Shanxi Workers’ Daily: In-depth Report on Pengfei — Innovation: The Key to High-Quality Development

General Secretary Xi Jinping has pointed out that innovation is the primary driving force for development; to pursue innovation is to pursue development, and to plan for innovation is to plan for the future. For more than three decades, Pengfei has shouldered the mission of the times, vigorously advancing on multiple fronts—including the transformation of traditional energy, the development of green energy, reforms to strengthen the industrial workforce, the creation of zero‑carbon logistics, innovations in real estate and cultural tourism, and the application of digital and intelligent technologies—guided by innovation and steadily moving toward its vision of becoming a smart enterprise in the clean energy sector.

Now, please turn to the Shanxi Workers’ Daily’s recent in-depth report on Pengfei, titled “Innovation: Unlocking the Key to Pengfei’s High-Quality Development.”

Preface

In 1993, amid the sweeping winds of reform and the promise of a new spring, a young man determined to break free from mediocrity abandoned the secure “iron rice bowl” of a state-owned enterprise and, armed with 25,000 yuan he had raised, embarked on a challenging entrepreneurial journey. Though at the time it was just a small, rudimentary coal‑coking plant—operating in what might be called a “low‑altitude takeoff”—he gave his company a bold name that resonated with vision and aspiration while embedding his own name: Pengfei. By 1998, he had already introduced an inspiring slogan: “Today’s brilliance is seen in Pengfei.”

 

In 2023, what began as a modest “small vessel” at the eastern foot of the Lüliang Mountains and along the banks of the Fen and Xiao Rivers has grown into a behemoth “aircraft carrier,” evolving into an integrated, digital‑intelligent, circular‑economy‑driven, green‑oriented full‑industry‑chain enterprise. It now encompasses ten major business segments—raw coal mining, premium coal washing and beneficiation, coke production, modern coal chemical processing, a comprehensive hydrogen‑energy industrial ecosystem, renewable energy utilization, 5G‑enabled smart applications, seamless rail‑road connectivity, and tourism, hospitality, and real estate. As a leading green, low‑carbon technology company committed to achieving carbon peak and carbon neutrality, it has been listed among China’s Top 500 Enterprises for three consecutive years and, in 2023, was designated by the provincial government as the “chain leader” of Shanxi Province’s key hydrogen‑energy industrial chain.

One cannot help but wonder: how did Pengfei, once an obscure name, manage to proliferate, achieve rapid breakthroughs, and undergo transformative leaps within just thirty years? What is the key that has enabled Pengfei to ride the waves, forge ahead with bold strides, and pursue high‑quality development?

 

 

The helmsman of this “aircraft carrier,” Zheng Peng, has pinpointed the root causes: first, aligning with the call of the times—national strategy is precisely the PENGFEI strategy, and the rhythm of the era sets the direction for PENGFEI’s progress; second, steadfastly upholding innovation as the driving force of productivity. Innovation has been woven into PENGFEI’s corporate culture, coursing through its very veins and permeating its management systems, and it underpins every stage of the industry chain’s development. In other words, innovation is the key that unlocks PENGFEI’s path to high‑quality growth.

In early winter, the warm sun gently shines. The author visited Xiaoyi City—known for its filial piety, righteousness, inclusiveness, and magnanimity—and paid a visit to Shanxi Pengfei Group Co., Ltd., a Fortune Global 500 company. On this land brimming with vitality, the author personally experienced Pengfei’s 30-year transformation, tracing its journey from entrepreneurship to leapfrog development, exploring the breadth and depth of its industrial-chain expansion, and examining the temporal and spatial dimensions of its corporate culture, all in search of the underlying principles behind its explosive growth.

Seize opportunities in times of crisis and forge new paths amid changing circumstances.

Innovation has been integral to Pengfei’s development at every stage.

Pengfei Development has spanned three decades: the first decade was marked by tentative steps and navigating by trial and error; the second decade saw a transformative shift, with a deeper understanding of the guiding role of policy; and the third decade witnessed a leap forward, embracing green development.

An examination of this 30-year journey of arduous struggle and steady progress reveals the following conclusion: innovation was born during Pengfei’s challenging early years and, as the company grew and matured, has flourished and come to fruition in the new era. Today, innovation permeates every stage of Pengfei’s development.

