Group Profile of Xinglu Investment Group

Luzhou Xinglu Investment Group Co., Ltd. was established in February 2003. It is a large-scale state-owned company authorized by the Luzhou Municipal State-owned Assets Supervision and Administration Commission. It is the Luzhou Municipal Government’s implementation of the urban management strategy and strengthening of infrastructure. , municipal public utility construction, and large-scale investment and financing companies that develop basic industries, high-tech industries, and pillar industries. The company's registered capital is 1.1 billion yuan.

The company's subsidiaries include Luzhou Infrastructure Investment Co., Ltd., Luzhou Chengnan Construction Investment Co., Ltd., Luzhou Xinglu Water (Group) Co., Ltd., Luzhou China Resources Xinglu Gas Co., Ltd., and Luzhou Shuntong Luqiao Development Co., Ltd., Luzhou Xinglu Sewage Treatment Co., Ltd., Luzhou Xinglu Credit Guarantee Co., Ltd., Luzhou Xinglu Agricultural Financing Guarantee Co., Ltd., Luzhou Xinglu Jutai Real Estate Development Company, Luzhou Xinglu Property Management Company, Luzhou Lantian Airport and other 11 wholly-owned and holding companies; shareholdings in Luzhou Laojiao Co., Ltd., Longma Xingda Small Loan Company, Sichuan Coal Gasification Company, Sichuan Guxu Coalfield Development Co., Ltd., Luzhou Sichuan Railway Company, and Naxu Railway Company, Sichuan-Xuda Railway Co., Ltd., Sichuan Tianhua Fubang Company, Changtong Port Development Co., Ltd., Southern Expressway Co., Ltd., Luzhou Commercial Bank and other 10 enterprises have established diversified operations linked by property rights. organizational form.

——Deepen reform, pioneer and innovate. The company is guided by the Scientific Outlook on Development, seeks innovation in development, and seeks development in innovation. Promote management innovation, improve and improve the board of directors and board of supervisors, and form a corporate governance structure in which investors, the board of directors, the board of supervisors, and managers each assume their own responsibilities, operate in a coordinated manner, and have effective checks and balances. Deepen internal reforms, implement a performance-centered appointment system for business managers, and promote the reform of the "three systems". Innovative capital operation, successfully introduced the country's largest gas supplier - Hong Kong China Resources Gas Group to invest in Luzhou Natural Gas Company, and established the Sino-foreign joint venture China Resources Xinglu Gas Company, which not only brought development funds, but also brought advanced management concepts. It marks that Luzhou City's urban public utilities have taken solid steps towards diversifying property rights and market-oriented operations, promoting institutional innovation, establishing a complete institutional system for the supervision and management of state-owned assets, and forming a long-term working mechanism for using systems to manage people and affairs. The company has been built into a systematic strategic decision-making center, resource dispatching center and service center, and the company has entered the "fast lane" of modern, scientific, institutionalized and standardized development.

——Scientific management, asset operation benefits are significant. Since the establishment of the company, the company has achieved comprehensive and rapid development. The company's total assets increased from 2.226 billion yuan at the time of establishment to 14.5 billion yuan in 2010, an increase of 551%, and the net assets increased from 1.009 billion yuan at the time of establishment to 10.465 billion yuan in 2010, an increase of 937%. The total assets and net assets have ranked among the top among state-owned enterprises in Luzhou City. The company has built itself into a large-scale investment and financing platform with strong strength, solid foundation and prominent functions. The company's state-owned assets preservation and appreciation rate has remained above 100% every year. It has been rated A-level for six consecutive years from 2005 to 2010 in the business assessment of Luzhou Municipal State-owned Assets Supervision and Administration Commission, and has achieved impressive operating performance.

