In the succession planning plan of the directors and heads of various units of the Company, in addition to the excellent work ability, professional skills and knowledge, the successor also focuses on the business philosophy and personality traits of the Company – “Professionalism, Integrity and Innovation”.

In the fourth term of directors of the Company in 2023, Xiao Kaifeng, a professional manager, will replace the director of the family Zhang Ruiqing, reducing the number of directors of the Company to 2, and the three independent directors will start a gradual replacement rotation plan because they have completed two terms, and Shi Kunhe, director of the China Cereal Food Industry Technology Research Institute, who is familiar with the development of the baking industry, will replace the original independent director Wu Chaofu, so as to be more in line with the spirit of corporate governance.

After the reorganization of the Group’s functional organization in 2019, after nearly five years of operation, the Group’s three functional segments, namely the Technology Research Center, the Marketing Center and the Management Center, have been on the right track of management and are operating smoothly, and the three major sectors have gradually arranged for the cultivation of successors. In addition, the subsidiaries include: Wuxi Sanneng, Taiwan Sanneng, Japan Sanneng and Indonesia Sanneng, as well as Sun Company: Skyll, Xinneng and Guangzhou Sanneng, all of which have formulated a rotation and training plan for directors and supervisors at or above the associate level, including the second generation of directors and senior personnel above the associate level and major shareholders of the existing group and subsidiaries, and the general manager rotation of the subsidiaries is carried out through the proposal of the remuneration committee and the approval of the board of directors, so as to cultivate the company’s talents and enhance the decision-making ability, and look forward to continuing to meet the company’s growth needs. From this, the core decision-making successor team of the group is cultivated and selected.

The rotation and training plan for directors and management directors planned by the Company includes two parts: professional knowledge and management ability, and the professional knowledge training courses include six major areas, including technology research and development, manufacturing, marketing and sales, financial accounting, human resources, and internal control system. Management capabilities include leadership, strategic planning, and risk management. The training model is carried out through the formulation of an annual education and training plan, which is designed by internal lecturer training, external EMBA courses and actual work rotation and overseas dispatch, etc., and the whole course training cycle is a cycle of 3 years, and the results are analyzed, reviewed and optimized every year.

At present, the implementation of the second three-year training plan includes the approval of the board of directors in 2023 Chen Liuyu to take over as the chief financial officer and Xiao Kaifeng to take over as the chief executive officer (general manager), in addition to the echelon succession, it can also meet the provisions of the FSC Corporate Governance 3.0 – the chairman and the general manager are not the same person or each other’s spouse or a relative relationship, and from 2024, the director of the management center will be taken over by Zhang Xinyi, general manager of Taiwan Sanneng, and gradually complete the succession plan of generational succession. For the subsidiary part, from 2023, Wuxi Sanneng will be taken over by Hua Weiqin as general manager, from 2024 Lin Suyu will take over as general manager of Guangzhou Sanneng, and Wuxi Sanneng will be promoted by associate manager Zhang Shiwei; In 2025, in order to further cultivate successor talents, the vice president of Wuxi Sanneng Technology Research will be replaced by Zhang Zhihao, and the former vice president of technology research and development will be the vice president of rotation management of Pingjun, and at the same time, because of the new Indonesian industry in 2024, the general manager of Indonesian industry and Indonesia Sanneng will be taken over by Xu Qinghe, the director of the plan.

At present, the Company’s senior management rotation and training program is still ongoing, and the training positions include the heads of other centers of the Group and the management cadres above the manager level of the subsidiaries, and it is expected that the trainees will continue to improve the professional knowledge and management ability required for the planned arrangement of new positions within the expected time, and successfully complete the succession tasks through the rigorous and thorough training plan and complete the complete professional ability training.