On June 27, the Group’s 16th Shareholders’ Meeting was held in the Headquarters Conference Hall, with a total of 30 registered shareholders in attendance. The meeting was chaired by Chairman Zhang Xiangyang.

Chairman Zhang Xiangyang delivered the 2019 Board of Directors Work Report to the assembly. He stated that, over the past year, in the face of a complex situation characterized by markedly heightened risks and challenges, the Party Committee, the Board of Directors, and the General Manager’s Office of the Group led all cadres and employees in earnestly studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 19th National Congress of the Communist Party of China. Adhering to the overarching principle of seeking progress while maintaining stability, they conscientiously put into practice the new development philosophy, firmly grasped the fundamental requirement of high-quality development, surmounted difficulties and tackled tough problems, and made vigorous efforts to effectively respond to the profound changes in the construction market environment and the associated risks and challenges. As a result, the Group successfully fulfilled all its economic and technical targets and work assignments for 2019, thereby sustaining a favorable momentum of healthy and sustainable corporate development.

I. Review of 2019 Work

(1) Record-breaking operating performance. Throughout the year, the value of newly signed contracts reached RMB 20.642 billion, up 2.94% year on year; operating revenue totaled RMB 20.286 billion, an increase of 7.35% year on year; settled revenue amounted to RMB 14.574 billion, up 13.36% year on year; and total profit reached RMB 361 million, a rise of 18.36% year on year.

(2) New achievements have been made in market development. Throughout the year, the company won a total of 432 projects with a combined gross floor area of 6.04 million square meters, and the value of newly signed contracts once again exceeded RMB 20 billion. The Beijing Branch secured new contracts worth over RMB 6 billion, including the second phase of the Beijing Donghai Garden project, which has a gross floor area of 250,000 square meters and a contract value of RMB 1.463 billion—the highest-value project the branch has ever won since its establishment. The Nanjing Branch recorded new contract values exceeding RMB 3 billion; the Third Branch exceeded RMB 2 billion; and both the Wuxi Branch and the First Branch each secured new contracts worth more than RMB 1 billion. Meanwhile, the company’s market share in specialized construction areas such as installation and interior decoration has grown steadily, with the Installation Branch recording new contract values of over RMB 1.2 billion for two consecutive years. In addition, the International Engineering Company has consolidated and expanded its position in the foreign-invested engineering sector. While maintaining the company’s existing qualification system, the company has actively pursued applications for additional qualifications and successfully obtained general contracting qualifications for mechanical and electrical installation as well as petrochemical engineering construction, thereby creating favorable conditions for market expansion and the optimization of the company’s professional structure.

(3) New breakthroughs were achieved in the implementation of the “Going Global” strategy. The first and second units of the PT OSS Power Plant project for Indonesia’s Delong Nickel Industry have been fully completed and handed over, while the main structural work on the third unit has been finished; additionally, the company has secured a new civil engineering contract for Phase III of the power plant, with a contract value of RMB 120 million. The company also successfully entered the Sri Lankan market, winning the bid and undertaking the civil engineering and landscaping works for the China Communications Construction Colombo Port City project, valued at nearly USD 10 million. At the same time, through active collaboration with China Harbour Engineering Company, the company has successfully undertaken the construction of two 37-story apartment buildings in Colombo and is participating in the bidding for the import cargo storage and handling building at Colombo Airport, with good prospects of securing the civil engineering contract. Furthermore, the company has opened up the UAE market and obtained the award letter for the 19-story Platinum Tower project in Dubai. Despite adverse conditions such as political instability and soaring prices, the Sudan branch has secured three new projects, including the Saudi Sudan Bank project; the Nantong Hotel in Sudan is operating normally and has generated a profit of USD 250,000. The Mozambique branch has signed six new contracts, totaling nearly USD 10 million; the Ethiopia office has secured the contract for the expansion of the Beres No. 1 Sugar Factory, with a contract value exceeding RMB 100 million; the Senegal office has won the bid for Huawei’s Smart Rural project; and the maintenance project for the China Government–Mauritania Friendship Hospital, undertaken by the company, was completed ahead of schedule and handed over on March 31, 2020. Meanwhile, the Zimbabwe branch and the Tanzania office have remained committed to their respective markets and actively participated in tendering activities, despite extremely challenging operating conditions.

