Korean chip industry responds to American "ultimatum", and it is difficult for business circles to give up the China market.

  [Global Times special correspondent in South Korea Zhang Jing Global Times reporter Ni Hao] On July 21, South Korea announced an ambitious "semiconductor superpower strategy", which plans to guide enterprises to complete 340 trillion won (about 1.75 trillion yuan) in semiconductor investment by 2026. However, compared with the grand strategic planning, the most urgent task of South Korea’s chip industry at present is to respond to the "ultimatum" of the United States — — The deadline for the United States to unilaterally draw South Korea into the "Chip Quartet Alliance" is August 31. After visiting South Korea on the 19th, US Treasury Secretary Yellen made a high-profile promotion of deepening cooperation between the United States and South Korea on "supply chain security", which was considered as a further blow to South Korea. South Korea’s "Asia Daily" said that at present, Japan and Taiwan, China are very active in participating in the alliance, but South Korea needs to "think again". The data shows that the export to China accounts for 60% of the total export scale of Korean chips. For the Korean chip industry, it is almost impossible for China market to give up. Many parties are watching closely what choices South Korea will make in the face of the "ultimatum" of the United States.

Data Map Source vision china

  Sword refers to "semiconductor superpower"

  On the 21st, the South Korean government announced the development support plan for the semiconductor industry, focusing on training talents and realizing self-sufficiency in semiconductor materials. South Korea’s Minister of Industry, Trade and Resources, Li Changyang, announced the "Semiconductor Super Power Strategy" on the same day. In order to encourage related enterprises to complete 340 trillion won investment in the semiconductor industry in the next five years, the Korean government will provide financial support for the infrastructure required by the semiconductor park, and will also expand the tax incentives for semiconductor equipment investment and R&D, raising the tax deduction rate of equipment investment by large enterprises to 8% to 12%.

  In terms of personnel training, South Korea plans to train 150,000 semiconductor professionals by 2031. In addition, the Korean government will also focus on supporting the research and development of next-generation system chips, and raise the self-sufficiency rate of semiconductor materials, parts and equipment from the current 30% to 50%.

  According to a report by Reuters on the 21st, semiconductors have been the largest export product of South Korea for nine consecutive years, and in 2021, semiconductors will account for about one-fifth of the total export of South Korea. At present, South Korea has Samsung and SK Hynix, the world’s largest memory chip manufacturers.

  With the deepening of the proportion of semiconductor industry in South Korea’s trade and the increasingly fierce global semiconductor competition, South Korea is more eager to become the "leader" of semiconductor industry, and at the same time, it seeks the independence and stability of supply chain resources while seizing the technological highland. At the end of June, Samsung Electronics announced that it was the first in the world to realize the 3-nanometer process technology to make chips, and it was scheduled to be shipped on July 25th, one step ahead of its old rival TSMC.

  According to a report in South Korea’s "Asian Economy" on the 20th, US Treasury Secretary Yellen delivered a speech during a visit to Seoul’s LG Chemical R&D Park on the 19th, saying that the United States and its allies should implement a "friend-shore outsourcing" strategy. This strategy aims to limit the production and trade of major commodities in the United States to "trustworthy countries". Yellen said in her speech that South Korea has continuously increased its investment in the United States in the fields of batteries and semiconductors, and the United States will continue to work closely with South Korea to establish a flexible supply chain.

  LG Chem was the only company visited by Yellen during her visit to Korea. South Korea’s "Central Daily News" reported on the 20th that Yellen’s visit to LG Chem was not accidental. The LG Chem R&D Park she visited gathered a new generation of anode materials and separators and other future battery material research facilities. LG Chem is currently considering building a new factory in the United States, etc. Previously, the company had set up factories in Ohio and other places in the United States through LG New Energy, a subsidiary that produces batteries. LG intends to invest $11 billion in the United States to expand its battery supply network by 2025.

  China market and raw materials are indispensable.

  Behind South Korea’s determination to reach the top of the global semiconductor industry in an all-round way is the reality that the dependence on China in key areas has increased significantly in recent years. According to South Korea’s "Chosun Ilbo" reported on the 20th, the data released by the Korea Trade Association on the same day showed that through the analysis of about 1,200 kinds of goods in the import and export commodity classification system, it was found that 78 kinds of major imported goods in South Korea in the first half of 2022 were more than 80% dependent on China, which continued to increase compared with 72 kinds in the first half of 2021. In addition, among the main imported goods in South Korea, 253 categories are more than 50% dependent on China.

  Specifically, in terms of raw materials and components, magnesium ingots (99.8% of which are imported from China), aluminum cables (98.9%), color steel plates (97.7%) and solar components (97%) are highly dependent on China. In addition, escalators, mice, rice cookers and other products are also more than 97% dependent on China. The dependence on China for electric trucks, dishwashers, drones and steam boilers exceeded 80% for the first time in the first half of this year. Some ingredients, such as garlic, red beans and peppers, are almost completely imported from China.

