Ⅰ Strategic principle during the period of “Eleventh Five-Year Plan”
　　In accordance with the Party and state policy, the Corp is to construct a harmonious enterprise under the concept of scientific development; to identify its development strategy of “mounting style” with the advantage in talents, resources, science and technology; under the policy of doing a satisfying, excellent and characteristic job, to build new projects around leading product, engage in expansion around leading industry, reorganize around core business; to emphasize on the enterprise management adhering to the strategy of “managing the enterprise by moral and law, strengthening enterprises by talent, re-energizing enterprise by science and technology, developing enterprise by thrift” to create “first-class management, benefit and credit”.
Ⅱ Development planning objective during the period of “Eleventh Five-Year Plan”
　 1. Operation objectives during the period of “Eleventh Five-Year Plan”
　　By the end of “Eleventh Five-Year Plan” period, it will have realized the great-leap-forward growth on total assets, sales revenue and benefit. It will realize the total assets of RMB60 billion, sales revenue of RMB60 billion and profits realized of RMB 3 billion。
　2. Striving for “Three First-class”
　　It will strive for “first-class management, benefit and credit”, and continues to keep its superiority and influence in Chinese chemical industry. "First-class management " is embodied in our level of enterprise management and our ability of controlling the market in the intense rivalry; "First-class benefit " is our basic goal of enterprise management and the embodiment of our ability to expand reproduction and the aspect of providing wealth for society and employee; "First-class credit " is our market image and social image, embodying Haohua’s social duties.
　3. Achieving “Four First”
　　On chemical industry entity, Haohua will consolidate and develop the existing industry, accelerate the new industry development, take the first position in the production capacity and market share of PVC, tire, barium/strontium salt and rubber machinery, and keep absolute advantage in the scientific research and production of military chemicals.
　4．Expanding “Eight Advantages”
　　High sci-tech industry, formed with Haohua’s intellectual properties and know-hows, represents Haohua’s characteristics and core competition. Perfecting and expanding science and technology industry is an important approach for Haohua’s development during the period of “Eleventh Five-Year Plan”. We need to form a large-scale of sci-tech industry and expand the scientific research and production superiority in eight fields including pressure swing adsorption technology, propellant technology, fluorubber technology, Thiokol technology, hydrogen peroxide technology, carbon black technology, the technology of special coating material, environmental protection coating material and special gas.
　 5. Realizing transnational management
　　Haohua will fully utilize two internal and external resource markets. It is to make good use of the resources and markets both at home and abroad to build five to ten business windows abroad and launch three to five enterprise entities with certain scale. Meanwhile, it is to narrow the management gap with external advanced enterprise.
　6. Establishing harmonious enterprise
　　The employee income increases unceasingly; the employee welfare is improved constantly; more contribution are provided for the society.
Ⅲ. Development priority and plan during the period of “Eleventh Five-Year Plan”
　(Ⅰ) The focal points of development adjustment
　　1. The focal points of development strategy adjustment
　　During the period of “Tenth Five-Year Plan”, the strategy was to swell several leading industries. Now, it is intensifying and strengthening them to stimulate project and balance capital, and the mode of economic growth will change a lot. The main business, on the basis of production, trade and scientific research, will achieve harmonious and sustainable development. The strategy is to be greatly adjusted from full expansion and capital operation oriented to moderate expansion, asset quality and industrial chain oriented, from traditional management to scientific, modern and intensive management, from transnormal development to improving the transnormal development. Haohua will be reconstructed and realize leap-forward development.
　　2. The focal points s of leading industry adjustment
　　Haohua will focus on the production base construction for leading industry including chlor-alkali chemicals and tire. Meanwhile it will strengthen six hich-tech industries of fluorosilicone material, petro-chemical equipment, hydrogen peroxide, C1 chemicals, and marine coatings. The production scale of PVC, tire and barium/strontium salt, etc can list in the first three places in China. It will aim at the development of instruments, pressure containers and rubber and plastics machinery, etc in chemical equipment industry.
