柏诚股份：2024年度“提质增效重回报”行动方案(英文版)
BOTH ENGINEERING TECHNOLOGY CO., LTD.ACTION PLAN OF THE “IMPROVING QUALITY AND EFFICIENCY AND
INCREASING RETURNS” FOR 2024
To implement the investor-centric concept, promote high-quality development ofthe Company and enhance investment value, increase investor returns, improveinvestor satisfaction, and protect the legitimate rights and interests of investors,especially minority investors, BOTH Engineering Technology Co., Ltd. (hereinafterreferred to as the “Company”) has formulated the “Improving Quality and Efficiencyand Increasing Returns” Action Plan for 2024, which was considered and approved atthe second meeting of the seventh session of the board of directors of the Company onJune 18, 2024. The details are as follows:
I. Focusing on and Strengthening Core Business and Promoting StableDevelopment
The Company focuses on providing professional clean room system integrationsolutions for projects such as factory construction and technological transformation inhigh-tech industries. The Company possesses full-industry-chain capabilities for cleanroom system integration and offers a series of professional technical services,including project planning and design, procurement, system integration, HOOK-UP,and operation and maintenance of industrial clean rooms and biological clean rooms.With constant improvement and accumulation throughout the course of its thirty yearsof intense involvement in the clean room sector, the Company has emerged as one ofthe top businesses in this field in China.
In 2023, the Company continuously focused on national key industries such assemiconductor and pan-semiconductor, new display, life science, food andpharmaceutical health and new energy and seized the rapidly growing marketopportunities in downstream semiconductor industry. The management and allemployees of the Company made concerted efforts and adhered to an extremely
customer-oriented and project-focused approach, hitting record highs in annual newcontract amounts, output value and revenue.In 2024, the Company will continue to focus on and strengthen its core business,strive for progress while maintaining stability and make every effort to deliver asatisfactory performance. Firstly, the Company will continue to develop its primarybusiness, ensuring steady growth in production and operations. It will always focus oncore business, be project-focused, pursue technical accumulation and refinement, andserve industrial customers well; advocate a moderation and austerity culture to reducecosts, increase efficiency and promote high-quality development of the Company;always pay attention to risk management and control in project acquisition, executionand payment collection, with an emphasis on enhancing operational quality. Secondly,the Company will continuously optimize its operating mechanism around the conceptof an agile organization. By continuously optimizing the operating mechanism, theCompany aims to further improve decision-making quality and efficiency,decentralize decision-making, clarify the “duties, powers, and benefits” of operatingunits and become performance orientation, and strengthen the role of functionaldepartments in empowering operating units to build a technology-first organization.Thirdly, the Company will build a global strategic layout and vigorously expandoverseas business. By adhering to the value output concept and the strategy oflong-termism, the Company will redouble its efforts to expand overseas market,connect domestic and foreign customer markets, integrate supply chain systemintegration capabilities and establish strategic alliances with suppliers to achieveoverall synergy. Fourthly, the Company will always prioritize key talents and talentteam building. It will improve the strategic talent recruitment mechanism, acceleratethe recruitment of key operational talents, break the bottleneck of bringing in leadingfigures in innovation business and new business development; efficiently utilizeinformation system and practical training systems to enhance the quality of the talenttraining platform, strengthen the talent team building for key project positions throughtraining and practical work.
II. Maintaining Stable Dividends and Emphasizing Shareholder ReturnsThe Company actively responds to shareholders’ demands, attaches greatimportance to reasonable returns for investors, and is committed to providinginvestors with sustained and stable cash dividends and continuously sharing operationachievements with investors. Since its listing in April 2023, the Company hasdistributed cash dividends for two consecutive years, including the interim cashdividends for the first half of 2023. The Company has cumulatively distributed cashdividends of RMB185,487,500.00 (tax inclusive). In 2023, the proportion of the cashdividend of the Company was 51.28%, a notably increase as compared to 30.20% in2022.
In 2024, the Company will continue to adhere to the development philosophy ofactively rewarding shareholders. Based on fully improving the operation quality andtaking the Company's profitability, cash flow status, and future development plansinto consideration, the Company will coordinate the dynamic balance betweenoperation development, performance growth, and shareholder returns, continue toimplement a positive, continuous, and stable profit distribution policy. At the sametime, the Company will also actively explore and study policies on interim dividendsand multiple dividends a year and establish a long-term and stable shareholder returnmechanism to strive to create better returns for shareholders.
III. Emphasizing Technological Innovation and Accelerating theDevelopment of New Quality Productive Forces
The Company attaches great importance to technological innovation. Relying onits extensive project experience and continuous technical development, the Companyhas accumulated a large number of patented technologies and non-patentedachievements, and has obtained a hundred of various invention, utility model patents,and construction methods in aggregate. At the same time, the Company keeps up withadvanced industry technologies and realized the digitization of technology and theindustrialization of installation in clean room projects, becoming one of the first
enterprises in the industry to master and apply Building Information Modeling (BIM)technology and modular assembly technology.In 2024, innovation will act as the driver for achieving strategic goals. TheCompany will continuously explore pain points for industrial customers, carry outinnovation based on customer needs and seek better solutions. It will always pursuetechnical accumulation and refinement, and with clean room business at its core, theCompany will accumulate technology in prefabrication and apply these technologiesto modularization, achieving innovative application results. It will strive forsubstantial breakthroughs in the research and development and manufacturing ofclean supporting products.
