On June 6, Zhang Quanhu, member of the Party Committee and deputy director of the Provincial state-owned Assets Committee, accompanied by Song Zhaojun, deputy general manager of the Group company, went to Shaanxi Construction Machinery Co., LTD for research and guidance. Yang Hongjun, Party secretary and chairman of Shaanxi Construction Machinery Co., LTD., and Chai Zhaoyi, vice chairman and general manager of the company participated in the research and discussion.

During the investigation, Zhang Quanhu visited Shaanxi Construction Machinery Co., LTD. 's corporate culture exhibition center and production workshops such as assembly, electrohydraulic, machining, painting, etc., listened to the report on Shaanxi Construction Machinery Co., LTD.' s overall operation and the special work of the management of loss-making enterprises, and conducted in-depth exchanges with the participants.

Zhang Quanhu to Shaanxi Construction machinery shares in Shaanxi Coal Group's strong support to deal with the current adverse factors of the measures and results affirmed. He said that Shaanxi Jianji shares, as a provincial state-owned holding listed enterprise, has a certain demonstration role in deepening the reform of state-owned assets and state-owned enterprises, shouldering the important mission of innovative development, transformation and upgrading, value creation and stable employment, and its sustainable and healthy development has been concerned by the provincial SASAC for a long time. He put forward five requirements for the next step of Shaanxi Construction machinery shares: First, make every effort to do a good job in production and operation. It is necessary to combine the actual situation of the enterprise and the current situation of the industry, always adhere to maintaining the stock, expanding the increase, creating benefits, and striving to overcome the difficulties as soon as possible. Second, strengthen market analysis. It is necessary to summarize the law of development and industry trends, optimize strategic planning, and seize market opportunities. Third, we will strengthen compliance management of listed companies. It is necessary to further standardize financial management, do a good job of information disclosure, and effectively avoid various risks. Fourth, work hard to guide party building. It is necessary to continuously strengthen Party building, give full play to the role of grass-roots party organizations as fighting fortresses, and escort the development of enterprises. Fifth, group companies to increase support for listed companies. Shaanxi Coal Group, as the controlling shareholder of Shaanxi Construction Machinery, should do a good job in coordination, take necessary measures to build a good platform for listed companies, and promote the high-quality development of Shaanxi Construction Machinery shares.

Song Zhaojun thanked the Provincial state-owned Assets Committee for its long-term concern and support for Shaanxi Coal Group, reported the operation of Shaanxi Coal Group from January to May, and briefly introduced the general situation of Shaanxi Construction Machinery, reform and operation, development planning, difficulties faced and countermeasures. He said that as the only mixed ownership listed enterprise in the equipment manufacturing sector of Shaanxi Coal Group. In the 70 years of development, based on its own advantages, Shaanxi Construction Machinery Co., Ltd. has made significant contributions to national construction, achieved glorious glory, but also experienced difficulties. Especially since last year, in the face of the sluggish market environment in China, enterprises have fallen into the dilemma of declining operating performance losses. Under the strong support of Shaanxi Coal Group, Shaanxi Construction Machinery Co., Ltd. has been exploring new economic growth points around technological innovation, deep market cultivation, quality and efficiency improvement, cost management, internal cooperation and other measures, and has achieved initial results. In the next step, Shaanxi Coal Group will continue to increase support for the shares of Shaanxi Construction Machinery, stabilize the existing basic business, based on the upgrading of industrial structure, tap the market potential, promote transformation and development, and achieve profit.

Yang Hongjun made a special report on Shaanxi Construction Machinery's basic overview, reform and development history, overall operation and analysis from January to May 2024, implementation of the governance of loss-making enterprises, existing problems, follow-up capital operation and transformation and development work plan. In the past three years, the operation and development of Shaanxi Jianji shares suffered a huge impact, and the business performance encountered countercurrent, but all the cadres and employees of the company united as one, took the initiative and fought against the trend to ensure the steady operation of the listed company, and the comprehensive indicators continued to remain in the forefront of the industry, and the work was difficult to achieve success and reverse stability. At present, under the weight of multiple adverse factors, the company's operating performance indicators and physical volume production indicators continue to decline under pressure. In the face of the unfavorable situation, the company conducted classified management for the two main businesses of construction machinery manufacturing and leasing services, focused on the implementation of Shaanxi Coal Group's requirements for accelerating the cultivation of new businesses and new tracks, constantly emancipated the mind, reformed and innovated, and closely relied on Shaanxi Coal Group's internal resource advantages to cultivate new business forms, open up new tracks, and seek new development. It is also hoped that the provincial SASAC will give guidance and support in the work of policy standards and asset structure adjustment.

The participants exchanged views on corporate governance, quality improvement and incremental work initiatives.

The capital operation Department of Provincial state-owned Assets Committee, the enterprise management planning Department of the group company and the relevant person in charge of Shaanxi Construction Machinery shares participated in the research discussion.