Strategic Governance and Operational Excellence at Yunding technology

Yunding Technology Co., Ltd. has released its 2024 Board of Directors Work Report, showcasing a year of important progress in corporate governance and financial performance. The report emphasizes the board’s commitment to upholding the Company Law of the people’s Republic of China,the Securities Law of the People’s Republic of China,and the company’s own Articles of Association. This dedication has fostered high-quality development and protected the interests of both the company and its shareholders.

the board’s proactive approach to risk management and standardized governance has been pivotal in its strategic decision-making processes. All directors demonstrated a strong commitment to their responsibilities, leveraging their expertise to drive the company’s stable and healthy growth.

Shareholder Engagement and Transparent Operations

In 2024, Yunding Technology facilitated six shareholder meetings, reviewing 22 critical matters. By employing both on-site and online voting mechanisms, the company ensured convenient participation for all investors, particularly small and medium-sized shareholders. This approach underscores Yunding Technology’s commitment to inclusive governance and shareholder rights.

Furthermore, the company held 11 board meetings, addressing 42 key issues, including periodic reports, related-party transactions, equity incentives, and executive appointments. These discussions were characterized by thorough research and prudent decision-making, ensuring the scientific validity and rationality of all outcomes.

Key Financial achievements in 2024

yunding Technology’s financial results for 2024 demonstrate considerable growth. the company reported operating income of 1.351 billion yuan,marking an 18.35% year-over-year increase. Net profit attributable to shareholders reached 92.7435 million yuan, a remarkable 50.11% increase compared to the previous year. These figures highlight the company’s effective strategies and strong market position.

Yunding Technology achieved operating income of 1.351 billion yuan, a year-on-year increase of 18.35%; and achieved net profit attributable to shareholders of listed companies of 92.7435 million yuan, a year-on-year increase of 50.11%.

This growth can be attributed to the company’s focus on understanding and meeting market demands, deepening its presence in segmented fields, and refining its management and control mechanisms.

Driving Innovation and Market Expansion

Yunding Technology has successfully integrated its product development, technological advancements, and market strategies to achieve significant breakthroughs. The company’s mature products have expanded beyond initial successes, and its industrial big model has been widely adopted.

This strategic focus on innovation and market expansion positions Yunding Technology for continued success in the evolving technological landscape. As of today, the global big data and business analytics market is projected to reach $350 billion by 2027, according to a recent report by Statista, indicating a significant opportunity for companies like yunding Technology to capitalize on their advancements in this field.

Strategic Expansion and Market Penetration

Leading the charge in the digital transformation of the energy sector, one company has demonstrated remarkable growth through strategic expansion and the successful replication of its digital and intelligent solutions. By extending its services to over 30 external enterprises, including major players like Anhui North Coal and Electricity and Huaneng Coal Industry, the company has not only broadened its reach but also facilitated the spillover of its self-developed scenario capabilities. This strategic move has resulted in AI business contracts totaling a substantial 256 million yuan.

Furthermore, the ongoing EPC project at the ETT Mongolian Coal Transportation and Coal Preparation Plant marks a significant milestone. By providing services to Asia’s largest coking coal preparation plant, the company is exporting its intelligent washing and selection solutions for the first time. This international venture underscores the global competitiveness and adaptability of its technologies.

The company’s involvement in the Huaneng Coal Industry 5G integrated integration project further solidifies its position as a technology leader. By constructing a 5G “beacon” coal mine,it is pioneering the request of advanced communication technologies in the energy sector,setting a new standard for operational efficiency and safety.

The successful replication and expansion of mature digital and intelligent solutions, such as the integrated industry and finance platform and GIS cloud service management projects, have enabled the company to penetrate key markets in southwest and northwest China. This “inside-to-out” breakthrough demonstrates the scalability and versatility of its offerings.

