The Haohua Honghe Chemical Co has been working on improving its discipline and supervision system and its efficiency by limiting and preventing risks, and has joined the fight against corruption in various ways – for example, Rules for Policy-Making in Three Major and One Top Issues and Guidelines on Engineering Projects – and by making company vehicle regulations stricter.
It started two efficiency projects on basic management, and energy-saving and emissions reductions, which brought some 15 million yuan in profits. Greater efficiency in reducing inventory has saved the company 1.01 million yuan since the beginning of the year. Meanwhile, Siping Haohua Chemical, a Haohua Honghe subsidiary, has adopted an efficiency supervision program in procurements to put purchasing costs under control.
Supervision of expenditures is part of this and the company has added management expenses to its annual budget and has brought supervisory practices more in line with the rules.
Hospitality expenditures for the year were down 20 percent from the past year and there has been a closer watch on contractor qualifications in company projects recently to ensure their success. There is a campaign to stop the practice of “private coffers”, or unized funds collected by departments, to deal with the extravagancy problems through management reforms.
The risk prevention work is also being done through legal means, and the company has done a thorough inspection of all contracts, including 205 framework agreements, with 29 evaluation opinions and avoiding contract risks.