President Zhi Yulin Meets with Regional Managing Partner ofErnst & Young Greater ChinaAlbert Ng

On January 13, President Zhi Yulin met with Albert Ng, Regional Managing Partner ofErnst & Young Greater China, and his delegation.

Zhi Yulin extended his welcome to Albert Ng and his delegation, and briefed NORINCO’s“five in one” operational architecture, international operation practices in recent years, and advantages in international operation. Zhi Yulin said that although the world economy has been declining since 2015, NORINCO has managed to maintain robust growth momentum through connotativedevelopment featured byfurther reform and innovation. In the future, the company will expedite extended expansion, especially the investment and M&A in overseas resources development, international engineering, and specialization of civil products, among others. As a major team in China’s “Going Global” strategy, NORINCO would like to cooperate with Ernst & Young Global in relevant fields, so as to transform and upgrade the company to be a world-class multinational company.

Albert Ng briefed the developments of Ernst & Young in recent years and the overseas M&A cases it has served. Ernst & Young said that the firm has specially established Overseas Investment of Chinese Enterprises Division to organize and mobilize the global resources and professional talents of Ernst & YoungtohelpChinese enterprises expand their business in the international arena. As NORINCO has been exploring overseas markets for many years and has accumulatedabundant successful experience of international operation, Ernst & Young will provide global professional services for NORINCO to make greater achievements international operation.


NORINCO Holds 2015 Work Summary Meeting

On January 11, NORINCO held 2015Work Summary Meeting.
In the meeting, President Zhi Yulin,on behalf of the leadership,made a comprehensive summary of the work in 2015, and deployed the development objectives and major measures in 2016 and the 13th Five-Year Plan period. 2015 was the final year of the 12th Five-Year Plan, and also a significant year for the reform, innovation, transformation and upgrading, Mr. Zhi said. Confronting the severe situations featured by “New Normal” of China’s economic development, turbulence of international politics and regional security situations, sluggish world economy, depressed international trade, financial turmoil and plummeting of oil and minerals prices, NORINCO implemented pertinent policies, overcame various difficulties and promoted innovation to achieve sustained and steady development in quality and benefits, fulfilling the major operation objectives of the 12th Five-Year Plan.
In 2015, NORINCO achieved sustained and steady development in quality and benefitsbyproactively coping with changes of the market environment andputting greater focus on the current operations; continued to implement the lean management strategy across the whole value chain system, and further improved the lean management level; studied and implemented the spirit of the Third, Fourth and Fifth Plenary Session of the 18th Central Committee of the CPC, deepened the reform comprehensively, and innovated in the mechanism to motivate new vigor and power for the corporate development; and further strengthened the ideological and political education of the Party, anti-corruption bid and corporate culture building.
Regarding the work in 2016 and the development strategy in the 13th Five-Year Plan period, Mr. Zhi pointed out that NORINCO would take the spirit of the Third, Fourth and Fifth Plenary Session of the 18th Central Committee of the CPC as well as the important speeches byGeneral Secretary Xi Jinping as the guidance, establish and practice the development concepts of “innovation, coordination, open, green, and sharing”, strive to implement the development guidelines of innovation-drive, focus on quality, structure optimization, boosting reform, green development and talent orientation, identify the situations, grasp the opportunity, control the risk, advance amid difficulties, and firmly promote reform and innovation, capability building, transformation and upgrading, unswervingly struggle for the goal of becoming a world-class multinational company, actively adapt to and lead the New Normal, and achievesustained and steady development in quality and benefits.
Mr. Zhi summed up that 2016 is the first year for NORINCO to implement the 13th Five-Year Plan and a crucial year for the reform and development of the company. He hopesall employees strive for realizing the strategic objective of the 13th Five-Year Plan with concerted efforts, pioneering and progressive spirit and conscientious work.

NORINCO Won Second Prize of 2015 Management Innovation Award forDefense Technology Enterprises

Recently, the “Construction of Risk Control System in International Operation” and “Business Model Innovation in Military Trade with the Aim of ‘Three Transformations’ and ‘Three Upgrades’” won the second prize of the 2015 Management Innovation Award for national defense technology enterprises.


NORINCO Corporate Statement on Nonproliferation, Export Control, and Internal Compliance

NORINCO holds firmly the position that any kind of proliferation,including that of Weapons of Mass Destruction (WMD) and their components and means of delivery, and dual-use goods and technologies, are conducive neither to world peace and stability nor to China’s security, and is absolutely in contrary to NORINCO’s value of being a responsible corporation for the benefit of international community. Pursuing sustainable growth, maintaining a positive reputation, and assuming social responsibility are among NORINCO’s core values. NORINCO regards itself as an active force of nonproliferation in the international community.