(4) Comprehensive risk prevention and control: new measures introduced. A “Year of Risk Prevention and Control” campaign was carried out in a solid and thorough manner. The Group established a Leading Group for Preventing and Resolving Major Risks and issued a series of documents, including the “Ten Provisions on Preventing and Resolving Major Risks” and the “Regulations on the Management of Seal Usage,” while convening special meetings to make comprehensive arrangements and deployments for this work. All subsidiaries also took proactive steps to fully implement the spirit of these special meetings; the vast majority signed the “Project Management Responsibility Letter under the Full-Cost Contracting Economic Accountability System” and the “Legal Liability Commitment Letter” with contractors in accordance with the requirements of the “Two Letters and Two Measures,” and conducted performance assessments and scoring of full-cost contractors. At the same time, contract review for engineering projects and seal management were strengthened to prevent major operational risks at the source. In response to the prominent operational risk issues at the Suzhou Branch, the Group set up a special task force led by the responsible executive, which was dispatched to the branch to conduct a comprehensive inspection of key high-risk projects, thoroughly ascertain the underlying situation, assist in formulating risk-mitigation plans, and make every possible effort to contain and resolve existing operational risk hazards. Furthermore, the company’s safety management system was refined and improved through the development of the “System for Identifying and Addressing Potential Accident Hazards” and the “Management System for Tiered Control of Safety Risks,” along with the introduction of ten zero-tolerance requirements for safety management, thereby enhancing all employees’ awareness of safety risk management and ensuring that safety production management responsibilities are fully assigned and enforced at all levels. A comprehensive review of the enterprise accounting system and tax regulations was conducted, resulting in the formulation of Group-wide financial accounting standards that comprehensively standardize accounting subjects, supporting documentation requirements, and tax-risk-related matters in financial audits. Efforts were also continued to strengthen the integration of the four flows—contract flow, goods flow, capital flow, and voucher flow—and the integration of the three certificates—legal, accounting, and voucher—to minimize fiscal and tax risks to the greatest extent possible.

(5) Further elevating foundational management. The company has continuously strengthened its foundational management and rigorously implemented targeted initiatives to enhance management practices. By reinforcing technical quality control and promoting civilized construction, the Star Lake Urban Plaza Section A project of the Third Branch Company was awarded the National Quality Engineering Award; in addition, seven provincial-level quality projects and four provincial-level quality structural projects were recognized, along with six municipal-level quality projects and 11 municipal-level quality structural projects. The Decoration Company and the Installation Branch each received one “Yangzi Cup” award for outstanding projects. Furthermore, 15 provincial-level and 24 municipal-level model construction sites were established. The company’s integrated management system for quality, environment, and occupational health and safety is operating smoothly, with both contract performance compliance and quality pass rates reaching 100%.

(6) New progress was made in building the talent pool. Throughout the year, a total of 68 graduates from colleges and universities were recruited, 28 employees obtained senior professional titles, and 83 obtained intermediate professional titles. The registration examination for construction engineers yielded substantial results, with 65 new Grade-I registered construction engineers and 59 new Grade-II registered construction engineers added. By the end of 2019, the company had 22 researchers holding senior professional titles at the researcher level, 150 employees with senior professional titles, 322 with intermediate professional titles, and 247 with junior professional titles; it also had 363 Grade-I registered construction engineers and 304 Grade-II registered construction engineers. At the same time, the company fully leveraged salary incentives to stabilize its talent team.

