On July 19, the Communist Party of China Central Committee and the State Council issued a guideline on boosting the growth of the private economy (hereinafter referred to as the guideline). The guideline helps private enterprises to dispel doubts in orientation, relieve worries in development and reduce pressure in environment. It has great significance and far-reaching impact on sustainable and healthy development of China's economy and enterprises' high-quality growth.

First, the guideline strengthened the confidence to concentrate on our business. At the critical period when the national macro-economy is constantly recovering its vitality and the private economy is trying to find new breakthroughs in high-quality development. The release of the guideline got right to the spot in the concerns of private sector, which not only reflected the value and support for the private economy, but also provided a more powerful policy guarantee for its development in the new era through a series of normalized and legalized new measures, which served as a "shot in the arm" for the majority of private enterprises. It has further strengthened the sense of security and gain in the development of private economy, firmed the confidence of private entrepreneurs to engage in business, and provided a reliable guarantee for the private economy to grow bigger, better and stronger. For Shagang, the guideline made us more confirmed on our original aspiration of serving the country by steel and more confident in developing our main business. In the future, we will strive to build Shagang into a world-class iron and steel strong enterprise with leading benefit, efficiency and talent, a brand enterprise with evergreen foundation.

Second, the guideline fortified our determination to develop high quality industry. It pointed out the direction and path for private enterprises' future "high-quality development", in the specific practice of Shagang, which is to reinforce its confidence to be strong, be excellent and be practical in steel main business. In the future, Shagang will improve the competitiveness of its products in the international market by focusing on the key tasks in innovation leading, products upgrading, green and low-carbon, "intelligent and digital transformation" and international expansion, especially to take scientific and technological self-reliance and strength as the guide, intensify research and development of "bottleneck" technology and "high-end, cutting-edge" products, and quickly promote product quality as well as core competitiveness into the international forefront. At the same time, Shagang will also put a top priority on the special steel production sector; endeavor to become a special steel production enterprise which has international brand influence and competitiveness as well as the largest scale at home and abroad, the most complete variety of goods and the highest grade.

Third, the guideline firmed our perseverance in managing Shagang under the rule of law. It proposed to increase the fundamental position of competition policy, improved the framework of fair competition system and policy implementation mechanism, and insisted on equal treatment of various ownership enterprises. This provided an important guidance for further optimizing business environment, especially the legal environment, and created an enabling and stable external expectation for the development of the private economy. In its next step, Shagang will continue to firmly standardize production, operation, investment, management, project construction and other activities under the rule of law. On the basis of being awarded the title of "high-quality" compliance enterprise, Shagang will actively drive the pilot promotion of compliance reform in more member enterprises; exert to become a model of modernized and standardized management enterprise through further efforts in compliance governance.