If a teenager is strong, then a country is strong: 7 inventions of teenagers that changed the world

Since ancient times, heroes have produced teenagers. In history, we have seen countless talented teenagers invent various theories, methods, technologies and products that change the world.

Today, teenagers with unlimited imagination and creativity are also changing the world with their own inventions.

Looking at their inventions, some can bring new impetus to the transformation of an industry, while others hope to save the lives of a group. But all roads lead to the same goal, and their inventions are put forward because they see the existence of a certain problem and want to change and solve it.

Of course, behind their inventions, we should pay more attention to what kind of education and environment can provide fertile ground for teenagers to give full play to their imagination and creativity. What should we do to naturally shape this kind of education and environment.

After all, young people are strong, and technology is strong; Youth is strong, then the country is strong.

1. Ionic liquids for industrial carbon capture.

CO2 is one of the most important greenhouse gases, but it is also a rich resource. At present, some organic solvents are commonly used in industrial production to absorb CO2, but it is difficult to release CO2 again, and it is easy to corrode industrial equipment.

In September, 2017, Zhao Songrui, who is already a freshman in the School of Chemistry and Molecular Engineering of Peking University, won the special prize of the European Association of Chemistry and Molecular Sciences for his "Study on the Synthesis and Characterization of Pyridine Ionic Liquids and CO2 Absorption Performance", which achieved a zero breakthrough for Chinese players in the EU Young Scientists Competition.

The pyridine ionic liquids studied by Zhao Songrui can quickly attract and release CO2, and the stability is very good. This technology has a broad application prospect in the field of industrial carbon capture.

2. Ultra-efficient catalyst converts plastic waste into biofuel.

AzzaAbdelHamidFaiad, an Egyptian girl, found a cheap catalyst at the age of 16, which can quickly and continuously convert plastic waste into biofuel.

Faiad successfully decomposed waste plastics into methane, propane and ethane by using calcium-based bentonite as catalyst, and then converted it into ethanol for fuel use.

The process can produce as much as 138,000 tons of hydrocarbon gas every year, and generate biofuels worth 78 million dollars. Egypt produces about 1 million tons of waste plastics every year, which is helpful to Egypt’s environmental protection and economic development.

She won the prize of European Nuclear Fusion Development Agreement (EFDA) in the 23rd European Union Young Scientists Competition, and attracted the attention of Egyptian Petroleum Research Institute.

3. Life-saving building fire smoke mask system

In 2013, AlexisLewis, an American girl, heard a mother throw a 2-year-old child from the second floor to avoid the harm caused by fire smoke to the child, which led to the idea of designing a smoke mask.

In order to save the people trapped in the building by the fire, Lewis found in the experiment that the success rate of directly throwing the smoke mask into the room from the window was very low, so he designed several 3D printed bomb prototypes and installed a light smoke mask produced by XcaperIndustries, a professional respiratory protection equipment manufacturer, in the bomb.

After more than 290 tests by 37 firefighters throwing bullets at the second floor window, the rugby-type bullets with throwing accuracy exceeding 70% were finally determined.

The design can provide a safe breathing mask for those who encounter fire and have no time to escape, which effectively protects the lives of residents.

Lewis was only 15 years old when he designed the smoke mask system, and he had many patent inventions.

4. Using algae to convert CO2 from automobile exhaust into oxygen.

In 2008, ParamJaggi, a 16-year-old American boy, began to pay attention to automobile exhaust emissions while learning to drive. He designed an exhaust purifier using seaweed, which can reduce carbon dioxide in automobile exhaust.

With this invention, he won a prize of 8,000 dollars and a sustainable development award from the US Environmental Protection Agency.

ParamJaggi has applied for a patent and set up a company. The first product developed by Paramjaggi, AlgaeMobile carbon filtration system, has built-in panels covered with special algae strains on both sides, and uses photosynthesis to absorb carbon dioxide emitted by automobiles to produce oxygen and glucose (for feeding algae).

Considering that automobile exhaust emissions are too fast, Jaggi arranges a plurality of panels in a staggered way to increase the contact surface area of carbon dioxide and melt carbon dioxide into water to form carbonic acid; Sodium hydroxide placed in the filter reacts with carbonic acid to form harmless carbonate.

ParamJaggi has won many honors and been included in Forbes’ list of 30 outstanding men under the age of 30 in American science and technology field.

5. Simple life-saving equipment in the car to prevent children from dying of heat.

Every year, many children around the world die of heat in cars for various reasons. In 2011, AndrewPelham, an 11-year-old American boy, came up with the concept of EZBabySaver when he heard that a 10-month-old baby was trapped in a car and died of heat.

Pelham’s invention is made of rubber sleeve and adhesive tape, which connects the handle in the front door of the car with the driver’s back seat, thus reminding parents to check the back seat before getting off the bus to prevent tragedy. With this invention, he won the runner-up in the Young Inventors Group in the Rubber Band Competition.

According to media reports, hundreds of parents and grandparents around the world told Pelham by email that they had made this simple baby protector. Although the attention of this small invention is limited, we have to admit that it is a very effective invention.

6. Low-cost Lego Braille printers

In 1824, Louis Blair, a 15-year-old French blind man, created French Braille to help countless blind people read.

In 2014, 13-year-old American boy ShubhamBanerjee used robot toys and programming technology to help the blind again.

Banerjee assembled a Braille printer Braigo using Lego EV3 set with a price of $350. The printer can print Braille with better recognition ability by updating the built-in software and enhancing the hardware.

The invention directly reduces the price of Braille printers on the market from 2000 dollars to 350 dollars. Banerjee has set up a laboratory, focusing on the research of low-cost Braille printing technology, and obtained the investment from Intel. The lab also developed "the world’s first low-cost/silent/on-chip translation /IOT-Cloud printer concept".

This invention helped Banerjee win the 2014 Technology Award and was invited to attend the WhiteHouseMakerFaire (Creative DIY Party) held in the White House.

7. Cheap and rapid Ebola detection

In 2015, OliviaHallisey, a 16-year-old American middle school student, invented a new Ebola virus detection technology.

The invention is based on the principle of chemical reaction. When Ebola virus in blood reacts with chemicals in the reagent, the reagent will change color. This method can complete the detection within 30 minutes.

In addition, the cost of each detection is only 25 dollars, and the storage and transportation of reagents do not need refrigeration.

This invention helped Hallisey win a $50,000 scholarship in the 2015 Google Science Challenge.

(Source: Capital Lab, Li Xin. The content only represents the author’s personal views, not the position of the forum)

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Common 22 typical mental diseases

1, neurosis: friends lack communication with their own hearts, life is very self and subjective, often living in the shadow of various fears, insecurity, and the pursuit of security, making the body and mind not relaxed enough. It is a functional disorder with sufficient self-knowledge.

2, hypochondriasis, neurasthenia, phobia (fear of cancer, fear of AIDS): excessive attention to oneself, sensitive quality, personality foundation, living environment, accidental events and cognitive bias.

3. Anxiety: Friends suppress their aggressiveness, shrink back and evade their responsibilities, and are unwilling to take responsibility because an active life will bring mistakes and responsibilities. They are afraid of death and can’t grasp the situation of their lives. When they accept their responsibilities, they also give up all their venting methods, and finally turn to attack themselves. It is caused by the comprehensive factors of personality and life. Everyone should live in real life and learn to be satisfied.

4. Social phobia: the result of the combination of self-distrust and high expectations and the deviation of understanding of the objective world. In some cases, there may be some direct incentives, excessive attention to self and pursuit of ideal interpersonal communication.

5, interpersonal sensitivity: sensitive to what you are afraid of and then resist. Allergy is an overreaction to what you think is unfavorable. Allergy is a strong manifestation of resistance and aggression. It is an aggressive psychology. We only attack what we are afraid of and may hurt ourselves. Resisting means not letting the other person in. Interpersonal relationship sensitive person wants is the simplest and purest. They have repressed emotions to be released and fear in their hearts. Sensitive person should learn to master the interpersonal relationship around him, accept the so-called "enemy", reconcile with it, and learn to love the "enemy". Patients may be accompanied by some paranoid personality disorder.

6. Schizophrenia: Everything about the external events experienced by patients is the projection of internal shadows. The mental behavior of patients is forced to show the neglected shadows in their lives, and their emotional expression is suppressed in the most extreme way, so that they suddenly break out and cause mental disorders. There are many kinds of causes of schizophrenia, including genetic factors and life experiences. There is no unified view in the medical field. There are four common types of schizophrenia: youth type, paranoid type, nervous type and simple type. The main feature is the loss of insight, and the main treatment is long-term drug treatment.

7. Depression: an obvious and persistent mood disorder. There are many explanations for the causes, such as various events in life, genetic characteristics, physiological changes in the brain, mental trauma in childhood, long-term accumulation of negative emotions, etc. The United States has made great breakthroughs in the study of depression. At present, the treatment method mainly relies on the combination of drug therapy and psychotherapy. The international advanced drug treatment method is comprehensive treatment of several types of drugs through several courses, 2/3.

8, physical symptoms fatigue: we talk about the unity of body and mind, physical symptoms are often a reflection of psychological crux, many physical symptoms of non-organic diseases are caused by psychological reasons. Physical symptoms are often caused by feeling extremely depressed and hopeless about life, losing the goal and direction of life, and feeling insecure.

9. Physical symptoms: Shoulders are tight and stiff: some things are not what they want, there are emotional conflicts in their hearts, or they are too stressed in life, or they feel guilty about some actions in the past. Dr. Alexander Lowen also made a related statement in "Body Dynamics and Personality Structure", in which drooping shoulders indicate inner depression, shrugging shoulders are related to fear, and bending shoulders are a reflection of heavy mental burden.

10, physical symptoms dyspepsia: most of them are non-organic but functional, so it is related to mood, unacceptable to reality, angry, persistent and stubborn about their own situation, unable to let go, depressed performance. We need to trust life, face life with a happy-go-lucky attitude, and let life be as free as possible.

11. Somatization symptom pain: friends’ mental and emotional imbalance leads to muscle pain because they are unable to vent their anger mentally, and physical tension caused by psychological reasons. Headache is caused by deep-seated pain, because they are unwilling to express or have no way to express it, and then they are unwilling to accept bad emotions, shrink back and escape from the real world. There is also a type of pain caused by seeking a rational, reasonable and understandable life and chasing uncertain endings, often.

12. Types of migraine: the theme of the body is transformed into the head, and the theme is tried to be realized at this level, one of which is that sex is not satisfied.

13. Anorexia: the result of patients’ lack of acceptance by others, trying to make the sense of emptiness disappear in this way, which is a manifestation of spiritual self-satisfaction. One type is anorexia nervosa: excessive asceticism, rejecting all material and physical needs, aiming at chastity and spirituality, and having great desire for life. However, if we want to eradicate our own greed and abstinence by anorexia, we can’t find a happy balance. We need to be honest with ourselves and accept our greed. Habitual anorexia is dieting for various reasons. After a long time, it forms a habitual conditioned reflex and loses interest in food.

14. Bulimia: It is mostly a manifestation of not being cared for by people around you or feeling left out, satisfying yourself with food, filling the inner emptiness or loneliness after success, or another form of satisfaction for hunger and thirst for love, which will reappear in the body as longing for sweets and food. The difference between compulsive diet and compulsive diet: compulsive diet can’t deal with love from the consciousness level, but can only practice love through the body and look for love, affirmation and encouragement at the wrong level.

15. Vomiting, hunger: The patient subjectively wants to vent and prove that his thoughts are wrong, denying himself and the joy of life, which is a manifestation of lack of care in life, expressing resistance and rejection.

16. Stuttering: People around you are too authoritative and picky when you are growing up. You have subjective concerns about expression and are vague. You can’t express your needs completely freely, so as to avoid the subconscious mind emerging into consciousness, causing throat fear and contraction, and being restrained in childhood. You dare not vent your inner pressure and avoid speaking your inner words directly. In the later stage, it is a problem of psychological conditioned reflex.

17. Dyskinesia, writing spasm: If you want to show self-confidence, you are really insecure inside. Looking at things in a "skewed" and "distorted" way is a wrong way of self-expression.

18. Sexual barriers: All kinds of fears about self, partners and sex are the most fundamental reasons. Women’s apathy means that women are not ready to give themselves, they want to be "masters", unwilling to obey and be at a disadvantage, or they may have been holding inappropriate ideas about sex, or they lack love and acceptance between partners. Male impotence, excluding physiological factors, psychological inferiority, lack of confidence in their masculinity and aggression, excessive pressure, fear of women, or feeling guilty, confused, afraid of loss, patients may also be some personal reasons such as life experience or cognitive deviation.

19. Insomnia: Most insomnia is psychogenic and emotional. Insomniacs can’t let go of their subconscious, lack of trust, long-term emotional tension in life, fear, distrust of life, and excessive pressure in life, anxiety, neurasthenia and hypochondria.

20, lethargy: inner resistance to real life, not getting up in the morning is afraid to face reality, is dodging the challenges and responsibilities of life, unwilling to take the initiative to do things, to avoid waking up.

21. Addiction: Escape from things in life, eager to get something, but stop looking for it too early, and stay at the level of some substitute at present. When the substitute goal is lost, it will never get tired, and refuses to admit that the current goal is wrong. The real goal needs to continue looking for, and it is to fill the emptiness and confusion with foreign objects.

22. Alcoholism: escape from real conflicts and problems in life, get the illusion that everything is beautiful with alcohol, and create the illusion that people are close to each other. There is no real depth and intimacy. The treatment needs to take medicine, so that patients can feel the smell of alcohol and get rid of it.

Review on the Management of Hongfa Company’s 2021 Annual Board of Directors

() The business review of the Board of Directors in 2021 is as follows:

  I. Discussion and analysis of business conditions

  2021 is a significant year. We welcome the 100th anniversary of the founding of the Party, and at the same time start the first year of the implementation of the 14th Five-Year Plan. All Hongfa cadres and employees always adhere to Hongfa culture and characteristic management philosophy, unite as one, work hard, achieve impressive business results, and achieve a bright start in the 14 th Five-Year Plan.

  In 2021, the company rose to the 6th place in the comprehensive ranking of economic indicators of electronic component enterprises in China, and ranked 89th in the top 100 enterprises with electronic information competitiveness, both of which were the best in history. The company’s market share in the global relay field has increased by nearly 3 percentage points compared with 2020, further consolidating the position of relay products as the first in the world.

