China's general number "improve quality and efficiency and return on returns"

2024 Annual Assessment Report and 2025 Annual Action Plan

In order to implement the spirit of the "Eight Articles" of the China Securities Regulatory Commission and the "Several Opinions on Improving and Strengthening the Market Value Management of Listed Companies Controlled by Central Enterprises" issued by the State-owned Assets Supervision and Administration Commission, and further strengthen the concept of investor-oriented, China Railway Communication and Signal Co., Ltd. (hereinafter referred to as the "Company" and "China General Number") has implemented the special action of "Improving Quality and Efficiency and Emphasizing Returns", focusing on improving the development quality of listed companies, strengthening investor returns, and striving to create more value for the majority of shareholders.

1. Implementation and effectiveness of the 2024 Action Plan

(1) Deeply cultivate the main business and cultivate advantages, and strive to enhance the ability of enterprise value creation

In 2024, the company will focus on enhancing core functions and enhancing core competition

In the case of a decline of about 12% in operating income, it maintained a high profitability and achieved the goal of steady growth of economic benefits as scheduled. The net profit for the whole year was 4.069 billion yuan, an increase of 1.35% over the same period of last year, and the operating income structure continued to be optimized, providing important support for the subsequent market valuation increase. the return on equity was 7.34%, down 0.2 percentage points from the previous year; The labor productivity of all employees was 646,100 yuan/person, and the operating cash ratio was 16.04, achieving a year-on-year increase.

The first is to strengthen innovation and expand the market and maintain a leading edge. In 2024, the company will be able to launch the company in the On the basis of studying and judging the current market environment and competition pattern of rail transit new construction, renovation, operation and maintenance, we will promote the enhancement of endogenous power, build a large business pattern, optimize the business layout, steadily improve the new market, and vigorously expand the existing market.

Seven major business measures, including prudently responding to the downward market and actively deploying emerging markets. The new external contract value was 50.069 billion yuan, and the contract value in the field of rail transit reached 41.562 billion yuan, accounting for 83.01% of the total new contract value, of which: iron

the road sector was 25.637 billion yuan, a year-on-year increase of 2.09%; 10.006 billion in the field of urban rail

yuan, down 24.09% year-on-year; overseas fields were 5.919 billion yuan, a year-on-year increase of 58.27%.

The second is to accelerate the layout and development of strategic emerging industries. With the scene as the traction, combined with the characteristics of the rail transit industry and the company's own technical advantages, the "artificial intelligence +" technology application layout was carried out, and the results of the air-ground network integrated global intelligent perception system were delivered and used in Dali, Liaocheng, Heze, Jinan, Qingdao and other places; Artificial intelligence technology empowers the comprehensive intelligent system of railway marshalling yards, breaks through key technologies such as intelligent compilation of operation plans and automatic management and control of global operations, and pushes the control of marshalling yards to a new height of intelligence and unmanned. China General Signal gives full play to the advantages of "intelligent control" technology, aims at the field of low-altitude airspace control, successfully develops the low-altitude airspace intelligent control system and is selected as one of the "Top 100 Projects" of the State-owned Assets Supervision and Administration Commission, proposes the "one tower and one city" communication technology scheme, exploratory construction of UAV detection and countermeasure system, and develops air traffic control monitoring and protection system; It has built demonstration projects such as Nujiang Alpine Agricultural Transportation, Hefei Industrial Inspection, and Chongqing Metro Inspection, and won the bid for the low-altitude control project in Nan'an City, and the industrial pattern of "three industries and one state" of low-altitude economy has begun to take shape.

The third is to strengthen the control of costs and accounts receivable. Strengthen the rigid constraints of the budget, strictly control the cost and expenditure according to the expense budget, and quantitatively analyze the general management expenses and non-productive expenses such as office expenses, conference expenses, and business entertainment expenses. We will continue to further promote cost reduction and efficiency improvement, increase the cost reduction and expenditure reduction of the entire industrial chain and the entire value chain, and rely on digital and intelligent means to strengthen all employees, all factors and all aspects

Life cycle cost benchmarking to make up for management shortcomings. We continued to improve the efficiency of "tapping potential", and put forward 16 measures to reduce costs and increase efficiency from the aspects of reducing costs and expenses, cleaning up long-aged accounts receivable, etc., and strictly controlling various costs and expenses.

