"Three Supply and One Industry" Transformation Standards and Related Requirements

Legal analysis: "three supplies and one industry" means that state-owned enterprises undertake power supply, water supply, gas supply and property management in employees' family areas. The separation and transfer of "three supplies and one industry" refers to the separation and transfer of water, electricity, heating property services and equipment and facilities in the family area by state-owned enterprises to specialized state-owned enterprises for socialized management. According to the requirements of SASAC the State Council, "three supplies and one industry" can be handed over to the government or state-owned enterprises, and handing it over to the government is the most powerful. However, due to the limitation of government establishment, it is difficult to transfer. Therefore, the company adheres to the principles of compliance, stability, high quality and sustainability, and steadily promotes the transfer of boards.

Legal basis: Article 17 of the Law of People's Republic of China (PRC) on State-owned Assets of Enterprises shall abide by laws and administrative regulations, strengthen management, improve economic efficiency, accept the management and supervision of the people's government and its relevant departments and institutions according to law, accept the supervision of the public, assume social responsibilities and be responsible to investors.

State-funded enterprises shall establish and improve the corporate governance structure according to law, and establish and improve the internal supervision and management and risk control system.