  (1) The Tenth Five-Year Plan of Hongfa Co., Ltd. and Development Plan for the Next Twenty Years was officially released and implemented, which pointed out the direction for the company’s long-term development.

  In June, 2021, the Tenth Five-Year Plan of Hongfa Co., Ltd. and the Development Assumption for the Next Twenty Years (hereinafter referred to as "Planning and Assumption") was officially released. The development blueprint drawn by this plan and vision and the development vision for the next 20 years not only cover the overall planning of the company and the planning of each functional module, but also subdivide the planning of each business department and each enterprise, as well as the parts planning and mold planning related to the medium-and long-term production preparation of the enterprise, which together constitute an all-round and three-dimensional development strategic system of the company.

  The planning and assumption firmly grasp the characteristics of Hongfa, and it is clear that we will continue to thoroughly implement the three development ideas of "crossing the threshold, expanding categories and improving efficiency", strictly follow the 16-character management policy of "unified planning, strengthening concentration, combining vertical and horizontal, and implementing in blocks", always adhere to the core business philosophy of "winning by quality" and the dual core of "quality and efficiency", and firmly advance along the development path of Hongfa’s characteristics. By the end of the "14th Five-Year Plan", the company will become a world-class brand in the relay industry, ranking first in the world, becoming one of the important switch product manufacturers in China, and stepping into the ranks of professional connector manufacturers; By the middle of the Tenth Five-Year Plan, the business scale will reach 20 billion yuan, making it a leading global enterprise with distinctive features.

  Planning and assumption is the first five-year plan for the company to enter a new development stage. It is a plan with a new starting point and a new chapter, which will become an important action guide for the company’s future operation and management.

  (2) Achieve rapid growth in business indicators and get off to a good start in the 14th Five-Year Plan.

  (3) Adhere to the "dual core of quality and efficiency" and consolidate and enhance comprehensive advantages.

  In 2021, the company continued to firmly adhere to the operating characteristics of "double cores of quality and efficiency", and strived to build core advantages in the fierce market competition by improving product quality and per capita production efficiency. Relay products continued to expand into high-end fields, further consolidating and expanding the leading edge.

  1. The physical quality of products has been steadily improved at a higher level.

  In 2021, the company organized and completed 77 Six Sigma projects, 697 QCC projects and 15 weekly failure improvement projects around the improvement of key product quality, and the proportion of production lines assessed by the "crossing the threshold" standard steadily increased to 90.1%, of which the proportion of middle and senior production lines reached 69%. The pass rate of weekly inspection is 95.1%, and the key defects of relay products have been steadily reduced to 1.9PPM. The quality of contactors, small circuit breakers, high and low voltage cabinets and three cabinets at the client side has obviously improved, and the market competitiveness has been continuously improved.

  2. The investment in automatic production line is the highest in history.

  In 2021, the company’s investment in technological transformation exceeded 1 billion yuan for the first time, and a total of 38 automated production lines were put into use, which was the year in which the company invested the most in automated production lines over the years.

  During the reporting period, the company firmly adhered to the concept of "five sets in one" in the development of automatic production lines, and exerted the collaborative innovation ability of internal industrial chains, and the quality and speed of production line development were significantly improved. The average period from start-up and development to quality acceptance and mass production of automatic production line of general relay is shortened to 3-5 months, and the investment period of some automatic production lines is only about 2 months; A total of 10 automatic lines have been put into use for automobile relays, and the per capita output value of some automatic lines is planned to reach 2.5 million yuan. The investment in technical transformation of high-voltage DC relay, signal relay, industrial control relay and sealed relay has also promoted the product quality and production efficiency, and achieved good benefits.

  3. Relay products have further expanded the high-end market, and new categories represented by switches have developed steadily.

  In 2021, the company’s relay products were eye-catching in the high-end market with excellent performance in quality and excellent cost performance: General Relay became the most important supplier and reliable strategic partner of many high-end brands including Miller, (), Electrolux and Bosi, and its global market share increased by 3 percentage points; In the field of rail transit, it successfully won the bid for several projects of CRRC Group, installed the first standardized subway in China as the core component, and landed on Zhengzhou-Xuzhou line in June 2021, filling the gap of domestic core component rail transit relay; In the new energy vehicle market, we have established cooperative relations with mainstream new energy vehicle factories in the world, including high-end vehicle factories such as Tesla, Mercedes-Benz and BMW, and the global market share of high-voltage DC products has reached 36%; Photovoltaic relays keep up with the development trend of the industry, and their products have been recognized by benchmark customers such as Huawei and (), and their market share in high-end customers exceeds 50%.

  Low-voltage electrical appliances are gradually on the right track, with annual market sales and per capita payment increasing by more than 20%. The product development is based on the principle of "laying a solid foundation and accumulating strength", and the products are built from the source in a down-to-earth manner. The product lines such as power control, power distribution and small interruption have initially established a platform-based universal series, and the key technologies have achieved remarkable results, and important breakthroughs have been made in the fields of customer customization and special subdivision. In 2021

  On the basis of the smooth operation of the first small automatic production line, we will continue to push forward several automatic production line projects according to the requirements of "high quality and high standard", and the core competitiveness of enterprises is gradually taking shape.

  (4) Insist on innovation-driven, and change the technological development from following to leading, providing a strong impetus for the "Fourteenth Five-Year Plan".

  1. Many products are leading the world in technology.

  In the field of home appliances and smart home market, following the technical trend of frequency conversion and current carrying, we have developed large current carrying products and low-power and miniaturized products with high surge resistance, and their performance and technical indicators are leading internationally.

  In the emerging application fields of photovoltaic, wind power and energy storage market, we directly cooperate with leading enterprises such as Huawei to develop products, and the technical indicators lead the international market.

  High-voltage DC relay products combine the extreme safety technical requirements of benchmark customers, overcome the extreme safety technical capabilities such as high short circuit resistance, high limit breaking and low contact resistance, and continuously consolidate the leading edge.

  It is the first to develop the fifth generation signal relay in the world. Under the condition of maintaining the performance index, the product volume is reduced by more than 50% and the power consumption is reduced by 60%, leading the update iteration of signal relay technology.

  2. Intellectual property work has gradually shifted from "focusing on evasion" to "taking the lead in protection".

  In 2021, the company actively conducted risk investigation and patent analysis on 341 products, and consciously conducted investigation and rights protection on competitors’ patents, all of which achieved good results. In 2001, 376 domestic patent applications were completed, including 118 inventions, up 9.26% year-on-year, and 25 international patent applications, up 38.89% year-on-year. The authorization rate of invention patents is as high as 96.97%, and the authorization rate of utility model patents remains 100%, which has established effective intellectual property protection for leading products and technologies.

  3. Demonstrate the leading edge in the field of standardization, and the international influence of the industry has been significantly enhanced.

  In the field of international standardization, the company has 5 experts from IEC International Standards Committee, participated in the compilation, revision and opinion handling of 3 international standards throughout the year, and organized 70 international standards to solicit opinions and reply. At home, the company serves as the chairman of China Relay Standardization Committee, leading the formulation, approval and release of two national standards GB/T21711.1 and GB/T16608.1, leading the formulation of two national standards GB/T21711.2 and GB/T21711.2.1 on relay reliability, progressing steadily according to procedures, and newly reporting two national standards GB/T 21711. The company’s work in the field of relay professional standardization further consolidated the company’s leading position in the relay industry and significantly enhanced its international influence in the relay industry.

  (5) Build a strong production capacity of molds and parts, and lay a solid foundation for the supply chain of products during the 14th Five-Year Plan.

  In 2021, the company took the mold and front-end capacity building as a major strategy, systematically planned and comprehensively promoted, and further enhanced the overall strength of the industrial chain supply chain.

  1. Make a systematic and overall plan for the capacity building of molds and parts.

  In 2021, the company organized the formulation of Mould Management System, Medium-and Long-term Development Plan of Mould, and Tenth Five-Year Plan (Draft) for the former parts, systematically planned the production, technical transformation and site of the former parts, strengthened management, accelerated construction, and provided institutional guarantee for creating "good parts". Establish a statistical management mechanism for the internal matching ratio of key parts, and the internal matching ratio of various major parts such as stamping parts, injection molded parts, contacts and iron cores continues to rise steadily.

  2. Focus on improving the level of R&D, design, processing and manufacturing of molds.

  In 2021, the company’s mold center continued to strengthen the development capability of high-precision long-life molds, with the life of dies exceeding 100 million molds and the life of plastic molds exceeding 10 million molds, reaching the first-class level in the industry; Improve efficiency and shorten delivery time. The proportion of T1 days within 60 days reached 80%, the annual mold output increased by more than 50%, and the TEEP of 36 GA key equipment increased by 22.43%. Continue to increase investment in technological transformation, introduce CNC machining center production line, spark machine, high-speed machining center, OPS graphite discharge unit and other equipment to further enhance R&D and manufacturing capabilities. The MES project of mold is put into operation, which forms a platform of information flow synchronous exchange management of mold design, manufacturing and design change, realizes integrated manufacturing and systematic management of mold data with MES system as the core, and lays a solid foundation for building a systematic, automatic and intelligent mold manufacturing factory.

  3. Strive to build a first-class component manufacturing base.

  The manufacturing of parts and components starts from the research of basic theory, and many breakthroughs have been made in technical research. The highest punching speed can reach 1200 times/minute, the shortest injection cycle is 4.5 seconds, and the injection mold for pushing cards can reach up to 128 cavities. The qualified rates of injection parts, metal workpieces, contacts and iron cores in comprehensive batches reach 99.65%, 99.45%, 99.55% and 99.08% respectively, all reaching the advanced level in the industry.

  Inherit the advantages and experience of relays, benchmark the world first-class, highlight the goal of "high quality, high speed, strong adaptability and high cost performance", and implement them in blocks according to the characteristics of new products, so as to build the independent supporting capacity of key components of new products. Actively introduce core production technology and equipment, and successively overcome key core technologies such as precision forming of high-voltage DC close-wound bobbin, which will help the development of new products.

  (VI) Firmly implement the 16-character management policy of "unified planning, strengthened centralization, vertical and horizontal integration and block implementation", improve the management level of the company and ensure the smooth implementation of the "Tenth Five-Year Plan".

  1. Strengthen performance appraisal under the guidance of planning to ensure the smooth implementation of the company’s strategic objectives.

  In 2021, performance management will continue to focus on the guiding ideology of "taking strategy as a guide and constantly solving the bottleneck problem in development", focusing on the operating characteristics of "quality and efficiency" in terms of project and weight setting, and guiding enterprises to continuously build core competitiveness; In terms of goal setting, based on the "Tenth Five-Year Plan" and combined with the macroeconomic situation and competition pattern faced in 2021, the appropriate development goals are determined, and the completion situation is followed up in time through the combination of monthly statistics and quarterly analysis. At the end of the year, the business results of the enterprise are measured based on performance evaluation and the subsequent improvement direction is identified to ensure the smooth implementation of the company’s planning and strategy.

  2. Informatization construction has been promoted to the deep water area, and the pace of digital transformation has been accelerated.

  In 2021, the company stepped up its informatization construction to the deep water area. In addition to continuing to complete ERP, financial sharing and other projects as planned, it continued to implement three phases of projects in the sales field, and completed the comprehensive coverage of CRM marketing management system in domestic and foreign sales organizations. In the field of supply chain and production-marketing collaboration, taking Zhangzhou Hongfa and Xiamen Jinyue as the pilot, APS advanced planning and scheduling software was introduced to initially realize the supply-demand linkage between parts and finished products enterprises; Start S&OP pilot in automotive electronics to create conditions for establishing a visual and integrated supply chain management and decision-making system; In warehousing management, WMS platform at group level is introduced to lay the foundation for subsequent warehousing automation and information integration. The business index statistics of all production enterprises in the company are systematic and automatic, and digital information is increasingly becoming the core strategic resource of the company and plays an important role in business decision-making.

  3. Further strengthen the unified management of marketing work.

  In 2021, the company intensified the unified market planning, integrated industry solutions with the energy industry as a pilot, explored the unified promotion mode of the industry, organized centralized research on key customers in the wind energy and photovoltaic industries, and completed the marketing planning and promotion of nine products (series) such as electronic modules and intelligent circuit breakers; Establish a new category promotion department to help the market development of new categories of products; Establish a global account manager system, formulate a global account strategy, and improve the global account management improvement ideas; Continuously improve the information sharing and cooperation mechanism between sales systems, effectively coordinate the conflicts of customer resources between channels, realize the unified platform for orders, unified data drainage, unified channels for external publicity, unified management of customs affairs and sales expenses, and ensure the smooth operation of various businesses.

  (VII) Promoting the construction of the three major bases as a whole, and creating conditions for the capacity expansion in the 14th Five-Year Plan.

  At the Xiamen-Zhangzhou base, the second phase of Zhangzhou Hongfa project was completed in May 2021 and successfully relocated and put into production, and the third phase of the project with a construction area of 150,000 square meters was officially launched; The second phase of Haicang Industrial Park, with a construction area of 62,000 square meters, completed preparatory work such as project establishment and scheme design; The electroplating expansion project with a building area of 19,000 square meters in Sunban Factory was successfully completed and will be put into production in early 2022.

  In the eastern base, the electroplating workshop was put into use in early 2021, and the electroplating internal service of the eastern base began to be realized; Hongzhou New Energy moved into a new factory building and put into production in October 2021. At the same time, various supporting service facilities in the park were gradually improved, and the whole base was initially formed, which created conditions for subsequent capacity expansion.

  In the western base, in March 2021, the signing ceremony of the investment agreement for the construction of the "14 th Five-Year Plan" project of Hongfa Western Intelligent Manufacturing Industrial Park was successfully held, and the output value of the project will exceed 2.4 billion yuan after completion. In September 2021, the third phase of Sichuan Hongfa Project was officially started. The project has a construction area of 44,000 square meters, and two modern production plants will be built. It is expected that the renovation will be partially completed and put into production in 2023.

  The rapid progress of the construction of the three bases will provide sufficient plant resources for the company to achieve the "14 th Five-Year Plan" and "create another 10 billion".