Fourth, lean financial management to improve capital efficiency. Giving full play to the role of the financial company's platform, the full-caliber capital concentration reached 85%, saving the company's capital cost of more than 300 million yuan throughout the year, and was awarded the title of "Excellent Unit for Accounting Report Submission in 2023" issued by the People's Bank of China. Improve the construction of the treasury system, strengthen the management of the whole process of funds, establish a fund monitoring and risk early warning system, and increase the function of "triangular debt" debt settlement. Treasury Construction won the "Sinan Award", a benchmark enterprise award. Promote the integration of financial sharing center and "industry, finance, taxation, finance and ticketing", and create a financial digital intelligence system. The financial sharing and industry-finance integration construction project was awarded the "Annual Typical Case of Digital Transformation of Financial Supervision", and won the "2024 Excellent Case of Digital Economy Innovation" and "Dingxin Cup" National Excellent Case of Digital Transformation Application by Xinhuanet.

(2) Give play to the role of the main body of innovation and promote high-level scientific and technological self-reliance and self-reliance

China General Signal continues to increase R&D investment, and the R&D investment will be strong in 2024

6.28%, as of the end of 2024, it has 5,248 authorized patents

3,091 invention patents.

The first is to enhance the ability of independent innovation. Give full play to the role of national strategic scientific and technological forces, make every effort to promote major national research tasks and key research and development projects, complete key theoretical technology research and equipment prototype development for the project of "Rail Transit Dispatching and Control Integration and Intermodal Transportation Service Technology", and complete algorithm research and development of equipment prototype for group train operation control project of "High Safety and High-precision Positioning Technology and Application Demonstration for Group Train Operation Control", and promote the Beidou industry in trains

Application in the field of operation control. Take the lead in undertaking a number of major basic research projects, complete the overall technical standards and specifications of the western railway operation control system, and provide solid technical support for the western railway project; Released CR450 on-board equipment to provide technical reserves for major national strategic projects. The deeply autonomous on-board system has obtained a third-party engineering safety assessment on the main line of Beijing Metro Line 8 that allows passenger operation, and has the engineering application conditions. The deeply autonomous ATS (Automatic Train Monitoring) subsystem has realized the first commercial contract in the Dusi Mountain Rail Transit Engineering Signaling System Project. In 2024, 835 R&D projects will be carried out.

The second is to strengthen the construction of innovation capacity system. To build the source of original technology of rail transit safety control system, and support the accelerated development of national rail transit safety control technology. Strengthen the construction of innovation platforms. Relying on China General Number, the Standardization Technical Committee of China Urban Rail Transit Association and the Communication and Signal Sub-Technical Committee were established; Joined the National Natural Science Foundation of China Railway Basic Research Joint Fund, condensed the basic issues of industry application, and formed the second batch of guidelines for the joint fund in 2024 and 2025, and the industry leadership and influence have been continuously enhanced. In 2024, 1 new national enterprise technology center will be added. Steadily increase investment in scientific and technological innovation. The scientific research funds are more inclined to the direction of original and leading technology research, and the proportion of R&D-oriented core subsidiaries' investment in basic, forward-looking, original and leading research accounts for 18.08% of their research investment.

The third is to accelerate the application of scientific and technological innovation achievements. The heavy-duty group operation control system completed the test and verification of each equipment of the group control system, the test and verification of the group control system, and the first and second stages of the on-road test and external expert review. The intelligent freight yard system has completed the prototype development of the automatic control system for freight yard operation, intelligent monitoring system, automatic driving system for dispatching and digital integrated management and control platform for freight yard

Field test and optimization work, and obtained the application certificate of Mohan port. The Train Autonomous Operating System (TACS) completed 30 train expert witness tests. The municipal (C2+ATO) system completed the trial operation of the Shanghai regional railway airport liaison line. The railway intelligent integrated operation and maintenance system has completed the on-site application of Wuhan Bureau, and promoted the pilot application of products in Shenyang Bureau and Chengdu Bureau. The urban rail automatic operation (FAO) system with flexible marshalling function was put into operation on Beijing Line 12.