——Highlight the “blood transfusion” function of investment and financing and strongly promote Luzhou’s “Four Fours” development strategy. Financing: Since its establishment, the company has made full use of diversified financing channels such as cooperating with commercial banks, issuing corporate bonds, obtaining government bond funds, carrying out guaranteed financing for small and medium-sized enterprises, and strategic cooperation to attract investment. It has raised a total of 7.553 billion yuan, including 5.053 billion yuan in direct financing. Indirect financing of 2.5 billion yuan ensured the source of funds for the construction of key transportation and industrial infrastructure and projects in Luzhou City. In particular, Xingluji successfully issued a 700 million yuan corporate bond in February 2008, marking a new breakthrough for Luzhou enterprises to use direct financing in the capital market. Under the national fiscal and monetary tightening policy at that time, it was a great development for Luzhou. Construction and development played a particularly important role. On this basis, Xinglu Group has made persistent efforts. Through active struggle and hard work, the second phase of 1 billion yuan corporate bonds was successfully issued in March 2010. It is very important to promote Luzhou's economic development and achieve a good start in the 12th Five-Year Plan. significance.

At the same time, Xinglu Group's guaranteed financing business has developed rapidly. At the end of 2010, the total guaranteed loan liability balance of Xinglu Financing Guarantee Company and Xinglu Agricultural Financing Guarantee Company reached 886 million yuan, breaking through the 800 million yuan mark for the first time. The city's industrial enterprises and agricultural industry have financing difficulties, which has made positive contributions to the rapid development of Luzhou's regional economy. Currently, Xinglu Financing Guarantee Company's major indicators such as capital scale, total guarantee amount, and risk control are at the forefront of the same industry in Sichuan Province. Investment: The company has successively invested in Longxu Railway, Xuzhou-Dalian Railway, Luzhou Port Central Port Area Special Railway, Ring Road, Municipal North Second Ring Road, Qiancao Yangtze River Bridge, Tuojiang First Double-track Bridge, Shaqian Development, and Erdaoxi Sewage Treatment Plant, Guxu Coalfield Development, 1,4-butanediol and other more than 10 key projects in Luzhou City, with an investment of 4.319 billion yuan. Xinglu Group is the first company in a prefecture-level city in Sichuan Province to issue corporate bonds. It is the only company in Sichuan Province that has issued corporate bonds twice. It is the first company in a city or prefecture in Sichuan Province to be awarded a head office-level key customer by China Construction Bank. Urban investment companies. The company's investment and financing work has been fruitful, and it plays an important "pioneer" role in Luzhou's ambitious goal of economic development. The company has entered the ranks of the leading state-owned investment and financing companies in Sichuan Province, cities and prefectures, and is promoting the development of Luzhou's "Four Fours" The strategy has made outstanding contributions and has been highly praised and fully affirmed by the Luzhou Municipal Party Committee, Municipal Government, and even the Sichuan Provincial State-owned Assets Supervision and Administration Commission.

The company has successively won the titles of "Advanced Collective for Law Popularization and Legal Governance in Sichuan Province", "Municipal Civilized Unit", "Advanced Unit for Ideological and Political Work in Luzhou City", "Advanced Unit for Cultural Work in Luzhou City", "Advanced Unit in Luzhou City for Cultural Work" Honorary titles such as "Business with Integrity and Best Social Credit Enterprise". In the next five years, under the leadership of the Luzhou Municipal Party Committee, Municipal Government and Municipal State-owned Assets Supervision and Administration Commission, the company will conscientiously implement the Scientific Outlook on Development and unswervingly follow Luzhou City’s “Twelfth Five-Year Plan” and the “Four Fours” development strategy. Expand financing, expand investment, concentrate on the relocation of Yunlong Airport, Syria-Dalian Railway, Port Inbound Railway, Guojiao Yangtze River Bridge, Erdaoxi Sewage Treatment Plant, Baizhao road reconstruction and other infrastructure construction, and at the same time actively improve the enterprise shareholding system Reform, strive to achieve the goal of listing as soon as possible, make strides towards becoming a first-class domestic enterprise, write a more glorious and magnificent poem for the sound and rapid development of Luzhou's economy and society, and create a more brilliant and beautiful tomorrow for the enterprise.