  (8) 2 billion convertible bonds were successfully issued, which helped accelerate the development of the 14 th Five-Year Plan.

  In September 2021, the company’s project of issuing convertible bonds was unconditionally approved, and it was successfully issued and listed in November, successfully raising 2 billion yuan, which provided a strong financial guarantee for the company’s continuous large-scale and high-quality investment during the 14 th Five-Year Plan period.

  (9) Major shortcomings and challenges in 2021.

  In 2021, while achieving good business results, we must also be soberly aware of the shortcomings and challenges we face: the development of new categories of products is still relatively slow; The influence of Hongfa brand does not match the overall strength of the company; There are still obvious shortcomings in the overall development of the company, especially in the eastern base enterprises. Affected by various aspects of the epidemic, the pace of globalization has been hindered; The internal synergy of the company has not been fully exerted, and the organizational structure needs to be further optimized; Cadres’ ideological concept, ability and quality need to be improved continuously, and the construction of talent team has a long way to go. These problems need to be solved in the future work.

  In 2022, all Hongfa employees will continue to adhere to the company’s "14th Five-Year Plan" under the guidance of the three development ideas and the 16-character management policy, vigorously inherit and carry forward Hongfa’s corporate culture, strengthen their beliefs, be determined to innovate, and strive to do all the specific work to promote the company’s sustained and good development!

  

  Ii. the industry in which the company is located during the reporting period.

  The company’s main product relay is an electronic control device, which has a control system (also called input loop) and a controlled system (also called output loop). It is usually used in automatic control circuits, and it is actually an "automatic switch" that uses a smaller current to control a larger current. Therefore, it plays the role of automatic adjustment, safety protection and conversion circuit in the circuit. When the input quantity (such as voltage and current) reaches the specified value, the controlled output circuit is turned on or off. It has the advantages of fast action, stable work, long service life and small size. Widely used in power protection, automation, sports, remote control, measurement and communication devices.

  According to the 2021 edition of China Electromagnetic Relay Market Competition Research Report issued by Zhiduoxing Consultant, the global economic situation will improve in 2021, and the relay market will rebound to a certain extent, reaching 58.95 billion yuan in 2025, with an average growth rate of about 8.5% in the five years from 2020 to 2025. According to the data of Zhiduoxing Consultant, the global demand for electromagnetic relays will be about 10.35 billion in 2021, and 11.94 billion in 2025, with an average growth rate of about 5.2% in the five years from 2020 to 2025.

  With the strong growth of smart home, industrial automation, photovoltaic field, global smart meters, smart cars and the rapid development of new energy vehicles, with the arrival of the 5G era, the relay market will usher in a new round of development. The global manufacturers of electromagnetic relays are mainly concentrated in China, Japan, Europe and America, among which Hongfa shares rank first in the world in market share, while OMRON and Tyco electricity rank second and third respectively.

  

  Iii. Business of the Company during the reporting period

  (a) the main business, main products and their uses, business model.

  Xiamen Hongfa () Co., Ltd., a holding subsidiary of the company, is mainly engaged in the production, R&D and sales of relays and electrical products. The main products include relays and electrical products, among which electrical products include low-voltage appliances, high-voltage and low-voltage complete sets of equipment and other categories. Relays are the company’s main products, mainly including power relays, automobile relays, signal relays, industrial relays, power relays, new energy relays and other categories, with more than 160 series and more than 40,000 common specifications, with an annual production capacity of over 30.

  The company’s products have been certified by UL&CUL in the United States, VDE and TV in Germany, CQC in China, etc., and are widely used in household appliances, smart homes, smart grids, new energy, building power distribution, automobile industry, rail transit, industrial control, security, fire protection and other fields.

  After years of development, the company has more than 30 manufacturing enterprises, established three R&D and production bases in Xiamen, Zhangzhou, East and West, and seven core business divisions, with a workshop area of over 1 million square meters, and has formed a relatively complete industrial chain of relays and electrical products, covering the design and manufacture of production equipment, parts production, finished product production and product sales. The internal industrial chain is as shown in the figure:

  1. Purchasing mode

  The main materials consumed by the company include copper, iron, silver wire, enameled wire and engineering plastics. After years of development, the company has established a set of strict procurement management system and supplier management norms, and clearly stipulated and strictly implemented the responsibilities and authority of procurement management, procurement process, supplier selection, procurement price approval, procurement payment and inventory storage management. The specific procurement process is as follows:

  2. Production mode

  The relay assembly of the company is in a clean workshop with a class of 100,000 or above, and it is equipped with a negative pressure system to effectively control foreign bodies. The assembly adopts automatic production mode, and has the ability to independently develop first-class relay automatic assembly technology and equipment, including automatic winding, automatic riveting of contact with materials, automatic insertion, automatic welding, etc. In product quality control, online detection technologies such as image system and vacuum leak detection are used, and functions such as online real-time adjustment and defective product sorting are configured, which greatly improves the consistency and stability of product assembly and ensures the physical quality and production efficiency of products.

  3. Sales model

  (1) Sales management mode

  According to the differences of different industries, different regions and target customer groups, the company adopts the sales management mode of combining direct selling and distribution.

  The marketing channels of the company are divided into international and domestic markets, as follows:

  ① International market

  International market refers to importers and exporters in China’s overseas market and domestic market, and customers with foreign currency as the settlement unit. The marketing center of the headquarters is responsible for the overall market planning, organization and coordination. The international market can be divided into:

  (2) Pricing method

  The overall pricing strategy of the company’s products is to refer to market conditions and cost additive process. When determining the product pricing, the company refers to the market price and adds a certain percentage of profits on the basis of raw materials, processing costs and labor costs to determine the final quotation of the product. The cost of the company’s products will change due to changes in material prices, exchange rates and labor costs, and the company will recalculate the latest reserve price regularly.

  (2) Market position and competitive advantage of products

  The development of relay industry is relatively mature, and the market competition is relatively full. The main producing countries include China, Japanese, German and other countries. The company has more than 30 years of experience in relay research and development and manufacturing, and is one of the major relay manufacturers in the world. According to the "2021 Edition China Electromagnetic Relay Market Competition Research Report" issued by Zhiduoxing Consultant, the company’s global electromagnetic relay market share ranks first in the world.

  According to the 30th-34th Top 100 ranking of electronic component enterprises judged by China Electronic Component Industry Association, there are 7 relay manufacturers on the list, including Acer Power Generation, Guizhou Aerospace, (), Ningbo Tianbo, Huigang Holdings, Ningbo Ford and Shanghai Omron.

  Among them, macro power generation is in the first place in the relay industry, a sub-industry of electronic components industry.

  

  Iv. analysis of core competitiveness during the reporting period

  In the long-term development process, the company has gradually formed a unique core competitiveness:

  1. Excellent corporate culture

  After more than 30 years of development and precipitation, the company has formed a corporate culture system with Hongfa characteristics. The system includes seven core concepts (vision, mission, values, etc.) and six management ideas (quality and efficiency are the core, etc.). The company adheres to the enterprise spirit of "continuous progress and never satisfaction"; It has established the vision of "creating an international brand, building a century-old prosperity", the corporate mission of "representing the national relay industry to win a place in the world" and the core values of "jointly promoting the continuous development of enterprises, making contributions to society and shareholders, and striving to seek better and better interests for employees themselves". Always adhere to the business policy of "market-oriented, quality wins"; The quality policy of "pursuing perfect quality to provide customers with satisfactory products and services" and the code of conduct of "honesty, law-abiding, civilization and dedication".

  2. High-level technical R&D team

  The company has the first national-level enterprise technology center, academician workstation, postdoctoral workstation and the largest relay testing center in Asia in the domestic relay industry, focusing on improving quality and efficiency and customizing personalized solutions for customers. The company became the first enterprise in the relay industry to preside over the formulation of national standards. By the end of December 2021, the company had 1,528 valid patents. Relying on the strong technical resource advantages in the relay industry, the company’s technical status in the industry is improving day by day, and it has successively won the honors of "National Technology Innovation Demonstration Enterprise", "National Manufacturing Individual Champion Demonstration Enterprise", "Industrial Product Green Design Demonstration Enterprise" and "National Technology Innovation Engineering Innovative Enterprise".

  3, advanced mold design, manufacturing and precision parts manufacturing capabilities.

  Hongfa firmly believes that "good products are made of good parts, good parts depend on good molds, and good molds need good design and equipment". After decades of precipitation and accumulation, it has become a complete industrial chain that deeply integrates the design and manufacture of molds, precision parts and automated production lines. In terms of mold design, manufacturing and precision parts manufacturing capabilities, the company has a strong self-supporting ability of parts, equipped with the world’s top parts production equipment. The precision of Hongfa mold can reach 1μ, and the industry-leading mold design and manufacturing ability shortens the product development cycle and ensures the product quality.

  4, advanced relay automation equipment design and manufacturing capabilities.

  In terms of the design and manufacturing capacity of relay automation equipment, the company is one of the earliest enterprises in China that specializes in designing, developing and producing special automation equipment and automation production lines for relay industry. The developed relay assembly production line and the equipment level of the previous part have reached the world-class level. The rising degree of automation improves the company’s per capita production efficiency and ensures the consistency and stability of product quality.

  5. Advanced and complete product laboratory

  The company has the largest relay testing center with the most complete facilities in China relay industry, and has set up "three core product testing laboratories" and "four public service laboratories". Establish a laboratory quality assurance system according to the ISO/IEC17025 accreditation criteria, have the independent development ability of non-standard testing systems, meet the non-standard testing needs of different customers, participate in the formulation of international standards such as IEC61810-2/-2-1 and IEC61810-10, and lead the formulation of China standards such as GB/T21711.7 and GB/T16608.50-55. At the same time, it implements more than 10 international and domestic standards, such as EN61810 and UL508. In 2007, the company signed the preferred partner agreement with VDE, which was the first in the world in terms of components. The company has been recognized by VDE as the world’s first relay laboratory for electric meters, and has the laboratory qualification recognized by Shanghai General Motors (GP-10). The company’s chemical analysis laboratory has been recognized by CNAS laboratory for expansion, which can provide customers with accurate, reliable and credible ROHS compliance testing data and reports.

  6. Always pursue to provide customers with satisfactory products and services with perfect quality.

  The company always insists on "winning by quality" and pursues to provide customers with satisfactory products and services with perfect quality. It has built a unique total quality management model and integrated management system. Based on the "five-in-one" new product development quality management, robust process control, "quality first" supplier quality management, customer-oriented quality service and "pyramid" continuous improvement mechanism, the quality management cycle is realized and the whole production process of each product is strictly carried out.

  7. Industry-leading human resources advantages

  Under the guidance of the concept of "people-oriented, cultivating top-notch talents in the industry", the company has gathered a group of professionals with certain authority and experience in product research and development, production, management and marketing through self-cultivation as the mainstay, which has laid a solid talent foundation for the further development of the company’s business. The core technicians of the company’s product research and development department have many years of experience in the industry. The company adheres to the guidance of high-end talents and promotes the improvement of technological innovation ability. The company’s main management team has rich experience in relay industry operation and management, focusing on building a strong brand in the industry and continuously enhancing the company’s core competitiveness.

  8. Brand advantage

  After more than 30 years of development, the company has become the world’s largest relay manufacturer, trusted by customers. According to the list of "Top 100 Electronic Components Enterprises in China in 2021 (the 34th)" issued by China Electronic Components Industry Association, the company ranks sixth and first in the relay industry.

  The company has a high market reputation and brand awareness, and has obvious competitive advantages in network layout, industrial integration, customer and supplier management.

  

  V. Main operations during the reporting period

  During the reporting period of 2021, the company realized an operating income of 10,022,657,500 yuan, an increase of 28.18% over the same period of last year; The net profit attributable to shareholders of listed companies was 1,062,555,500 yuan, an increase of 27.69% over the same period of last year; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 922,540,300 yuan, an increase of 32.98% over the same period of last year; Achieve basic earnings per share of 1.43 yuan.

VI. The Company’s Discussion and Analysis on the Company’s Future Development

  (A) the industry pattern and trends

  As one of the most important basic components, relay is a necessary and core electronic control basic component in the whole circuit control system, which is widely used in the fields of home appliances, industrial control, automobiles, communications, electricity, energy, security, aerospace and so on, and its main function is to realize "automatic and remote" control. Among these fields, household appliances, automobiles and industrial control, as traditional industries, have always been the fields with the largest amount of relays. Although the downward pressure on the global economy has increased under the influence of the epidemic during the reporting period, individual fields, such as electric power (especially smart grid), security monitoring, smart home and new energy (especially photovoltaic power generation and new energy vehicles), as emerging industries, are driven by industrial policies in China and the world, with strong development momentum. China is still the main production base of relays, accounting for about 50% of the global total output. There are many manufacturers, but there are few manufacturers with a certain scale, the industry concentration is not high, and the market competition is fierce.

  The company’s comprehensive economic indicators have been in the leading position in domestic peer enterprises for many years. At the end of the reporting period, the company’s overall sales revenue was 10.023 billion yuan, up 28.18% year-on-year. The company produced more than 3 billion relays, low-voltage electrical appliances and other products throughout the year, and its main relay products have steadily increased their market share in the global market. In 2021, the company’s products were eye-catching in the high-end market: the market share of general relays in high-end smart home appliances was further consolidated and expanded, becoming the most important supplier and reliable strategic partner of many global high-end home appliance brands; As the core component, the sealed electromagnetic relay is installed in China’s first standardized subway train, Rio Tinto’s rail transit market, which fills the gap in domestic rail transit relays; High-voltage DC relay has grown rapidly, and has established business cooperation relations with mainstream new energy vehicle manufacturers around the world, becoming the world’s major manufacturer of high-voltage DC relay; Photovoltaic new energy products keep up with the rapid development of the industry, and the market share of high-end customers has increased by nearly 60%, and the overall market share has increased to 57%. The deep expansion of the high-end market has pushed the company to stride forward on the road of high-quality development.

  During the reporting period, many projects of the company were carried out smoothly and won many important honors: the "14 th Five-Year Plan" project of Hongfa Western Intelligent Industrial Park was launched; The company’s national intelligence creation new model project passed the acceptance; In China, the comprehensive ranking of economic indicators of electronic component enterprises rose to the sixth place, the best ranking in history, and the ranking of the top 100 enterprises with electronic information competitiveness and the top 500 listed enterprises in China has also been continuously improved, and at the same time, it has once again won the "China Brand Value List".