Fourth, optimize the ecology of scientific and technological innovation. Strengthen international scientific and technological innovation exchanges, deeply participate in the activities of international organizations and standard formulation in the field of rail transit control, organize international standards working group meetings, participate in the general meeting of the International Union of Railways, and become an entity member of the Standards Association under the Institute of Electrical and Electronics Engineers. An international standard edited by China General Signal was officially released by IEC/TC46, and the proposals of "Turnout Switch Machine" and "Safety Data Configuration" were included in the work of the International Standards Working Group. Continue to optimize the management system of scientific research projects. Further deepen the construction of innovation studios, complete the relevant scientific research management processes, information system process adaptation and authority adjustments, establish differentiated and customized assessment methods based on the business characteristics of the studio, and effectively and fully implement the responsibilities and rights of the person in charge of the studio. Optimize the incentive mechanism, continue to strengthen the income distribution incentive after the transformation of achievements, and the pilot reform of the empowerment of post scientific and technological achievements has been approved by the State-owned Assets Supervision and Administration Commission. Establish a special milestone assessment and evaluation mechanism for major scientific research projects and an incentive mechanism for special salary packages, sign a "letter of responsibility" with the person in charge of the project leader and the person in charge of the project, and make a "military order". In 2024, the assessment and evaluation of scientific and technological innovation of subsidiaries will be included in the assessment of the person in charge of the enterprise.

(3) Promote the realization of value and improve investors' sense of gain

In 2024, the company closely tracks changes in the capital market and investor dynamics,

Analyze and judge the implementation strategy and specific timing, and launch a series of boosting investments in a timely manner

measures to maintain market value stability.

The first is to adhere to the implementation of a higher proportion of cash dividend policy. The company is committed to actively providing stable returns for shareholders and actively doing a good job in dividend distribution, with a total cash dividend of 1.8 billion yuan in 2023 and a cash dividend ratio of 51.77%. In the past three years, the cumulative cash dividend was 5.4 billion yuan, and the cash dividend maintained a high proportion of 50% or more, providing solid support for shareholder returns and market value improvement.

The second is to promote the controlling shareholder to complete the shareholding increase plan. October 2023 to

In April 2024, China Railway Communication & Signal Group Co., Ltd., the controlling shareholder of the Company, increased its holdings of China General Number A shares with its own funds by approximately RMB50.15 million.

The third is to strengthen the mechanism for the initiation of market value maintenance measures. The Party Committee and the Board of Directors of the Company actively pay attention to the market situation, and in combination with the performance of the capital market, promote the implementation of measures such as extending the lock-up period of controlling shareholders, increasing the holdings of controlling shareholders, and repurchasing in a timely manner, so as to boost market confidence, guide the value of listed companies to return to intrinsic value reasonably, and help the healthy development of the company.

For two consecutive years, the China General Number has been disclosed by the Shanghai Stock Exchange's Science and Technology Innovation Board

The "A-level" evaluation (the information disclosure evaluation of the Science and Technology Innovation Board has been carried out for two years), and the constituent stocks of the CSI 300 Index and the CSI A500 Index have been newly selected, and the constituent stocks of important indices such as the Hang Seng Composite Index, the STAR 50 Index, the CSI Central Enterprises Dividend Index, the CSI 300ESG Benchmark Index, and the CSI Central Enterprises ESG50 Index have been maintained.

(4) Pay attention to the demands of shareholders and strengthen communication with investors

Adhere to the concept of communication to create value, fully respect investors, actively communicate with investors, listen to investors' voices, and protect the legitimate rights and interests of investors, especially small and medium-sized investors.

The first is to hold performance briefings on a regular basis. In 2024, we will hold a performance briefing

Three times, investors, especially small and medium-sized investors, industry analysts, media, etc., were widely invited to participate, and the chairman, president, and independent directors attended the annual performance briefing. The performance briefing flexibly adopts a combination of online and offline methods, makes full use of digital technology, and actively communicates and interacts with investors through various forms such as live broadcasts, video conferences, and telephone conferences, so as to protect the legitimate rights and interests of all kinds of investors.