IV. Strengthening Communication with Investors and Actively ConveyingInvestment Value of the Company
The Company attaches great importance to investor relations management,continuously improve the quality and transparency of information disclosure, andpromote the establishment of a good communication mechanism with investors. TheCompany has established various communication methods and channels, includingshareholders’ general meetings, results briefing, SSE e-Interaction, investorconsultation hotline and email, the Company's official website, WeChat officialaccount, other investor exchange activities, comprehensively displaying theCompany's operation conditions and prospects, actively conveying the Company'sinvestment value, and promoting the establishment of a long-term, stable and positiverelationship between investors and the Company.
In 2024, the Company will continue to strengthen communication with investors,continuously improve the quality of information disclosure, enhance theunderstanding and recognition from investors. Firstly, in addition to the compliantinformation disclosure, the Company will strive to make the disclosed content concise,clear, and easy to understand, and adopt various visual forms such as infographics,charts, pictures, and videos to interpret periodic reports, making it easier for investors
to access information and make informed decisions. Secondly, the Company willregularly hold annual, semi-annual, and quarterly results briefings and activelyarrange direct and in-depth exchanges between the Company’s chairman, financialcontroller, and independent directors with investors through results briefings, enablinginvestors to understand the Company's production and operation in a morecomprehensive and thorough manner. Thirdly, the Company will play an active part incentralized investor exchange activities, organize research receptions, and strengthencommunications and exchanges with investors, industry analysts, and media toimprove effectiveness of these communication. Fourthly, the Company will takeproactive steps to practice Environmental, Social, Governance (ESG) concepts andestablish a preliminary ESG management system, and at the same time, following thelatest regulatory guidelines, the Company will actively compile and release socialresponsibility reports in respect of ESG management in the future, adhere tosustainable development, and actively fulfill social responsibilities so as to adapt tothe ever-changing market demand and regulatory environment, thereby creating valuefor investors and stakeholders.V. Adhering to Standardized Operations and Continuously ImprovingCorporate Governance
In accordance with the requirements of the Company Law, the Securities Lawand the Code of Corporate Governance for Listed Companies and other related laws,regulations and regulatory documents, the Company has established a relatively soundcorporate governance structure and operational mechanism, consisting of theshareholders’ general meeting, the board of directors and specialized committeesunder the board of directors, the board of supervisors, senior management,independent directors and the secretary to the board of directors.In 2023, in response to the regulatory policy changes such as independentdirector system reform and based on the Company’s actual situation, the Companyamended the Articles of Association and related governance policies and made somechanges in the members of the audit committee under the board of directors.
In 2024, the Company will continue to optimize the corporate governancestructure to improve the level and efficiency of standardized operations. Firstly, theCompany will study the newly amended Company Law, the Measures for theAdministration of Independent Directors of Listed Companies and the Guidelines forthe Articles of Association of Listed Companies and other related laws and regulations,timely amend and improve internal management systems based on the Company’sactual situation, and continuously promote the construction and effectiveimplementation of the corporate governance system. Secondly, the Company willactively promote the reform of independent director system, give full play to the roleof independent directors, strengthen performance guarantees, and improve thescientificity, efficiency, and foresight of the decision-making of the board of directors.Thirdly, the Company will establish a preliminary ESG management system andframework and promote the integration of ESG into the Company’s production andoperations. Fourthly, the Company will strive to prevent and control corporategovernance risk, advance the effective integration of the compliance managementsystems with audit and supervision, risk management and system construction toimprove the corporate compliance governance.
VI. Focusing on the “Key Minority” and Strengthening PerformanceResponsibility
The Company maintains close communication with the “key minority” such ascontrolling shareholders, actual controllers, directors, supervisors, and seniormanagement of the Company. The Company actively organize relevant training toenhance their understanding of laws and regulations related to securities market,improve their skills in performing duties and raising their compliance awareness,earnestly safeguarding the interests of the Company and its shareholders. Themanagement’s compensation of the Company is tied to the Company's businessobjectives and individual comprehensive evaluations, which motivates themanagement of the Company, protects shareholders’ interests and promotes theCompany’s long-term stable development.
In 2024, the Company will continue to strengthen communication and exchangewith the “key minority”, enhance their skills in performing duties, reinforce theirsense of responsibility and make efforts to improve operational quality. The Companywill keep them abreast of the latest regulatory requirements through various channelsand organize special trainings to continuously enhance their self-discipline andcompliance awareness to promote the Company’s sustained and standardizedoperation. The Company will continue to optimize the remuneration policies andplans for senior management, set scientific and reasonable performance assessmentindicators, closely link the management’s remuneration with the Company’s operationperformance and long-term development, establish a sound long-term incentivemechanism and strengthen the sharing of benefits between the management andshareholders.VII. Other ExplanationsThe Company will conscientiously implement this “Improving Quality andEfficiency and Increasing Returns” Action Plan in the future, monitor and review itsimplementation, and timely fulfill information disclosure obligations. The Companywill focus on strengthening its core business, promote steady development, enhancetechnological innovation, and repay the investors’ trust with good performance,standardized corporate governance, continuous and stable dividend policies andsincere communication. The Company will earnestly fulfill the responsibilities andobligations as a listed company and maintain a favorable market image of a listedcompany.
This Action Plan is based on the current operational situation of the Companyand does not constitute a substantive commitment of the Company to investors. It issubject to industry development, market environment, and policy change and otherfactors in the future, and therefore involves uncertainty. Investors are advised to payattention to relevant risks.
The Board of Directors ofBOTH Engineering Technology Co., Ltd.