　　3. The focal points of enterprise reform
　　It is to list the sci-tech sector of Haohua, to fully utilize Haohua’s sci-tech advantage, to seek financing by listing on the stock market, to accelerate the development of leading industry, to recreate operation system and perfect encouraging system by instituting a standard corporate system; to corporatize the enterprise with the joint stock system as its main form, to separate the main and auxiliary enterprises from each other, to reform the auxiliary enterprise system and disperse surplus employee.
　　4. The focal points of enterprise reorganization and structure adjustment
　　The emphasis is the adjustment of product mix and regional structure. Under the principle of balanced development with different emphasis and maximum benefit of resource, it is to adjust and reorganize the product mix and the business scope of subordinate units so as to guarantee the producing scale of leading industry, to swell the key industries and to improve market competitiveness both at home and abroad. On enterprise reorganization and regional structure adjustment, it is to lay stress on the development of resource oriented enterprises and explore effective ways to the reshuffle and restructure of institution.
　　5. The focal points of adjustment of technological innovation
　　The focal points are accelerating the innovation of traditional industry by high and new technology with concentrating on the products supported by national industrial policy, improving the product profitability, enhancing automation control level, economizing on energy consumption, standardizing the environmental protection, implementing resource recycling and improving product quality.
　　6. The focal points of enterprise management adjustment
　　Haohua is to focus on shortening management chain and realizing management modernization, construct united management system inside Haohua Corp on the basis of the former traditional management; promote the application of advanced management such as ERP, internal integration and zone network, etc. to realize scientific management, intensive management and low-cost management.
　(Ⅱ)Development planning
　　1．The plan of organizational structure adjustment and resource optimization
　　It means, according to such changeable factors as the adjustment of its property right structure, product mix and marketing strategy, to adjust timely the organizational structure to adapt to the new situation of enterprise scale expansion, industry integration and regional span enhancement. On the organizational structure, Haohua Corp will expand the operation range of divisions on the existing basis. Moreover, China Haohua, relying on product chain and regional advantage, will gather its subordinates around sources of raw materials, developed region and leading industry chain to realize the reorganization and optimization of resources.
　　2．The plan of industry and product mix adjustment
　　By the end of “Eleventh Five-Year Plan” period, the annual sales revenue of 0.5 to 1 billion yuan will be realized by each of the following units with high and new technology: Chenguang Research Institute of Chemical Industry, Liming Research Institute of Chemical Industry, Beijing Research & Design Institute of Rubber Industry, Tianhua Institute of Chemical Machinery & Automation, Southern Research & Design Institute of Chemical Industry, Dalian Research & Design Institute of Chemical Industry, etc. Haohua will build industrial bases of tire, chlor-alkali, barium/strontium salt and coal chemical industry in North China, northeast and west area, relying on the following enterprises: Aeolus Tyre Co., Ltd, Henan Yuhang, Henan Junma and Sichuan Honghe, and the annual sales revenue of each base reaches five to ten billion yuan.
　　3．The plan of investment and financing
　　During the period of “Eleventh Five-Year Plan”, Haohua Corp will invest annually no less than one billion yuan on average in the technological innovation of enterprises, industrialization of high and new technology, the capital construction projects for military industry and other fixed assess. Besides its own capital, Haohua plans to solve the problem of development fund by means of loan, foreign capital, the national debt capital, capital from China Development Bank, innovation and technology fund, issuing short-term financing bond and attracting business and capital.
　　Haohua will realize gradually the diversification of investment subject and capital sources and investment project marketization in the project construction; The headquarter of Haohua Corp will make the investment according to the requirement of strengthening the leading industry, and its subsidiaries, according to their demand. And they will bear the investment risk respectively.
　　In order to stress the advantage of scientific technology, Haohua is to investe 3% of sales revenue in the scientific research and development, to establish the sci-tech innovation fund and to focus on the technology research of independent intellectual property and industrialization of achievements.
　　4．The plan of technological innovation and scientific research and development
　　During the period of “Eleventh Five-Year Plan”, Haohua Corp will concentrate its scientific forces to undertake and complete a large number of national crucial programs and national defense construction including “863 plan”, distributing mainly in the following nine key fields.
　　　（1）New chemical materials: research and development in Fluorine, special fluororesin and fluorubber; special purpose fluorine coating; special sealant; SF6 , NF3; silicon rubber, model materials, silicon resin; deep-sea Abysmal sea buoyancy material; Polyurethane material; polyurea material; propellant material.