  At the same time, the proportion of China products in Korean imported LCD monitors increased from 52.1% last year to 78.7%, and the proportion of vacuum cleaners and dryers also increased by about 10%. According to the report of Korea Operators Association, the largest proportion of South Korea’s total imports is intermediate goods (accounting for 50.2%), and the largest source of intermediate goods is China, accounting for 28.3%.

  There are many kinds of similar goods, especially the raw materials for batteries needed in the "new energy transportation revolution" and the rare gases needed for chips, and several Korean giants can’t bypass China. A large number of raw materials for chemical products, including neon, a rare gas used in semiconductors, and lithium hydroxide, nickel and manganese as raw materials for batteries, are heavily dependent on China. In the first half of 2021, the proportion of "other fine chemical raw materials" imported by South Korea from China was 56.1%, which has risen to 64.2% in the first half of 2022.

  "Dependence on Japan has decreased, but dependence on China has increased. South Korea’s raw materials, parts and equipment still rely on overseas supply." Seoul Economy reported on the 20th that the data released by official website, the Ministry of Industry, Trade and Resources of Korea, showed that in the first half of 2022, South Korea imported raw materials, parts and equipment totaling 130.067 billion US dollars, of which 20.072 billion US dollars (accounting for 15.4%) were imported from Japan and 380.4 billion from China.

  Chinese response

  At the regular press conference of the Ministry of Commerce of China on the 21st, spokesperson Shu Jueting responded to the US government’s request that South Korea reply whether to join the "Chip Quadripartite Alliance" before the end of August, saying that the stability of industrial chain supply chain is a global issue of great concern to all parties at present. China believes that no matter what framework arrangement, it should be inclusive and open, not discriminatory and exclusive; We should promote the stability of the global industrial chain supply chain, rather than damage and split the global market. Under the current situation, strengthening the open cooperation of industrial chain supply chain and preventing fragmentation is beneficial to all parties concerned and the whole world.

  Shu Yuting said that in the first half of this year, the bilateral trade volume between China and South Korea reached US$ 184.25 billion, a year-on-year increase of 9.4%. Against the background of the fragile recovery of the global economy, the trade between China and South Korea has maintained rapid growth, which fully shows that the economies of the two countries are highly complementary and fully demonstrates the resilience and potential of bilateral economic and trade cooperation.

  Lv Chao, chief researcher of North Korea and South Korea Research Center of Liaoning Academy of Social Sciences, said in an interview with Global Times on the 21st that semiconductors are an industry with a high degree of global division of labor and cooperation, and no one or even several countries can cover the whole industrial chain. In the global semiconductor supply chain, each region has different advantages and depends on each other. Lv Chao believes that even if the "four-party alliance of chips" advocated by the United States can finally take shape, it will not form a complete industrial chain. China has its own advantages in semiconductor production and semiconductor raw materials.

  Jin Taiji, a professor of economics at Tankook University in South Korea, said that South Korea’s dependence on key areas of trade with China is too high. If there is a trade war between China and South Korea in the future, South Korea’s core industries such as semiconductors and new energy batteries may face collapse.

  "The United States proposed the Semiconductor Quadripartite Alliance and ‘ Friendly shore outsourcing ’ What is South Korea’s China strategy? " South Korea’s "Korean News" published an editorial on the 20th, saying that the United States is continuing to push the global supply chain to restructure with its own country as the center, and South Korea is facing increasing pressure. The intention of the United States to exclude China from the global supply chain is more and more obvious. The anxiety of Korean industry is obvious.

  Cui Taiyuan, president of South Korea’s SK, recently publicly stated: "Whether you like it or not, China is a fairly large market, so giving up is not an option." The editorial stressed that South Korea, as an open trading country, must adhere to the principles of free trade and multilateralism in order to maximize national interests.

In 1968, the golden jade clothes were first unearthed from the tomb of Zhongshan in Han Dynasty.

Zheng Shaozong/Wen

   The excavation of Hanzhong Mountain Mausoleum in Mancheng, Hebei Province was many years ago, when I was only 30 years old and was the only archaeological institution in Hebei Province — — The provincial cultural relics team works in Baoding, which is only 20 kilometers away from the city. Looking back on the excavation scene of that year, I can remember it vividly and vividly.

 In 154 BC, Emperor Liu Qi of the Han Dynasty named Liu Sheng, the illegitimate son, as the King of Zhongshan, where he ruled Lunu County (now Dingzhou, Hebei Province). The picture shows the schematic diagram of the Han Dynasty vassal states.