The second is to carry out investor exchange activities in an orderly manner. Through the "SSE Roadshow Center" platform, online meetings, on-site meetings and other means, actively communicate with investors and listen to their voices. Investors are invited to walk into China General Signal to understand the company's development planning, business operation, technical products, corporate culture and other aspects, and fully demonstrate the hard power and sustainable value creation ability of China General Number. Actively promote capital market supervision and exchanges of listed companies, actively participate in a series of activities organized by the China Securities Regulatory Commission, the stock exchange and the association of listed companies, such as "hard technology" enterprises, high-quality companies, and "5.15 Investor Protection Publicity Day", and establish good interaction with CCTV News, People's Daily, China Securities Journal, Shanghai Securities News and other media, and maintain the company's good brand image in the capital market.

The third is to strengthen the mechanism for soliciting opinions and feedback from investors. Actively maintain investor relations, understand investors' demands, report investors' opinions and suggestions to management and related business lines in a timely manner, study and formulate relevant measures, and actively respond through compliance methods such as information disclosure. Establish good communication channels to promote communication between state-owned shareholders and small and medium-sized shareholders of listed companies, and major shareholders should actively respond to the reasonable demands of small and medium-sized shareholders, and safeguard the legitimate rights and interests of all shareholders in accordance with the law in accordance with the principles of equality and mutual benefit.

(5) Improve corporate governance and effectively improve governance efficiency

China General Signal adheres to the in-depth promotion of strengthening the party's leadership and improving corporate governance

We will continue to improve the corporate governance mechanism with statutory powers and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances.

The first is to improve the effectiveness of independent directors in performing their duties. Combined with the requirements of the reform of the independent director system, the working system of independent non-executive directors was revised, a special meeting mechanism for independent directors was established, and the responsibilities of the audit and risk, remuneration and assessment, and nomination committees were further adjusted to ensure that independent directors exercise their powers and perform their duties. Independent directors conscientiously perform their duties, express their opinions fairly and objectively, make suggestions and suggestions for the development of the company, safeguard the overall interests of the company, and focus on matters closely related to the interests of small and medium-sized shareholders, such as related party transactions, external guarantees, use of raised funds, mergers and acquisitions, major investment and financing activities, executive remuneration and profit distribution. The Report on the Performance of Independent Directors' Duties is jointly released with the annual report to fully disclose the annual performance of independent directors, and the annual general meeting of shareholders is requisitioned.

The second is to continue to strengthen the construction of the board of directors. The members of the board of directors of the company are experienced, professional and diverse, and the five special committees all conduct in-depth and detailed prior research on matters in their respective fields to assist the board of directors in improving the efficiency of decision-making and the quality of operation. In 2024, the company will study and formulate the "Several Measures on Further Strengthening and Improving the Construction of the Board of Directors of China General Signal", clarify the requirements of the "20 Measures", and accelerate the construction of a scientific, rational and efficient board of directors. Dynamically adjust the list of decision-making items authorized by the board of directors, reclassify the quantitative level of investment based on the approval of investment projects in recent years, appropriately adjust the decision-making authority of investment projects, and improve the ability of the board of directors to control major investment projects. In 2024, the company will hold a total board of directors

8 meetings, 39 motions were deliberated and passed, and 3 reports were heard; Held specially

The committee met 8 times, deliberated and passed 22 bills, and heard 6 reports.

The third is to strengthen the support for outside directors to perform their duties. Adhere to the "zero temperature difference" of information communication,

Establish a multi-channel normalized communication mechanism, the chairman, senior management and business departments have communicated with external directors on major matters such as corporate development strategy, innovation and development, risk prevention and control, etc., informed external directors of production and operation information on a monthly basis, and actively invited external directors to participate in important meetings such as annual work meetings to ensure that external directors keep abreast of the company's business development. Carefully planned and organized research, carried out 3 collective surveys and several individual surveys of external directors in 2024, realized the "full coverage" of the research of various business segments and important subsidiaries of external directors, carried out field research around the three major tasks of "one promotion, one entry and one retreat" and key issues, and formed the "Report and Suggestions on the "Double Track" of China General Number Focusing on Rail Transit and Low-altitude Economy after repeated communication and discussion, so as to provide suggestions and suggestions for the high-quality sustainable development of the enterprise.