NORINCO affirms its unequivocal and emphatic support for the Chinese government’s nonproliferation and strategic trade control policies, which NORINCO commits to abiding by fully and uncompromisingly. NORINCO resolutely supports the Chinese government’s international commitments and obligations, the United Nations Security Council’s resolutions, and international best practices in the area of strategic trade management and nonproliferation.

Effective strategic trade management requires a combined effort between governments and companies. In order to ensure fulfillment of its nonproliferation and strategic trade control obligations, NORINCO has established and implemented a multi-faceted Internal Compliance Program (ICP) and continually works to further develop and enhance that program, as well as its overall compliance efforts to prevent the proliferation of WMD and their means of delivery and control the proliferation risks of conventional defense products and technologies, dual-use goods and technologies, intangible technology transfers (ITT) and deemed exports.


By adopting a “catch-all” approach to export control and compliance, NORINCO places the goals of nonproliferation, peace, and stability above its commercial interests. In practice, this means that even if a particular trade transaction is legal according to export control laws and regulations, NORINCO – in accordance with its corporate policy of voluntary self-restraint in trade activities – will neither directly nor indirectly supply products, technology or services if NORINCO knows or has reason to believe that such items could be used by its customer or the ultimate end-user for the development or production of WMD and their means of delivery, or such exports may undermine international, regional or the recipient country’s security and stability, or such exports may pose end-user or end-use risks such as falling in the hands of terrorist organizations or terrorists. In addition, NORINCO will make efforts to ensure that all dual-use products and technologies of any kind that it trades go only to their authorized end-use and end-user.


In order to ascertain what products, technology and services, as well as which customer and end-user, should be regarded as sensitive, NORINCO will establish and maintain close contact with all responsible Chinese government agencies, relevant NGOs and nonproliferation and export control experts for information, instruction and advice. Additionally, NORINCO is committed to carefully screening all countries, customers, end-users, end-uses, and controlled military and dual-use products to ensure that all transactions comply with NORINCO’s legal, international, and internal obligations.


To ensure the effective implementation of its ICP, NORINCO established the ICP Council and ICP Office, which are authorized to veto any order in question. The ICP has been institutionalized by the issuance of nonproliferation and export control guidance and regulations; establishment and implementation of an automated, fully integrated order screening system that includes three screening databases – one for sensitive countries, one for sensitive end-users and the other for controlled products; execution of comprehensive record keeping rules for export control-related documentation; passage of regulations on education; implementation of a multi-tiered training program; use of scheduled and random internal audits; and signing of a nonproliferation and export control letter of responsibility between corporate executives and managers of operational departments and subsidiaries.


The NORINCO ICP Council is the principle body on company export control related matters. Mr. Zhang Guanjie, Vice President of NORINCO, is also the Chairman of ICP Council. Mr. Yang Xiaoqing, Vice President of NORINCO and Mr. Wang Li, Vice President of NORINCO are Vice Chairmen of the ICP Council. The ICP Council is also comprised of representatives from business units and management divisions. The NORINCO ICP Office deals with the daily work of the company’s export control policies and procedures, and reports to the ICP Council. Mr. Cheng Hong is the Director of the ICP Office and Mr. Ji Yanzhao is the Vice director of the ICP office. In addition to these two established ICP bodies, each NORINCO unit and subsidiary has a designated ICP Officer or representative, who will work with the ICP Council and ICP Office and help coordinate the export control compliance work for that particular unit or subsidiary.


All NORINCO employees will actively work to achieve the corporate goal of nonproliferation by participating in training and strictly abiding by corporate policy. NORINCO has established regulations on incentives and punishments, which will encourage compliance efforts and punish violations or failures. Any violator will face serious consequences and will be prosecuted according to law if he or she commits a criminal offense.


This policy applies to all divisions and subsidiaries of NORINCO worldwide. The principles incorporated herein have been or will be implemented within the framework of NORINCO’s existing internal compliance program. This policy will be reviewed and revised on an annual basis in order to incorporate the latest developments of nonproliferation and export control.

Zhi Yulin Attends International Oil Trade Congress

The Fourth China International Oil and Gas Trade Congress took place in Shanghai on November 18-19. President Mr. Zhi Yulin and Vice President & Zhenhua Chairman Mr. Liu Yijiang attended the Congress.

With the theme of “New Vision, New Development – New Opportunity for International Oil and Gas Trade”, the Congress discussed how various participants in the petroleum industry seize opportunities and meet challenges amid material changes in world energy supply, as China is an important energy user in the world and remains in the deepwater area during the reform of the energy industry. Over 30 experts, scholars and company executives were invited to give speech at the Congress as distinguished guests. The speeches covered a broad array of hot topics like China’s current reform of the oil and gas industry, development of nontraditional oil and gas resources and how Chinese oil traders participate in crude oil pricing. Zhenhua Oil Co., Ltd. was invited to give a keynote speech on China’s increasingly opening crude oil import market as well as the way of small and medium oil companies to grow.

