A briefing of SUMEC at CIIE

On the morning of November 6, the signing ceremony of the trading sub-group of SINOMACH at the 4th China International Import Expo (CIIE) was held at theNational Exhibition and Convention Center(Shanghai). As an important member of SINOMACH, SUMEC signed cooperation agreements on bulk commodities, high-end equipment and power machinery with Brückner Maschinenbau GmbH & Co. KG, Murata Machinery, Ltd., AMG Corporate, LX INTERNATIONAL CORP, Ashapura Minechem Ltd.and Rolls-Royce plc respectively. We will continue to take advantage of our resources inthe global industry chain and supply chain, actively developing the domestic market and integrating into a new development pattern of double cycle, so as to create a bright future for China and the world together with our partners.

Mr. Ding Hongxiang, Member of Standing Committee and Deputy General Manager of SINOMACH, attended the signing ceremony and delivered a speech. Other participantsat the ceremony included the top managers of SUMEC such as Zhao Weilin (Member of the Party Committeeand Deputy General Manager), Wang Jian (Member of the Party Committee,CFO and Secretary of the Board), Xin Zhonghua(Member of the Party Committeeand Deputy General Manager), Shi Lei (Member of the Party Committeeand Deputy General Manager), Hu Haijing (Assistant to the General Manager), and relevant personnel of SUMEC International Technology Co. Ltd.(SUMEC Technology) and SUMEC Machinery & Electric Co. Ltd.(SUMEC M&E).

Ding Hongxiang, in his speech, mentioned that SINOMACH has been insisting on "forging the strength of SINOMACH and serving the needs of the country" for a long time, working together with partners from various countries onindustrial upgrading and structural optimization of the equipment manufacturing industry. So far it has introducedcountlesshigh-end equipment, and completed a total import and export volume of US$192.7 billion, of which the total import procurement amount is US$88.6 billion. Including the fourth CIIE,SINOMACH has signeda total of 61 contracts at various sessions of CIIE, amounting to a contract value of US$17 billion.With the joint efforts ofSINOMACH and its partners, a number of cooperation agreements signed have been effectively implemented, achieving win-win results for both sides.Among them, the "SUMEC T-World" as one of the country's leading online and offline platformsfor equipment import services, is further strengthening cooperation with CIIE, and actively seek more overseas high-end equipment manufacturers and professional sellers to participate in CIIE.

In the future, SINOMACH will take advantage of CIIE as a global platform and seize new opportunities in the new erato deepen cooperation and share the future with our partners from all over the world.

Sharing: closer cooperation

Increasing the introduction of high-end equipment. SUMEC Technology and Brückner Maschinenbau GmbH & Co. KG signed a framework agreement on the import of film production lines to help reduce film production costs and enhance enterprise production capacity; signed an agreement with Murata Machinery, Ltd. on the import of equipment such as vortex spinning and automatic winding machines to promote the transformation and upgrading of the domestic spinning industry.

Deepening the field of commodity operation.SUMEC Technology signed a cooperation framework agreement with Ashapura Minechem Ltd.onthe import of iron ore from Guinea for the second consecutive year; signed an agreement with AMG Corporateon the import of manganese ore from South Africa; signed a framework agreement with LX INTERNATIONAL CORP in South Korea on the coal import.We took practical actions to help guarantee the coal demandfor domestic power supply, promote the high-quality development of coal business, and do our best to ensure the supply and stable price of commodities.

Continuing its efforts in the field of power generation equipment.SUMEC M&E cooperated with Rolls-Royce plc for the third consecutive year, and the two sides signed a procurement framework agreement worth US$23 million to provide a more environmentally friendly backup power supply guarantee for new infrastructure, data centers, domestic manufacturing, kitchen waste treatment among other fields through the procurement of high-quality, low-emission high-end equipment such as diesel engines and original power generation units.

Joint progress: a broader range of partners

Before the signing ceremony, Ding Hongxiang, accompanied by Xin Zhonghua and others, visited the booth of SUMEC’s partner, Rolls-Royce, in the afternoon of November 5. Rolls-Royce is a famous engine company and maintains good cooperation with SUMEC in many aspects. Ding Hongxiang came to the Rolls-Royce booth and engaged in an in-depth exchange of views on sustainable development with Wang Lanting, President of Rolls-Royce plc Greater China, and the two parties discussed the future path of strengthening cooperation.

Win-win: a smarter future

As the world's first national-levelexpothemed around import, CIIE is showing the world the promise of openness with "the more you run it, the better it gets". Over the past four years, SUMEC has always adhered to the business philosophy of "placing equal emphasis on domestic and international markets, and import and export business", continuously exploring the potential of the domestic super-scale market, introducing good export products and overseas products, providing customers with a four-in-one supply chain solution integrating "resources, commerce, logistics and finance", and promoting the upgrade of domestic manufacturing and the structural reform of supplyside. Embarking on the new journey of "14th Five-Year Plan", SUMEC has firmly practiced the "double cycle" strategy and achieved a new breakthrough of RMB124.2 billion in revenue in the first three quarters, reaching a new historical peak of development.

"Openness is the distinctive mark of contemporary China", as General Secretary Xi Jinping stressed at the opening ceremony of the 4th CIIE, "China is willing to work with all countries to build an open world economy, so that the spring breeze of openness will warm the world!"Looking to the future, SUMEC will take the opportunity of the 4th CIIE under the leadership of SINOMACH, to work hand in hand with global friendly partners in order to build a digitally driven international industry chain and supply chain as well as deepen the traditional foreign market while sharing the opportunities in the domestic market so that global quality resources can be integrated to build SUMEC into a double-cycle benchmark enterprisethat promotes domestic and international cooperation, and further promote the high-quality sustainable development of SINOMACH.