  In the future, under the guidance of the three development ideas and the 16-character management policy, we will always adhere to the principle of "winning by quality", vigorously inherit and carry forward Hongfa culture, strengthen our faith, be determined to innovate, keep forging ahead, never be satisfied, work hard, overcome the risk challenges on the way forward, enhance our development momentum, plant our development advantages, and constantly push Hongfa career to a new height.

  (II) Company development strategy

  The company’s development strategy is to inherit and carry forward Hongfa’s characteristic culture and business philosophy, adhere to the business policy of "market-oriented, winning by quality", thoroughly implement the three development ideas of "crossing the threshold, expanding categories and improving efficiency", strictly follow the 16-character management policy of "unified planning, strengthening concentration, integrating vertically and horizontally, and implementing in blocks", and firmly grasp the core business philosophy of "winning by quality" and "quality and quality" Enhance the leading ability of technological innovation, build an independent and controllable industrial chain system, continuously build automated and intelligent manufacturing factories, enhance the core competitiveness of enterprises, carry forward Hongfa brand, and promote the high-quality development of enterprises.

  Specifically, it is proposed to implement the company’s development strategy through the following aspects:

  (1) Strengthen market operation and expand market share.

  (2) Accelerate "expanding categories" and strengthen technical guidance.

  (3) Coordinate production layout and improve operation management.

  (4) Adhere to "winning by quality" and continue to "cross the threshold"

  (5) Insist on technical innovation to build enterprise technical strength.

  (6) Build an autonomous and controllable system to build core competitive strength.

  (7) Grasp the construction of talents and ensure the development of the echelon.

  (8) Promote the development of informatization and realize digital growth.

  (9) Improve the base construction and ensure the development space.

  (10) Centralized financial control and fine value creation.

  (3) Business plan

  In 2022, under the guidance of the three development ideas and the 16-character management policy, the company will always adhere to the principle of "winning by quality", vigorously inherit and carry forward Hongfa culture, strengthen its belief and be determined to innovate, and focus on the following work:

  (1) Firmly implement the strategy of "expanding categories", use the successful experience of developing relays to promote the development of new categories of products, and cultivate new growth points of the company in the future as soon as possible.

  (2) continue to build the strength of parts and molds, especially strengthen the research and development of new products, new processes and characteristic processes, and build core competitiveness.

  (3) Continue to pay close attention to the "short board" work, help short board enterprises in human resources protection, management improvement and technology docking, and promote the rapid development of the eastern base.

  (4) Standardize the use of raised funds, adhere to high-quality and large-scale investment, promote the construction of production bases, further enhance the strength of enterprises, and lay the foundation for the rapid development of the company in the next stage.

  (5) Pay attention to the development of macroeconomic situation, organize functional modules such as production, supply and marketing to actively respond to external risks and challenges, and ensure the smooth progress of production and operation.

  (6) Vigorously enhance the brand awareness of Hongfa, win the brand reputation by continuously improving the product quality, and at the same time strengthen the marketing propaganda, so that enhancing the brand awareness of Hongfa becomes a new meaning of the strategy of "crossing the threshold".

  (7) Summarize Hongfa’s development experience, carry forward Hongfa’s characteristic culture, complete the compilation of Hongfa’s management experience series, and inherit and practice the unified Hongfa’s characteristic management model.

  (8) Strengthen the construction of talent team, especially accelerate the construction of senior technical talents and excellent management talents, and provide talent guarantee for the company’s new round of rapid development.

  (9) Focus on asset management and benefit improvement, further refine enterprise cost control, build the company’s financial knowledge center, output high-quality financial information and provide better services for the company’s strategic implementation.

  (4) Possible risks

  I. Operational risks

  The company’s main products cover relays, low-voltage electrical appliances, high-voltage and low-voltage complete sets of equipment and other categories, and are applied to household appliances, smart homes, automobile industry, smart grid, industrial control, new energy and other fields. If macroeconomic fluctuations, policy adjustments and other factors affect the prosperity of downstream industries or downstream market demand, it may adversely affect the company’s operating performance.

  Since 2018, trade frictions between China and the United States have been constant. The US government has successively issued three batches of tariff increase lists, in which 25% tariffs are imposed on goods worth $34 billion, $16 billion and $200 billion exported from China to the United States, and relay products are also included in the tariff increase list. Although at present, the products directly sold by the company to the United States account for a relatively small proportion, which has little impact on the company, if the trade friction between China and the United States is further aggravated or there is trade friction between China and other economies in the future, barriers will be set up in terms of trade policies and tariffs, which may have an adverse impact on the company’s operating performance, profitability and market development.

  The main raw materials of relay products include copper, silver, enameled wire, engineering plastics, etc. The prices of the main raw materials are affected by the fluctuation of the international market of bulk commodities, which directly affects the product profits and the company’s working capital. If the price of the company’s main raw materials fluctuates violently in the future, and the company cannot transfer the negative impact of the price increase of raw materials to downstream enterprises by raising the sales price of products, it will have an adverse impact on the company’s operating performance.

  Second, the brain drain risk

  Technicians are very important for the long-term development of relay manufacturers. At present, the high-end relay with high technology content and large profit margin has become the development direction of the industry. Whether it can occupy the high-end market is the key for relay manufacturers to achieve sustainable development. The research and development of high-end relays requires specialized technicians, complete professional knowledge and wide knowledge of other majors, and it takes years of training and practice to truly design and develop new products independently. At the same time, a large number of key technology positions on the production line also need experienced skilled workers to be competent. Therefore, professionals are more important in the relay industry. If brain drain occurs, enterprises will face related losses. The core management and technical backbone of the company hold the company’s equity through qualified investment, and their personal interests can be consistent with the company’s development. Through this shareholding method of management and backbone personnel, the core personnel of Acer Power Generation can be kept relatively stable.

  Third, technical risks

  The Technology Center is the core of the issuer’s technological innovation system, and undertakes major research tasks such as product development and design, process design and verification, product performance testing and analysis, mold development and design and manufacturing, automatic production line equipment, test instrument development and design, etc. R&D investment ensures that the company’s products have excellent market competitiveness. If the company can’t continue to invest in R&D or technological innovation in the future, the products will not meet the needs of customers and the requirements of industry changes, and the market competitiveness will decline, thus affecting the company’s profitability.

  Fourth, financial risks

  Overseas income accounts for a relatively high proportion of the company’s main business income. The company’s overseas business is mainly settled in foreign currency. If the RMB exchange rate changes greatly, it will cause fluctuations in the balance of the company’s foreign currency monetary assets, and foreign exchange receipts and payments will generate large exchange gains and losses, which will further affect the company’s operating performance. At the same time, the fluctuation of exchange rate may also affect the price of products in overseas markets and face the risk of declining market competitiveness. The company has continuously summarized and improved the exchange rate risk management and control methods suitable for its own needs, locked the exchange rate in time through the analysis of the exchange rate market and operating income, and established a set of foreign exchange management methods and processes. Under the premise of comprehensively considering market liquidity and management costs, it actively pays attention to monetary policy and exchange rate trends, selects the timing of foreign exchange locking and settlement in a timely manner, and rationally uses financial instruments to reduce the impact of exchange rate fluctuations on enterprises and avoid exchange rate risks.

  V. Policy risks

  Electronic components industry is the basic support of electronic information industry, and its development is strongly supported and encouraged by national policies. In recent years, the Ministry of Industry and Information Technology, the National Development and Reform Commission and other departments have successively issued a number of policies to encourage and promote the rapid development of the electronic information industry, such as the Information Industry Development Guide, the Special Action Plan for Improving the Design Capability of Manufacturing Industry (2019-2022) and the Basic Electronic Components Industry Development Action Plan (2021-2023). In the future, if the relevant policies of the country on electronic components industry or electronic information industry change, it may lead to certain adverse effects on the company’s operating performance.

  VI. Risks related to the issuance of this convertible bond

  (A) principal and interest payment risk

  During the duration of the convertible bonds, the issuer shall pay interest on the unconverted convertible bonds and pay the principal at maturity. In addition, when the convertible bonds trigger the resale conditions, if the investors put forward the resale, the issuer still needs to honor the resale proposed by the investors, and will face certain cash expenditure pressure in a short time. The convertible bonds issued this time did not provide guarantee. Therefore, if the issuer’s business activities fail to achieve the expected return due to uncontrollable factors such as national policies, regulations, industries and markets in the future, it may affect the issuer’s timely and full payment of the principal and interest of convertible bonds and the acceptance ability of investors when they sell back.

  (2) The risk of failure to convert convertible bonds into shares at maturity

  The stock price is not only influenced by the issuer’s profit level and development prospect, but also by the national macroeconomic situation, political and economic policies, investors’ investment preferences, expected returns of investment projects and other factors. If the convertible bonds issued this time fail to be converted due to the sluggish stock price trend of the issuer or the investment preference of the holders of the convertible bonds, the issuer shall pay the principal and interest for the convertible bonds that have not been converted, which will correspondingly increase the financial cost burden and financial pressure of the company. In addition, during the existence of the convertible bonds, if the convertible bonds are redeemed, the company will face certain financial pressure.

  (C) the risk of reducing the conversion value of convertible bonds

  The issuer’s stock price trend is influenced by many factors, such as operating results, macroeconomic situation, industry policies, and the overall situation of the stock market. After the issuance of the convertible bonds, the issuer’s share price may continue to be lower than the conversion price of the convertible bonds, so the conversion value of the convertible bonds may decrease, and the interests of the holders of the convertible bonds may be greatly adversely affected. This issuance has set the downward revision clause of the issuer’s share conversion price. If the issuer fails to revise the conversion price downward in time, or even if the conversion price is revised downward, the stock price is still lower than the conversion price, which may still lead to the reduction of the conversion value of the convertible bonds issued this time, and the interests of the holders of convertible bonds may be greatly adversely affected.

  (D) Risks related to downward revision of the conversion price

  1. Risk of failure to implement the downward revision clause of conversion price.

  During the duration of the convertible bonds issued this time, when the closing price of the company’s shares is lower than 90% of the current conversion price for at least 15 trading days in any continuous 30 trading days, the board of directors of the company has the right to propose a downward revision plan for the conversion price and submit it to the shareholders’ meeting for deliberation and voting. This plan can only be implemented if it is approved by more than two-thirds of the voting rights held by shareholders attending the meeting.

  Under the condition of meeting the downward revision conditions of convertible bonds’ conversion price, the issuer’s board of directors may still not propose the downward revision plan of conversion price based on multiple considerations such as the company’s actual situation, stock price trend and market factors; Or the downward revision plan of the conversion price proposed by the issuer’s board of directors has not been reviewed and approved by the shareholders’ meeting. Therefore, the holders of convertible bonds may face the risk that the downward revision of the conversion price will not be implemented during the duration.

  2. Risk of downward revision of the conversion price with uncertain range.

  During the existence of the issuer’s convertible bonds, even if the issuer revises the conversion price according to the downward revision clause, the revised conversion price shall not be lower than the higher average price of the company’s shares in the 20 trading days before the shareholders’ meeting to consider the proposal on the conversion price revision scheme and the average price of the previous trading day, so the correction range of the conversion price is limited to some extent, and there is a risk of uncertainty. Moreover, if the stock price continues to fall after the correction and the future stock price continues to be lower than the conversion price after the downward correction, the conversion value of the convertible bonds will undergo major adverse changes, which may lead to the risk that the convertible bonds will be sold back or cannot be converted during the conversion period.

  3. The downward revision of the conversion price leads to the risk of the company’s share capital dilution.

  During the duration of the convertible bonds, if the issuer’s shares trigger the downward revision of the conversion price, the conversion price of the convertible bonds issued this time will be adjusted downward. Under the condition of the same conversion scale, the number of shares converted by the issuer will increase accordingly, which will lead to the expansion of the dilution of the share capital. Therefore, during the duration, the issuer may face the risk of increasing the dilution degree of the share capital due to the implementation of the downward revision clause of the conversion price.

  (V) Risk of price fluctuation of convertible bonds

  Convertible bonds, as derivative financial products, have the dual characteristics of stocks and bonds. The secondary market price of convertible bonds is influenced by many factors, such as market interest rate level, coupon rate, remaining years, conversion price, stock price of listed companies, redemption terms and resale terms, investors’ psychological expectations, etc. The price fluctuation situation is more complicated, and even there may be abnormal fluctuations or deviations from their investment value, which may make investors face certain investment risks.

  (VI) Liquidity risk

  The trading activity of the securities trading market is influenced by the macroeconomic environment, the distribution of investors, investors’ willingness to trade and other factors. The issuer cannot guarantee that the holders of the convertible bonds can trade their bonds in full and at any time after listing on the Shanghai Stock Exchange. Therefore, after purchasing this convertible bond, investors may face the liquidity risk that they can’t sell the amount they want to sell in full at a certain price because the bond is inactive after listing.

  (7) Risk of credit rating change

  After the new century credit rating, the issuer’s main credit rating is AA, and the credit rating of this convertible bond is AA. During the validity period of the credit rating of this convertible bond or the duration of this convertible bond, the tracking rating will be conducted at least once a year in the new century, and the issuer cannot guarantee that its main credit rating and the credit rating of this convertible bond will not change negatively during the validity period of the credit rating or the duration of the bond. If the credit rating agency lowers the issuer’s main credit rating and/or the credit rating of this convertible bond, it may have a certain impact on the interests of bondholders.

  Eight, the risk of COVID-19 epidemic.

  In recent years, novel coronavirus broke out one after another in various regions of the world, which had a great impact on the world macro-economy. Subject to quarantine measures, traffic control and other epidemic prevention and control measures, the company’s procurement, production and sales are affected to some extent in the short term. Although the domestic COVID-19 epidemic has been effectively controlled, the issuer has resumed normal production and operation, and all work has been carried out in an orderly manner, if the COVID-19 epidemic recurs in China or continues to spread around the world for a long time, it may still have a certain degree of adverse impact on the company’s strategic implementation, production and operation, and performance.

  The above possible risks have not changed much from the risk factors suggested in the previous year (or prospectus).

