Ha iy in g Un sw e rv in g ly Fo llow s t h e P a t h o f H ig h Q u a l i t y Developm ent

By Shi Chunxia/Haiying Enterprise Group Co Ltd

So c ia l ism w i th C h in e se characteristics has entered a new era and the new era must have new atmosphere and new openings. In 2017 Haiying Enterprise Group Co Ltd carried out CSSC overall strategy deployment, held high the banner of “second pioneering”, aimed at the goal of building great Haiying with“powerful economy, good strength and well-off employees”, persisted in the policy of reform and innovation, openness and cooperation, structural adjustment and sustainable development, vigorously implemented the development strategy of military-civil integration and innovation drive, highlighted better scale benefits,raised proportion of new industry and new task and improved product and service quality, and obtained new achievements in economic development.

Revenue and Pro fit on Doub le 10 Growth

At the Haiying meeting held at the beginning of 2017, Haiying principal leaders studied and forwarded CSSC 2017 annual meeting spirit, studied the work report delivered by the Party Leading Group Secretary and Chairman Dong Qiang and entitled “Facing the Crisis,Making Breakthrough and Overcoming Difficulties, Im proving Quality and Efficiency for Survival, Reform and Innovation for Boosting Development”,called on cadres and workers to hold the general trend, strengthen confidence,gather consensus, carry out CSSC strategic deployments in an all-round way and practically fulfill all tasks for 2017.

A fter CSSC January-Ap ril Econom ic Operation Work Forum,Haiying organized formu lation of“Implementation scheme for carrying out decision and deployment at CSSC January-April 2017 Economic Operation Work Forum”, adjusted the double 10 growth goal into guaranteed indicator,broke down main tasks and measures,and identified responsib le leaders and responsible departments. Haiying referred to CSSC requirements, revised“Measures for Assessing Operational Performance”, p racticed graded assessment for profit and business income indicators, encouraged high goals, praised and honored steady growth and amply rewarded new breakthroughs. Through concerted effort of all operational business units, double over half was realized in mid-year. In the circumstance of not ideal completion of business income for the first three quarters, all employees stuck to the target unswervingly, did not slacken in achieving the goal, kept the faith, caught up with one another and sprinted with all their might, and consequently successfully achieved the double 10 growth goal of business income and operating profit. Since 2010, the Company business income has hit an alltime high for eight years in a row and total profit has hit an all-time high for eight years in a row since 2012.

Civil Goods Main Business Developm en t Diversified

To make civil goods bigger is the key to the development of the enterprise.The Company persists in taking market demand as traction and technology innovation as drive, improves product upgrade, widens service sector, puts aside intrinsic power of civil goods main business and sharpens core competitiveness.

Firstly, accelerate transformation of medical electronic business. The Company speeds up upgrading of traditional ultrasonic diagnostic products and several products have entered small batch production. In emerging ultrasonic diagnosis, the Company actively promotes u ltrasonic noninvasive treatmen t technology and has received recognition and affirmation of professional medical institution personnel. In medical IPRs, it applied for five invention patents, 4 utility models and 1 external appearance patent,4 invention patents have been made public and 2 utility models have obtained authorizations.

Secondly, highlight ocean electronic business. The Company persists in both military and civil business positioning,dedicated to ocean su rveying and mapping, ocean geology and survey,hyd rologica l and environmen tal monitoring, makes best use of Haiying military industry brand and international cooperation advantage influence, insists on both independent R&D and proxy,has enriched Haiying ocean electronic p roduct line and p rovided p roduct in tegration and technical support package services. In 2017 the Company made fresh progress in new product development and enriched the variety of products. In market development, new breakthroughs were made in military product market.

Third ly, effective exp loration of elec trom echan ical equ ipm en t.The Company has deep ly tilled the electromechan ica l and hyd rau lic in teg ra tion fie ld, an d fo rm ed th ree series -- special rail transit equ ipm en t, m arine environm en t sim u la tion test equ ipm en t, and marine hydraulic products, exp lored development towards “Internet+”intelligent equipment sector and set up Haiying electromechanical equipment manu factu ring brand. In 2017 the Company made remarkable progress in“Internet+” intelligent equipment sector, cooperatively developed orange fruit intelligent terminal equipment,signed cooperative operation agreement in March, the product rolled off the line in April, the first batch of 10 products passed delivery evaluation from the factory,more than RMB100 m illion worth of contract was officially signed, hundreds of equipment were sold in the year, making it an important sector of economic growth.

New Business Starts o ff

Under the firm leadership of CSSC,Haiying explored capital drive, actively developed mixed ownership, established Haiying Medical Science & Technology Co Ltd, absorbed external investment,practiced the Employee Stock Ownership Plan (ESOP), created the business model of “product marketing+medical service”, jointly established a highend medical service demonstration outlet and realized extension from product to service. The Company stepped up winwin alliance with a domestic well-known private enterprise to set up CSSC Ocean Engineering Co Ltd, build underwater construction and maintenance and supply capability serving both military and civilian enterprises and extend underwater detection industrial chain.The Company plans to set foot in new energy business sector, is joining hands with relevant enterprises to introduce a core team, centering on application of a new energy source to build a newtype power source system catering to military requirement. The Company takes the opportunity of construction and development of the CSSC Ship and Ocean Detection Technology Industry Park, gives full play to spillover effect of the industry park, uses CSSC “Feel Ocean” industry fund to explore new sector, absorb new projects, speed up imp lementation of m ilitary-civilian integration industry and form industry cluster of the ocean detection technology sector with global competitiveness.★