(7) New highlights have emerged in technological and information-based development. The company has vigorously promoted scientific and technological innovation, achieving 5 provincial-level QC group results and 22 municipal-level QC group results for the year; securing 3 provincial demonstration projects for the application of new technologies, 1 provincial green construction demonstration project, and 2 provincial green construction projects; obtaining 1 invention patent and 3 utility model patents. The company has intensified BIM technology training and application: the BIM integrated application plan for the Development Zone Cultural and Sports Center project of the Third Branch Company won the First Prize in Nantong City’s inaugural “Jianghai Cup” BIM Technology Competition and the Third Prize in the China Construction Engineering BIM Competition; the Installation Branch has achieved full BIM coverage across all its projects; and the Beijing Branch’s Tangcheng Yiyi Phase III, Area C project has actively promoted 3D site layout planning based on project scheduling (using Pinming software), thereby exploring the development of smart construction sites. In addition, the company has implemented a highly integrated VAT management system that seamlessly links finance and business operations, piloted the NC “Secondary Funds” application system, and, in accordance with requirements for preventing and resolving major risks, streamlined and optimized business processes within the OA office system, leading to continuous improvements in financial, human resources, and office information systems. Furthermore, the prefabricated building industrialization base in which the company has invested—the Nantong Modern Construction Industry Co., Ltd. plant—has been completed and put into operation, surpassing annual production and performance targets and successfully obtaining provincial high-tech enterprise certification.

(8) New strides have been made in cultural development and brand building. The company has carried out in-depth thematic education on “Staying True to Our Original Aspiration and Keeping Our Mission Firmly in Mind,” organizing a series of activities, including mobilization meetings for the education campaign, specialized study sessions on the Party Constitution, Party regulations, Party history, and the history of the People’s Republic of China, cautionary education sessions featuring both positive and negative role models, re-affirmation of the Party membership oath, reports on exemplary deeds, and Party classes as part of the education initiative. These efforts have systematically organized and guided Party members and cadres to earnestly study and apply Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, enhancing their ability to integrate knowledge, belief, and action, strengthening their conscious commitment to staying true to their original aspiration and fulfilling their mission, and injecting powerful endogenous momentum into the enterprise’s high-quality development. At the same time, the company has fully leveraged the leading role of model pioneers, highlighting exemplary Communist Party members such as Wang Kuiqing and Ling Jinxiang to inspire all employees and cadres to strengthen their sense of mission and responsibility and to ignite their enthusiasm for work and entrepreneurship. The company also solemnly convened a conference to celebrate the 20th anniversary of the reform and development of Nantong Construction Engineering Group, thoroughly summarizing the remarkable achievements and valuable experiences gained over the past two decades, commending outstanding individuals, reaffirming the firm resolve to embark anew on the path of reform and development in the new era, and motivating all Nantong Construction Engineering employees to continue striving and creating further brilliance on this new journey of reform and development. Meanwhile, the company has strengthened its cultural infrastructure: the Nantong Construction Engineering Newspaper and the official website have respectively been recognized as an Outstanding Newspaper and an Outstanding Website in the national engineering construction industry. The company’s brand influence continues to grow; over the past year, it has successively received such prestigious honors as “Top 500 Private Enterprises in China,” “ENR Top 250 Global International Contractors,” “Top 80 Chinese Contractors,” “AAA-rated Enterprise in Corporate Credit Evaluation,” “Model Integrity Enterprise in China’s Engineering Construction Sector,” and “Top 100 Most Competitive Enterprises in Jiangsu Province’s Construction Industry.”

II. 2020 Work Objectives and Deployment

The overarching work plan for 2020 is as follows: guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, and Fourth Plenary Sessions of the 19th CPC Central Committee; adhere to the general principle of seeking progress while maintaining stability; thoroughly apply the new development philosophy; closely align with the epochal shifts in the transformation and upgrading of the construction industry; maintain strategic resolve; comprehensively fulfill the requirements for high-quality development; and place particular emphasis on stabilizing growth, enhancing quality and efficiency, strengthening rigorous management and control, cultivating talent, formulating strategies, and reinforcing Party building. Efforts will be focused on bolstering enterprises’ core competitiveness and risk-resilience, striving to ensure their sustained, steady, and healthy development, and guaranteeing the successful conclusion of the company’s 13th Five-Year Plan.