Multi-win situation of government procurement

Improve public services, help overcome poverty, lead green environmental protection and support small and medium-sized enterprises.
Multi-win situation of government procurement

In 2019, the national government procurement scale was 3,306.7 billion yuan, accounting for 10% and 3.3% of the national fiscal expenditure and GDP respectively. The government procurement system not only regulates and saves financial expenditure, but also undertakes more policy functions, which strongly supports the development of various national undertakings. With the continuous improvement of standardization and transparency of government procurement, it has a direct role in promoting budget performance management and promoting government affairs openness.

On December 29th, 2020, the Ministry of Finance and the Ministry of Industry and Information Technology jointly issued the Administrative Measures for Government Procurement to Promote the Development of Small and Medium-sized Enterprises to further support the development of small and medium-sized enterprises in the field of government procurement. Government procurement helps "small" and "micro", and the measures are practical.

In recent years, the term "government procurement" has frequently entered the public eye. What policy role can this expenditure mode play? How to further improve government procurement? The reporter conducted an interview on this.

The scope of government procurement is constantly expanding and its functions are constantly upgrading.

In 2019, the national government procurement scale was 3,306.7 billion yuan, accounting for 10% and 3.3% of the national fiscal expenditure and GDP respectively. The government procurement system not only regulates and saves financial expenditure, but also undertakes more policy functions, which strongly supports the development of various national undertakings.

-Improve the efficiency in the use of government procurement funds for public services and safeguard social public interests.

"Government purchasing services" is a major innovation in the way government services are provided in recent years-from the services required by the government to public services, from the initial sanitation cleaning services to public legal services, public cultural services, public sports services, medical and health services, education services, disabled services, old-age services, youth services and other fields.

On January 3, 2020, the Ministry of Finance promulgated the Measures for the Administration of Government Procurement of Services, which regulated the subjects, undertakers and contents of purchases. "In the future, public services in the field of people’s livelihood will be more provided by the market, and the government will choose to undertake the main link and apply the relevant policies and regulations on government procurement, which will enhance the cost performance of the purchased services and safeguard national interests and social public interests." Yang Zhiyong, vice president of the Institute of Finance and Economics of China Academy of Social Sciences, said.

-purchasing agricultural products from poverty-stricken areas to help fight poverty.

At present, "poverty-relief commodities" from 22 provinces and 832 poverty-stricken counties in China are being purchased in batches by budget purchasing units on the "online sales platform for agricultural and sideline products in poverty-stricken areas" built by the Ministry of Finance and the National Supply and Marketing Federation. As of December 27th, 2020, this government procurement e-commerce platform, referred to as "832 platform", has put more than 90,000 items on the shelves, with a total turnover of 8 billion yuan.

"Integrating government procurement policies into the fight against poverty will help the poor to increase their income and get rid of poverty, and promote the stable poverty alleviation of the poor and the sustainable development of industries in poverty-stricken areas." Shen Xuefeng, a researcher at the China Academy of Fiscal Science, said.

-expanding the scope of green procurement and giving play to the demonstration effect of environmental protection.

"Coal to electricity projects, urban black and odorous water treatment, water source protection, soil pollution prevention and control projects, mainly by government procurement. In addition, the use of energy-saving and environmentally-friendly products by government procurement has a significant leading demonstration effect on the formation of energy-saving and emission-reducing and green consumption habits in the whole society. " Yang Zhiyong said.

The data shows that in the "bill" of national government procurement in 2019, the national compulsory and priority procurement of energy-saving and water-saving products was 63.37 billion yuan, accounting for 90% of the procurement scale of similar products, and the national priority procurement of environmental protection products was 71.87 billion yuan, accounting for 88% of the procurement scale of similar products.

-expand the share of procurement contracts for small and medium-sized enterprises and support the realization of national macro-control objectives.

As early as 2011, the Ministry of Finance and the Ministry of Industry and Information Technology issued the Interim Measures for Government Procurement to Promote the Development of Small and Medium-sized Enterprises, which expanded the share of small and medium-sized enterprises in government procurement contracts through measures such as reserving shares and evaluating preferential treatment. In 2019, the contract amount awarded to small and medium-sized enterprises by national government procurement was 2,451.91 billion yuan, accounting for 74.1% of the national government procurement scale. The new policy at the end of 2020 will further expand the share of government procurement for small and medium-sized enterprises, which will more strongly support the development of such enterprises.

Improve the standardization and transparency of procurement, and promote the openness of government affairs by "understanding accounts"

In July, 2020, with the supplier successfully completing the online decryption of bidding documents in the remote bid opening hall of "Zhengcaiyun" platform of Guangxi Government Procurement Center, the property service procurement project of Guangxi Public Resource Trading Center entered the bid opening procedure.

"Opening bids without meeting" lightens the burden of bidding enterprises, is conducive to epidemic prevention and control, and also improves the procurement efficiency, which is the latest achievement of "internet plus government procurement" reform. Online operation in the whole process of bid opening and evaluation, leaving traces step by step, and open and transparent online inquiry and response can effectively reduce corruption in the field of government procurement.

"Since the 18th National Congress of the Communist Party of China, the government procurement management system has been improved day by day, and the system of government procurement transactions with public bidding as the main procurement method has been continuously enriched, the’ internet plus government procurement’ has been steadily promoted, the construction of central and local electronic stores has been strengthened, the procurement efficiency has been improved, the regulations and practices that hinder fair competition in the field of government procurement have been comprehensively cleaned up, and the business environment for government procurement has been optimized." The relevant person in charge of the Ministry of Finance said.

In recent years, it is the top priority of government procurement management to establish the whole process information disclosure mechanism and carry out "transactions under the sun". In 2020, the Ministry of Finance made it clear that all procurement projects implemented by the central budget units should disclose their procurement intentions to the public in accordance with regulations, further improve the transparency of government procurement, ensure all market entities to participate in government procurement activities on an equal footing, and improve procurement performance.

In recent years, all localities have continuously improved the transparency of procurement, and achieved remarkable savings. For example, the government procurement center of the central state organs saved 3,150,650 yuan in procurement funds in the disabled elderly care service project of the China Red Cross Society Career Development Center, with a saving rate of 39.38%.

"Improving the government procurement policy not only saves financial funds, but also has a direct role in promoting budget performance management, promoting government affairs openness and curbing corruption." Yang Zhiyong said.

Accelerate the establishment of a modern government procurement system, expand the scale of procurement and improve procurement efficiency.

"China’s government procurement system has made gratifying achievements, but it is not mature enough to fully meet the requirements of the current national governance capacity and modernization of the governance system." Xu Hongcai, Vice Minister of Finance, believes that there are some problems in the current government procurement system, such as extensive management of procurement transaction system, poor policy transmission mechanism, and the performance level of procurement agencies and evaluation experts needs to be improved.

In Xu Hongcai’s view, these problems will lead to low procurement efficiency and satisfaction, and limit the implementation effect of procurement policies.

To this end, the relevant person in charge of the Ministry of Finance said that in order to solve the current problems in government procurement, relevant reform measures will be steadily promoted in accordance with the requirements of the "Deepening the Reform Plan of Government Procurement System" adopted by the Central Committee for Deep Reform.

For example, in view of the shortcomings of the current government procurement law in the implementation process, the government procurement laws and regulations are revised. For another example, based on the principle of "who purchases, who is responsible", establish and improve the purchaser’s responsibility mechanism for procurement results, improve the internal control management of purchasers, and improve the purchaser’s professional procurement ability.

"In addition, it is necessary to further improve the government procurement transaction mechanism and strengthen the government procurement policy function." The person in charge said that it is necessary to promote the realization of the procurement goal of "high quality and good price", and clarify the application of different competition scopes and different procurement methods in combination with different project demand characteristics, performance objectives and market supply and demand, so as to improve procurement efficiency and capital application efficiency. At the same time, efforts should be made to build a standard system of government procurement requirements and improve the implementation measures of government procurement policies.

"International government procurement generally accounts for about 15% of GDP, and in China it is less than 4%, and there is still great potential to be tapped." Yang Zhiyong said that the government procurement laws and regulations system should be further improved, and a more scientific government procurement system should be designed according to the requirements of incentive compatibility mechanism, so as to stimulate the enthusiasm of government purchasers and fully release the policy role of government procurement. "In the final analysis, it is still necessary to accelerate the establishment of a modern government procurement system that adapts to the characteristics of market transactions and stimulates the enthusiasm of all participants." (Reporter Qu Zhehan)

Interim Measures for the Administration of Competitive Consultation Procurement Mode of Government Procurement

Notice on printing and distributing the Interim Measures for the administration of competitive consultation procurement methods in government procurement

Caiku [2014] No.214

Relevant departments of the CPC Central Committee, ministries and commissions of the State Council, directly affiliated institutions, General Office of the National People’s Congress Standing Committee (NPCSC), General Office of Chinese People’s Political Consultative Conference, High Court, Supreme People’s Procuratorate, relevant people’s organizations, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans, Finance Bureau of Xinjiang Production and Construction Corps, and centralized procurement institutions:

  In order to deepen the reform of the government procurement system, adapt to the needs of promoting the government to purchase services and promoting the cooperation between government and social capital (PPP), according to the Government Procurement Law of People’s Republic of China (PRC) and relevant laws and regulations, the Ministry of Finance has formulated the Interim Measures for the Administration of Competitive Consultation in Government Procurement. It is issued to you, please follow it.

  Annex: Interim Measures for the Administration of Competitive Consultation Procurement Mode of Government Procurement

the Ministry of Finance

  December 31, 2014

  attachment

  Interim Measures for the Administration of Competitive Consultation Procurement Methods of Government Procurement

  Chapter I General Provisions

  Article 1 These Measures are formulated in accordance with Item 6, Paragraph 1, Article 26 of the Government Procurement Law of People’s Republic of China (PRC) (hereinafter referred to as the Government Procurement Law) for the purpose of regulating government procurement behavior and safeguarding national interests, social public interests and the legitimate rights and interests of parties involved in government procurement.

  Article 2 The term "competitive negotiation procurement mode" as mentioned in these Measures means that the purchaser and the government procurement agency negotiate with qualified suppliers on the procurement of goods, projects and services through the establishment of a competitive consultation group (hereinafter referred to as the consultation group), and the suppliers submit response documents and quotations according to the requirements of the consultation documents, and the purchaser determines the procurement mode of the clinched supplier from the list of candidate suppliers proposed after the review of the consultation group.

  Article 3 Projects that meet the following conditions may be purchased through competitive negotiation:

  (1) Services purchased by the government;

  (two) the technology is complex or special, and it is impossible to determine the detailed specifications or specific requirements;

  (3) The total price cannot be calculated in advance because the time and quantity of art procurement, patents, proprietary technology or services cannot be determined in advance;

  (four) scientific research projects with insufficient market competition, as well as scientific and technological achievements transformation projects that need support;

  (five) in accordance with the bidding law and its implementing regulations, the construction projects other than the construction projects that must be tendered.

  Chapter II Consultation Procedures

  Article 4 Where the procurement of goods and services that meet the standard of open tender amount intends to adopt the competitive negotiation procurement method, the purchaser shall, before the start of procurement activities, apply to the financial department of the people’s government at or above the municipal or autonomous prefecture level for approval according to law after reporting to the competent budget unit for approval.

  Article 5 Purchasers and procurement agencies shall organize competitive consultations in accordance with the provisions of the Government Procurement Law and these Measures, and take necessary measures to ensure that the consultations are conducted in strict confidentiality.

  No unit or individual may illegally interfere with or influence the negotiation process and results.

  Article 6 A purchaser and a procurement agency shall invite at least three suppliers who meet the corresponding qualifications to participate in competitive negotiation and procurement activities by issuing an announcement, randomly selecting from the supplier library established by the financial department at or above the provincial level, or recommending in writing by the purchaser and the evaluation experts respectively.

  Suppliers who meet the requirements stipulated in the first paragraph of Article 22 of the Government Procurement Law may join the supplier library before the procurement activities begin. The financial department shall not charge any fees for the supplier’s application for warehousing, and shall not use the supplier’s library to block the region and industry.

  If the supplier is selected by the written recommendation of the purchaser and the evaluation experts, the purchaser and the evaluation experts shall issue their own written recommendations. The proportion of suppliers recommended by the purchaser shall not be higher than 50% of the total number of recommended suppliers.

  Article 7 Where a supplier is invited by announcement, the purchaser and the procurement agency shall issue a competitive consultation announcement in the government procurement information release media designated by the financial department of the people’s government at or above the provincial level. The announcement of competitive consultation shall include the following main contents:

  (a) the name, location and contact method of the purchaser and the procurement agency;

  (two) the name, quantity, brief specification description or basic introduction of the procurement project;

  (three) the budget of the procurement project;

  (4) Qualifications of suppliers;

  (five) the time, place and method of obtaining the consultation documents and the price of the consultation documents;

  (6) The deadline, opening time and place for submitting the response documents;

  (seven) the name and telephone number of the contact person of the procurement project.

  Article 8 Competitive consultation documents (hereinafter referred to as consultation documents) shall be formulated according to the characteristics of the procurement project and the actual needs of the purchaser, and shall be approved by the purchaser in writing. The purchaser shall take meeting the actual demand as the principle, and shall not raise the procurement standards such as budget and asset allocation without authorization.

  Consultation documents shall not require or indicate the name of suppliers or the brand of specific goods, and shall not contain conditions such as technology and services directed to specific suppliers.

  Article 9 The consultation documents shall include supplier qualification conditions, procurement invitation, procurement method, procurement budget, procurement demand, government procurement policy requirements, evaluation procedures, evaluation methods, evaluation criteria, price composition or quotation requirements, preparation requirements of response documents, the amount and form of deposit payment, the situation that the deposit will not be returned, the contents that may be substantially changed during the consultation, the deadline for submission of response documents, the opening time and place, and the terms of the draft contract, etc.

  Article 10 It shall not be less than 10 days from the date when the consultation document is issued to the deadline when the supplier submits the first response document.

  The selling price of consultation documents shall be determined in accordance with the principle of making up the production cost of consultation documents, and shall not be for profit, and shall not be based on the project budget. The sale period of the consultation documents shall not be less than 5 working days from the date of commencement.

