The director of Fortune 500 conglomerate China National Machinery Industry Corporation (Sinomach), Xu Jian, met with the heads of three of the corporation’s subsidiaries from Aug 17 to 19 in Shaanxi province to discuss the companies’ annual work plans.

Top of the agenda were discussions about the subsidiaries’ operations, research and development and management issues amid a challenging economic climate.

Xu urged the subsidiaries to focus on innovation and transformation next year to overcome these difficulties, according to reports.

He also suggested that they improve their talent cultivation systems and adjust their capital structures to avoid potential financial risks.

Sinomach is a State-owned enterprise established in 1997, whose operations span mechanical equipment manufacturing, project contracting, trade, services and other sectors. It has three subsidiaries in Shaanxi province, namely China United Northwest Institute for Engineering Design & Research, China Jikan Research Institute of Engineering Investigation and Design, and China National Heavy Machinery Research Institute.