To successfully accomplish the annual goals and tasks, we must focus on the following six areas of work.

I. Focusing on Ensuring Stable Growth and Vigorously Expanding Market Opportunities

First, adopt precise strategic positioning to amplify the market’s aggregation effect. Closely align with major national regional development strategies, conduct in-depth research on regional development plans and policy orientations, pay close attention to key and high-potential cities, adhere to a “one-region-one-policy” approach, make timely and targeted adjustments to density and coverage, and strengthen site deployment and spatial planning. Second, optimize the business structure to enhance operational synergy. Clearly define direction and positioning, stay rooted in core businesses, tap the full potential of traditional markets, and wage decisive battles in core-market segments. At the same time, keep pace with mainstream trends in the construction industry, proactively serve and integrate with national strategies and economic development, closely monitor new infrastructure projects in environmental protection and municipal sectors, and engage through multiple channels in urban rail transit, integrated utility tunnels, renovation of old residential areas, urban–rural environmental improvement, healthcare infrastructure, rural environmental remediation, wastewater treatment, and waste management initiatives, thereby advancing the expansion into new lines of business. Third, adapt to new industry development models and broaden business horizons. Place particular emphasis on EPC projects, strengthen close collaboration with design firms to jointly build platforms, enhance our capacity to undertake EPC projects, and strive for breakthroughs in this field. Fourth, deepen cooperation and establish long-term strategic partnerships with strong, reputable enterprises across the industry value chain—both upstream and downstream. Uphold a win-win, collaborative mindset, facilitate the sharing of management practices, information, experience, and market access among enterprises, leverage each party’s strengths to achieve complementary advantages, and drive high-quality, high-efficiency growth through mutually beneficial outcomes. Fifth, focus on the front line and amplify brand impact. Intensify fundamental on-site management, build low-cost competitiveness, elevate the company’s brand and visibility, strengthen market influence and voice, and use a solid credit reputation to support business operations. Sixth, adopt a global outlook and enhance overseas aggregation effects. Strike the right balance between “staying true” and “embracing change”: remain steadfast in our development strategy, confidence, determination, business approach, and priority measures, while remaining flexible and adaptive in specific tactics, continuously consolidating our foothold in overseas markets and optimizing our overseas operations. Seventh, strengthen the quality of the management team, establish and refine performance incentive mechanisms, intensify efforts to cultivate managerial talent, raise the professional competence of the management workforce, and strive to build a team of managers who are well-rounded, highly skilled, passionate, and committed to taking responsibility.

II. Focusing on Improving Quality and Efficiency, with a Strong Emphasis on Enhancing Basic Management Practices

We must apply rigorous, results-oriented efforts—leaving clear marks where we strike and firm imprints where we step—to focus on key areas and weak links in management and to grasp the critical “main lever” of foundational management. We will accelerate the refinement and improvement of our institutional framework: this year, we will revise and update the Group’s standardization system documents and standardization manuals, and develop standardized operating procedures for safety technical briefings, acceptance of safety milestones, installation and lifting of large-scale machinery, erection and jacking of attached scaffolding, and layer-by-layer turnover of steel platforms. We will strengthen on-site management, drive improvements in management quality and effectiveness, and solidify the supporting foundation for high-quality development. We will reinforce process control, extending our oversight and management reach to every stage—including project bidding, cost accounting, construction organization, process control, post-project management, and final project settlement—and covering all aspects such as pre-bid planning, post-bid budgeting, management of partner teams, materials and equipment, quality and safety, environmental protection and energy conservation, and civilized construction—thereby achieving higher management efficiency and greater economic benefits. We will bolster the core workforce responsible for production control by assigning dedicated personnel to labor management, equipment management, and safety management, thus building a fully specialized engineering management team. We will continue to comprehensively promote the in-depth application of BIM technology in construction operations, advance research and technological application in prefabricated construction, and accelerate the development of smart construction sites, green construction practices, and initiatives to achieve excellence in engineering projects. We will further refine our financial systems; in the near term, we will formulate and issue the “Financial Work Standards of Nantong Construction Engineering Group” to standardize financial management processes and accounting standards, optimize the financial information system, and enhance the functions of financial management in analysis, decision support, and early warning. We will also speed up the pace of IT development and deepen the integration of information technology with enterprise management.