  Before the deadline for submitting the first response document, the purchaser, the procurement agency or the consultation group may make necessary clarifications or amendments to the issued consultation document, and the contents of the clarifications or amendments shall be regarded as an integral part of the consultation document. If the clarification or modification may affect the preparation of the response document, the purchaser and the procurement agency shall notify all suppliers who have obtained the consultation document in writing at least 5 days before the deadline for submitting the first response document; If it is less than 5 days, the purchaser and the procurement agency shall postpone the deadline for submitting the first response document.

  Article 11 A supplier shall prepare a response document according to the requirements of the consultation document, and bear legal responsibility for the authenticity and legality of the response document submitted by it.

  Article 12 The purchaser and the procurement agency may require the supplier to pay the negotiation deposit before the deadline for submitting the response documents. The negotiation deposit shall be paid in non-cash forms such as checks, drafts, promissory notes or letters of guarantee issued by financial institutions and guarantee institutions. The amount of negotiation deposit shall not exceed 2% of the procurement project budget. If the supplier fails to submit the negotiation deposit according to the requirements of the negotiation documents, the response is invalid.

  If the supplier is a consortium, one or more parties in the consortium can jointly pay the negotiation deposit, and the deposit paid by them is binding on all parties in the consortium.

  Article 13 The supplier shall seal the response document and deliver it to the designated place before the deadline required by the consultation document. The response documents delivered after the deadline are invalid documents, and the purchaser, procurement agency or consultative group shall reject them.

  Before the deadline for submission of response documents, the supplier may supplement, modify or withdraw the submitted response documents, and notify the purchaser and procurement agency in writing. The supplemented and modified contents shall be taken as an integral part of the response document. If the content of supplement and modification is inconsistent with the response document, the content of supplement and modification shall prevail.

  Article 14 The consultative group shall consist of three or more representatives of the purchaser and review experts, and the number of review experts shall not be less than 2/3 of the total number of members of the consultative group. The purchaser’s representative shall not participate in the evaluation of the procurement projects of the department or the unit as an evaluation expert. Personnel of a procurement agency shall not participate in the review of procurement projects represented by this agency.

  For government procurement projects that adopt competitive negotiation, the evaluation experts shall be randomly selected from the list of experts in relevant professions in the government procurement evaluation expert database. In accordance with the provisions of Article 3, paragraph 4 of these Measures, and in special circumstances, it is difficult to determine the appropriate evaluation experts through random methods. With the consent of the competent budget unit, the evaluation experts can be selected by themselves. For procurement projects with complex technology and strong professionalism, one legal expert shall be included in the evaluation experts.

  Fifteenth evaluation experts shall abide by the discipline of evaluation work, and shall not disclose the evaluation situation and the business secrets learned during the evaluation.

  In the process of evaluation, the consultative group finds that the supplier has committed illegal acts such as bribery, providing false materials or collusion, and shall report to the financial department in time.

  Experts who have been illegally interfered in the evaluation process shall report to the finance and supervision departments in a timely manner.

  Sixteenth members of the consultative group shall, in accordance with the principles of objectivity, impartiality and prudence, conduct independent evaluation according to the evaluation procedures, evaluation methods and evaluation standards stipulated in the consultation documents. The response documents that do not substantially respond to the consultation documents shall be treated as invalid responses, and the consultation team shall inform the suppliers that submitted the response documents.

  If the contents of the consultation documents violate the relevant mandatory provisions of the state, the consultation group shall stop the review and explain the situation to the purchaser or procurement agency.

  Seventeenth buyers, procurement agencies shall not make biased and misleading explanations or explanations to the evaluation experts in the consultative group.

  The purchaser and procurement agency may, depending on the specific situation of the procurement project, organize the supplier to conduct on-site inspection or hold a question-and-answer meeting before the consultation, but shall not organize the on-site inspection and question-and-answer meeting with only one supplier separately or separately.

  Article 18 When reviewing the validity, completeness and response degree of the response documents, the consultative group may require the suppliers to make necessary clarifications, explanations or corrections to the contents in the response documents that are ambiguous in meaning, inconsistent in the expression of similar problems, or have obvious errors in writing and calculation. The supplier’s clarification, explanation or correction shall not go beyond the scope of the response document or change the substantive content of the response document.

  The response documents required by the consultative group for suppliers to clarify, explain or correct shall be made in writing. The clarification, explanation or correction of the supplier shall be signed or stamped with the official seal by the legal representative or his authorized representative. Signed by an authorized representative, a power of attorney from the legal representative shall be attached. If the supplier is a natural person, it shall be signed by himself and attached with identification certificate.

  Article 19 All members of the consultative group shall focus on separate consultations with a single supplier, and give all suppliers participating in the consultations equal consultation opportunities.

  Article 20 During the consultation, the consultative group may substantially change the technical and service requirements in the procurement requirements and the terms of the draft contract according to the consultation documents and the consultation situation, but shall not change other contents in the consultation documents. The content of substantive changes shall be confirmed by the purchaser’s representative.

  The substantive changes made to the consultation document are an effective part of the consultation document, and the consultation team shall notify all the suppliers participating in the consultation in writing in time.

  The supplier shall resubmit the response document according to the changes of the consultation document and the requirements of the consultation group, and sign or affix the official seal by its legal representative or authorized representative. Signed by an authorized representative, a power of attorney from the legal representative shall be attached. If the supplier is a natural person, it shall be signed by himself and attached with identification certificate.

  Article 21 If the consultation document can specify the technical and service requirements of the subject matter of the procurement in detail, after the negotiation, the consultation group shall require all the suppliers who have substantially responded to submit the final quotation within the specified time, and the number of suppliers who have submitted the final quotation shall not be less than three.

  If the technical and service requirements of the procurement target cannot be specified in detail in the consultation document, and the final design scheme or solution needs to be provided by the supplier after consultation, after the consultation, the consultation team shall vote to recommend the design schemes or solutions of more than three suppliers according to the principle that the minority is subordinate to the majority, and ask them to submit the final quotation within the specified time.

  The final quotation is an effective part of the supplier’s response document. In case of meeting Item 4 of Article 3 of these Measures, there may be two suppliers who submit the final quotation.

  Twenty-second suppliers who have submitted response documents may withdraw from the negotiation according to the negotiation situation before submitting the final quotation. The purchaser and the procurement agency shall refund the consultation deposit of the supplier who has withdrawn from the consultation.

  Article 23 After the final purchase demand and the supplier who submitted the final quotation are determined through consultation, the consultation team will comprehensively score the response documents and the final quotation of the supplier who submitted the final quotation by using the comprehensive scoring method.

  Comprehensive scoring method refers to the evaluation method that the response documents meet all the substantive requirements of the consultation documents and the supplier with the highest score is the candidate supplier for the transaction according to the quantitative indicators of the evaluation factors.

  Twenty-fourth comprehensive evaluation criteria in the score setting should be corresponding to the quantitative indicators of evaluation factors. The evaluation criteria not specified in the consultation document shall not be used as the basis for evaluation.

  During the review, each member of the consultative group shall independently evaluate and score each effective response document, and then summarize the scores of each scoring factor of each supplier.

  According to the comprehensive scoring method, the price score of goods accounts for 30% to 60% of the total score, and the price score of services accounts for 10% to 30% of the total score. If there are different procurement objects in the procurement project, the procurement object with the highest proportion of project funds shall determine its project attributes. In line with the provisions of the third paragraph of Article 3 of these Measures and the implementation of unified price standards, the price of the project is not listed as a scoring factor. There are special circumstances that need to set the price distribution weight outside the above-mentioned provisions, which shall be approved by the financial department of the people’s government at the corresponding level.

  The price score in the comprehensive scoring method is calculated by the low price priority method, that is, the price of the supplier who meets the requirements of the negotiation documents and finally offers the lowest price is the negotiation benchmark price, and its price score is full marks. The prices of other suppliers are calculated in accordance with the following formula:

  Negotiation quotation score = (negotiation benchmark price/final negotiation quotation) × price weight ×100

  In the process of project review, the highest and lowest quotations in the final quotation shall not be removed.

  Article 25 The consultative group shall, according to the comprehensive scores, recommend more than three candidate suppliers for the transaction in the order of the evaluation scores from high to low, and prepare the evaluation report. In accordance with the third paragraph of article twenty-first of these measures, two candidate suppliers can be recommended. If the evaluation scores are the same, it shall be recommended according to the order of the final quotation from low to high. If the evaluation score is the same and the final quotation is the same, it shall be recommended in the order of technical indicators.

  Article 26 The review report shall include the following main contents:

  (a) the specific ways and relevant information of inviting suppliers to participate in procurement activities;

  (two) the date and place of opening the response document;

  (3) A list of suppliers who have obtained the consultation documents and a list of members of the consultation group;

  (4) Records and explanations of the review, including the qualification review of suppliers, the review of suppliers’ response documents, consultations, quotations, etc.;

  (5) The ranking list of the proposed candidate suppliers for the transaction and the reasons.

  Twenty-seventh review report shall be signed by all the members of the consultative group. If the members of the consultative group disagree with the review report, the consultative group will recommend the candidate suppliers for the transaction according to the principle that the minority is subordinate to the majority, and the procurement procedure will continue. Members of the consultative group who have objections to the review report shall sign different opinions on the report and explain the reasons, and the consultative group shall record the relevant information in writing. If the members of the consultative group refuse to sign the report and do not explain their different opinions and reasons in writing, they shall be deemed to have agreed to review the report.

  Twenty-eighth procurement agencies shall, within 2 working days after the end of the review, send the review report to the purchaser for confirmation.

  The purchaser shall, within 5 working days after receiving the evaluation report, determine the transaction supplier from the candidate suppliers proposed in the evaluation report according to the principle of ranking from high to low, or authorize the consultation group to directly determine the transaction supplier in writing. If the purchaser fails to determine the supplier of the transaction within the time limit and does not raise any objection, it shall be deemed that the supplier ranked first in the evaluation report is determined as the supplier of the transaction.

  Article 29 The purchaser or procurement agency shall, within 2 working days after the supplier is confirmed, announce the transaction result on the government procurement information release media designated by the financial department at or above the provincial level, and issue a transaction notice to the supplier at the same time, and announce the negotiation documents together with the transaction result. The announcement of the transaction result shall include the following contents:

  (a) the name, address and contact information of the purchaser and the procurement agency;

  (2) Project name and project number;

  (three) the name, address and transaction amount of the supplier;

  (four) the name, specifications, quantity, unit price and service requirements of the main transaction targets;

  (5) List of members of the Consultative Group.

  If a supplier is recommended in writing to participate in procurement activities, the recommendation opinions of the purchaser and the evaluation experts shall also be announced.

  Article 30 The purchaser and the supplier shall, within 30 days from the date of issuing the notice of transaction, sign the government procurement contract according to the contract text determined in the consultation document, as well as the procurement subject matter, specifications and models, purchase amount, purchase quantity, technology and service requirements.

  The purchaser shall not put forward any requirements beyond the negotiation documents to the supplier as a condition for signing the contract, and shall not conclude an agreement with the supplier that deviates from the contract text determined in the negotiation documents and the substantive contents such as the procurement target, specifications, purchase amount, purchase quantity, technology and service requirements.

  Article 31 The purchaser or procurement agency shall return the negotiation deposit of the supplier in time after the procurement activities, except that it cannot be returned in time due to the supplier’s own reasons. The negotiation deposit of unsuccessful suppliers shall be returned within 5 working days after the transaction notice is issued, and the negotiation deposit of successful suppliers shall be returned within 5 working days after the signing of the procurement contract.

  In any of the following circumstances, the negotiation deposit will not be refunded:

  (1) The supplier withdraws the response documents after the deadline for submitting the response documents;

  (2) The supplier provides false materials in the response document;

  (3) The supplier fails to sign a contract with the purchaser, except for cases recognized by force majeure or negotiation documents;

  (four) suppliers and purchasers, other suppliers or procurement agencies in bad faith;

  (5) Other circumstances stipulated in the consultation document.

  Article 32 The purchaser or procurement agency shall not organize re-evaluation for any reason, except that the qualification inspection finds errors, the scores are calculated incorrectly, the sub-items are beyond the scope of scoring standards, the objective scores are inconsistent, and the scores are unanimously determined by the consultation group to be abnormally high or abnormally low. If the purchaser or procurement agency finds that the consultative group has not conducted the review according to the review criteria stipulated in the consultation document, it shall re-launch the procurement activities and report to the financial department at the same level in writing.

  The purchaser or procurement agency shall not change the evaluation results by testing samples or inspecting suppliers.

  Article 33 Where a supplier refuses to sign a government procurement contract, the purchaser may determine other suppliers as the supplier and sign a government procurement contract according to the principle stipulated in the second paragraph of Article 28 of these Measures, or may resume procurement activities. The supplier who refuses to sign the government procurement contract shall not participate in the procurement activities of the project.

  Article 34 Under any of the following circumstances, the purchaser or procurement agency shall terminate the competitive negotiation procurement activities, issue a project termination announcement and explain the reasons, and resume the procurement activities:

  (a) due to changes in circumstances, it no longer meets the requirements of the application of competitive negotiation procurement methods;

  (two) there are violations of laws and regulations that affect the procurement justice;

  (3) Except for the circumstances specified in the third paragraph of Article 21 of these Measures, there are less than three suppliers who meet the requirements in the procurement process or whose quotations do not exceed the procurement budget.

  Article 35 If the procurement task is cancelled due to major changes in the procurement activities, the purchaser or procurement agency shall terminate the procurement activities, notify all suppliers participating in the procurement activities, and report the project implementation and the reasons for canceling the procurement task to the financial department at the same level.

  Chapter III Supplementary Provisions

  Article 36 If there are other provisions in the relevant legal system on the competitive negotiation and procurement of government and social capital cooperation projects, those provisions shall prevail.

  Thirty-seventh the term "competent budget unit" as mentioned in these Measures refers to the state organs, institutions and organizations responsible for compiling departmental budgets and reporting budgets to the financial departments at the same level.

  Article 38 These Measures shall come into force as of the date of promulgation.

How to prevent influenza? What if I get the flu? Experts come to help.

[Global Network Comprehensive Report] On January 17, a press conference was held at the National Health and Wellness Commission to introduce the health-related situation of seasonal solar terms. How to judge whether it is the flu or the common cold? Do I have to go to the hospital after I get the flu? Won’t you get the flu if you’ve been vaccinated against the flu? In response to these questions, the participating experts gave authoritative answers.

