On June 30, the Group’s 13th Shareholders’ Meeting was held in the Headquarters Conference Hall, with a total of 31 registered shareholders in attendance. The meeting was chaired by Chairman Zhang Xiangyang.

　　Chairman Zhang Xiangyang delivered the 2016 Board of Directors Work Report to the assembly, stating that in 2016, despite a complex and volatile domestic and international economic environment and sustained downward pressure on the industry, the Group, under the wise leadership and steadfast support of the Municipal Party Committee, the Municipal Government, and the relevant competent authorities, accurately grasped the new normal, focused on improving quality and boosting efficiency, adhered to transformation and upgrading as the central theme, took accelerating structural adjustment as the main thread, and maintained the overarching principle of seeking progress while ensuring stability. Through concerted efforts, relentless striving, and overcoming numerous challenges, the Group successfully fulfilled all its economic and technical targets and work assignments for 2016, sustained steady and healthy corporate development, and achieved a strong start to the 13th Five-Year Plan period.

　　I. Steady Growth in Operating Performance

　　The enterprise demonstrates sound economic performance: despite the overarching industry-wide decline in overall volume, it recorded new contract awards totaling RMB 13.296 billion for the year, up 8.73% year on year; revenue reached RMB 15.955 billion, an increase of 4.39%; settled revenue amounted to RMB 16.031 billion, up 27.81%; and total profits and taxes exceeded RMB 800 million, with a continuously improving profit structure. The company has successively been honored as one of ENR’s Top 250 Global Contractors, one of China’s Top 80 Contractors, one of China’s Top 100 Most Competitive Construction Enterprises, one of China’s Top 500 Private Enterprises, a National Outstanding Construction Enterprise, and one of Jiangsu Province’s Top 100 Most Competitive Construction Enterprises. The company’s contribution to local economic development has steadily increased; in 2016, it was recognized as one of the Top Ten Tax and Fiscal Contributors in Chongchuan District, Nantong City, ranking seventh.

　　II. Demonstrable Results in Market Development

　　Throughout the year, the company undertook a total of 405 domestic projects, with contracted project value increasing against the market trend. The North China market—represented by Beijing, Tianjin, and Hebei; the East China market—represented by Shanghai, Nanjing, Wuxi, and Nantong; and the South China market—represented by Hainan and Guangdong—all maintained steady progress. Eight branch offices exceeded their annual business targets, with the Beijing Branch, the Installation Branch, and the Hainan Branch each achieving record-high levels of new contract value for the year. The Beijing Branch’s annual new contract value surpassed RMB 4 billion; the Third Branch actively expanded into markets outside its home region and successfully secured the Zhejiang Wenzhou WM New Energy Intelligent Vehicle Project, with a contract value of RMB 700 million. Overseas, the company undertook a total of 12 projects, with the Zimbabwe market demonstrating strong growth momentum: among non-Chinese aid-funded engineering contracts in Zimbabwe, our company ranked first in both the number of projects and the total contract value among all Chinese engineering contractors. The company’s first overseas four-star business hotel invested in Sudan—the Sudan Nantong Hotel—has grandly opened and is currently operating well. Registration in Ethiopia has been largely completed, and the company has successfully won its first tender for a 200,000-cubic-meter earthworks project for a Chinese-owned ceramics company in Ethiopia. Construction on ongoing projects in Senegal and Tanzania is progressing smoothly, while the Mozambique market continues to make incremental gains amid challenges. Meanwhile, overseas markets are actively extending their reach into neighboring regions, ensuring steady and orderly market expansion.

　　III. Steady Improvement in Management Level

　　The entire company has responded proactively to the national tax reform shifting from business tax to value-added tax, transforming its mindset, clarifying responsibilities, and making vigorous arrangements while pooling collective efforts to carry out all tasks in a solid and systematic manner. This ensured a smooth transition between the old and new tax systems and the comprehensive and successful implementation of the business-tax-to-VAT reform. The company also completed the reissuance of business licenses under the “three-in-one” certificate system and the re-certification of qualifications, thereby creating the necessary conditions for successfully applying for general contracting qualifications for power engineering construction. As a result, the company’s business operations and market conduct have been further standardized and rectified, with remarkable results in credit evaluation management: in the first half of 2016, the Nanjing branch achieved a perfect score in its credit evaluation, ranking first among 3,391 residential construction firms in the Nanjing market; meanwhile, the Group was awarded, for the first time by the State Administration for Industry and Commerce, the title of “Contract-Abiding and Credit-Respecting Enterprise,” and was also recognized as a “AAA-rated Credit Enterprise” in the 2016 Corporate Credit Evaluation and as a “Model Enterprise for Integrity in China’s Engineering Construction.”

