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The operation management service business is a business developed by Risun in 2014, which is dedicated to empowering and assisting the company's business expansion in the industry. There are mainly three forms: first, the operation management service model of production technology (only responsible for production technology management); The second is the integrated operation and management service model of marketing (only responsible for the operation of the sales process); The third is an operational management service model that comprehensively takes responsibility for sales, transportation, production, and supply.
For operational management service projects that achieve cooperation, Risun typically only needs to deploy around 20 to 60 cadres and staff members. These operational management service companies function as internal divisions of Risun, receiving systematic support from the Group's robust integrated marketing operations model, vertical integration development approach, and vertical integration management system. Utilizing Risun's scale advantage as the world's largest independent producer and supplier of coke, they also tap into Risun's brand quality, digital supply chain systems, marketing platforms, and precise, scientific intelligent coal blending expert systems. This enhances their systematic operational capabilities across sales, transportation, production, supply, and research. With our profound industry experience, a sincere customer service system, precise closed-loop management practices, top-tier energy-saving and emission reduction technologies, and comprehensive integrated R&D capabilities, we can effectively address various pressures related to safety, environmental protection, production technology, and operations. Gradually, this will elevate the profitability and overall competitiveness of Risun's subsidiaries.
The rapid development of Risun's operational management services can be attributed to several key factors. Firstly, Risun Group's safety and environmental standards have reached the top level in China, with its industrial bases hosting over 800 visits annually related to safety and environmental protection. Secondly, the Group has pioneered and fully implemented a prepaid sales strategy within the industry, breaking through perceived barriers and creating an industry milestone. This strategy has not only ensured robust profitability and stable cash flows for Risun but has also fueled its successful transition from a traditional manufacturing enterprise to a service-oriented manufacturing company. By embracing this transformation, Risun has moved beyond being just a manufacturer to a comprehensive supplier and service provider. This shift ensures that customers receive top-quality products and services, which in turn strongly supports the profitability of both parties involved in operational management service collaborations.
After years of exploration, Risun's operation management service business has steadily improved. It has gone through the stages of finding opportunities, negotiating cooperation, and then taking over operation services and improving various standards, so as to achieve the operation standards of Risun. Therefore, it has formed a complete set of systems, methods, institutions, and processes, which have brought tremendous changes to Risun, enriched the group's industrial portfolio, expanded market space, optimized asset allocation, improved capital returns, and enhanced the ability to navigate industry cycles. Thanks to the existence of operation management service business, we can provide operation management services for projects with intention to merge and acquire. This not only eliminates various risks as much as possible, but also gradually solves integration problems after the merger and acquisition in advance, thus ensuring the successful completion of the merger and acquisition, and further opening up key ideas such as the scope of the merger and acquisition, the proportion of shares acquired, etc., which is conducive to forming more options that meet the demands of all parties.
Looking into the future, Risun will continue to focus on planning and investing in existing base projects, as well as external mergers and acquisitions, while increasing investment in its operation management service business. It will strengthen its layout in both domestic and global markets, thereby elevating the proportion of the operation management service business in the Group's total revenue, total profit, and overall scale. By optimizing and improving its business structure and increasing the allocation of light assets, Risun aims to achieve sustained growth in overall performance.