Fourth, improve the working mechanism of environment, social responsibility and corporate governance (ESG). The Board of Directors attaches great importance to ESG work and has established a three-level ESG governance structure of "decision-making-management-execution" to ensure the smooth development and implementation of ESG work. As the highest decision-making body for the company's ESG work, the board of directors is responsible for the overall planning and work coordination of ESG matters, starting from the top-level design, and integrating ESG into daily corporate management. The company's management is responsible for formulating ESG management policies and strategies, reviewing important ESG issues, and promoting the implementation of ESG-related work. The headquarters department and its affiliated companies act as the executive level to carry out comprehensive ESG practices within their respective areas of work. In 2024, the company will accelerate the elimination of high-energy-consuming and high-polluting process equipment, accelerate the demonstration and application of new energy-saving and low-carbon technologies, new processes and new products, promote green manufacturing and green construction, and improve the level of energy conservation and resource recycling. In 2024, China's general energy consumption will be 18,307 tons of standard coal, and the consumption intensity will be 0.0056 tons of standard coal per 10,000 yuan;

CO2 emissions were 57,415 tonnes and the emission intensity was 0.0181 tonnes of CO2e/RMB10,000, which continued to decrease from 2023 (0.0183 tonnes).

Fifth, strengthen compliance management. Adhering to the compliance concept of "compliance starts from the top, all employees take the initiative to comply with the law, and compliance creates value", we strive to build a value system in which senior employees lead compliance and all employees practice compliance, continue to strengthen the "five-in-one" coordinated operation of legal, compliance, risk, internal control and system management, improve the general supervision system, and provide a solid legal guarantee for the company's reform and development. Improve the "one-stop" review mechanism for legal compliance, and on the basis of ensuring 100% review of economic contracts, rules and regulations, and major decisions, implement a "one-stop" review mechanism for laws, compliance, internal control, and risks, and be selected as one of the 26 pilot units for the construction of world-class rule of law enterprises. The Chief Compliance Officer is deeply involved in the review and control of major contracts and important decisions, and takes the lead in organizing the construction of the compliance management system and the evaluation of the effectiveness of the compliance system. In 2024, the company will carry out enterprise self-evaluation, compliance evaluation of affiliated enterprises, on-site inspections, etc., to continuously enhance the effectiveness of the compliance management system.

(6) Strengthen the responsibility of the "key minority".

with actual controllers, controlling shareholders, shareholders holding more than 5% of the shares and directors of the company

Supervisors and senior executives communicate closely with the "key minority", track the performance of relevant parties' commitments, and continuously strengthen the sense of responsibility and performance of relevant parties. Combined with the requirements of the new Article 9, the Company Law, the reform of the independent director system and other requirements, actively participate in various performance training organized by the stock exchange, the association of listed companies, and the company, and learn the main regulatory policies and regulations related to the "A+H" securities market; Organize special training on the directors' responsibilities of listed companies in information disclosure, inside information management, compliance transactions, etc., and strengthen the "key minority" to strengthen the understanding of the "key minority" in the relevant laws and regulations of the capital market,

The mastery of professional knowledge, better in accordance with the requirements of various laws and regulations and the Articles of Association, diligent and responsible, to promote the high-quality development of listed companies. The company's directors, supervisors and senior executives actively participate in the training related to the governance of listed companies, laws and regulations for no less than 15 hours.

2. 2025 Action Plan Improvement Measures

In 2025, the company will actively implement the work requirements of the "Eight Sections" of the China Securities Regulatory Commission.

Strengthen the investor-oriented concept, further promote the continuous improvement of the quality of listed companies, in-depth implementation of the special action of "improving quality, efficiency and return", and put forward the following optimization goals and measures on the basis of a comprehensive evaluation of the implementation and effect of the special action in 2024.