In 1993, just as Pengfei was getting its business off the ground, the joy of producing its first batch of coke had barely faded when, the following year, a product‑quality issue forced the plant to shut down, marking its first crisis.

Guided by industry experts, and amid a local context where every village lit fires and every household smoked, relying solely on experience, Pengfei boldly set out to transform its production methods. It acquired coal‑washing and analytical equipment and brought in specialized technical personnel, elevating the quality of its coke to a higher standard.

In 2000, as Pengfei’s earth‑fired coke ovens had expanded to 30 units and the company had become a major local coking producer, the Asian financial crisis struck. Coupled with shifts in national policy, earth‑fired coke ovens were forcibly banned, ushering in a second crisis. Overnight, all of Pengfei’s coke ovens were shut down, leaving the company virtually stripped of assets—save for a coal‑washing facility valued at less than RMB 500,000.

At that time, many private coal enterprises in our province were closing down, going bankrupt, or switching industries, but Pengfei refused to give up. Instead, it shifted its strategy and innovated by entering the coal‑washing business. “This remaining piece of coal‑washing equipment is the engine that will get us back on track!” was Zheng Peng’s pledge to all employees. He worked tirelessly to secure clients, renegotiated contracts, and won new orders, enabling Pengfei’s operations to grow steadily.

In 2003, just as Pengfei was charging ahead with full confidence, the SARS epidemic struck. The once‑bustling national highway suddenly fell silent; raw coal from the mines could no longer be shipped out, while steelmakers found themselves short of coal and unable to bring it in.

At this point, Pengfei was entering its second decade of entrepreneurship. After ten years of navigating the competitive business landscape, Zheng Peng keenly recognized that crises present opportunities and that one must carve out a path through seemingly insurmountable challenges. Based on his research, he identified the root causes of the problems and resolved two key issues: providing drivers with food and lodging, and ensuring reliable fuel supply for their vehicles. As a result, drivers no longer needed to return home, instead operating on fixed point-to-point routes between coal mines and steel mills. Capitalizing on the favorable “two declines and one rise” — namely, a sharp drop in raw coal prices, a substantial reduction in transportation costs, and a significant surge in refined coal prices at steel plants — Pengfei not only strengthened its supply‑demand relationships with steel companies but also achieved remarkable growth, expanding its coal‑washing facilities from one to twenty-two and generating half‑year profits that equaled the total of the previous three years.

In 2008, the bankruptcy of U.S. investment bank Lehman Brothers triggered a global financial crisis, ushering in a wave of corporate bankruptcies. Domestically, the price of premium coal plummeted from 3,600 yuan per ton in the first half of the year to just 500 yuan per ton in the second half. In response, the government mandated that coal mines establish on-site coal preparation plants and meet a minimum production capacity of 2 million tons. This policy dealt a severe blow to Pengfei, an independent coal‑preparation enterprise already operating 22 plants with a combined capacity of 200,000 tons, plunging it into its third major crisis.

After 15 years of market challenges and rigorous testing, Pengfei has come to realize that running a business requires more than just working in isolation; it demands forward‑looking analysis and a deep understanding of shifts in national strategies and industrial policies, enabling the timely identification and precise leveraging of development opportunities hidden within crises.

Based on in-depth research into national, provincial, and municipal conditions, Pengfei decided to invest in large-scale coking operations, moving beyond the single‑industry of coal washing. The company sought to strengthen itself, extend its production chain, broaden its market reach, and forge a new green coking development model—“chemicals as the core, coking as the complement.” This initiative sparked a sweeping wave of acquisitions, enabling Pengfei to cross the 2-million‑ton threshold and enter a phase of rapid growth. Over roughly fifteen years, Pengfei laid the groundwork for this “large‑scale coking” strategy. In October 2012, it pioneered the introduction of world‑class coking technology, completing and commissioning China’s first 5‑million‑ton coking project featuring a three‑stage heating system and 6.25‑meter coke ovens. The company established an end‑to‑end clean production model characterized by “four nos”: no personnel, no vehicles, no materials, and no dust. Complementing this, it built Lüliang City’s first dry quenching and power‑generation facility, driving the enterprise toward green, sustainable development.