　　Significant efforts were made to conduct comprehensive project management planning, and standardized on-site construction management was further advanced, leading to marked improvements in foundational management, team building, refined management practices, and risk control capabilities. The company’s integrated quality, environmental, and occupational health and safety management system is operating smoothly, with both contract performance and quality compliance rates reaching 100%. Overall, the workplace safety situation remains stable and under control, with no major or above-level work safety incidents occurring throughout the year. A total of 32 provincial-level or higher “Civilized Construction Sites” (and “Customer-Satisfied Projects”) and 39 municipal-level Civilized Construction Sites were recognized, and the company was awarded the title of “Advanced Unit for Work Safety in the Construction Industry of Jiangsu Province” for 2016. Notable achievements were also attained in quality improvement, with 12 provincial-level high-quality projects and 28 municipal-level high-quality projects completed; the electromechanical and fire protection works for the IKEA Home Furnishings Mall in Xi’an, undertaken by the Installation Company, received the China “Installation Star” Award; and the interior decoration project for the Emergency Department and Internal Medicine Wards of the First People’s Hospital of Huai’an, executed by the Decoration Company, was honored with the “China Construction Engineering Decoration Award,” in addition to securing two more provincial-level high-quality decoration projects.

　　IV. Continuous Improvement in Team Quality

　　Throughout the year, the company recruited a total of 49 college graduates, conferred one researcher-level senior professional title, 10 senior professional titles, and 53 intermediate professional titles, and added 36 registered Grade-I Construction Engineers and 81 registered Grade-II Construction Engineers. By the end of 2016, the company had 20 researcher-level senior professionals, 147 senior professionals, 298 intermediate professionals, and 598 junior professionals; it also had 286 Grade-I Construction Engineers and 294 Grade-II Construction Engineers, thereby providing robust talent support for the company’s structural adjustment and transformation and upgrading.

　　V. Abundant Achievements in Scientific and Technological Innovation

　　Over the past year, the Group has continued to vigorously implement its strategy for technological innovation and IT development, comprehensively advancing the overall progress of these initiatives with remarkable results and substantial achievements. Specifically, the Group has obtained four national invention patents and three utility model patents; been recognized as one National Outstanding QC Team, five Provincial Outstanding QC Teams, and 31 Municipal Outstanding QC Teams; and completed four demonstration projects for the application of new technologies. In addition, the Research Institute has successfully concluded the Ministry of Housing and Urban–Rural Development–approved research project on “Mechanisms Underlying the Enhanced Durability of Recycled Concrete and Its Service-Life Prediction.” The Group’s BIM Technology Center was established and has actively conducted staff training and related technical research. Furthermore, the BIM-based MEP and fire protection engineering project for IKEA Home Furnishings in Xi’an won the “Best Application Expansion Award” at the inaugural Jiangsu Province Installation Industry BIM Technology Competition, while the BIM-enabled fine-decoration project for the office tower of Tianjin Baoli Building secured the second prize in the Tianjin “Haihe Cup” Construction Engineering BIM Application Competition. Significant progress has also been made in IT infrastructure development: the Company Information Center’s server room has undergone a comprehensive upgrade and renovation; the Group’s video-conferencing system has been officially launched and is now in operation; the Group’s NC financial management system, EHR human resources management system, and OA collaborative office system have all been continuously refined and improved; and the preliminary requirements modeling and software development phases for the PM integrated project management information system have been completed ahead of its go-live.

　　VI. Steady Progress in Structural Adjustment

　　In response to the development requirements of the prefabricated construction industry, the company has conducted multiple site assessments and comparative evaluations for the establishment of an industrialization base. Ultimately, it decided to partner with leading companies in the industry to jointly invest in and establish Nantong Modern Construction Industry Development Co., Ltd., and the base construction has now entered the preliminary planning and implementation phase. At the same time, the company has actively undertaken research on prefabricated construction technology systems, cultivated a team of skilled technical and management professionals in this field, and achieved a breakthrough by successfully implementing prefabricated construction for the first time in a school project in the New Area.

