National University Company Successfully Navigates Crisis and 'Cold Winter'

2009 was the most challenging year for Guoda Company. Faced with the severe impact of the financial crisis on the enterprise, Guoda Company adopted the guiding ideology of "protecting the market and factories," and implemented the core measures of the 24-character guideline: "seeking policies, compressing investment, reducing costs, increasing efficiency through tapping potential, technological innovation, and structural optimization." The company rigorously controlled costs and expenses, honing its basic business skills, and successfully overcame the adverse effects of the financial crisis. The company produced 10.32 tons of gold, 36.28 tons of silver, 199,800 tons of sulfuric acid, and 1,345.32 tons of cathode copper, achieving a sales revenue of 1.61 billion yuan, a profit and tax of 60.0768 million yuan, and a profit of 40.9568 million yuan. It exceeded its annual targets and successfully weathered the economic winter of 2009.

Prioritizing market stability to ensure smooth marketing channels.

Affected by the financial crisis, the raw material procurement situation in 2009 became increasingly severe. The seller's market led to a worsening of the vicious cycle in the raw material market, and disorderly competition further increased the difficulty of raw material procurement. In response, Guoda Company promptly adjusted and optimized its raw material procurement structure, shifting its focus to increasing procurement efficiency. Simultaneously, it comprehensively optimized the procurement chain, establishing and improving relevant systems and procedures to ensure clarity, accountability, and fair rewards and punishments, effectively motivating all business personnel. Not only did it successfully complete its ore purchasing tasks, but it also achieved a historic breakthrough in procurement structure, significantly improving procurement efficiency.

In 2009, the product sales market faced significant challenges, with the sulfuric acid market experiencing the most severe impact of the crisis. Sulfuric acid prices plummeted, falling from a high of 2,000 yuan/ton in 2008 to a low of less than 100 yuan/ton. In response, Guoda Company quickly adjusted its marketing strategy, focusing on developing and consolidating major clients and key regional markets. Starting in October, it seized the opportunity of rising sulfuric acid prices to increase sales efforts, significantly alleviating the pressure of sulfuric acid losses.

Driving growth through technological innovation to enhance the company's competitive advantage.

In response to the severe situation in 2009, and considering the raw material and sulfuric acid market conditions, Guoda Company achieved a historic breakthrough through technological innovation and adjustments to its production system. The company successfully merged three roasting systems with one cyanide system, creating a roasting and cyanidation production capacity of 600 tons/day. This created three new advantages: scale, comprehensive recovery, and low cost, laying a solid foundation for exceeding the annual targets. Simultaneously, it completed the construction of a cross-year project—the comprehensive utilization project of gold-bearing tailings—with an investment of 88 million yuan. After its completion and commissioning in October, all economic and technical indicators met design requirements, providing the company with the momentum to cope with the impact of the financial crisis.

In response to the persistently sluggish sulfuric acid market, Guoda Company reasonably adjusted the operation of its acid production system, successively shutting down and overhauling three acid production systems. This effectively maintained the production system while minimizing economic losses caused by sulfuric acid products. During the year, it conducted experiments on lead-zinc separation, gold and silver recovery from arsenic-containing tailings, and comprehensive recovery of multiple elements from zinc oxide dust. It applied for 5 utility model patents, bringing the company's total patent applications to 33. Two independently developed technological achievements were awarded first and second prizes for excellent technological innovation achievements in Shandong Province. During the year, the company received the titles of "Shandong Provincial Resource Comprehensive Utilization Enterprise," "National Gold Industry Science and Technology Advanced Collective," "Shandong Provincial High-tech Enterprise," "China Patent Shandong Star Enterprise," and "Top Ten Demonstration Enterprises for Scientific Management of Circular Economy in Shandong Province."

Using strengthened management to improve the ability to increase efficiency by tapping potential.

To actively address the difficulties brought about by the financial crisis, Guoda Company focused on management, strengthening employee behavior management through adjustments to internal retirement policies and strict management activities. Simultaneously, it actively carried out "cost reduction, energy saving, and waste reduction" activities, strengthening control over all aspects of production and management. The annual cost and expense plan was broken down to each unit and each position, and a strict evaluation mechanism was implemented. This ensured that all employees firmly established the awareness of "cost reduction, energy saving, and careful calculation." Based on strengthened enterprise management, the 24-character guideline was fully implemented. By actively seeking policies, 21.2536 million yuan in benefits were obtained; by appropriately compressing investment, 1.202 million yuan in expenses were saved; by tapping potential and increasing efficiency, 433 innovative achievements were completed, and 483 financial projects were completed, achieving an increase in efficiency of 8.7754 million yuan; and by reducing costs, annual expenses decreased by 20.5417 million yuan, a decrease of 16.72%.

To improve employee quality and strengthen the foundation of the enterprise, Guoda Company hired 22 internal trainers with professional expertise, conducting professional training in cyanidation, acid production, accounting, and equipment. It also organized 42 employees to participate in metallurgical professional education classes and invited professors from Northeastern University to give lectures. Simultaneously, it strengthened the inspection, supervision, and follow-up evaluation of the "one question per day" learning column and the "master-apprentice" learning effect, improving the "skill promotion authorization system." During the year, a batch of authorizations were implemented, and 65 employees who passed the assessment were promoted to a higher skill wage level, further motivating employees to learn knowledge, improve skills, and strengthen their abilities, enhancing the company's ability to cope with crises and mitigate risks.

The company maintained its title of "Provincial Civilized Unit" and won honorary titles such as "Advanced Collective for Ideological and Political Work of China Gold," "Advanced Unit for Political Research Work of China Gold Association," and "Yantai's First Most Charitable Donation Unit." It also obtained the qualification as a "Yantai High-skilled Talent Training Base."