B. Management measures and
operation indicators

Part I. Analyses for strategies, risks & opportunities | Part II. Company administration structure
Part III. Participation of stakeholders
| Part IV. Major policies and management syste
Part V. Achievement indicators and keynote report

Analyses for strategies, risks & opportunities
 
I. Strategies
II. Analyses on major influences, risks and opportunities of sustainable development
 
I. Strategies

Prospective strategic objectives:
COSCO Group will turn from a global carrier to a global logistics operator relying on shipping business, from international business operator to a multinational company, and from periodical development to sustainable development.

Orientation of strategic objectives:
COSCO Group targets to become a global logistics operator and a world-level multinational company, with its internationalized operation indicator reaching the level of world-level multinational companies, and its sales revenues equaling to the level of the world's Top 500 companies. The group aims to grow into a system integrator of the international shipping logistics industry to pursue persistent development.

Connotation of strategies:
In compliance with the requirements of the knowledge economy age, COSCO Group will continuously drive the system and management innovation, try to improve its capability in original innovation, innovation integration and re-innovation, improve informationization level relying on scientific and technological progress, and sense and respond to clients' requirements rapidly. In the fields of its businesses in operation, the group will provide high-quality products and services at reasonable price for clients to meet their requirements, and offer global carrying service and modern logistics service to global clients to achieve joint development of both the enterprise and clients. The group will build up a harmonious enterprise, improve working environment and welfare system, and create a pleasant atmosphere for employees to fully show their capability and realize their individual value, to achieve harmonious growth of both employees and enterprise. The group will properly deal with its competition with rivals, develop strategic alliance and cooperation, and gain win-win development through advantage supplement. The group will accurately cope with the relationships between enterprise growth and reasonable resource use and environmental protection, to realize the harmony between enterprise value and human environment and natural resources. The group will establish long-term efficient mechanism for risk prevention and security management, ensure high-efficient and stable development, and realize maximum profits, maximum enterprise value and maximum shareholder returns, in a bid to make its greatest contributions to the harmonious development of the society while keeping and maintaining value of the state-owned assets.

COSCO Group is in active promotion of the principles of:
accurate decision making, scientific management, high-quality service, harmonious enterprise building, implementation of all-round risk management and Global Compact, realization of harmonious and sustainable development between enterprise value and human environment and natural resources.

COSCO Group put forward in the conception for the general development of the 11th Five-Year Plan to:
implement all-round risk management and ten principles of the Global Compact, continuously improve profession health, security, environment quality and risk prevention measures in manufacturing, and build a resource efficient and environment friendly enterprise.

COSCO Group put forward in the target for the general development of the 11th Five-Year Plan to:
pursue adaptability between employee welfare and enterprise development based on maintaining employees' legal rights and interests, boost construction of enterprise culture and employee team, maintain employees' basic benefits and long-term benefits, perfect coordination mechanism between enterprise development and employee development, to drive harmony with development, pursue harmony with reform, protect harmony with stability, seek harmony with innovation, create harmony with fair, shape harmony with culture, and build up a harmonious enterprise.

COSCO Group put forward in the support measures for the general development of the 11th Five-Year Plan to:
accelerate the implementation of lean management focusing on Six Sigma, rebuild group management and business flow, improve flow efficiency and profitability of manufacturing operation and capital operation, eliminate resource waste, maximally decrease resource occupation in manufacturing management, decrease enterprise management and operation cost, implement flat management and integration management, efficiently drive cost management optimization strategy, improve strategy planning capability and execution efficiency, efficiently control strategy risk and decision risk, to build COSCO Group into a multination company with excellent management capability.


 
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COSCO Group, October 2006