　　We are proactively responding to the advent of the PPP model era by diligently organizing study sessions on the national policies and regulations governing the implementation of PPP projects, arranging for staff to participate in specialized PPP training programs, and establishing a dedicated PPP Project Development Leading Group and a corresponding working group to ensure thorough preparation for the successful execution of PPP projects.

　　VII. Continuous Strengthening of Cultural Development

　　The entire company has earnestly studied and implemented the spirit of the 18th National Congress of the Communist Party of China, the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee, as well as the important speeches of General Secretary Xi Jinping. In-depth study and education under the “Two Studies, One Action” campaign have been carried out to enhance the political awareness, overall-consideration awareness, core awareness, and alignment awareness of Party members and cadres, strengthen their ideals and convictions, ensure their loyalty to the Party, foster a clean and upright atmosphere, encourage them to step up and take responsibility, and fully bring their exemplary and leading roles into play. As a result, Party building has been further strengthened, rallying the wisdom and strength of the entire company and providing new spiritual impetus for structural adjustment and transformation and upgrading. Meanwhile, efforts to build and consolidate the corporate culture platform have been intensified, with the Nantong Construction Engineering News and the company’s official website respectively receiving the “National Engineering Construction Industry Newspaper Silver Page Award” and the “Outstanding Website” honor.

　　Chairman Zhang Xiangyang also reported on the company’s 2016 financial performance, investment activities, the Board’s day-to-day operations, and the implementation of resolutions passed at the Shareholders’ Meeting. He further highlighted the principal challenges and issues currently facing the company’s development:

　　1. As the economy enters a new normal, the pressure and challenges of sustaining the continuous and healthy development of enterprises are steadily increasing;

　　2. The traditional engineering contracting business model is facing severe challenges;

　　3. Following the implementation of the “business tax to VAT” reform, corporate management is facing severe challenges;

　　4. The quantity and structure of talent fail to meet the needs of enterprise development; in particular, there remains a severe shortage of business management professionals, investment and financing specialists, project managers with strong integrated capabilities, innovation-driven talent, internationally oriented professionals, and highly skilled workers.

　　5. Risks still exist in areas such as work safety and business management.

　　In his report, Chairman Zhang Xiangyang outlined the overall work plan for 2017 as follows: fully implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee; adhere to the general principle of seeking progress while maintaining stability; center on enhancing the quality and efficiency of development; maintain strategic resolve and strengthen resilience in development; leverage competitive advantages and consolidate the foundation for development; uphold innovation-driven development to facilitate transformation and upgrading; improve internal control systems and reinforce risk management and control; strengthen team building to stimulate organizational vitality; and enhance corporate culture to promote the enterprise’s sustained and healthy development.

　　Key economic indicators and work objectives for the Group in 2017: contract value signed of RMB 13 billion; total turnover of RMB 12 billion; main business revenue of RMB 10 billion; total profit of no less than RMB 150 million; eight provincial-level high-quality projects; 12 municipal-level high-quality projects; four provincial-level specialized high-quality projects; two invention patents; four utility model patents; one provincial-level construction method; two provincial-level demonstration projects for the application of new technologies; two provincial-level QC achievements; 12 municipal-level QC achievements; and zero major or above accidents in production safety, with the frequency of minor injury accidents controlled below 1.5 per thousand.

　　With the above-mentioned objectives in mind, Chairman Zhang Xiangyang emphasized in his report that priority should be given to the following six areas of work:

　　I. Strengthen business development and strive to expand market share

　　Align with market dynamics, respond to market demands, proactively seize the new opportunities presented by national development strategies, focus on key priorities, deploy targeted efforts, expand market growth, and elevate the quality of development.

　　1. Actively develop the domestic market and increase market share. Based on an analysis of both internal and external conditions, we will continue to deepen our engagement in traditional core markets; for existing high-potential markets, we will promptly strengthen our operational capabilities, intensify market development efforts, and boost market share. At the same time, we will closely align with the nation’s major strategic initiatives—namely the “Four Major Regional Coordinated Development Zones” (eastern, central, western, and northeastern regions), the Belt and Road Initiative, the Beijing–Tianjin–Hebei Coordinated Development Strategy, the Yangtze River Economic Belt, and the Pearl River Economic Belt—seize the opportune window of opportunity, take proactive measures, accelerate our market deployment in these key regions, expand our geographic footprint, and achieve new breakthroughs in cultivating new business lines, implementing innovative business models, and enhancing new growth drivers.