　　　（2）Chemical machinery: the large intelligent single and double screw extrusion granulator; the complete sets of equipment of Oil refining , centrifugation , drying; the whole large sets of online analysis system of petrochemical equipment; the new adsorption device of PSA; equipment and instrument specialized in analysis and measurement; special equipment for rubber; special equipment for radial tire.
　　　（3）Rubber: the special aerospace rubber materials and products urgently needed by national defense; rubber sealing parts , model materials; rubber product for aviation; silicone rubber with high conductivity; trans polyIsoprene rubber structure and anti-skidding rubber with power-assistance by rolling; flexible cell; the composite material of electromagnetic shielding rubber; resin making technology with sodium disulfide.
　　　（4）Coating field: the development of functional coatings such as nanometer coatings, heat-resistant coatings, heat tracing coatings; the development of environmental protection coatings; antifouling coatings; anti-corrosion environmental protection coatings; waterborne polyurethane , waterborne silicone, waterborne acrylic polymerization of silicon emulsion; ability in swimming acrylic acid gather silicon emulsion waiting; the development of fireproof coatings, including fireproof coatings for tunnel; anti-corrosion coatings for engineering, such as silicone, organic fluorine, epoxy polyurethane, etc; special coatings including the special coatings for national defense.
　　　（5）Tire: civil and military aircraft tire; new product and technology of radial tire; rolling tire technology; the ice and snow road surface uses the tyre technology; technology of tire on ice-snow road; the new design method and theory of radial tire.
　　　（6）Carbon black: carbon black and white carbon black products with high technology content and high added value and their downstream fine chemicals; the new variety of carbon black, new equipment and key technology; the carbon black with special purpose, etc.
　　　（7）Water treatment: non-phosphorus water treatment agent; fluorescence tracing technology; technology of city sewage recovering; series of scale inhibitors for reverse osmosis membrane.
　　　（8）Fine chemicals: ULSI of electron gas and series of specialty gases; high-purity metal oxide Nb2O5, supercritical fluid extraction; fluoro-intermediates for Pharmaceuticals; transparent materials for aircraft; monomer and processing aid for polymers (ultraviolet stabilizer, detergent, emulsifier, wetting agent, flowable, penetrant, stabilizer and so on); surfactant used in Medicine and pesticide and intermediate; biological chemicals.
　　　（9）Standardization: establishing the dangerous chemicals classification laboratory; standardization construction of safety in dangerous chemicals production; research and formulation of chemical product standards.
　　5. The plan of international management
　　Haohua will fully utilize its industry influence to participate in the international competition actively, exploit international market unceasingly and realize transnational management ultimately.
　　It is to consolidate and expand the production base and technological innovation base construction of barium/strontium salt, rubber machinery, hydrogen peroxide technology and carbon black technology; to expand the market share and trade scale; to improve import and export volume of business.
　　Haohus will construct two to three new production bases for export for medical intermediates, coke, plastic machinery and basic chemicals and so on; to construct two to three new bases for technology export, complete sets of equipment and international project undertaken; to accelerate the exploration and development of Thailand potassium ore and so on.
It plan to construct overseas regional marketing network; to initiate industry overseas and lay a foundation for transnational management.
　　6．The plan of enterprise informatization
　　Haohua is to realize the constant improvement and innovation in the construction of enterprise informatization during the “Eleventh Five-Year Plan” period.
　　The construction and application of enterprise informatization will reach internal advanced level. Haohua will establish information management integration, managerial integration, network platform and E-Commerce platform inside Haohua Corp, realize the interconnection, information share and resource share in the entire system, achieve rapid and sensitive collection, transmission and feedback of information and the informatization of administrative management inside Haohua.
　　7. The plan of enterprise culture construction
　　The enterprise culture construction of Haohua Corp falls into three stages to keep itself and enterprise development strategy synchronous.
　　The first stage: integration, design and starting
　　The main work is investing, sorting and integrating enterprise culture resource of Haohua Corp; formulating the project of enterprise culture construction; standardizing and using Haohua’s corporation identity system (VI); refining and establishing preliminarily the concept system concentrating on enterprise spirit and enterprise value; establishing employee behavior criterions.