During the stay in Shanghai, Zhi Yulin also inspected enterprises in Shanghai and listened to their working reports.

The Company Organizes Key Staff to Have a Study Tour to Huawei and DJI in Shenzhen

On November 15-18, the Company organizes its key staff to have a study tour to Huawei and DJI in Shenzhen.

They visited Huawei’s intranet showroom, Songshan Lake production base, data center and staff’s office area, and held discussions and exchanges with Huawei’s senior executives, learning Huawei’s successful experience in corporate culture, employee motivation, R&D innovation, quality management, supply chain management and other areas.

Later, they visited DJI’s product showroom, watched air show of drones, and exchanged views in depth with the senior management of DJI on such areas as technical development, product strategy, market development, talent introduction and incentive mechanism, obtaining insights into their development history and successful experience as a hi-tech startup.

Through close contact and exchange with these benchmarks in respective industries, the trainees further broadened their vision and started thinking about technical innovation and management innovation, how to improve international operation capacity and how to lift lean management level, and how to serve transformation and development of the Company.

Zhenhua Approved to Build Postdoctoral Research Station

Zhenhua Oil Co., Ltd. recently built a postdoctoral research station with approval from the Ministry of Human Resources and Social Security after experiencing fierce competition and expert review.


The postdoctoral station is an organization that can recruit and foster postdoctoral researchers upon approval of the Ministry of Human Resources and Social Security. After setting up the postdoctoral research station, Zhenhua will further build up its scientific innovation capacity, and provide a mighty technical and human resource support for oilfield prospecting and development.

NORINCO International Identified as 2015 Hi-tech Enterprise

NORINCO International recently obtained the Hi-tech Enterprise Certificate jointly granted by Beijing Science and Technology Commission, Beijing Finance Bureau, Beijing Municipal Office of SAT and Beijing Local Taxation Bureau, marking the company has completed all the work related to 2015 hi-tech enterprise re-identification.


Obtaining the hi-tech enterprise certification in succession fully proves NORINCO International’s technical innovation capacity, technical level and extent of modern enterprise development, and has laid a foundation for innovation and sustainable development of the company.

Pilot Production of Ground Station of Myanmar-based Monywa Copper Mine Succeeded

Monywa Copper Mine in Myanmar recently completed civil work and equipment installation of the ground station. After monomer debugging and no-load trial run in the earlier stage, the equipments are in good state and meet hot commissioning requirements. From October 26 to November 4, the ground station organized eight hot trial runs, proving stable operation of major process equipments, normal functioning of the working systems and stable parameter control of production processes. The quality parameters of emulsion matrixes produced, such as exterior look, viscosity, storage period and density, kept stable. The test shows these matrixes satisfy the requirements for mine production and the ground station is ready for official volume production.

NORINCO Holds Party Committee Central Group Studying Meeting

On November 27, NORINCO held Party Committee Central Group Studying Meeting (Enlarged) to learn and implement the spirit of the Fifth Plenary Session of the Eighteenth National Congress of the CPC.

At the meeting, Zhang Guanjie, Secretary of the Party Committee of the Company, conveyed the spirits of the working report delivered by Secretary-General Xi Jinping of the CPC Central Committee at the first plenary meeting of the Fifth Plenary Session of the Eighteenth National Congress of the CPC and the speech given at the second plenary meeting of the Fifth Plenary Session of the Eighteenth National Congress of the CPC.

President Zhi Yulin said that the Fifth Plenary Session of the Eighteenth National Congress of the CPC is a very important meeting the CPC held at the critical stage of China’s reform and opening up. The report and the important speech of Secretary-General Xi Jinping at the session contain profound thought, rich content and deep connotation, point out the direction for the development during the Thirteenth Five-year Plan period and provide an important guide. The Company must learn and comprehend, systematically and carefully, the spirit of the Fifth Plenary Session of the Eighteenth National Congress of the CPC and the speech of Secretary-General Xi Jinping, carry out the development concept of innovation, coordination, green, opening and sharing, and make a forward-looking development strategy for the Thirteenth Five-year Plan period based on the profound understanding of the CPC Central Committee about the new time and new situation as well as the accurate comprehension of the new direction and new concept. At the critical moment of the start of the Thirteenth Five-year Plan, Zhi Yulin stressed that the leading cadres of the Company must fully understand the current situation of profound adjustment and complexity of the world economy, see clearly the trend of worrying security situation and rising risk of “going global”, and face the reality of commodity trade depression and overcapacity at home. In this context, Mr. Zhi Yulin stressed the leading cadres should reinforce the awareness of cause and responsibility, strengthen leadership and entrepreneurship, further follow the general development trend, seize the tide and lead the team to meet various difficulties and challenges under the new normal. Meanwhile, the leading cadres should continuously navigate the Company on the way of transformation and upgrade towards the objective to build a world-class company.