III. Focusing on Strict Control and Vigorously Preventing and Resolving Major Risks

(1) Focus on preventing and mitigating operational and management risks. First, rigorously select clients and projects, and strictly control the project acceptance process. Project acceptance must be carried out in strict accordance with the company’s review procedures, ensuring thorough identification, analysis, assessment, and decision-making regarding project risk factors. Particular attention should be paid to in-depth understanding and verification of the client’s creditworthiness and the measures guaranteeing the project’s funding sources. Key contract provisions, such as project pricing and payment of construction proceeds, must be carefully scrutinized, and the principle of maintaining a safety margin must be upheld. Projects should be selected rationally and prudently to effectively control operational risks at the source. Second, strictly control access to partner teams. The review system for partner teams must be rigorously enforced; any general contractor that has not undergone the required review shall be prohibited from engaging in project collaboration.

(2) Focus on preventing and mitigating workplace safety risks. It is essential to thoroughly study laws and regulations on workplace safety, thereby strengthening our sense of responsibility, urgency, and crisis awareness in this critical area. Workplace safety must be earnestly regarded as the prerequisite and foundation for enterprise development, with all planning and deployment anchored in this principle, and the bottom line of “no production without safety” rigorously upheld. Continuously optimize and improve the system of workplace safety accountability, fully implementing the requirements of “joint responsibility of Party and government, dual responsibility for each post, concerted management by all parties, and accountability for dereliction of duty,” ensuring clear assignment of responsibilities, well-defined boundaries, stringent performance assessment standards, and effective reward-and-punishment mechanisms. Great importance must be attached to the management of major hazard sources; further clarify and enforce the responsibility of all levels for identifying and addressing safety hazards, and enhance the timeliness of such identification and remediation. All branches and subsidiaries must conscientiously implement the Group’s recently issued documents, including the “Workplace Safety Accountability List,” the “Measures for Tiered Control of Workplace Safety Risks,” the “Regulations on the Identification and Remediation of Workplace Safety Hazards,” the “Regulations on Safety Management of Subcontracted Projects,” the “Ten Zero-Tolerance Measures for Workplace Safety,” and the “Ten Regulations for Preventing Falls from Heights.” Strengthen node-based management and systems thinking, adopt precision management of workplace safety, and comprehensively and throughout the entire process prevent and mitigate workplace safety risks. Continue to strengthen safety management of construction lifting equipment and of new technologies and equipment; carry out targeted rectification efforts to prevent falls from heights; reinforce management of subcontractors, particularly those designated by the employer; and further enhance general contracting management capabilities. Intensify workplace safety education and training to continuously improve workplace safety management capacity, and to raise the safety management skills and self-protection awareness of frontline managers and workers. Solidly implement epidemic prevention and control measures to build a robust “lifeline” for pandemic protection.

(3) Focus on preventing and resolving financial and tax risks. It is essential to strengthen the prevention and response to liquidity risk to ensure cash flow security; cash flow management must be made the top priority in corporate operations and management. We must return to rationality, curb the unchecked growth of promissory notes and the impulse to make indiscriminate advance payments, accelerate the collection of accounts receivable, and improve asset turnover. Project cost and fund control must be tightened, with expenditures aligned with revenue; proactive planning is required for project cost and fund management, including setting cost targets and developing detailed funding utilization plans, with strict oversight at every stage, from contract management and review of settlement and revenue reporting to payment processing. Control over guarantee-related activities must be strengthened, with rigorous adherence to the approval system to effectively mitigate associated risks. Furthermore, expenditure on administrative expenses at both corporate levels must be tightly controlled, and all levels of the company must strictly comply with the limits on administrative expenses and business entertainment expenses as stipulated in the economic responsibility system.