In 2016, amid the global financial crisis, China launched supply-side structural reforms, with the coal industry becoming a key focus of capacity‑reduction efforts, leading to the bankruptcy and closure of numerous small and medium-sized coal enterprises. Seizing this opportunity amid adversity, Pengfei expanded into the upstream coal‑mining sector—its natural extension—thereby obtaining official qualifications as a coal‑mining producer. This not only addressed its own industrial shortcomings but also provided a steady supply of raw materials for its coking and coal‑washing operations, bolstering its core competitiveness. Furthermore, as the coal industry subsequently rebounded and a new national energy‑security strategy was implemented, Pengfei’s coal business—and its overall operating performance—experienced substantial growth, securing the financial resources needed to further transform and upgrade toward the hydrogen‑energy sector. By 2023, Pengfei had established a 30‑million‑tonne raw‑coal production base spanning Lüliang, Changzhi, Jincheng, Yangquan, and other regions, collectively forming its distinctive integrated system for producing prime coking coal, thermal coal, and anthracite.

 

 

In 2017, Pengfei adopted a global outlook and a forward‑looking vision, proactively integrating into the national hydrogen energy industry’s overall development plan. Identifying green hydrogen as a key breakthrough for the energy transition, the company invested RMB 78 billion to launch a project converting coke oven gas into hydrogen, thereby forging a new pathway for hydrogen‑based economic growth. Leveraging the Pengwan Hydrogen Port Industrial Park—characterized by its large scale, comprehensive industrial chain, and cutting‑edge processes and equipment—the group has expanded into the production of hydrogen‑powered heavy‑duty trucks. Covering the entire value chain—from vehicle manufacturing to fuel cells and batteries—the park is expected to create 35,000 jobs upon full completion. In July 2022, the first phase of the Pengwan Hydrogen Port Industrial Park, including a 200,000‑ton‑per‑year hydrogen‑production facility utilizing coke oven off‑gas, was completed and put into operation, with hydrogen‑powered heavy‑duty trucks and buses entering service one after another.

For 30 years, the pioneering spirit and innovative drive of Zheng Peng, the founder of Pengfei, have shaped his life and become the cornerstone of the company’s transformative, leap‑forward growth. In 2021, Pengfei made its debut on the “China Top 500 Enterprises” list and was also ranked among China’s Top 100 Private Enterprises, holding the 92nd position in 2023.

 

 

Over the past 30 years, Pengfei has risen from the brink of death to rebirth, weathered countless hardships to proactively transform itself, and grown from a mere 25,000 yuan to 150 billion yuan—each step marked by seizing opportunities amid crises and forging new paths in times of upheaval. This has been a continuous journey of updating mindsets, liberating thinking, and pioneering innovation; every transformative leap and every resurrection from seemingly insurmountable adversity has been driven by creativity.

Deploy the innovation chain around the industrial chain, and let the innovation chain drive the industrial chain.

Innovation permeates Pengfei’s management system.

Over its 30-year development, Pengfei has weathered a series of challenges—including tightening national environmental regulations, capacity‑reduction and production‑restriction policies, and market volatility—yet it has not only managed to survive in an increasingly competitive landscape but has also emerged as a clear leader.

By examining Pengfei’s journey—from its inception to its remarkable leaps—through the lens of both its longitudinal and latitudinal dimensions, and by tracing the strategic evolution behind each pivotal milestone, we can see that every transformation has been undertaken against the tide, at moments when others hesitated to act or to pivot. Each transition has been underpinned by a well‑crafted industrial strategy, grounded in sound management practices, and propelled by technological innovation and breakthroughs in key areas.

Pengfei began with the coking industry, expanding upstream from small‑scale earth‑fired coke to small‑scale mechanical coke and then to large‑scale mechanical coke, while acquiring multiple wholly owned coal enterprises. Downstream, it merged with and acquired coking firms, extending into dry quenching technology. By integrating coke and coal gas into a closed-loop industrial system, it has achieved co‑production of methanol, LNG, and synthetic ammonia from coke oven gas. Building on these three core product lines, the company has further extended downstream to develop a hydrogen‑energy industrial park.