　　2. Actively and prudently expand overseas markets. Adhere to the “going global” strategy, guided by the principles of “proactive market development, prudent selection, and performance-oriented approach.” Seize opportunities, leverage partnerships to enter foreign markets, increase our presence in key locations, actively bid for overseas aid projects, and develop new markets. Strive to increase the proportion of projects in construction sectors beyond residential building, continuously enhancing the company’s overall competitiveness.

　　3. Actively implement the key-account strategy. On the one hand, we must proactively maintain relationships with existing key accounts, strengthen collaborative partnerships, establish dedicated follow-up teams, place a strong focus on customer needs, enhance our service delivery, explore opportunities to expand into new projects, and maximize the outcomes of our collaborations. On the other hand, we should closely monitor potential future key accounts, make every effort to identify entry points for collaboration, establish appropriate liaison mechanisms at the right time, assemble dedicated teams, clearly define roles and responsibilities, develop and implement robust follow-up frameworks, and concentrate on cultivating a portfolio of new, sustainable key accounts with stable, recurring business.

　　4. Actively adjust the business structure. Vigorously develop specialized construction services, increase the share of specialized projects in installation, interior decoration, steel structures, and other areas, and simultaneously expand into new fields such as municipal engineering, new-energy projects, environmental protection projects, underground utility tunnels, and sponge-city initiatives; create conditions to increase the proportion of directly managed projects, improve project profit margins, and strengthen the core competitiveness of the company’s principal business.

　　5. Actively promote the transformation of our business model. We must enhance our capabilities in research and practical application. Adopting an iterative mindset, we should proactively identify and study new challenges arising in our work, boldly put new ideas into practice, and strengthen our market innovation capacity—with a particular focus on EPC and PPP projects. At the same time, we need to improve our ability to secure financing, execute construction projects, ensure contract compliance, and effectively organize resources for large-scale projects, thereby bolstering the company’s capacity to operate across the entire industrial value chain.

　　II. Rigorously Ensure Accountability and Enhance Quality and Safety Standards

　　1. Improve the enterprise’s quality and work safety management system

　　Strictly implement the company’s system of safety production responsibility lists, ensuring that “duties are fulfilled as listed, liability is waived; failures to fulfill duties as listed, liability is pursued.” All units, departments, and personnel at every post must clearly define their respective safety production responsibilities and ensure these responsibilities are rigorously and effectively carried out, with strict prevention of any breaches of trust in safety production. Strictly enforce the lifelong accountability system for engineering quality. Further refine the lifelong accountability system for engineering quality, rigorously implementing mechanisms such as written commitments to lifelong quality responsibility, permanent identification signs, and comprehensive quality information archives, while intensifying efforts to hold parties accountable for quality-related violations.

　　2. Enhance the safety competence of all employees

　　Earnestly study General Secretary Xi Jinping’s important speeches on work safety and the spirit of recent national documents on work safety, so as to enhance all employees’ awareness of work safety and improve the level of work-safety management. Attach great importance to safety training and education for frontline workers, with particular emphasis on strengthening training in the safe management of lifting equipment, addressing existing weaknesses, and comprehensively enhancing the ability to fulfill work-safety responsibilities.

　　3. Enhance project safety and quality management

　　Enhance the intrinsic safety of construction operations. Conduct in-depth safety planning and standardized performance evaluations for projects, comprehensively advance the standardization of work safety, strengthen management throughout the entire production process, continuously review and analyze the lessons learned from and underlying patterns in industry-wide work-safety accidents, and comprehensively elevate the level of preventive and control measures for work safety.

　　Promote the standardization of engineering quality management. Enhance the engineering quality control system, establish standardized quality management systems and evaluation frameworks, and advance the standardization of quality-related management practices as well as the standardization of quality control for physical project components. Launch demonstration initiatives for standardized engineering quality management and implement a model-led approach. Develop and widely disseminate concise, practical, and easily enforceable job-specific standardization manuals to ensure that quality responsibilities are assigned to specific individuals.

