Group 1 - The construction of a modern enterprise system remains a core aspect of state-owned enterprise reform and high-quality development during the "14th Five-Year Plan" period [1] - Specialized committees, such as the strategy and investment committee, audit and risk committee, and nomination and compensation committee, are intended to serve as the core support for decision-making and risk management in corporate governance [3] - There is a recurring issue where these key governance organizations are well-structured but lack effective implementation, leading to a disconnect between form and function [3]

Core Viewpoint - Shandong Commercial Group Co., Ltd. (Lushang Group) is leveraging its new leadership team and implementing systematic reforms to enhance its competitiveness and achieve high-quality development in response to the changing market environment and deepening state-owned enterprise reforms [1][8]. Strategic Development - The company has established a "12345" high-quality development strategy and a "1+8+N" business development strategy, focusing on creating a digital lifestyle ecosystem and strengthening eight core industry sectors [2][3]. - A "three-year rolling plan" mechanism has been implemented to ensure the adaptability and foresight of the strategy, with annual adjustments and performance assessments integrated into the management process [2]. Governance Structure - Lushang Group is building a comprehensive risk control system, emphasizing a "big risk control, big review, big supervision" framework to ensure effective governance [3]. - The company has digitized its compliance system, embedding compliance checks into business processes and establishing a full-process risk monitoring network [3]. Cultural Development - The company has articulated a new corporate culture aimed at being a "quality consumption leader and a service provider for a better life," emphasizing a service philosophy based on sincerity and responsiveness [4]. - A focus on a "strict, true, detailed, practical, and fast" work style has been initiated to enhance team performance and accountability [4]. Party Building - Lushang Group integrates party building with business operations, creating a synergy that enhances both brand and operational performance [6]. - The company has established mechanisms to link party responsibilities with business performance, ensuring that both are evaluated together [6]. Performance and Innovation - The company reported a 41% increase in revenue and a 15% increase in profit for 2024 compared to 2022, with significant growth in its core business and new store openings [7]. - Lushang Group has achieved notable innovations in its pharmaceutical and beauty sectors, maintaining a leading position in hyaluronic acid production and launching numerous new products [7][8]. Research and Digitalization - Continuous double-digit growth in R&D investment has been observed, with new provincial-level research platforms established to support innovation [8]. - The launch of the "Lushang Life" service platform and a financial sharing center aims to empower the commercial circulation industry in Shandong [8].