The Pengfei Hydrogen Energy Demonstration Base can fully utilize coking‑oven off‑gas, thereby addressing pollution challenges in the coking industry while reducing hydrogen‑production costs. The hydrogen produced can be sold at hydrogen refueling stations or fed back into the synthesis‑ammonia process, enabling a closed‑loop system within the enterprise. Meanwhile, the synthesis‑ammonia project further exploits the valuable components contained in the coking‑oven gas. Through co‑production of methanol, liquefied natural gas (LNG), synthetic ammonia, and hydrogen energy, the facility essentially exhausts every last bit of the coking‑oven off‑gas from its own coking operations, truly embodying green development. On December 4, 2023, Pengfei was awarded the title of “chain leader” enterprise for Shanxi Province’s key hydrogen‑energy industrial chain by the provincial government.

 

 

From promoting the clean and green utilization of traditional energy sources, to achieving intelligent and digitalized development in this sector, and further leveraging traditional energy to build a robust industrial foundation while expanding into the new‑energy space, Pengfei has ultimately evolved into an end‑to‑end, digitally driven, circular‑economy‑oriented, and environmentally sustainable enterprise that integrates coal, coke, chemicals, hydrogen energy, logistics, finance, and cultural tourism. It is evident that Pengfei has transitioned from passively responding to crises to proactively and actively integrating itself into emerging trends, steadily strengthening its competitiveness in the traditional‑energy domain while also securing a strong competitive edge in the new‑energy arena. Each phase of its growth has been underpinned by strategic industrial‑chain expansion, enabling it to pursue a path of green transformation and leapfrog development through innovative, forward‑looking initiatives.

By carefully examining Pengfei’s industrial‑layout roadmap, we conclude that the company strategically aligns its innovation chain with the industrial chain, leveraging the former to drive the latter, while collaborating with numerous prestigious universities and enterprises to provide robust support for breakthroughs in critical core technologies.

Stepping into the Pengfei 5G+ Central Dispatch and Command Management Platform, which was completed and put into operation on New Year’s Day 2021, one sees a large screen displaying, in real time, the production and operational status of a coal mine located 200 kilometers away. Liu Feng, head of the Digital Intelligence Center, explained that this platform was developed in collaboration with companies such as Alibaba, Tencent, and Huawei, leveraging cutting-edge technologies—including 5G, industrial IoT, and big data—to build a robust computing infrastructure and powerful computational capabilities. As a result, six major application scenarios have been successfully implemented: smart safety, smart environmental protection, smart mining, smart factories, smart inspections, and smart operations.

 

 

Pengfei’s major factories and mines have deployed a 10‑gigabit backbone fiber‑optic network that achieves seamless aggregation and connectivity, enabling blind‑spot‑free monitoring of coal‑production sites. The system tracks and records in real time the movements of underground management and operational personnel, while intelligently generating relevant reports, thereby significantly enhancing safety‑oriented production management: labor productivity has increased by 100%, operating costs have been reduced by 12%, production costs have fallen by more than 20%, production efficiency has improved by 40%, and energy conversion rates have risen by over 44%. This advancement will further drive innovation and elevate enterprise‑wide production and operational management.

 

 

At the hydrogen energy demonstration base—the Pengwan Hydrogen Port Hydrogen Industry Park—project director Suo Shengfu explained: “This is a modern hydrogen‑energy industrial ecosystem that integrates production, storage, transportation, refueling, utilization, research and development, and equipment manufacturing. Shanxi’s abundant coal resources open up new possibilities for hydrogen‑energy development; the coke oven gas—a byproduct of coke production—can be used to extract hydrogen more efficiently, enabling a high‑efficiency conversion from ‘black’ coke to ‘green’ hydrogen.”

 

 

Pengfei has established strategic partnerships with leading domestic universities, including Tsinghua University, Peking University, Renmin University of China, and Shanghai Jiao Tong University, focusing on tackling key industry challenges related to hydrogen‑energy safety, production efficiency, and process‑technology improvements. To date, the company has participated in more than 20 innovative research projects centered on hydrogen‑energy development and has obtained six national patents. A pilot‑scale test base covering 11 R&D areas—such as hydrogen production, storage, transportation, and equipment manufacturing—has been approved by the science and technology authorities, providing a platform for pilot‑scale testing of domestic and international hydrogen‑related R&D initiatives and facilitating the commercialization of research outcomes. Additionally, Pengfei has set up a national postdoctoral research workstation in Lüliang City.

