Finance, and Planning Departments, the re‑export business has been running smoothly, allowing the company to tap into overseas markets. To further strengthen the company’s brand influence, Jinbang joined the National Sheet Industry Association, engaging more closely with industry information; revamped its website to present a fresh image in response to market demands; participated in national learning‑project competitions, earning the title of “Pioneer Model Group”; updated all employee badges and refined corporate identity recognition; and aligned the company’s core values, unifying its vision for the future. 4. [Embarking on Intelligent Manufacturing, Elevating Corporate Governance] To achieve digital management of enterprise production, the company’s leadership introduced a more efficient and advanced ERP system, further elevating and reinforcing overall management standards, integrating sales, production, technology, after-sales service, and finance into a unified platform. In October 2018, the new ERP system’s production and sales modules officially went live, signaling Jinbang’s imminent transition toward an intelligent manufacturing enterprise. In 2018, Jinbang upgraded its quality credit rating from “A” to “AA.” To meet customers’ increasingly stringent expectations, the company successfully passed the re‑certification audits for ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007—covering quality, environmental, and occupational health and safety standards. In response to these heightened quality requirements, the company further advanced the internal standardization and systematization of its quality management processes, marking a solid yet challenging step toward modern corporate governance. 5. [Strengthening Corporate Culture, Prioritizing Employee Training and Development] Strategically, the company envisions becoming the benchmark for plastic sheet and film products in China. Guided by this vision, all levels of the organization must work in concert, unify thinking, and reinforce cultural development. In 2018, Jinbang established the DingTalk internal communication platform, launched its official WeChat account in July, published the first issue of the corporate newsletter “Jinbang Home” in August, and created the Jinbang Enterprise WeChat account in September. By now, DingTalk, the WeChat account, and “Jinbang Home” have become vital channels for conveying company information and facilitating employee interaction. The company emphasizes continuous learning among management, having set up the Jinbang Business School. It has systematically reviewed employee onboarding and in‑service training, deepened management training for workshop team leaders, organized micro‑course competitions in technology and management, built an internal team of instructors to share cross‑functional expertise, arranged study tours and visits to model enterprises, and encouraged employees to apply what they learn. The father of the Advantage‑Driven Approach, management consultant Mr. Wu Guangchen, has visited the company numerous times to conduct management training and thematic meetings. Annual internal training courses totaled 24 sessions, with a cumulative participation of 417 person‑times. The company is actively working toward becoming a learning organization. At the end of 2018, Jinbang held its first annual awards ceremony for outstanding employees, publicly recognizing top performers at the company-wide assembly, setting exemplary role models, and inspiring others to strive for excellence. 6. [Optimizing Management Structure, Strengthening Talent Development] Midway through 2018, the company refined its management structure, subdivided functional departments, and recruited talented professionals in management and R&D. It also intensified efforts in workplace discipline, personnel incentives, and related areas, establishing a series of supporting policies and procedures to create a more efficient and competitive work environment. After the 2019 New Year, the company successfully completed the recruitment of a large batch of new production staff, securing the workforce needed to launch new production lines. It also advanced warehouse department integration and optimization, implementing precise data management to ensure the accuracy of ERP system inputs. Furthermore, it fostered closer, more frequent cross‑departmental communication and collaboration. A comprehensive inventory of talent across all departments and positions was conducted, bringing to light high‑performing individuals with strong potential. Targeted incentive and retention programs were designed to cultivate a core group of change agents. Managers and employees alike were urged to strengthen their sense of responsibility, boldly embrace challenges, and take calculated risks. 7. [Learning from Strengths, Making Up for Weaknesses, Carrying Forward the Legacy] Looking back, various reform initiatives have already been launched, and the company is steadily moving toward profound transformation. While we should celebrate our achievements, we must also acknowledge our shortcomings. In areas such as aligning reform philosophies, building leadership capacity, embedding the Advantage‑Driven concept internally, advancing R&D, and developing premium clients, there remain aspects that fall short of expectations, posing significant challenges. As the saying goes, “It takes more than one cold day to freeze three feet of ice; forging ahead requires perseverance and determination.” Throughout the transformation process, misunderstandings, lack of cooperation, and insufficient initiative may arise—demands that call for ample patience and confidence to overcome obstacles. The year 2019 is a pivotal moment for us to realize our dreams and set sail. Dear colleagues, let us, guided by Jinbang’s grand vision—to become the benchmark enterprise in China’s plastic sheet and film industry—march forward with unwavering resolve, broad foresight, and steady pragmatism, building an even brighter future for Jinbang!