　　Haohua Corp will refine the enterprise concept and establish employee behavior criterions. Since 2005, Haohua Corp has investigated, analyzed and sorted the former enterprise culture of its headquarter and subsidiaries to refine its concept system, behavior regulation system to compile and publish “enterprise culture handbook ”
　　Haohua’s corporation identity system（VI） will be fully inducted and standardized. Haohua will use the stated visual identity system strictly, set up vivid integrated image, enhance the centripetal force and the sense of belonging of the staff members. It will construct the enterprise culture by effective carriers.
　　Haohua Corp plans to apply its website and such magazines as “Chemical Industry Management” to call for papers of enterprise culture; publish writings on corporation culture in concerned newspaper, magazine and website inside and outside the Corp; carry out the employee "quality project", various labor emulations and technical contests, the “professional development” activity among the youth, the competitive activity of “ seeking development, safety and benefits from management” to influence every employ by the propagation and extension of enterprise culture concept. Haohua Corp will carry out the enterprise culture discussing activity by its ideological and political work researching association; convene culture discussion to review the preliminary achievements of culture construction and extend the successful experience in culture construction of some enterprises.
　　The second stage: consolidation and lifting (2006—2008)
　　The main work of this stage is consolidating and lifting the enterprise culture construction from three aspects: the altitude, depth and scope, to enhance the core competition of Haohua Corp.
　　Emphasis should be laid on the development of learning-based organization. The Corp aims to improve employees’ thinking pattern and provide good training condition and learning environment for them to cultivate the self-transcendent in the ability of learning and innovation. With the production and administration, various labor emulations and technical contests will be carried out to raise the quality of all the staffs to form the thick atmosphere of “learning while working, working while learning and creating while practicing”.
　　Haohua will focus on cultivating the culture orientation of group management mode. Haohua Corp, being an organic whole composed of its subsidiaries, will develop the business concept of achieving the value-maximum of the group corporation, set up comprehensive, coordinated and sustainable development view to realize the scientization, routinization and standardization of whole administration and form management system and culture adapting to the modern enterprise system with the full play of Haohua headquarter ’s function as the strategic planning center, capital operation center, severe decision making center, and profit center.
　　The Corp aims at the organic integration of enterprise value and employee’s individual value. It will spread widely the employee’s creed: “we progress with Haohua’s development” to arouse the employee’s enthusiasm, initiative,creativity and guide them to make career design for themselves.
　　Haohua will focus on the interpretation and sublimation of enterprise culture by typical cases. It will concentrate on discovering and sorting its representative characters and events to vividly display and explain its cultural idea, so that it will be convenient for the whole system to learn.
　　The third stage: summary and innovation (2009—2010)
　　The main work of this stage is to carry on the summarization, publicity and innovation of the culture construction achievements in stage Ⅱ. The focal points are the innovation of enterprise culture, so as to make the construction advance with time and provide cultural and spiritual strength for the development target of Haohua Corp in the new period.
　　Haohua will carry out the investigation, research, training and discussing activities. It will view on the experience of the enterprise culture construction, honor a number of advanced collectives and individuals and excellent achievements. The show of culture construction achievement will be organized and the influence of Haohua on internal and external market will be strengthened.
　　Haohua will perfect the enterprise culture system. The Corp will carry on the culture innovation based on the historical trend and era characteristics of its future development, the change of developmental environment inside and outside enterprise, the demand for systematic reform and strategic development, the individual value realization of employee and management layer. The enterprise spirit, strategic objective, operation goal, values, corporation concept and employee’s behavior will be refined and distilled to achieve a perfect and mature enterprise culture system.
　　8. The plan of enterprise party work
　　During the period of “Eleventh Five-Year Plan”, the party construction in the enterprise will be carried out under “the advice on strengthening and improving the party construction of central enterprises by the Organization Department of the CPC Central Committee, the State-owned Assets Supervision and Administration Commission of the State Council and Party Committee” to strengthen the executive ability construction of CPC and Party’s cohesion and combat effectiveness in the enterprises.