 

 

At present, Pengfei is leading the development of two national group standards in the hydrogen energy sector: “Energy Consumption Quota and Calculation Method for Producing High-Purity Hydrogen from Coke Oven Gas” and “Safety Requirements for the Conversion Process of Producing High-Purity Hydrogen from Coke Oven Gas.”

Looking back at Pengfei’s robust development, whether in industrial planning or technological innovation, every advance and every stage of growth has been underpinned by institutional innovation and rigorous management.

Pengfei’s journey toward scientific management began at the coal‑washing stage. As the number of small coal‑washing plants grew from one to twenty-two, management challenges related to personnel, equipment, and quality gradually came to the fore. Under the guidance of experts, Pengfei progressively established and refined a comprehensive array of management systems, creating an industry‑leading framework that has enabled the company to enter a phase of sustainable, healthy growth.

Systems prevent mistakes, while processes ensure efficiency. Pengfei has established a comprehensive production and operations management system across 11 areas, including coal‑industry management, production management, sales management, and cultural and brand management—covering everything from a single seal to contracts worth hundreds of millions of yuan; from enhancing employees’ external image to fostering their internal competencies; from daily 6S management to the national campaign to protect blue skies; from conference and reception services to the organization and support of large‑scale events; and from material supply on the production floor to meeting critical project deadlines. All these aspects are governed by rigorous management policies, performance‑evaluation frameworks, and standardized work procedures.

Facts eloquently demonstrate that it is precisely the integration of innovation into Pengfei’s management system that has propelled its rapid and steady growth, enabling it to soar to new heights. This has paved the way for a smart‑driven transformation in the province’s coal‑coking industry, giving rise to numerous exemplary cases:

 

 

Pengfei has completed the construction of a 6.25-meter, three‑section, heat‑recovery coke oven, setting a new record for the shortest construction period for large‑scale coke ovens. In tandem, it launched a cogeneration project that produces methanol, LNG, and liquid ammonia from coke oven gas—a cutting‑edge chemical process that enables coke oven gas to be converted into valuable feedstock. Pengfei was also the first to implement a dry quenching system. Furthermore, Pengfei Coking and Pengfei Methanol have been recognized by the Ministry of Industry and Information Technology as “Green Factories,” making Pengfei the only coking enterprise to simultaneously operate two such facilities.

 

 

The Pengwan Hydrogen Port Hydrogen Industry Park has completed and put into operation a single‑unit, 20,000‑ton‑per‑year high‑purity hydrogen project—the largest of its kind in China with cutting‑edge process technology. The Beiyao Hydrogen Refueling Comprehensive Energy Island has also been built, and the first batch of 100 hydrogen‑powered heavy‑duty trucks has begun zero‑carbon transportation as a demonstration project. In addition, an independently developed 250 kW single‑stack hydrogen fuel cell power system has been unveiled.

Over the past 30 years, Pengfei has undergone multiple transformations and upgrades, each representing a comprehensive shift—from external form to internal substance. With no established benchmarks or precedents in the industry to draw upon, these changes have been the result of its own innovative development.

 

 

From cognitive identification to value orientation; from behavioral self-awareness to a source of vitality.

Innovation is embedded in Pengfei’s cultural DNA.

When we reflect on Pengfei’s 30-year journey—its relentless overcoming of developmental troughs, its remarkable rebirth, and its unwavering forward momentum across time and space—we come to recognize that there is an innermost essence, deeply rooted in its very soul and woven into its DNA, which has sustained Pengfei and laid the cornerstone for its enduring progress and long-term prosperity. That essence is Pengfei’s distinctive corporate culture.

As you enter the research building, the words “Innovation, Innovation, and Always Innovation” gleam prominently on the central wall of the lobby. This vividly captures Pengfei’s corporate culture and encapsulates the core tenets of its values.

Pengfei’s corporate culture has continuously evolved alongside the company’s growth and transformation—germinating during the arduous early days of entrepreneurship, enriching its substance through a history of ups and downs, and steadily maturing as the enterprise has risen against headwinds and kept pace with the times. We have found that it embodies Pengfei’s core values, spiritual ethos, shared beliefs, guiding principles, and conceptual framework; it is the source of vitality for both the team and each individual, the standard by which all employees conduct themselves, and the primary factor in awakening the soul of the company’s development and reshaping its very DNA.