Showcasing its products at over 30 industry exhibitions, including the prestigious 2024 China International Mining Technology Exchange and Equipment Exhibition, and presenting at more than 20 large-scale conferences, the company has significantly enhanced its brand awareness. This proactive engagement with the industry has contributed to its consistent ranking among the top three in China’s “Top 20 Information Technology Enterprises in the Coal Industry” for three consecutive years.

Innovation and Product Development

At the heart of the company’s success lies a relentless focus on core technology breakthroughs and product innovation. By deepening its expertise in intelligent construction within the energy industry and exploring core capabilities such as artificial intelligence and intelligent mining, the company is driving high-quality development through innovation.

The iterative upgrade of artificial intelligence products has been instrumental in expanding the company’s capabilities. The industrial model has completed the research and development of new scenarios for 22 types of coal mines and has incubated over 110 types of mature scenarios, covering diverse industries such as coal, chemical, electricity, steel, oil, and gas. The completion of the iterative upgrade of its own L1 model, with an improved accuracy rate of 6% and a recall rate of 4.7%, demonstrates its commitment to continuous improvement.

The selection of the “Industrial Brain” project of Shandong Province Artificial intelligence (Smart Mining) as the eighth batch of “first version of secondary high-end software” in Shandong Province marks a significant milestone in the company’s R&D efforts. This recognition underscores the innovative nature and potential impact of its smart mining solutions.

The company’s focus on core products such as GIS, personnel positioning, and mining has enabled it to deepen digital and intelligent empowerment. The self-developed underground personnel positioning system products have been mass-produced, and 18 software and hardware products have been designed. The release of the white Paper on New Generation of Underground Network Technology has facilitated the first application of new generation network products, enabling full connectivity within underground coal mines.

The Mine GIS space-time big data comprehensive cloud service platform has achieved international leading level certification, and related technologies have been recognized with the Shandong Science and Technology Award for the first prize. This recognition validates the company’s expertise in developing cutting-edge GIS solutions for the mining industry.

The company is also accelerating its layout in the new energy chemical business. The Northwest New Energy Smart Wind Farm Construction Project has been accepted, and a series of solutions such as new energy regional integrated operation and maintenance platform, smart power plants, and smart chemicals have been developed, resulting in four international advanced patents. This expansion into new energy demonstrates the company’s commitment to diversifying its offerings and addressing the evolving needs of the energy sector.

Optimization and innovation in intelligent washing and selection solutions have also been a key focus. The coal preparation expert system was first applied in the 75th project, and the DTCC intelligent selection platform was promoted and applied in Gaotoujiao, Tianchen, and Mongolia ETT projects. By leveraging dynamic digital twins of coal preparation technology, the company is providing intelligent decision-making assistance to coal preparation plants, improving efficiency and reducing waste.

The company is also actively pursuing joint breakthroughs in the digital platform business. By responding to the requirements of information and innovation, expanding non-SAP system products, and exploring ERP domestic solutions, the company is positioning itself for future growth. The successful bid for the Yunnan Energy Investment and finance integration project demonstrates its ability to compete in the domestic market and contribute to the advancement of digital technologies in the energy sector.

Lean Management and Control

The company’s commitment to lean management and control has been instrumental in achieving practical results and driving operational efficiency. By continuously optimizing lean and refined management and control models, the company is empowering enterprises to achieve accelerated transformation of higher quality, better efficiency, and better structure.

Strengthening project management and control has been a key priority. The company has created a standardized project management system, formulating three types of project management standards for customized development, integrated delivery, and engineering delivery. This standardized approach ensures the high-quality and efficient implementation of projects.

The self-developed “Yunzhi” platform, which takes project management as its core, integrates the entire life cycle of projects, including market, procurement, progress, cost, and collection. This comprehensive platform provides “one map” management of project dynamic data, ensuring that project risks are controllable, progress is trackable, and cost is optimized.