(4) Focus on preventing and resolving risks associated with market-related activities. All branches, subsidiaries, and project departments must attach great importance to this issue, proactively identifying market-risk factors at every stage—starting from project acquisition through project execution—and taking effective measures to prevent and mitigate such risks. It is essential to thoroughly study the Regulations on Guaranteeing Payment of Wages to Rural Migrant Workers, rigorously implement real-name management and wage-payment procedures for rural migrant workers on construction projects, and, in accordance with these Regulations, promptly adjust management systems and approaches, standardize management processes, assign clear management responsibilities, and exercise statutory rights in compliance with the law. Funds must be collected in full and on time; labor-management specialists must be assigned as required, and comprehensive wage-payment ledgers for rural migrant workers must be established and maintained at both branch/subsidiary and project levels; labor-service management must be strengthened by implementing a real-name registration system, selecting qualified labor-service companies for subcontracting, and enhancing process control over wage payments to ensure timely and full disbursement; management of subcontractors must be tightened, with preference given to having subcontracted teams receive wages on behalf of rural migrant workers, thereby avoiding the risk of enterprises being adversely affected by subcontractors’ failure to pay wages on time; and contingency plans must be developed to enable prompt response to emergencies, thus preventing violations that could result in penalties and joint punitive measures for loss of trust.

IV. Focusing on Talent Acquisition and Building a High-Quality Workforce

We will continue to strengthen talent recruitment and development. On the basis of thorough analysis of staffing needs for each position, we will intensify campus recruitment of fresh college graduates while also refining our efforts to attract experienced professionals for specialized roles through external recruitment, thereby swiftly bolstering our pool of specialized talent. We will actively implement a mentorship program for key positions to tap into the vitality of talent development and foster an environment that enables individuals to fully leverage their abilities and ensures that talent is put to optimal use. We will uphold sound principles in talent selection and deployment, increase the identification and utilization of young high-caliber professionals, and adopt multiple measures to stimulate their entrepreneurial and innovative drive, enabling them to hone their skills and wisdom through participation in major engineering projects, critical research initiatives, and pressing management challenges, thus accelerating their professional growth. We will enhance internal talent mobility within the company to effectively promote the widespread adoption and application of best practices and successful approaches across the organization, thereby accelerating the formation of synergistic momentum for balanced corporate development. We will revise and improve the compensation management system to accurately reflect the value of talent’s contributions. We will innovate the content and delivery of ideological and political work to educate and guide young employees in cultivating a correct worldview, outlook on life, and values, ensuring that the younger generation becomes the builders and successors of Nantong Construction Engineering.

V. Focusing on Strategic Planning and Devoting Efforts to Formulating the 14th Five-Year Plan

Strengthen the strategic guiding role of development planning: on the basis of a thorough evaluation of the implementation of the 13th Five-Year Plan, accurately assess the situation and environment during the 14th Five-Year Plan period, comprehensively examine the stage-specific characteristics of the construction industry’s development, conduct in-depth research on goal-setting, systematically plan key tasks and initiatives, and pool collective wisdom to formulate a 14th Five-Year Plan that reflects the spirit of our times and highlights the distinctive features of Nantong Construction Engineering.