Each leap in Pengfei’s development has been a delicate balance between risk and growth, a transformative rebirth driven by corporate culture. From the vision of “Today’s Glory Lies in Pengfei” to the guiding values of “Love, Innovation, Pragmatism, and Leadership,” the cultural consciousness of Pengfei’s people has steadily evolved. As the company has grown and matured, it has distilled a set of core values—“Loyalty, Integrity, Unity, and Progress”—which vividly reflect Pengfei’s ability to seize opportunities and stay ahead of the times. With green and environmentally friendly practices now at the heart of the energy sector’s transformation, as Pengfei embarks on a full‑scale foray into the hydrogen‑energy industry—the ultimate global green energy source—it has embraced the motto “Dare to Lead, Always Strive for First Place,” making the pursuit of excellence the very essence of the Pengfei spirit.

 

 

To embed innovation into the core values of its cadres, Pengfei incorporates innovation as a key component of its cadre‑value assessment, conducting quarterly evaluations. It has also developed and implemented a “Top Ten Productivity” evaluation system that assesses each unit across four dimensions—technological innovation, conceptual innovation, managerial innovation, and service innovation—and publicly recognizes and commends outstanding units at monthly and annual work meetings. At the year‑end awards ceremony, Pengfei establishes the “Innovative Pengfei Person” award to honor individuals and project teams for their innovative contributions. Furthermore, innovation is integrated into the promotion framework: employees who win prizes in the “Five Small” competition enjoy priority consideration for Party membership, promotion, and career advancement, fostering a strong culture in which everyone strives to innovate. Since 2022, Pengfei’s technological innovations have generated RMB 920 million in value, while conceptual innovations have yielded RMB 288 million; more than 70 managerial innovations have been introduced, and its service‑innovation initiatives have consistently earned high praise.

During our interview with Pengfei, a striking impression was that innovation has become the underlying ethos of the company’s culture, deeply embedded in the words and actions, as well as the mindset, of every Pengfei employee. For instance, the Mid-Autumn and New Year’s Eve galas that Pengfei hosts annually are entirely conceived and performed by the staff, yet their themes and formats remain fresh and distinct year after year. In 2022, the New Year’s Eve gala, themed “Shining Pengfei,” was held at the group’s headquarters; in 2023, the Mid-Autumn Gala, titled “Pengfei in Love: ‘Encounters’ at an Ancient Fortress,” took place at the culturally rich Xiangyu Ancient Fortress in Qinsui; and the New Year’s Eve concert was aptly named “Together Toward a Brighter Future.”

At every pivotal stage of the company’s development, Pengfei undertakes a comprehensive overhaul of its corporate culture, injecting fresh energy and rekindling its vitality.

 

 

In 2022, Pengfei launched a corporate culture‑building initiative called the “Great Hygiene Cleanup.” This was more than just a thorough cleaning of indoor and outdoor spaces; it was also a sweeping overhaul of the ideological and mental hygiene of every Pengfei employee. It called for each team member to align their thinking and values with the times, continuously evolving and improving in step with contemporary developments. This innovative approach has revitalized the way all Pengfei employees think and act, thereby enhancing intrinsic safety. As one person aptly put it, this effort purifies minds, beautifies the environment, safeguards health, and protects lives.

Pengfei’s vision of “innovation by all, innovation across the board” has harnessed the collective power of every employee, injecting robust new momentum into the company’s growth.

“Innovation by all, innovation across the board” means that every employee, in alignment with their own role, can submit innovation proposals—whether aimed at cost reduction, skill enhancement, or equipment improvement. Following submission, the Group awards those proposals based on their feasibility and strategic value, while leveraging effective platforms such as the 13 employee‑led innovation studios led by Li Xiaodong, Li Yongling, Suo Shengfu, and others to comprehensively strengthen employees’ innovative capabilities. This approach contributes both wisdom and effort to the company’s overarching strategic objectives, ensuring that enterprise‑wide innovation becomes standardized and an ongoing practice.