The company is also leveraging synergistic dividends by fostering horizontal construction of internal products and technology collaboration bases and deepening market collaboration. The development of a low-code platform and a privatization platform enables the sharing and reuse of accumulated technical modules and resources, further enhancing efficiency and innovation.

Navigating the Future of Energy: Yunding Technology’s Vision

Yunding Technology is strategically positioning itself as a leading digital solution provider within the rapidly evolving energy industry. The company’s core focus is on facilitating the digital transformation of the energy sector, with a strong emphasis on expanding its presence in the industrial Internet. This includes key areas such as smart mining, intelligent washing, smart power and new energy solutions, smart chemical industry applications, and advanced digital platforms. The ultimate goal is to develop a scalable suite of software and hardware products, fostering an open industrial and innovation ecosystem. This approach aims to accelerate improvements in security, intelligence, energy conservation, and consumption reduction within the energy industry, thereby driving the development of new quality productivity.

Strategic Initiatives for 2025: A Deep Dive

Yunding Technology has outlined a comprehensive plan for 2025, focusing on key areas to drive growth and innovation.

Past Achievements: A Foundation for Future Growth

yunding Technology has already demonstrated its commitment to efficiency and innovation through several key achievements.

• Cost Reduction and Profit Enhancement: The company has successfully integrated internal result components to build comprehensive solutions, sharing intelligent solutions across various sectors, including coal, chemical industry, power new energy, washing and selection, and digital operation. This has improved cross-professional collaboration, reduced repeated development costs, and facilitated the rapid implementation of technological innovations.
• Centralized Procurement: By improving the Centralized Procurement Management Measures and integrating supplier resources, Yunding Technology has reduced procurement costs by 5.61% compared to budget.
• Expense Management: A special campaign to tackle the management expense ratio resulted in a reduction to 12.36%.
• Financial Gains: The company secured over 20 million yuan through scientific and technological innovation subsidies, financial tax reductions, and fee reductions.
• Talent Acquisition and Development: Yunding technology has focused on attracting scarce and high-end talent, recruiting 108 mid-to-high-end professionals, including algorithm engineers, product managers, and AI solutions experts. The implementation of talent training programs like the Montgomery plan and the Skylark campus recruitment program provides young employees with valuable training opportunities, developing core backbones and building a high-quality talent team.

the Broader Context: Industry Trends and National Policy

The intelligent construction of China’s energy industry is currently experiencing a period of rapid development, supported by strong national policy. the National Energy Administration’s Several Opinions on Accelerating the Development of Digital and intelligent Energy outlines clear development goals for 2030,including the construction of digital and intelligent innovation application systems,the activation of data elements,the development of key technologies,and the formation of intelligent perception and regulation systems. This policy provides a strong foundation for the industry’s growth.The transformation and application scenarios within the energy industry require deeper technology integration and innovative application models. Traditional service providers are facing increasing competition from technology giants,intensifying market dynamics.

The intelligent transformation and upgrading of the energy industry is in line with the country’s future industrial development logic and direction and has a broad development space.

National Energy Administration

AI Expansion: from Coal Mines to Chemical Plants

Yunding Technology Co., Ltd. is doubling down on Artificial Intelligence (AI), strategically expanding its applications across diverse industries. Initially focused on the coal mining sector, the company aims to leverage its proven AI solutions into new markets, including the chemical industry, power generation (especially new energy sources), and steel manufacturing. This move reflects a broader trend of AI adoption in traditionally non-tech industries, with global AI spending projected to reach over $500 billion by 2027.

Building a Chemical Industry AI Powerhouse

A key component of this expansion is the development of a large-scale AI model specifically tailored for the chemical industry. Yunding Tech plans to identify and develop high-value application scenarios within this sector, aiming to drive significant improvements in efficiency, safety, and innovation. This initiative aligns with the growing demand for AI-powered solutions in chemical manufacturing, where AI can optimize processes, predict equipment failures, and accelerate research and development.

