Nearly one month after the first quarter economic analysis meeting of Runfar Group, a statement of Runfa chairman Teng Hexian made at the 19th weekly meeting reminds every Runfar employee, that is, “each meeting represents a learning process and a process of mutual improvement, so everyone is expected to make continuous improvement and contribute to the business growth of Runfar.” Let’s review the outstanding performance, either collective or individual, identified at the first quarterly analysis meeting.

Flexibility and initiative recognized at the corporate level
The investment and financing department of Runfar made two success stories under the leadership of VP Liang Tao.
1. Completed investment in organic reef oil exploitation project of US-based Black Peak Oil Inc. located in Illinois Basin, the first phase of which involves construction of 10 wells and estimated annualized ROI of about 30%. Many international investment companies participate in this project, of which Runfar is the only institutional investor experienced in investment in China. This investment represents the first step of Runfar towards its business expansion into North America and demonstrates the high work efficiency of Runfar people.
2. The ongoing project of North America Energy Fund Management Company, a project initiated by manager Liang Tao and undertaken by the investment and financing department. The first presentation of this project was successfully held in Beijing in collaboration with SME Association, with good results and feedback. Next, the investment and financing department will continue to organize more presentations in Beijing, Weihai and Qingdao. If this project succeeds, the size of the fund will amount to 1 to 5 billion Yuan, making it China’s first PE fund dedicated to investment in energy projects in North America. All Runfar people are fully confident in this effort.
To this end, chairman Teng spoke highly of the achievements made by manger Liang and the investment and financing department at the first quarterly economic analysis meeting, recognizing it as one of the milestones in Runfar’s corporate history.
Oriental Gas Group focuses on IPO.
Gas business is a top priority of Runfar’s business portfolio. Oriental Gas, an operating arm of Runfar, makes concerted effort towards business success, demonstrating professionalism and confidence in the whole business process from management, operations, business priorities to detailed adjustments.
In the first quarter, Oriental Gas worked hard with Equis to invest heavily in preparation for its IPO. Both sides held a joint shareholder meeting in Hong Kong on April 27, as Oriental Gas (Runfar Gas Group) is well funded and in a good position to become a Sino-foreign joint venture. The future business practice of the company is intended to achieve a process of authorization by general meeting, board of directors and senior management, in which the board of directors serves as the governing body, followed by the senior management. This meeting involved discussions and decisions made surrounding the share transfer between Runfar Gas Group and Singapore-based Equis, the organizational structure, pay structure, market development and high-value projects of Oriental Gas. The successful conclusion of this meeting laid a solid foundation for Oriental Gas’s three-year IPO journey in Hong Kong. Currently, Oriental Gas is intensifying its efforts to explore new markets and improve its corporate policies.
Chairman Teng said the concerted efforts of Oriental Gas set a good example for all Runfar people to follow.
Weihai Real Estate made success out of pragmatic efforts
Weihai Real Estate is a subsidiary of Runfar who made outstanding achievements in the first quarter. Despite the tight schedule and understaffing, the company collected nearly ten million Yuan receivables, in addition to securing additional five liquor suppliers and distributors. Moreover, Runfar Real Estate completed the market survey of secondhand cars, Weihai Industrial Area IT Park project, as well as negotiations and communications concerning Hong Kong city project in Weihai, which were well recognized by Runfar leadership.
　　 Chairman Teng spoke highly of board chairman of Weihai company Mr. Zhou Jifeng as well as all members of Weihai Company’s leadership, adding that the Q1 performance of Weihai Company reflected the concerted efforts of the company’s management and employees and set a good example for other subsidiaries.
Tianjin Runshan Ltd increases revenue and reduces costs.
After deputy general manager Gu Shouzhong became the general manager of Tianjin Runshan Ltd, the company has taken a new look through management restructuring. As of the date of the economic analysis meeting, a project alone earned the company 4 million USD down payment. The Tianjin company has been working closely with Guangshun factory in Baoding under the arrangements whereby Guangshun’s procurement and marketing activities are undertaken by Tianjin Runshan. Moreover, the Tianjin company secured the license as the domestic consignee of solid wastes used as raw materials, which is a hard-worn achievement.
Cost reductions represent increased revenue. Statistics show that Tianjin Runshan has a reasonable budget control this year, which is recognized by chairman Teng as an example for all Runfar companies, despite the fact that Q1 performance is undesirable but lays a solid foundation for the attainment of future profitability target.

Sino-foreign enterpriser alliance proves agile
Sino-foreign enterprise alliance (“alliance”) is a high-end membership-based platform operated by Runfar for sharing of information resources, as well as a tie among Chinese and foreign enterprisers for communication, exchange and cooperation. The alliance serves primarily private sector, SMEs and online startups, committed to helping Chinese enterprisers go global and learn from international best practices and high and new technologies abroad, as well as providing foreign companies with information and intermediary services for their investment in China.
Chairman of the alliance Chen Mengsan made great efforts for the development of the alliance, by constantly refining the teambuilding efforts, creating software and hardware in time and recruiting a large number of influential members for diversified talent pool and ideas.
Chairman Teng said the alliance is not only intended to generate profits but more importantly support Runfar, as evidenced by its outstanding contributions to Runfar’s business growth.
In addition, the alliance has been well run in terms of project selection and groundwork, therefore there is every reason to believe the alliance will grow larger and stronger very soon.
In summary, the aforesaid companies and individuals have made great contributions to Runfar’s 2014 Q1 performance and other companies and individuals are expected to follow these examples in order to make greater achievements at the semiannual economic analysis meeting.

By DJ