When cold symptoms appear, how to judge whether it is flu or common cold?

Li Dong, the chief physician of Beijing You ‘an Hospital, once said that when we have symptoms, we can initially analyze whether it is influenza or common cold from the epidemiological history and symptoms.

In the history of epidemiology, in the winter and spring when influenza is high, if you have high fever, cough, sore throat, muscle aches, fatigue and other symptoms after close contact with influenza cases, it is probably influenza. The common cold generally has no clear source of infection.

From the symptoms, the flu symptoms are more severe, and the onset is urgent, accompanied by systemic symptoms such as high fever, headache, muscle aches and special fatigue above 38.5℃. The common cold is usually low or moderate fever, or even no fever. The symptoms are mainly nasal congestion, runny nose and sneezing, which are relatively mild.

Do I have to go to the hospital after I get the flu?

Li Dong once said that for flu patients, those with mild symptoms can be isolated at home, and antipyretic and analgesic drugs and expectorant and antitussive drugs can generally recover in about 7 days. If you have high fever above 39℃ and the antipyretic drugs are not effective during home isolation, or you have severe symptoms such as severe cough, shortness of breath, chest tightness and breath-holding, as well as severe headache, frequent vomiting, confusion, etc., or the symptoms have not eased for more than 5 days, it is recommended to seek medical advice in time.

What are the precautions for home rehabilitation?

Li Dong once said that adequate rest is conducive to recovery. It is not recommended to go to work, go to school, visit relatives and friends or attend parties when sick, and avoid receiving visiting relatives and friends during illness to reduce the risk of infection. When resting at home, those who can afford it should stay in a separate room, those who can’t should try to keep their distance from their families, open more windows for ventilation, and wear masks when contacting their families. Cover your nose and mouth with paper towels or elbows when sneezing or coughing. Throw the used paper towels into the covered trash can immediately and wash your hands in time.

Li Dong once reminded that the elderly, pregnant women, children, immunocompromised people and moderately obese people are high-risk people with severe influenza. Once they get the flu, it is recommended to treat them as soon as possible under the guidance of a doctor. During the period of rest and isolation at home, we should pay attention to rational drug use and avoid abusing antibiotics, because antibiotics are ineffective against virus infection.

How to effectively prevent influenza?

Wang Dayan, a researcher at the Institute of Viral Disease Prevention and Control of China Center for Disease Control and Prevention, said that the most effective and economical way to prevent influenza is to vaccinate against influenza, which can significantly reduce the risk of morbidity and serious complications. Although vaccination is recommended before the influenza epidemic season, as long as individuals are not infected, vaccination can prevent influenza, alleviate symptoms, shorten the course of disease, and significantly reduce the risk of developing into severe illness and death.

"However, getting the flu vaccine doesn’t mean that you won’t get the flu at all." Wang Dayan said that the flu vaccine only targets the flu virus and has no protective effect on other pathogens of acute respiratory infections. After vaccination, it usually takes some time to produce enough antibodies to achieve the protective effect, so even after vaccination, protective measures still need to be taken.

In addition, Wang Dayan reminded that after the recovery of acute respiratory infections such as influenza and pneumonia, influenza vaccination can prevent influenza and other types of influenza. During the epidemic season, people who have not been vaccinated in time, especially the elderly, infants, patients with chronic diseases and their families living together, should be vaccinated as soon as possible, and early vaccination will benefit early.

Won’t you get the flu if you’ve been vaccinated against the flu?

Li Dong once said that people who are still infected with influenza virus after being vaccinated do, but compared with those who have not been vaccinated, the risk of being infected with influenza virus is significantly reduced, and the symptoms of influenza after infection are relatively mild and the risk of severe illness is lower. For example, there can be no high fever, only low fever or no fever, and the cough lasts for a short time, so you can recover faster.

Li Dong once suggested that those who have not been vaccinated against influenza this year and have not been infected with influenza yet should be vaccinated as soon as possible. People who have been infected with influenza virus can have some immunity to the subtype of influenza virus infected this time, and it is very unlikely that they will be infected with the same subtype again in a short period of time, but there is no protection for other influenza strains. At present, more than 99% of the influenza strains prevalent in China are H1N1 subtype of influenza A, which can be protected after infection, but influenza vaccines are usually trivalent or tetravalent vaccines. If you vaccinate after infection, you can also obtain the protection of influenza A H3N2 strain and influenza B strain. So even if you have had the flu once, you can gain resistance to the other two strains after vaccination.

How to use drugs scientifically for influenza patients?

Recently, mabaloxavir and oseltamivir, two influenza drugs, have attracted more attention on the Internet. Li Dong once said that at present, only mabaloxavir is approved for the treatment of influenza in China, but it has not been approved for post-exposure prevention. Pay attention to the following points when using mabaloxavir to treat influenza:

Use as soon as possible: antiviral drugs should be used as soon as possible, and mabaloxavir suggests using them within 48 hours of onset to achieve the best effect.

Applicable people: Mabaloxavir is currently only approved for antiviral treatment for people aged 5 years and above. Oseltamivir should be used in the treatment of influenza in children under 5 years old. For pregnant women and lactating women, it is suggested to choose oseltamivir for antiviral treatment because of the lack of data on the use of mabaloxavir.

Drug interaction: Mabaloxavir may interact with other drugs when used together. If you need to use this drug, be sure to inform your doctor about other drugs you are using (including over-the-counter drugs and health care products) to avoid potential drug interactions.

Pay attention to allergic reaction: If you have allergic symptoms such as rash, itching, dyspnea or other serious discomfort during the use of mabaloxavir, you should stop taking the drug immediately and seek medical attention.

Li Dong once reminded that one or two "star drugs" should not be relied too much when treating influenza. Scientific use of symptomatic drugs and adequate rest are conducive to faster recovery.

How do the elderly cope with the flu challenge?

Li Jing, the chief physician of Beijing Hospital, said that the physical resistance of the elderly is weaker than that of the young people, and the flu symptoms may be more serious, such as a long duration of fever, which may easily lead to complications such as pneumonia and respiratory failure, and the recovery rate of the disease is slow. Daily protection is very important. Influenza is a respiratory infectious disease. Older people should wear masks when going out, and try to avoid shopping malls, markets and other crowded places with poor air circulation. At the same time, we should pay attention to increasing or decreasing clothes according to the weather changes to keep warm and cold. Always ventilate at home to keep the air fresh.

Li Jing said that if the elderly are infected with flu and have mild symptoms (such as sore throat, cough, runny nose, etc.), they can rest at home first, drink more water, eat light food, keep their stools unobstructed, and use drugs appropriately to relieve symptoms. However, once there are serious symptoms such as persistent high fever, a lot of thick sputum, dyspnea and listlessness, you should go to the hospital immediately to avoid delaying your illness. When taking care of the elderly with influenza, family members should also pay attention to avoid cross-infection. Besides washing your hands frequently, you should try to wear a mask when you are in contact with the elderly.

Foreign media actually measured Tesla’s latest version of FSD Beta V10.12: The turning speed is too fast, and there is still the risk of ghost braking.

Recently, Fred Lambert, a reporter from foreign media electrek, released a video that was tested in the Blue Ridge Mountains in North Carolina. The video shows that during the test, this version of the FSD existed many times, that is, the vehicle suddenly slowed down without necessity, and even almost drove the car to a cliff.

Fred was always ready to take over during the test. In this test, Fred only took over once, that is, the time when Tesla FSD Beta V10.12 drove the car to the cliff.

On the whole, during the 13-minute test, the overall performance of Tesla FSD beta version V10.12 is ok, but many times of "ghost braking" and wrong judgment are still frightening, and problems such as "ghost braking" still need to be solved.

Fred said that the reason why he chose to test in the Blue Ridge Mountains is that there are few intersections here and the road traffic markings are clear. He believes that in this environment, Tesla’s FSD will perform well.

This is also the case. In most cases in the test, the computer vision inspection system of FSD Beta V10.12 runs well, and Fred’s Model 3 always stays in the center of the lane.

Path of FSD planning

▲ the path of FSD planning

In the middle of the test, Fred met hikers, who were close to the road and the road was not covered by shoulders. Tesla FSD Beta V10.12 version, then controlled the vehicle to slow down, and even planned to drive a little to the left to make way for the hikers.

However, in addition to these advantages, Tesla FSD Beta V10.12 has some serious shortcomings.

Fred said that the most annoying thing about FSD Beta V10.12 is that the vehicle suddenly slows down without sufficient reason.

The video shows that "ghost braking" happened several times during driving. Although Fred feels that the sudden deceleration is not so obvious when the "ghost brake" occurs, it may only be because the speed of this test is a little slow.

In addition, Fred also noticed that the speed of Tesla FSD Beta V10.12 in controlling the turning of vehicles is also somewhat inconsistent. As you can see in the video, Tesla’s FSD controls the vehicle to slow down at some corners that don’t seem to need to slow down.

FSD controls vehicle turning.

▲ FSD controls the vehicle to turn.

In addition, in the 8-mile (about 12.8 km) and 13-minute test, Fred only took over the driver once, but this time it was taken over in a very dangerous situation.

In the 12th minute and 56th second of the test, Tesla FSD Beta V10.12 controls the vehicle to turn sharply too fast. When Fred found that the car was crossing two lanes and heading for the other side of the road, he immediately stepped on the brakes. It was a very scary moment.

Tesla FSD turned sharply and almost threw the owner off the cliff.

▲ Tesla FSD turned sharply and almost threw the owner off the cliff.

Strangely, the FSD beta version V 10.12 should know that there is a sharp turn in this road and it is necessary to slow down the vehicle. Because its speed is 10 mph (16 km/h) slower than the set speed, but somehow it didn’t correctly predict that turn.

In addition, it can be seen from the predicted path (blue line) displayed on the screen inside the car.

According to Fred’s test video, there are still many problems in Tesla’s FSD Beta V10.12 version. Although this version has greatly improved the recognition of some straight roads and vehicles, the problems of "ghost braking" and automatic turning still need to be solved.

This test also reminds Tesla owners that if they use this version of the test software, they still need to be highly vigilant and ready to take over at any time to ensure driving safety.

China Banking and Insurance Regulatory Commission issued seven opening measures: encouraging overseas financial institutions to invest in wealth management subsidiaries.

  According to the website of China Banking and Insurance Regulatory Commission, China Banking and Insurance Regulatory Commission continues to promote the opening of banking and insurance industry to the outside world, optimize the business environment for foreign investors in the financial sector, enrich market supply, enhance market vitality, enhance competitiveness and promote the healthy development of China’s financial industry. Recently, seven new policies and measures for opening to the outside world have been studied and released.

  I. Encourage overseas financial institutions to participate in the establishment and investment of financial subsidiaries of commercial banks.

  The Measures for the Administration of Financial Subsidiaries of Commercial Banks clearly stipulates that financial subsidiaries of banks can be wholly-owned by commercial banks, or jointly funded with domestic and foreign financial institutions and domestic non-financial enterprises. Introducing foreign financial institutions with expertise and international influence in wealth management and investing in bank wealth management subsidiaries is conducive to introducing advanced and mature investment concepts, business strategies, incentive mechanisms and compliance risk control systems in the international asset management industry, further enriching the supply of financial products, stimulating the vitality of market competition and promoting the healthy and orderly development of China’s bank wealth management business. China Banking and Insurance Regulatory Commission will guide qualified and willing banks to strengthen active contact with relevant foreign-funded financial institutions, and continue to encourage and guide bank wealth management subsidiaries to do a good job in introducing foreign capital.

  Two, allow overseas asset management institutions and subsidiaries of Chinese banks or insurance companies to set up a foreign-controlled wealth management company.

  China’s asset management market has a huge scale and development potential, and it is difficult for existing asset management institutions to fully meet the rapidly growing diversified market demand. Compared with international advanced asset management institutions, most of the asset management institutions of Chinese banks and insurance companies, including wealth management subsidiaries, have been established for a short time and have less experience. At present, Chinese banks, insurance companies and foreign advanced asset management institutions are mainly engaged in business cooperation, allowing joint ventures to set up foreign-controlled wealth management companies, which is conducive to introducing international advanced asset management practices and professional experience, promoting the steady development of asset management industry and capital market, giving play to the respective advantages of Chinese and foreign asset management institutions, further enriching market players and business products, and meeting the diversified service needs of investors. At the same time, the existing asset management subsidiaries of Chinese banks and insurance companies can complement each other with their foreign wealth management companies, and develop at a moderate dislocation.

  Overseas asset management institutions and subsidiaries of Chinese banks or insurance companies are allowed to jointly set up foreign-controlled wealth management companies. In the early stage, pilot methods can be adopted to give priority to supporting the entry of mature and stable wealth management institutions recognized in foreign markets. Both RMB funds can be raised and some foreign currency long-term funds can be raised. In the pilot process, China Banking and Insurance Regulatory Commission will pay more attention to the professionalism, prudence and stability of supervision, pay more attention to the supervision after the event, guide the steady development of institutional compliance through on-site inspection and off-site supervision, sum up the pilot experience in a timely manner, and study and expand the pilot scope in a timely manner.

  Three, allow overseas financial institutions to invest in the establishment and shareholding of pension management companies.

  At present, China’s pension management market is dominated by the second pillar enterprise annuity fund management, with limited scale and growth. However, the domestic pension management company is still in the pilot stage, and the pilot adopts the method of one mature company and one approved company. There is only one Jianxin pension management company established by CCB. Allowing foreign investors to set up pension management companies is conducive to increasing the types of subjects, enhancing market vitality, introducing mature pension management experience and improving the level of pension investment management. In the next step, China Banking and Insurance Regulatory Commission will promote the improvement of relevant laws and regulations, and continue to adopt the method of "one mature company, one approved company", and work with relevant ministries and commissions to do a good job in the licensing of pension management companies.

  Four, support the establishment of wholly foreign-owned or equity money brokerage companies.

  In 2005, the State Council approved the pilot of money brokerage companies. Since the pilot, five money brokerage companies have been established to actively carry out transactions in foreign exchange market, money market, bond market and derivative products market at home and abroad, which has played a positive role in activating China’s financial market, improving transaction efficiency and reducing transaction costs. At present, the top five money brokerage companies in the world have all participated in the establishment of five money brokerage companies in China through joint ventures.

