On 2 February 2012, NB Group 2012 annual working assembly was held successfully in the secondary meeting room, hosted by Wang Jinguang, director in general maneger’s office. Each  responsible person come from different departments including Biological Industrial Park, Science and Technology industial Park, Producing Operation Department, Quality Management Department, R & D, Marketing Service Centre, Domestic Marketing Centre, International Marketing Centre, Supplying Guarantee Department, Financial Department, Human Resource Department and General Manager’s Office, all gave reports about the completion and problems of work in 2011, and emphasized on the working plans, mission and goals in 2012 as well as the measures that should be taken as to the existing problems exposed in 2011.

      After listening to the reports given by each responsible person, Zheng Xiongmin, Gao Yunfeng, Zhu Cuiyun, and Hao Changming, members in General Manager’s Office, addressed separately about the condition of the completion of work, existing problems and solving measures in parts they were in charge of. After that, they talked of the working goals and plans in 2012 based on the working condition in 2011. The general manager Wang Jinlong gave an important speech after debriefing their reports.

    First, Wang conducted an overall evaluation on the implementation of all indicators. Due to the European debt crisis, and affected by the country's macroeconomic situation, environmental protection and other objective factors, some indicators were not very satisfactorily completed, but take a comprehensive review of work in 2011, we have implemented  five big events of great importance in Group's future development.

     The follow-up project of threonine went into operation. Since the successfull trial action on March 27, 2011, currently each technical indicator took a giant leap constantly. As we had known , the smooth operation of the follow-up project of threonine had a vital significance to the development of theBiologicalIndustrial Parkand even the whole NB Group.

     On November 2011, the project of a productivity of 10,000 tons of threonine per year in Biotechnology Co., Ltd successfully won the environmental acceptance, laying a solid foundation for the further and rapid large-scale development of company.

     Company product range structural adjustment began, breaking the previous products with the company's strategic development does not match the situation. Currently, the new introduction of two new varieties have been through a small test pilot, to enrich the product line has laid a good foundation.

     In the first three quarters of 2011, our company achieved a much larger growth in sales in the first three quarters of 2011 compared with the same period in the past. And adjustment to market initiates to function better, and we could see a substantial increase in profitability. That showed that the ability to grasp the entire inventory and sales pace had improved tremendously, but also improve the contribution to the financial performance of our company.

   The company launched a comprehensive budget management. Comprehensive budget management began the trial since 2010, and already won an initial success in 2011. That helped our company embark on a good track on the respects of standardization, processes and systems implementation.

    Throughout the whole year's work, there are several problems.

     Execution is not sharp. Execution being weak is not an inertia problem for over these years it has not got solved. Well the execution of a comprehensive budget management reflected that. Thus it is high time that we should take deep thinking and introspection in the execution. Absolutely there are reasons coming from many ways, but it matters how many reasons resulting from ourselves. Execution is the goal of artificially pushing through the coordination of strategic processes, people, processes and operational processes, and needs continuously enhancing.  That suggests we are supposed to adjust our working methods, strengthening goals and add more power on execution. In addition, we should strengthen supervision and management, start from subtleness in any spot, and fully carry out.

     Lack of innovative capacity. In 2011, the production system conducted a lot of innovative work in terms of raw material substitution, process adjustment formula, but to other departments, it was less. Junior officers’ lack in innovative capacity has become a short board restraining the future development of our company. In 2012, we want to increase innovation capacity by the way of encouraging and developing the potential of our employees following the principle of "small innovation deserves big reward, not reward if no innovation". Anyway, no matter how small an innovation is, we will reward to sufficiently motivate the innovative power inside them. As long as the innovation is beneficial to work, we will firmly put it into practice without hesitation, to ensure innovation act grows from none. Innovation better starts from micro-innovation, and bit by bit, and it must be realizable and able to be achieved. In this way do we expect to graduately form a thick atmosphere of innovative culture, the consciousness and motivation for innovating.

     Low efficiency.  Low efficiency is a long-term problem. There appeared some obvious issues in office administration, finance, operations and other sections in Management Department. Heads of all departments should attach more importance to this issue and focus on their own job value and respect their jobs. Be strict to themselves and their employees. Try to finish all work within required and limited times and avoid terrible phenomenon like procrastination or sluggishness; otherwise our work efficiency will get descended, and will go back to the lack of executive power eventually, posing to unnecessary losses to our company.

     The ability to sophisticated management is not enough. That sign is very clear in the Production Department. At present, our company's product choline chloride has been recognized by the market, however, the more it becomes well-known, the more focus that we should put on the quality of product. It will never be forgiven if there is product caking, impurities and any other quality problems beacuse it will seriously impact on our company's reputation. In the meantime, we should push threonine products to a higher degree and higher quality, to win customers’ recognition. We must resolutely put an end to leaking and other phenomena, consolidate the on-site inspection, assessment, rectification, and through a refined management, to cut down the waste to the minimum, and strengthen the control of production cost.

