In the 14th Five-Year Plan and the Outline of the 2035 Vision Goals, we will strengthen the basic institutions of the capital market, improve a modern financial system that is highly adaptable, competitive and inclusive, and effectively guard against and defuse financial risks. The guidelines set out priorities for improving the financial system and strengthening the financial sector's ability to serve the real economy. As a state-owned joint-stock investment bank, International Union Construction Group has the courage to shoulder its financial mission, deepen the structural reform of the financial supply side, strengthen its financial service function, provide professional and efficient financial solutions for large state-owned enterprises and listed companies, and constantly stimulate the vitality of the real economy.

We will adjust and optimize the financing structure and give full play to the function of allocating financial resources. International Union Construction Group actively supports the structural reform of the financial supply side, builds a business system that focuses on debt investment and equity investment, and provides precise financial services for enterprise development, industrial upgrading, regional construction and other aspects. In the context of deepening the implementation of innovation-driven development strategy and accelerating the replacement of old drivers of growth, International Union Construction Group has implemented the concept of innovative development, optimized and adjusted the financing structure of enterprises, and continued to increase investment. In 2020, the total investment of each business segment of the Group will be 159.65 billion yuan, including 96.58 billion yuan of debt investment, involving 165 investment projects.

We will establish a differentiated and wide-ranging financial service system to address the difficulty and cost of financing. In the field of debt investment, International Union Construction Group takes debt reduction financing (DRF) asset management plan as the core, focusing on helping large state-owned enterprises and listed companies achieve the dual effect of low cost financing and reducing asset-liability ratio. In the field of equity investment, International Union Construction Group focuses on the primary market, primary semi-market and secondary market to meet the equity financing needs of enterprises at various stages of development. In the primary market, the Group goes deep into the field of health industry, integrates high-quality capital and resources, and invests in core enterprises in the industry chain of health industry. In the primary and semi-market, select high-quality enterprises listed in the Mainland or Hong Kong to participate in the private placement and international placement to tap the growth potential of enterprises; In the secondary market, we carry out securities investment adhering to the concept of value investment, and help large state-owned enterprises and listed companies to further enhance their brand value and comprehensive strength through their influence in the capital market. Faced with diversified financing needs, International Union Construction Group keeps exploring business models and expanding financial channels to meet the capital needs of enterprises in an all-round way.

Guard against and defuse financial risks to ensure the efficient and steady development of enterprises. To help large state-owned enterprises and listed companies get rid of the difficulty of high debt ratio, International Union Construction Group Debt Reduction Financing (DRF) asset management program provides six financing modes, including joint factoring, joint leasing, capital and equity increase, debt-for-equity swap, SPV project financing and REITs real estate investment trust fund. Participating enterprises can obtain medium - and long-term financial support, revitalize the stock assets, resolve the stock debts in an orderly way, optimize the debt structure of enterprises, and thus achieve the effect of reducing the asset-liability ratio of enterprises. International Union Construction Group pays close attention to policy trends and industrial development trends, commits itself to the long-term development of enterprises, balances the relationship between steady growth and risk prevention, and ensures the efficient and safe operation of the macro economy.

Under the new development pattern, it is urgent to strengthen the basic system construction of the capital market and promote the stable and healthy development of the capital market to promote the unblocked circulation of the national economy. To achieve this goal, International Union Construction Group will pay close attention to the financing needs of the real economy, constantly optimize and improve the level of financial services, fully support enterprises to maintain steady growth and increase efficiency, and inject endogenous impetus to high-quality development of the Chinese economy.