Smart Mines: Refining Core Products and Setting New Standards

Yunding Tech remains committed to its core business of smart mining solutions. The company is actively refining its existing products, particularly personnel positioning systems, to meet and exceed the latest standards set by the Ministry of Industry and information Technology. These upgrades aim to enhance product adaptability and solidify Yunding Tech’s position as a domestic leader in this field.

Data-driven Innovation in Coal Mining

Leveraging its partnership with Shanneng Group, Yunding Tech is utilizing real-world data to improve coal mine geological disaster diagnosis and intelligent mining techniques. Upgrades to the company’s GIS (Geographic Information System) applications are also underway to further enhance product value and provide more comprehensive solutions for the mining industry. Furthermore, the company is revamping its intelligent washing and selection systems, continuously refining the automated centralized control system for coal preparation production to optimize process alarms and indicator monitoring.

Enhancing Coal Quality Monitoring

Yunding Tech is also focused on improving its intelligent ash monitoring system to meet higher standardization levels for delivery. The development of coal quality multi-element monitoring products will further enrich the company’s product offerings and provide more comprehensive solutions for coal quality control.

Domestic Innovation Hub

To foster domestic innovation,Yunding Tech is establishing a unified development habitat within china. The Yunnan Energy Investment,Industry,and Finance integration project will serve as a key demonstration benchmark for domestic information innovation.

Project Management Overhaul: Efficiency and Standardization

recognizing the importance of operational efficiency, Yunding Tech is undertaking a significant overhaul of its project management practices. the company is transitioning from a project-based system to a product-based system, aiming to reduce customization, improve capacity reuse, and identify best-practice solutions.

Standardization and Risk Reduction

Improving standardization is a key priority. yunding Tech is optimizing project management specifications to reduce risks and costs, while concurrently improving project success rates and replicability. Regular project reviews and iterative improvements to the standardized system will be implemented.

Knowledge Sharing and low-Code Platforms

To further enhance efficiency, Yunding Tech is strengthening technology sharing management, combining mature modules and integrated services to create standardized solutions that address customer needs. The adoption of low-code platforms is also being promoted to reduce customization costs.

Enhanced Project Control and Quality Assurance

Yunding Tech is implementing stricter project process controls, improving its information management system to enhance visibility, manageability, and control throughout the entire project lifecycle. Focus will be placed on key milestones, with expert reviews to ensure project quality and refined management practices.

Building a High-Performance Project Management Team

A key element of this overhaul is the development of a skilled project management team. Yunding Tech is improving its project manager qualification certification and assessment system, ensuring that project managers possess the necessary skills and experience for each project.Advanced project management systems and certification training will be implemented to enhance project management capabilities. Project managers will be given greater management authority to foster enthusiasm and build a high-quality team.

Lean Management: Cost Reduction and Capital Efficiency

Yunding Tech is committed to deepening its lean management practices to drive cost reduction and improve capital efficiency. This includes implementing various measures to reduce costs, such as centralized procurement and framework shortlisted procurement, with a target of reducing procurement costs by at least 5%.

maximizing Policy Benefits

The company is also focused on maximizing the benefits of policy dividends by systematically identifying and pursuing tax incentives and subsidies in the field of science and technology. Precise planning and coordinated declarations will be used to fully realize these benefits and improve the company’s economic performance.

Optimizing Capital Turnover

Yunding Tech is addressing the issue of “two golds” (accounts receivable and inventory) by strengthening project progress management, shortening project construction periods, and improving project delivery quality. This will effectively reduce contract performance costs. Existing assets and accounts receivable will be systematically reviewed, and capital turnover efficiency will be optimized through dynamic monitoring, classified collection, and resource activation.

Strategic Investments and Acquisitions

To further optimize its industrial layout, Yunding Tech will actively engage with cutting-edge technology companies, pursuing a dual-wheel drive strategy of endogenous growth and external mergers and acquisitions.