　　III. Enhancing Technological Capabilities and Promoting Enterprise Transformation and Upgrading

　　Promote scientific and technological innovation to deeply drive the creation of a new engine for development. Formulate medium- and long-term strategies for scientific and technological innovation centered on the core business, focusing on the promotion and application of national-level construction methods, demonstration projects for green construction, and the creation of high-quality projects. Increase investment in scientific and technological resources, enhance our “industry–university–research” capabilities, establish and refine corporate mechanisms for incentivizing research and innovation, and thereby advance both technological progress and management innovation within the enterprise. This will help us develop proprietary technologies, cultivate specialized construction advantages, and secure independent intellectual property rights. Proactively align with the trend toward a low-carbon economy by actively conducting research on prefabricated building construction technology systems, cultivating a pool of skilled professionals in prefabricated construction management, and, building on the successful completion of prefabricated school construction in the New Area, systematically summarizing and refining PC-component prefabricated construction techniques to initially develop a comprehensive set of internal technical procedures. Furthermore, organize BIM Center personnel to continue advancing the detailed design of PC components, providing robust technical support for future prefabricated construction projects; accelerate the establishment of an industrialized construction base; and vigorously develop and apply energy-saving, land-conserving, water-saving, material-saving, as well as smart and environmentally friendly technologies. Continue to provide BIM training for staff and deepen research, promotion, and application of BIM technology. On the basis of further improving the integration of OA office, financial, and human resources systems, expedite the implementation of a comprehensive project management information system to move project management toward greater precision and sophistication. Promote the use of the “Zhucaili” e-commerce platform for procurement of materials and equipment, thereby enhancing procurement efficiency, reducing costs, and striving to leverage science, technology, and informationization to drive the enterprise’s transformation and upgrading.

　　IV. Strengthening Basic Management and Enhancing Corporate Governance Capabilities

　　To establish a sound internal control system and refine internal control procedures, it is essential to clearly define risk-management responsibilities at each of the three levels—decision-making, execution, and operations—and to delineate the risk-management functions and authorities delegated to each functional department and individual position within the company. By assigning specific risk-management duties and authorities to particular roles and individuals, risk management can be effectively embedded in every position and carried out by the appropriate personnel, thereby building a multi-tiered, multi-layered risk-management defense system that ensures the healthy operation of the enterprise. Specifically, this can be achieved through the following measures: First, strengthen operational control. This involves managing risks at the source by rigorously implementing tendering and bidding review and contract review procedures, improving the customer evaluation system to enhance review quality, reinforcing the management of seals and licenses, and steadfastly maintaining tight control over risk entry points. Strict limitations must be imposed on awarding contracts to the lowest-bidder and on projects with financial risks; no projects priced below cost shall be accepted. At the same time, thorough due diligence must be conducted on the integrity, financial strength, and managerial capabilities of partner teams to minimize decision-making risks associated with undertaking project assignments. Furthermore, efforts should be intensified to build a robust system for ensuring honest performance of contractual obligations, strictly manage the use of official seals at project sites to prevent credit risks, standardize model texts for all types of economic contracts to mitigate contractual risks, and ensure compliance with these measures. Second, strengthen production control, with a focus on project performance. Implement full-lifecycle performance assessments for projects, reinforce control over both processes and sources, ensure meticulous pre-project planning, carefully select and effectively manage subcontractors, place safety at the top priority in on-site management, integrate quality throughout the entire construction process, and rigorously guard against risks related to quality, safety, and schedule during production, so as to guarantee comprehensive project fulfillment. Third, strengthen financial management by standardizing financial accounting practices; enhance tax-risk management by adopting a management model that combines tax-risk assessment and analysis with on-site verification; pay close attention to exchange-rate risks to effectively mitigate investment risks; and tighten control over the asset–liability ratio and operating cash flow, ensuring scientific resource allocation and efficient capital turnover to maintain stable financial operations. Fourth, strengthen project-cost control by integrating cost, contract, production, and financial management. Based on target-cost budgeting, using cash inflows and outflows as control points, and focusing on actual expenditures for key cost elements, we will improve production factors that are no longer aligned with development through organizational management, concentrate on critical links, and make concerted efforts across multiple areas—including bulk-material procurement and specialized labor subcontracting—to reduce resource-costs. Comprehensive process-cost control will be strengthened to cultivate a cost-competitive advantage, and continuous pursuit of excellence will drive lean value creation. Fifth, strengthen legal-risk prevention by establishing a comprehensive legal-risk-prevention system that emphasizes proactive measures to reduce legal vulnerabilities, accelerates the clearance of litigation cases while placing equal emphasis on source-level oversight, enhances legal guidance and services, and raises both the level of legal-risk prevention and the capacity to handle legal disputes.