(1) Adhere to the general tone of the work of seeking progress while maintaining stability. Completely, accurately and comprehensively implement the new development concept, focus on the theme of high-quality development, focus on enhancing core functions and improving core competitiveness, focus on enhancing the "five values", earnestly grasp the implementation of the task goal of "one increase, one stability and four improvements", continue to promote enterprises to become stronger, better and bigger, better play the role of scientific and technological innovation, industrial control and safety support, and complete the goals and tasks of the "14th Five-Year Plan" with high quality, laying a solid foundation for a good start of the "15th Five-Year Plan".

(2) Vigorously develop strategic emerging industries and cultivate new quality productive forces. In terms of low-altitude airspace control, we will develop a low-altitude airspace intelligent management and control system, carry out low-altitude communication private network technology research, deepen the research on multi-source fusion perception and countermeasure technology, actively apply for national innovation platforms and national, provincial and ministerial scientific research projects, accelerate the construction of low-altitude standardization platforms, and strive to become the source of low-altitude economic original technology. Accelerate the research of independent and controllable flight control systems and other technologies, as well as the layout of the new aircraft industry. Adhere to market-led and order-driven, and strengthen central enterprises and central governments

Cooperation, efforts to speed up the acquisition of manned and cargo operation qualifications, efforts to speed up the layout of routes, participate in the construction of Xiong'an, Qingdao, Zhoushan and other demonstration areas, and expand the "low-altitude + X" service operation business.

(3) Increase market development efforts and maintain a leading position in the industry. According to the company's research and judgment, in the field of domestic railways, more than 10,000 kilometers of high-speed railways have entered the period of overhaul and transformation, and the new mileage of general-speed railways has gradually increased. In the field of domestic urban rail transit, by the end of 2025, the operating mileage of urban rail transit in China is expected to reach more than 13,000 kilometers, of which Shanghai and Beijing are expected to form more than 1,000 kilometers of urban rail transit line networks respectively, and the "14th Five-Year Plan" period is expected to maintain a high level of investment. The company seizes the development opportunity, further improves the overall security and digital intelligence level of the train control system, promotes the "system, product, construction + operation and maintenance" model, and improves the service ability of the whole life cycle of products with high technology and intelligence. Closely follow the coordinated development of Beijing-Tianjin-Hebei, the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, the integrated development of the Yangtze River Delta and other major regional strategic implementation projects, focus on the construction opportunities of Chengdu, Chongqing, Guangzhou and other national metropolitan areas, and expand new momentum for economic growth. Implement the national "Belt and Road" initiative, seize the opportunities of regional cooperation frameworks such as RCEP, seize the key opportunity of the construction of the Jakarta-Bandung high-speed railway, China-Laos railway, and China-Thailand railway, and build Southeast Asia into an overseas demonstration and leading case of China's high-speed rail; Seize the opportunity of the construction of the Hungarian-Serbian railway, build a "symbol project" built by China in Europe in accordance with the ETCS standard, and actively explore overseas markets.

(4) Strengthen innovation-driven leadership and continuously improve the hard power of science and technology. Promote the construction of the source of original technology, promote the transformation of scientific and technological achievements, build a high-level innovation ecology, and build a high-quality talent team. Promote the digital and intelligent upgrading of rail transit equipment, carry out the development of key platforms, systems and equipment, support the digital transformation of railways, support the development of future rail transit signal system equipment and multi-standard operation needs, and support the implementation of national strategic projects. Released the digital urban rail solution to build a metro control system based on trackside digital intelligence to ensure safe operation in complex and harsh environments. Support the upgrading of heavy-haul railway transportation safety equipment, expand the application scenarios of local railway special lines, and promote the engineering application of cloud two-layer train control system. In 2025, China General Signal will continue to increase R&D investment, planning to carry out no less than 800 R&D projects, and strive to achieve an R&D investment intensity of more than 5.5%.

(5) Strengthen market value management and enhance investor returns. Based on improving the development quality of listed companies, we will strive to enhance the company's investment value in accordance with laws and regulations, and take multiple measures at the same time. Build a long-term mechanism for market value management, formulate a market value management system, maintenance plans and stock price stabilization measures to promote the company's long-term stable performance in the capital market. The party committee and the board of directors of the company pay close attention to the market's reflection of the company's value, and when the market performance deviates significantly from the company's value, prudently analyze and judge, actively take measures, and strive to promote the company's investment value and effectively safeguard the interests of investors.

