Last year, Ningbo Baoxin fully evokes Baosteel stainless steel system synergy and product features such as "thin special premium excellent", enhances full operating capacity and achieves annual full production full sales and makes profit for 48-month. In addition, cold-rolled stainless steel output is 630,000 tons, with unique leading products accumulated orders increasing by 16% compared with the same period last year. Under the premise of thinning products by 2.2% , cold rolled stainless steel production upgrades nearly 10% compared with production line design capacity.
Last year, stainless steel cold-rolled market price remains low and downstream user demand is in decline. To actively respond to the serious challenges of the market, Ningbo Baoxin considers the target of making profits every month as the "lifeline" and launches full focus on "strengthening marketing, optimizing varieties structure, with maximizing energy efficiency as principle and ensuring full production and full sales". It closely tracks the users' needs. Through efforts such as tailored products for users and strengthening user technical service it stablizes existing customer market. Through initiatives such as fully evoking unit potential, accelerating new product development and production pace, constantly optimizing product structure and increasing unique leading product order amount initiatives, it expands market share and improves product profitability. Last year, Ningbo Baoxin have developed 24 series of cold-rolled new products and special specifications such as high purity ferritic stainless steel and quickly formed mass production capacity. It both meets users' needs in import substitution and reducing cost and expand the company's product series coverage, increases contract order amount and profitability, and achieves win-win situation with users.
While adhering to product structure optimization and management change with market and profit as main line, last year, Ningbo Baoxin promotes anew product manager system, further rationalizes inside and outside whole process management with product manager as the core. Ningbo Baoxin product manager stainless steel joint marketing department, based on high frequency user visits and inquiry into their needs, cooperates with stainless steel production, sales and research team and developes stainless steel cold rolled deep-drawing steel, automotive trim and grinding surface products. They meet Haier key customer special needs and annual direct users raise from 54% to 58%. In addition, to improve manufacturing unit operational efficiency Ningbo Baoxin tries unit manager system last year. With machine unit as the smallest operating unit and "unit manager" virtual management team as the core it gathers technology, equipment, cost professional system and provide specialized support around front-line product manufacturing. They directly links unit's operating performance with staff incentives, improving front-line employees' market awareness and management ability and promoting the continuous improvement of first-line product quality and process cost.
In order to continuously improve market competitiveness and lean operation level, last year, while achieving full production and full sales, Ningbo Baoxin makes efforts in improving asset operational efficiency, vigorously promotes in-process products, finished products, waste materials, spare parts and rolls' inventory management and storage control and strives to realize the storage fund and sales revenue 1:1 challenging goal. Through advancing initiatives such as enhancing management and control process, clarifying responsibility objective and key supplies special management project, last year, Ningbo Baoxin's new stock fund occupation proportion goes down compared with same period last year. Ton of steel process cost decreases 52 yuan with continuous decrease year after year. Through measures such as strengthening capital tax functioning, improving financial capital operation effectiveness, the annual cost reduction and efficiency increase is 137% of the full year target.