  Further increasing the proportion of foreign shares in money brokerage companies is conducive to giving full play to the management advantages of foreign shareholders, improving the operating efficiency of money brokerage companies, promoting orderly competition in the industry, and improving the transparency and transaction efficiency of financial markets. China Banking and Insurance Regulatory Commission actively supports Chinese and foreign shareholders of existing currency brokerage companies to determine their own foreign share ratios on the basis of equal consultation. At the same time, on the basis of comprehensive evaluation of the impact of newly established currency brokerage companies on the existing market competition pattern, we will steadily promote the establishment of new foreign currency brokerage companies.

  5. Shorten the transition period from 51% to 100% for foreign-funded life insurance companies to 2020. 

  On July 2, 2019, Premier Li Keqiang delivered a special speech at the opening ceremony of the 2019 Davos Forum, saying that the original stipulation of canceling the foreign life insurance share ratio limit in 2021 would be advanced to 2020. Abolishing the share ratio restriction of foreign-funded life insurance companies will help attract more high-quality foreign-funded insurance institutions to enter the China market, introduce more advanced business concepts and more diversified life insurance products, enhance the vitality of the life insurance market and provide better services for the real economy. In the next step, China Banking and Insurance Regulatory Commission will promote the promulgation of "Regulations on the Administration of Foreign-funded Insurance Companies in People’s Republic of China (PRC)" and other relevant laws and regulations, and timely implement the regulations in relevant administrative licensing work. At the same time, strengthen post-event supervision and maintain market order.

  Six, cancel the provisions of domestic insurance companies holding the shares of insurance asset management companies shall not be less than 75%, allowing foreign investors to hold more than 25% of the shares. 

  Loosening the restrictions on the foreign shareholding ratio of insurance asset management companies is conducive to absorbing the experience and practices of excellent overseas insurance institutions, stimulating the vitality of the domestic insurance asset management market, promoting the improvement of the asset management capabilities of insurance asset management companies, and better serving the preservation and appreciation of insurance assets. 

  In the next step, China Banking and Insurance Regulatory Commission will promptly revise the Interim Provisions on the Administration of Insurance Asset Management Companies and implement the opening-up measures. While opening wider to the outside world, China Banking and Insurance Regulatory Commission will continue to improve the regulatory requirements of insurance asset management companies, strengthen the management of shareholders’ qualifications, further strengthen the continuous compliance requirements of insurance asset management companies, and effectively guard against various risks. 

  Seven, relax the access conditions of foreign-funded insurance companies, cancel the 30-year operating life requirement.

  At present, foreign insurance companies to set up foreign-funded insurance companies in China need to meet the requirements of operating insurance business for more than 30 years. In recent years, with the deepening of opening to the outside world, most foreign insurance companies in Fortune Global 500 have entered China and played an active role in the insurance market in China. The cancellation of the 30-year operating life requirement has created conditions for foreign insurance companies with operating characteristics and expertise but insufficient operating life to come to China, which is conducive to further enriching insurance market players and insurance professional services and promoting the high-quality development of the insurance industry.

  Welcome more qualified foreign insurance companies to set up business offices in China, combine their advanced experience with the reality of China, and promote each other with Chinese companies in the competition to jointly serve the real economy and the increasingly diversified financial service needs of consumers. China Banking and Insurance Regulatory Commission will immediately start the revision of relevant laws and regulations, and put them into practice upon completion.

American trade bullying staged a new farce, breaking the rules and causing dissatisfaction in many countries.

CCTV News:Recently, at the meeting of the Dispute Settlement Body of the World Trade Organization held in Geneva, Switzerland, the United States was convicted of violating WTO rules, but instead, the United States used the arbitration institution to "shut down" to appeal and tried to shelve the execution of the ruling indefinitely, which was severely denounced by many WTO members.

At the closed meeting held on January 27th, five members, namely China, Norway, Switzerland, Turkey and Hong Kong, China, set eight topics, demanding that the plenary session adopt five rulings of the expert group on the violation of the new regulations on the origin marking of Hong Kong goods imposed by the United States on imported steel and aluminum products under Article 232, and demanding that the United States cancel the illegal measures. The United States appealed all five rulings before the meeting.

But in fact, since 2019, the United States has repeatedly unilaterally obstructed the selection of judges of the WTO Appellate Body, and the WTO Appellate Body has fallen into a state of complete paralysis after the expiration of the previous judge in November 2020.

According to the minutes of the meeting published by the WTO, the permanent representative of the European Union to the WTO said at the meeting that the WTO arbitration institution was "paralyzed" because of deliberate sabotage by the United States, and it was impossible to hear these appeals at present, and the United States was actually abusing its right of appeal. Abuse of the right of appeal does not help to resolve trade disputes.

The Permanent Representative of Canada to the WTO said at the meeting that all parties to trade disputes must make every effort to find acceptable solutions and fulfill their good faith commitments under the Understanding on Dispute Settlement Rules and Procedures. The suspension of the Appellate Body has brought unfairness and short-term advantages to some members.

       The Permanent Representative of China to the WTO said that it seems that the United States will refuse to implement any unfavorable ruling involving "national security exception", which violates the principle of "pacta sunt servanda". These disturbing behaviors in the United States clearly depict the image of the implementer of unilateral bullying, the destroyer of multilateral trading system and the disruptor of global industrial chain supply chain.

       What is the ruling of the United States to appeal this time? In December 2022, the WTO released the report of the expert group on the dispute settlement mechanism, ruling that the measures taken by the United States to impose tariffs on imported steel and aluminum products in 2018 violated WTO rules and suggested that the United States should correct them. In March 2018, then US President Trump imposed tariffs of 25% and 10% on imported steel and aluminum products on the grounds of safeguarding national security according to Article 232 of the US Trade Expansion Act of 1962. This decision not only led the countries concerned to file a complaint with the WTO, but also the major trading partners of the United States introduced retaliatory measures. In November 2018, the WTO Dispute Settlement Body agreed to set up an expert group to review the steel and aluminum tariff measures announced by the United States to confirm whether the measures violated WTO rules. It was not until last December that the expert group of WTO dispute settlement mechanism issued its ruling.

       The unilateral trade bullying behavior of the United States has aroused more and more opposition around the world. Some media commented that the United States has now become the biggest destroyer of the international trading system.

       Headquarters reporter Yi Xin:For a long time, the United States has been waving a trade stick at other WTO members on the grounds of "national security" and frequently violated WTO rules. The research report on WTO dispute adjudication shows that by far, the United States is the most "unruly", and two-thirds of WTO violations are caused by the United States. When the WTO expert group ruled that the United States violated the rules, the United States took advantage of the current deadlock in the appointment of members of the WTO Appellate Body to appeal the ruling, so as to evade its obligations. The WTO Appellate Body’s "shutdown" and the paralysis of multilateral trade arbitration institutions are precisely caused by the United States’ insistence on obstructing the selection of judges despite the opposition of more than 100 WTO members. At the US trade policy review meeting held by the WTO in December last year, many WTO members expressed serious concern and dissatisfaction with the US trade policy.

Convicted of violating WTO rules, instead of executing the ruling, the United States appealed by using the "shutdown" of the appellate body, trying to put the execution of the ruling on hold indefinitely.

As an arbitration institution for trade dispute settlement, the Appellate Body is known as the "jewel in the crown of WTO" and it is an important part of the WTO dispute settlement mechanism. It has seven permanent seats for judges, each of whom has a term of four years and can be re-elected once. According to the WTO, cases of trade disputes must be tried and decided jointly by three judges. If the number of judges is insufficient, they can’t accept any new cases, and they will fall into a state of "stopping".

One of the most prominent features of the Appellate Body of WTO is its independence. Under this mechanism, all 164 WTO members, regardless of their size, can obtain equal rights to appeal or defend themselves. However, it seems that the United States has always regarded itself as an exception and repeatedly abused the "one-vote veto" to arbitrarily obstruct the start of the selection process for new judges of the Appellate Body.

Since 2017, the United States has frequently blocked the start of the selection process for new judges of the WTO Appellate Body.

In 2017, three of the seven judges of the Appellate Body ended their terms, but the United States has always blocked the appointment of new judges. Counting this time, in the past two years, the United States has said no to the selection of new judges for 30 consecutive times.

In 2018, the United States vetoed the appointment of Mauritian judges for a second term by one vote, leaving only three judges in the WTO Appellate Body. Three people are also the bottom line for the appellate body to operate. In order to avoid the "lockout", in that year, 67 WTO members demanded that "the selection process for new judges of the Appellate Body should be started as soon as possible". However, the United States rejected this proposal.

In November 2019, at the regular meeting of the WTO Dispute Settlement Body, 117 WTO members once again suggested that the process of selecting new judges of the Appellate Body should be started immediately, which showed the strong political will of most members to restore the Appellate Body. However, the United States is still bent on its own way.

On December 9, 2019, the United States once again unilaterally obstructed, resulting in a draft resolution on the reform of the Appellate Body not being passed, and the selection of new judges was once again blocked.

Due to the inability to select new judges in time, from December 11, 2019, only one judge of the Appellate Body was in office, and the Appellate Body was in a state of "stopping".

       On November 30, 2020, the last member of the Appellate Body officially expired. At this point, all members of the Appellate Body have left their posts.

What is the core reason for the United States to do so in the face of non-implementation of WTO rulings, non-compliance with rules and deliberate sabotage? What kind of bad influence will it have? Let’s listen to the interpretation of special commentator Su Xiaohui.

Su Xiaohui, a special commentator, said that many countries see that the United States has a kind of "double standard" behavior towards rules, and they will use it if they agree, and abandon it if they disagree. At the same time, they will try their best to safeguard American hegemony by taking the leading role in rule-making and use American bullying in trade. This kind of behavior interferes with the development of the world economy and harms others, which is also the fundamental factor behind everyone’s rebound against the United States.

Mengzhou, Henan Province: Smart Agriculture Broadens the Way to Increase Income

  Chen Xinfeng, the person in charge of the ecological park, and the staff are carrying out professional leaf splitting, flower thinning and fruit thinning on the elevated strawberries to ensure the quality after listing. This is the second year that he has cultivated strawberries without soil. Compared with the traditional cultivation of strawberries, this cultivation technology has a better planting environment and greatly improved the picking experience of tourists. 

  

Tourists pick and punch cards in the high-ridge strawberry greenhouse. 

  "Our main varieties are ice cream strawberries, chocolate strawberries and cream strawberries. The output of each greenhouse is about 4,000 kilograms, and each kilogram can be sold to 45 yuan. From now until June, it is the peak season for picking, and the total income is expected to reach 300,000 yuan." Chen Xinfeng told reporters that the strawberries he planted were well received by the market. In addition to supplying local supermarkets, many customers in Zhengzhou and Luoyang booked them, which was in short supply. 

The person in charge introduced the situation of soilless cultivation of strawberries for tourists who came to pick them. 

  Inspired by "elevated" strawberries, in 2024, Chen Xinfeng transformed the strawberry greenhouse into a smart agricultural greenhouse to plant "high-ridge" strawberries to improve quality and yield. In the transformation, he raised the ridge by 30 cm with steel frame, which is more suitable for the development of sightseeing and picking agriculture; Adopt intelligent drip irrigation and water circulation heating technology system to accurately control air humidity and nutrient supply, and ensure stable growth environment while saving water and fertilizer; Using physical pest control and biological control technology to replace traditional pesticides to ensure that strawberries are green and pollution-free; Equipped with automatic temperature control and light supplement equipment, so that strawberry growth is not limited by natural conditions; Pure water irrigation is used to provide high-quality and stable water source for strawberry growth and accurately meet water demand. At the same time, he also introduced the drone pollination technology of "low temperature tolerance, no flight and no shed collision", which not only improved the fruit setting rate of strawberries, but also improved the fruit quality, making the fruit shape correct and the taste sweet. 

  Walking into the meat rabbit breeding base in Hanxi Village, Dading Street, rows of modern breeding cages are uniform, and fat meat rabbits are eating and drinking leisurely. The head of the base, Mao Xing, observed the growth of rabbits and carefully recorded them. "At present, there are 144 groups of modern breeding cages in our base, with a total of more than 3,400 meat rabbits, with an annual slaughter of more than 60,000, which can generate income of 500,000 yuan." Mao Xing happily talked to the reporter about the "rabbit breeding". 

Technicians check the growth of meat rabbits. 

  There are only three or four workers in the clean and tidy breeding shed, thanks to the automatic breeding equipment introduced by the base. Automatic temperature control technology can adjust the temperature of the breeding shed in time, which is more suitable for the growth of meat rabbits; Set the feeding time on the computer, automatically start the feeding function at the point of arrival, and automatically cut off the power after feeding, feeding 1-6 times a day, which better caters to the physiological characteristics of rabbits with less food and more meals; The automatic excrement cleaning system can automatically clean excrement, reduce ammonia smell and flies and mosquitoes, reduce the disease probability and mortality of meat rabbits, and improve the survival rate of young rabbits. In addition, the rabbit manure is also used as agricultural fertilizer and exported to Fujian and Shaanxi, which increases the economic benefits. 

  "This meat rabbit breeding project can also increase the income of the village collective by 100,000 yuan every year. In the next step, the two village committees will encourage interested people to learn rabbit breeding technology, so that meat rabbit breeding will become a characteristic industry in the village and a project to increase people’s income." Yao Jialian, secretary of the village party branch, introduced. 

  The industry is prosperous, the countryside is strong and the villagers are rich. In recent years, mengzhou city has continuously intensified the adjustment of agricultural industrial structure. By increasing the popularization and application of intelligent agricultural technologies such as drones, Internet of Things and big data in agricultural production, it has changed the extensive production management mode of traditional agriculture, improved agricultural production efficiency, improved the output and quality of agricultural products, and promoted the sustainable development of agriculture. 

  It is reported that in the next step, mengzhou city will promote agricultural modernization and intelligence by cultivating high-quality agricultural skilled talents in the new era, accelerating the application of smart agricultural technology, strengthening the guarantee of data elements, and strengthening the construction of talent teams, empowering the masses with smart agriculture, helping the rural areas to fully revitalize, and painting a new picture of a beautiful countryside with strong agriculture, beautiful countryside and rich farmers. 

  (Guangming Daily full media reporter Michael Cui correspondent Hou Wei Chen Daoming)