 

 

To ensure that innovation is fully integrated and meticulously implemented across the entire workforce, Pengfei has linked its recognition of outstanding work teams with innovative initiatives. At each coal‑mining unit, it has launched a campaign to “compare cutting rates and advance per shift, and benchmark energy consumption and innovation every day,” ultimately achieving consistently high‑quality coal production and stable daily output, thereby enabling the mines to maintain steady, forward‑moving operations. Meanwhile, QC (Quality Control) teams have been established at all surface production units; addressing existing challenges, these teams—ranging from “on‑site” to “innovation‑focused”—have refined processes, developed new technologies, and pursued goals of precision management, energy conservation, and cost reduction, thus boosting the enthusiasm and initiative of industrial workers and unleashing their creativity.

Take Pengfei’s annual “Five Smalls” innovation competition for employees, for example. Open to all staff, the initiative encompasses not only frontline production units but also functional departments such as finance—and even cooks and janitors are welcome to participate. Industrial workers are encouraged to turn their innovative ideas into PowerPoint presentations, take to the stage to showcase and explain their projects, and receive recognition and rewards based on on‑site scoring by a panel of judges. This approach not only fosters a vibrant stream of grassroots innovations but also provides frontline employees with opportunities for skill development, training, and professional growth.

 

 

To date, Pengfei’s “Five Smalls” innovation initiative has engaged a cumulative total of 90,000 employees, yielding more than 12,000 innovative outcomes and generating economic benefits exceeding RMB 800 million. Thanks to the impact of this employee‑driven “Five Smalls” innovation program, Pengfei has hosted the Xiaoyi City Coking Industry Skills Competition for three consecutive years, enabling 2,921 workers to upgrade their skills and promoting over 500 individuals to team leaders and section‑level managerial positions; additionally, more than 30 employees, including Li Xiaodong, have been advanced to management roles. Furthermore, Pengfei has pioneered a dual‑track compensation system, offering career advancement through both managerial and technical pathways, thereby breaking the traditional “glass ceiling” that previously limited upward mobility for industrial workers.

For 30 years, Pengfei’s corporate culture has thrived through both inheritance and innovation, with each step of progress reinforcing its enduring spirit. Like nourishing dew and sweet nectar, it has watered the hearts of every Pengfei employee, enriching their inner ethos and becoming the very root and soul of the company. It guides them to constantly surpass themselves, to forge ahead with courage and determination, and to shoulder great responsibilities—always keeping pace with the times and leading the way.

Over the past 30 years, steeped in Pengfei’s corporate culture, innovation has become ingrained in the very essence of each generation of Pengfei employees—transforming into a conscious drive and an inexhaustible source of momentum and enduring spiritual wealth that underpins the company’s continued prosperity.

 

 

Conclusion

Over the past 30 years, Pengfei has continuously transformed, diversified, and grown—moving from traditional energy to new energy, from established industries to emerging ones, from black‑carbon‑intensive sectors to green technologies, and from high‑consumption models to low‑carbon pathways—paving a path of sustainable, high‑quality development.

Over the past 30 years, Pengfei has kept pace with the times, boldly reinvented itself, and courageously accelerated the unleashing of innovative momentum, achieving continuous breakthroughs and deepening its impact. With the bold brush of innovation, it has painted a magnificent and inspiring panorama of unwavering progress.

Standing at a new era and a new starting point, Pengfei is seizing the opportunities of the new stage of development, implementing the new development philosophy, and forging a new development pattern, thus embarking on a fresh journey.

“Today’s brilliance is seen in Pengfei’s soaring achievements”—setting benchmarks, standing at the forefront, and serving as a model to follow. “Growing stronger with each passing day, thriving year after year” means keeping pace with the times, forging ahead on Pengfei’s path, and walking well the journey of every member of the Pengfei family.

“Striving for first place and benchmarking against the world” is the bold declaration of the Pengfei team as they embark on a new era and a new journey.

“Only through innovation and relentless striving can we live up to this great era,” is the resounding call of the Pengfei people.

We firmly believe that, riding the powerful winds of our times and wielding innovation as the “key” to high-quality development, Pengfei will surely spread its wings and soar across the land of Shanxi and throughout the vast expanse of China.

(Article published in Shanxi Workers’ Daily, January 12, 2024, pages 2 and 3)