(6) Adhere to the implementation of a higher proportion of cash dividend policy. The Company is committed to actively providing stable returns to shareholders, and has been deliberated and approved by the 27th meeting of the fourth session of the Board of Directors of the Company to distribute RMB 1.70 per 10 shares to all shareholders in 2024 based on the total share capital registered on the record date for the implementation of equity distribution

Cash dividends (including tax). As of December 31, 2024, the total share capital of the company

10,589,819,000 shares, based on which the total proposed cash dividend is RMB1.800 billion (tax included), accounting for 51.51% of the company's net profit attributable to shareholders of the listed company in 2024.

(7) Establish a multi-level investor communication and interaction mechanism. Adhere to the concept of communication to create value, actively carry out investor relations maintenance, organize investor communication activities in an orderly manner, listen to investors' voices, pay attention to market feedback, reasonably guide expectations, and convey the company's value. Through communication, increase the recognition of all parties, so that investors can get closer, understand, see clearly, and have confidence. The company plans to hold performance briefings three times, and the company's directors and senior management personnel attend the annual performance briefings. Disclose the performance indicators of non-enterprise accounting standards, increase the net cash flow of operating activities after excluding the group's deposits, highlight the key points, and facilitate investors to quickly grasp the company's operating conditions. Through compliance disclosure platforms, investor briefings, roadshows, reverse roadshows (company open days), analyst meetings, reception surveys and other channels, we make full use of digital technologies such as live broadcasts, video conferences, and online meetings to actively communicate and interact with investors, respond to investors' demands in a timely manner, and protect the legitimate rights and interests of all types of investors. Investors can make an appointment by calling or emailing the company's email ir@crsc.cn.

(8) Persist in standardizing operations and improving governance efficiency. Fully implement the "two consistent", unify the strengthening of the party's leadership with the improvement of corporate governance, use the list to clarify the scope of rights and responsibilities of each governance entity, and further improve the corporate governance system of "statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances". Strengthen the fundamental role of the articles of association in corporate governance, clarify the management boundaries of state-owned shareholders over listed companies, and effectively safeguard the independence of listed companies. Give full play to the role of special committees and actively make suggestions and suggestions to the board of directors. Strengthen the support for independent directors to perform their duties,

Intensify the deliberation of the board of directors on investment projects, and establish a mechanism for outside directors (including independent directors) to participate in the research and demonstration of major and complex projects in advance. We will continue to improve our ESG professional governance and risk management capabilities, and continue to strengthen climate risk management and disclosure from the four aspects of governance, strategy, risk management, indicators and targets. Accelerate the elimination of high-energy-consuming and high-polluting process equipment, accelerate the demonstration and application of new energy-saving and low-carbon technologies, new processes and new products, practice green manufacturing and green construction, and vigorously promote the carbon peak plan. Actively use the "one-to-talk" reminder service for online voting at shareholders' meetings to facilitate small and medium-sized investors to participate in corporate governance.

(9) Strengthen the responsibility of the "key minority". Communicate closely with the actual controller, controlling shareholders, shareholders holding more than 5% of the shares, and the "key minority" of the company's directors, supervisors and senior executives, track the performance of the commitments of relevant parties, and continuously strengthen the awareness of responsibility and performance of relevant parties. Organize the company's directors, supervisors and senior executives to actively participate in the governance of listed companies, laws and regulations related training for no less than 15 hours per person, actively participate in regulatory meetings, seminars and other activities, strengthen the "key minority" to grasp the relevant laws, regulations and professional knowledge of the capital market, continuously improve their self-discipline awareness, and promote the high-quality development of listed companies.

The company will continue to evaluate the specific measures of the action plan of "improving quality, efficiency and return", and fulfill the information disclosure obligation in a timely manner. The forward-looking statements of the company's plans, work plans and related forecasts involved in this report are not fait accomplis and do not constitute the company's commitment to investors.