Core Viewpoint - Shaanxi Natural Gas (002267.SZ) announced a framework agreement for centralized procurement of materials with Shaanxi Yanchang Petroleum Material Group Co., Ltd. to enhance procurement management and leverage scale advantages while mitigating risks [1] Group 1 - The agreement involves Shaanxi Yanchang Petroleum Material Group and its subsidiaries providing procurement services to Shaanxi Natural Gas and its wholly-owned and controlling subsidiaries [1] - Shaanxi Yanchang Petroleum Material Group is a wholly-owned subsidiary of the indirect controlling shareholder, Shaanxi Yanchang Petroleum (Group) Co., Ltd. [1] - The transaction constitutes a related party transaction as per the regulations of the Shenzhen Stock Exchange [1]

Core Viewpoint - China Petroleum Daqing Petrochemical is focusing on "minimizing total lifecycle costs" in its procurement strategy, achieving a procurement cost savings rate of 6.28% in the first seven months of the year [1][2]. Group 1: Procurement Management - The company has established a long-term mechanism to strengthen procurement management, including five new management measures for material procurement and nine revised procurement management systems [1]. - Key control links have been detailed to ensure compliance and effectiveness in procurement processes, enhancing the foundation for refined management [1]. Group 2: Price Analysis and Strategy - The Material Supply Center conducts thorough market research for different material categories, comparing current prices with historical and internal regional prices to set reasonable maximum price limits [1]. - The procurement strategy incorporates comprehensive considerations of costs, management, and profit factors to ensure that the predicted optimal prices are scientifically grounded [1]. Group 3: Supervision and Compliance - Daqing Petrochemical utilizes information management systems to monitor procurement processes, ensuring compliance with budget standards, market conditions, and contract agreements [2]. - Regular evaluations of procurement prices are conducted to compare actual prices with market prices, historical prices, and supplier quotes, allowing for immediate analysis and corrective measures in case of price anomalies [2].

Core Insights - Daqing Petrochemical has achieved the highest score in the 2024 procurement performance assessment by China National Petroleum Corporation, leading among 34 units in the refining and chemical materials sector, indicating a significant improvement in material supply management and supporting high-quality development [1] Group 1: Procurement Management - The company has implemented a performance assessment system that emphasizes meticulous management, focusing on five core indicators: centralized procurement rate, online procurement rate, procurement cost savings rate, catalog procurement rate, and direct manufacturer procurement rate [1] - Daqing Petrochemical aims to enhance procurement management through systematic optimization and benchmarking against industry leaders, ensuring a comprehensive upgrade in management practices [1] Group 2: Cost Reduction Strategies - A full-chain service system has been established for secondary material centralized procurement, which includes demand forecasting, resource integration, and bulk purchasing, allowing the company to leverage its purchasing power for better price negotiations [1] - The company has adopted a dynamic pricing management mechanism to track market variables and develop differentiated procurement strategies, effectively reducing procurement costs [2] Group 3: Supplier Management - Daqing Petrochemical is focused on optimizing the direct procurement ecosystem by enhancing supplier resource structure and implementing a dynamic management and multi-dimensional evaluation system for suppliers [2] - The company aims to significantly reduce intermediary trade links and shorten supply chains, achieving goals of "safe, timely, and economical" material supply through core manufacturer partnerships [2]