VI. Focusing on Strong Leadership and Strengthening the Party’s Overall Leadership

We will thoroughly implement the overarching requirements for Party building in the new era, continuously strengthen the foundations of Party building work, and comprehensively elevate the standard of Party building. We will consolidate and deepen the outcomes of the thematic education campaign on “Staying True to Our Original Aspiration and Keeping Our Mission Firmly in Mind,” persistently advancing the study and application of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in greater depth, more sincerely, and with greater practical results. In doing so, we will continually enhance our sense of responsibility and mission in upholding our original aspiration and fulfilling our mission, constantly improve our theoretical literacy, earnestly reinforce the “Four Consciousnesses,” firmly uphold the “Four Confidences,” and ensure the “Two Upholds.” We will steadfastly promote the deep integration of Party building with production and operations, embedding Party leadership into every aspect of corporate governance. We will pool all forces for development, ensuring that Party building leads mass organization building and Youth League building, using Party building to guide corporate culture development, distilling the core essence of the construction industry’s cultural ethos, and fostering the deep integration of Party building and corporate culture—thereby transforming the Party’s political strengths into dynamic momentum and competitive edge for enterprise development. Through these efforts, we will further strengthen the confidence of all cadres and employees and ensure that our steps in reform and development are more solid and steady, using first-class Party building to lead first-class enterprise development and continuously open up new prospects and new heights for the company’s high-quality growth. We will continue to conduct in-depth benchmarking and learning activities modeled after exemplary Communist Party members Comrades Wang Kuiqing and Ling Jinxiang, educating and guiding all cadres and employees to be loyal and responsible, dedicated and selfless, and to strive to deliver achievements that live up to the times and history. We will also continue to champion and put into practice the philosophy of “working happily, living happily,” sustain the “Summer Coolness Delivery, Winter Warmth Delivery” campaign to provide all-round care for employees, actively organize cultural and recreational activities tailored to young people and the digital age, and endeavor to foster a strong sense of belonging and cohesion within the Nantong Construction Engineering family, thereby continuously enhancing the sense of identity and solidarity among cadres and employees.

In his closing remarks, Chairman Zhang Xiangyang urged that 2020 marks the pivotal year for both wrapping up the 13th Five-Year Plan and charting the course for the 14th Five-Year Plan. Standing at this new starting point, let us collectively embrace our mission, unite as one, forge ahead with courage and determination, and strive to write a new chapter of high-quality development for Nantong Construction Engineering in the new era!

The shareholders attending the meeting engaged in vigorous deliberation and discussion of Chairman Zhang Xiangyang’s report. All agreed that the report was thoroughly imbued with the principle of upholding Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; that its summary of achievements was objective and comprehensive; that its analysis of existing problems was grounded in reality; that its vision for future development was clear and well-defined; and that its prioritization of key tasks was both focused and strategic. Overall, it was a commendable report that aligns with both the international and domestic economic landscape, is well-suited to the actual conditions of Nantong Construction Engineering, reflects the aspirations of the workforce, and embodies the demands of our times. Participants unanimously stated that, moving forward, they would integrate the spirit of the report into the work of their respective units, departments, and positions, effectively enhance their execution capabilities, and resolutely ensure its thorough implementation.

At the shareholders’ meeting, Shao Jinman, Chairman of the Supervisory Board of the Group Company, delivered the “2019 Annual Report on the Work of the Supervisory Board.” The report reviewed the Supervisory Board’s activities over the past year and expressed full appreciation for the work carried out in 2019 by the Board of Directors and the management team, led by Chairman Zhang Xiangyang. The report also put forward six recommendations for further improving the company’s operations: 1) continue to deepen enterprise reform and pool forces for innovative development; 2) focus on optimizing operational mechanisms and leveraging the leading role of the flagship entity; 3) meticulously refine the risk prevention and control system and make all-out efforts to mitigate major risks; 4) vigorously promote technological innovation to strengthen the momentum of corporate development; 5) comprehensively enhance team building and fully unleash the vitality of talent; and 6) effectively advance the integration of Party building with corporate culture to guide the company’s high-quality development.

By a show-of-hands vote, the General Meeting reviewed and approved the “2019 Board of Directors Report,” the “2019 Supervisory Board Report,” the “2019 Financial Settlement and 2020 Financial Budget Report,” the “Report on the Proposed Profit Distribution for 2019,” the “Proposal on the Valuation of the Equity Transfer in 2019,” the “2020 Business Plan,” and the “Resolutions of the Sixteenth Shareholders’ Meeting.”

(Chief Engineer’s Office, Huang Jing)