　　V. Strengthen Team Building and Unleash the Vitality of the Talent Pool

　　The company will continue to invest heavily in talent acquisition, development, and deployment, with the goal of building a professional workforce that is capable, accountable, and results-oriented, thereby breaking through the talent bottleneck hindering corporate growth. In terms of talent acquisition, we will adopt a dual approach of campus recruitment and external hiring, employing an open and flexible selection process to attract top talent and allocating resources to the fullest extent to draw from a broad pool of candidates. For talent development, we will leverage the expertise of internal specialists and technical leaders, offer internal open courses, and make full use of digital platforms to enhance online training and improve learning efficiency. Newly promoted managers in recent years will receive targeted training to help them quickly transition into their new roles and meet job requirements. Regarding talent utilization, we will strengthen the optimal allocation of human resources and promote the rational and orderly internal mobility of talent, including implementing domestic and international job rotation programs to cultivate and hone our teams. We will also innovate our talent policies, focusing on boosting productivity and aligning incentives and compensation structures with the company’s specific circumstances to create reward systems tailored to our business model. Furthermore, we will refine our employee performance appraisal and evaluation mechanisms and design diversified incentive packages—incorporating salary, benefits, career development planning, training, and corporate culture—to enhance the company’s attractiveness, retain high-caliber talent, and attract outstanding professionals from across the industry. Our aim is to provide opportunities for those who are motivated to act, platforms for those who are capable, and recognition for those who deliver results. We will actively guide employees to enhance their capabilities through a combination of learning and practice, to achieve personal growth through meaningful contributions, to sustain their passion by embracing self-imposed challenges, and to cultivate a strong work ethic by fulfilling their duties and responsibilities. All subsidiaries and project offices are encouraged to think boldly, take greater responsibility for talent development, commit fully to nurturing talent with dedication, and provide robust humanistic support to strengthen employees’ sense of belonging and commitment to the company.

　　VI. Strengthen Cultural Development to Promote the Healthy Growth of Enterprises

　　It is essential to innovate and strengthen the guiding role of Party building and corporate culture development in the new era: by bolstering Party building, we can promote a sound work style; by advancing corporate culture, we can drive and lead enterprise development, making corporate culture an integral part of the company’s core competitiveness. We must continue to study and implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th CPC Central Committee, as well as the important speeches of General Secretary Xi Jinping; consolidate and build upon the achievements of the “Two Studies, One Action” learning and education campaign; closely align Party building with the realities of enterprise reform and development; fully leverage the vanguard and exemplary roles of Party members and the fighting fortress role of Party organizations at all levels; and provide robust organizational and ideological guarantees for the restructuring, transformation, and upgrading of enterprises. We will also strengthen the Nantong Construction Engineering News and the official website, enhance the depth and breadth of the newspaper, intensify exchanges and mutual learning, and raise our profile within the industry. Furthermore, we will launch a wide range of corporate culture-building activities, vigorously cultivate and practice socialist core values, guide employees in fostering sound professional ethics, observing discipline, and upholding ethical red lines. Corporate culture publicity should disseminate positive energy, champion the mainstream narrative, and strive to create a harmonious atmosphere characterized by integrity, fairness, and collaborative pursuit of development, thereby uniting the wisdom and strength of all employees in the great endeavor of “adapting to the new normal, forging new advantages, reaching new heights, and achieving new accomplishments.”

　　In his concluding address, Chairman Zhang Xiangyang urged that only with clear goals to guide us can we set sail and journey far. We must remain steadfast in our confidence in reform and development, continuously break through developmental bottlenecks, emancipate our minds, unite as one, face challenges head-on, and rise to meet difficulties. Let us stay true to our original aspiration as we embark on a new journey, roll up our sleeves, work hard, and strive tirelessly for a brighter future for our enterprise!

　　At the shareholders’ meeting, Li Weidong, Chairman of the Supervisory Board of the Group Company, delivered the “2016 Annual Report on the Work of the Supervisory Board.”

　　By a show-of-hands vote, the General Meeting reviewed and approved the “2016 Board of Directors Report,” the “2016 Supervisory Board Report,” the “2016 Financial Settlement and 2017 Financial Budget Report,” the “Report on the Proposed Profit Distribution for 2016,” the “Proposal on the Valuation of the Equity Transfer in 2016,” the “2017 Business Plan,” and the “Resolutions of the 13th Shareholders’ Meeting.” (Chief Engineer’s Office, Huang Jing)