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    Principles of Governance

    Circumstances Necessitate New Policies
    In 2002, NONFEMET adopted a full range of corporate management policies and restructured its organization, HR, evaluation and financial management. The move was aimed at highlighting stable operation, systematic management, constant improvements and continuous growth. By implementing the restructuring plan at the headquarters, the group has reshaped its business thoroughly. During the production process, effective measures were implemented everywhere. “Sunshine Project” became the means through which open, fair and impartial rules were established. The system completion program endorsed in 2004 has laid a solid foundation for the group to grow stronger.
    At that time, a sound system was established to adapt to conditions, setting the stage for great changes.

    Strategic Decisions Change Outlook
    Through system construction, a two-step strategy was developed to highlight the resource base and the keynote for growth. Benefiting from global market opportunities, NONFEMET accomplished its business objectives for 2010 four years ahead of the plan. After three breakthroughs, NONFEMET was poised for a take-off to give its business another boost.
    However, we are still falling behind around the world-renowned companies. Due to our smaller size, vulnerability and weaker resistance against risks, our growth was largely bottlenecked. We were still far from being a business of high standing. In terms of economic growth, we remained in a disadvantageous position. There is still a long way to go before we will be able to grow big and strong.

    Culture Clears the Way to New Heights and Depths
    During the progress, we are lost in deep thoughts, hoping a sudden insight can reach beyond both system and strategy. The way we desperately search for is the way of ideas, spirit and moral existence, or in other words, the way of culture. Without doubt, corporate culture describes the highest level of corporate governance and forms part of the company’s ethos.
    Continuous exploration and search during every stage of NONFEMET operations has led us to understand:
    No Reason to Fail!
    Isn’t “No Reason to Fail” exactly part of the heritage of NONFEMET culture?
    Isn’t “No Reason to Fail” exactly the presentation of NONFEMET commitment?
    Doesn’t “No Reason to Fail” exactly mirror NONFEMET’s vision?
    The “No Reason to Fail” concept, which underpins NONFEMET’s corporate culture, has been generally accepted throughout the company.
    Simple as it appears, “No Reason to Fail” carries deep meanings. It not only carries forward the strong heritage of the Chinese culture, but also reflects the modern spirit. It represents the feature of NONFEMET culture and mirrors NONFEMET’s vision. These short words are full of power worth billions of US dollars.
    The core value drives us to the very summit where the other mountains can be viewed at one glance. At this moment, we are still at the same height and depth, but the landscape has already provided deeper implications, comprehensible only from a different dimension.
    Now, “NONFEMET Culture Declaration: No Reason to Fail” is brought in front of you. Based on “No Reason to Fail”, the statement guides us in value, pinpoints our mission, clarifies our vision and makes the best presentation of corporate spirit. It is the cultural essence of NONFEMET and the fruitful results of cultural construction in the company.
    As the guideline that should be highly recognized by all leaders, executives and other staff members in NONFEMET, the Cultural Declaration lays out the basic principles for the operation and system construction. It’s the basic policy of strategic importance and stipulates the moral integrity of the employees.
    Let us follow the Declaration closely and take measures to turn NONFEMET into an organization of high standing.
    No Reason to Fail!


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