     Capacity of market development is insufficient. There is a distinct decrease in the number of new gained clients in sales system in 2011. Also the dedication of new clients to the market is poor, and the proportion of end-users takes up less. Those reflect the shortage of capability to develop market. Now in this year, we should  be clear of the number of new gained clients and increase the dedication of new customers to the market.

     sensitivity and response capability are weak. The so-called sensitivity and response capability is how we react and what we are about to cope with when something is changing. Taking a look at the work in 2011, it seems we lack both in our market, as well as unexpected events. In the globalized and informationized society, we are required to make a timely, prompt and sensitive reaction to abnormal situations and to take measures in case of emergency.

     In his speech, Wang pointed out that 2012 is a year to get company structure adjusted, firm personnel’s skills, extend innovative activities and achieve the second venture. That would be important to the development of our company in near future. Thus, it is best that all of our personnel are full of passion to throw themselves into work completely for realizing the targets of share, symbiosis and growing together.

     Meanwhile, Wang also stressed in his speech that in 2012, our guiding principles in our daily work are prohibiting cash flow strictly, opening up innovation, making a comprehensive change, buillding primary management system, strengthening budget management largely, rationalizing the objectives, plans and processes, achieving the second venture, sharing the development efforts , responsibility as well as interests, and employees growing together with  our enterprise.

     Requirements referred to in his speech suggested that for a good work this year, we should strive to achieve grasp the following six balances.

   The balance between production and sales. Making a breakthrough in both inventory control and cash flow not only needs an orderly production and adequate supply, but also a proper control to product inventory and a higher efficiency of cash flow.

    The balance between yield and quality. The success of the trial production in secondary period and acceptance of environmental protection laid a solid foundation to a larger productivity in our company, but by no means should we work hard on enhancement of unit capacity. With increasing production, we must insist on intensifying the quality and making enough efforts on quality, appearance, color and image of our products, which is a need for our market-oriented products to come to the international first-class level, also a need to put up our company's credits and trusts from our customers

    The balance between settlement of the liability using and company's credits maintaining. That is to keep a good credit for our company. Settling the liabilities issue is better undertaken in stable conditions without breaking company’s credit.

    The balance between breed restructuring and conversion speed. That is the need for cost control.  The rapid conversion from R & D projects to production influences the ongoing adjustment of our company's product structure and optimization greatly. It is a test of our rudimentary management, and our personnel’s quality and process control, etc. in some way, it also means our progress.

    The balance between innovation and stability. That is the need for process management. On condition that the whole process system is functioning steadily, we can then take a further action in micro-innovation, and get truth in detail

      In addition, Wang also said in his speech about a detailed deployment to the work in 2012.

     Production work. The core work of the production system in 2012 is still controlling the production costs under the premise of a stable quality. By promoting the equipment utilization, production systems can improve innovation capacity, the precise management capability, and on-site management capability to the fullest. We need to do some job to control the costs well. Firstly, revise the breed structure; secondly, upgrade and update our products; thirdly, take an eye on exerting the superiority of scale-- tightly utilize the right time that the follow-up project of threonine was completely into operation, exposing the absolute superiority of scale, and reduce production costs via the part of the large scale.

     R & D work. The R & D center should ensure a magnified work for 601 projects to lay a fixed foundation to the company’s products structure enriching. At the same time, we also need pay attention to the introduction of new breeds so as to supply the development of new breeds and the developing mission of three new varieties in advance as well as accelerate R & D efficiency, attract more excellent R & D personnel, shape R & D culture and motivate the R & D team's passion and desires highly.

     Sales. The main job that the sales system has to finish in 2012 is to achieve a satisfying market share and be explicit how to accumulate more clients. On the base of a precise and reliable work in the sales targets, planning, process management and customer management, continue to do the customer file management, and as with different types of customers, to take appropriate measures, to strengthen the exploration and utilization of the value of clients’ profiles and to promote the growth of the present business staff and the introduction of new ones.

     Management. All departments should come up with an effective appraisal work program as soon as possible for the growth of enterprises and employees together. Otherwise, 2012 is the first year when our company implemented an execution in budget management practically and thoroughly. And through that, the personnel at all levels in each department are supposed to have an idea what to do in the whole year and what degree the work will go to. To the Human Resource Department, efforts need making on the quality of primary administrative staff and general personnel. Meanwhile, trace the trainees to make sure they have mastered the contents of the training well.