Discover an ancient tomb

   In the summer of 1968, it was the third year of the "Cultural Revolution", when Baoding’s warfare was famous throughout the country. There are nearly 40 people in the cultural relics team in Hebei Province, and they are also caught in a serious factional struggle. The leading group is paralyzed, and most people are too busy fighting between the two factions to carry out their normal work.

   One day, the Provincial Revolutionary Committee informed me and Comrade Sun Dehai to go to Shijiazhuang, the provincial capital, immediately to have important work. The next day, Zhang Tianfu and Du Rongquan, the political department of the Provincial Revolutionary Committee, met with us and said that the garrison in the city had found a huge ancient tomb in Nanling Mountain and asked us to go to the city as soon as possible to do a good job in the investigation and protection of the ancient tomb.

   On May 28th, Du Rongquan and Zhang Zuliu, director of the Political Department of the Sixty Armed Forces, rushed to the city with us. The struggle between the two factions in Baoding area is very sharp, and there are strongholds of the two factions everywhere. Because the two garrison troops each support one faction, the brand on the military vehicle has become a sign to identify the factions. We are sitting in the 212 Jeep, and the young driver is a very smart soldier. We have to change the license plate every time we walk, because the rebels only recognize the license plate but not the person, and they belong to their own faction, otherwise they will hijack the car and copy people. Almost every walk, people come out to stop and check, and almost every village has fortifications of warfare. It is very difficult to walk 200 kilometers from Shijiazhuang to Mancheng. After crossing Anguo, the car and people were detained. Several cadres in the village found that the license plate was a military license plate, but only Zhang Zuliu was wearing a military uniform. They were very vigilant and said that the group even took the car for one night. The driver quietly said to Zhang Zuliu, "We can’t let them detain the car, otherwise the consequences will be unimaginable." Zhang Zuliu also broke out in a cold sweat. "We went to the city to perform an urgent task, so please cooperate." After several twists and turns and repeated explanations, it was finally released. The group didn’t even attend to lunch, and it was near dusk when they arrived in Baoding.

Panoramic view of the mausoleum of Han Dynasty in Mancheng

   On May 29th, we arrived at the 4749 troops station in Mancheng. Take a break, that is, go straight to the site of Lingshan ancient tomb in the southwest of the county seat. The streets of the city are very depressed, and there are few pedestrians on the road because of the fighting. It’s a warm day. Looking at Lingshan from the field, it’s like a huge and majestic plush chair surrounding the main peak, and the main peak and the North and South Lingshan are like a dignified and quiet arhat, which is very solemn. We climbed the mountain path to the north of the east side of the main peak to the south of the main peak of Lingshan Mountain, and arrived at the entrance of the tunnel under construction. There were soldiers guarding the entrance day and night, and there was a military dog next to it. The project of sheltering the cave entrance at the front of Taihang Mountain has been stopped due to the discovery of tombs. We were eager to know the situation of the tomb, so we called a small warrior forum to know the whole story of the discovery of the tomb.

A major archaeological discovery that shocked the world

   It was already very hot in the city at that time, but it was still cold in the morning and evening. The garrison was still under intense construction. There was a happy track at the southern end of the main peak, which was paved when the tomb was repaired more than 2,000 years ago. This happy track twists and turns to the south to reach the foot of Nanling Mountain. The mountain is covered with thorns, chrysanthemums, cloves, Chinese Pulsatilla and low shrubs. A tunnel is dug from east to west on an exposed cliff face south of the main peak, that is, on the west side of Happy Valley Road, to build a shelter room at the front of the mountain. The company commander Kou Junlin and platoon leader Hu Chonglin are responsible for the project.

The Han Tomb in Mancheng was found behind this door.

   The soldier said that at 11: 00 midnight on May 23, 1968, he was dug to a place 2.5 meters high and 24 meters deep. After the cannon sounded, he found that a hole with a diameter of about 1.5 meters collapsed under the north of the end of the tunnel, and the collapsed rock fell into the hole along the hole. The soldiers immediately reported the news to the company. The company commander Kou Junlin rushed to the construction site from the station several kilometers away overnight, and went into the cave to investigate with the platoon leader Hu Chonglin and the soldier Cao Dianji. They tied a long rope around their waist, and the other end of the rope was led by the soldiers who stayed in the tunnel to avoid being lost in the deep hole and unable to turn around. Entering the entrance of the cave, firstly, it is a circular arch-shaped cylindrical hole, the ground is covered with big tiles, and a large number of utensils, horse skulls and dog bones are pressed under it. Further inside, it is a large-scale hole with a diameter of more than 20 meters and a height of about 7 meters, which can accommodate more than 1,000 people, just like an underground palace. When the soldiers returned to the tunnel entrance by the original road, the company commander immediately stopped the construction, assigned special personnel to guard the scene, and they were not allowed to re-enter. At the same time, they reported to their superiors by telephone.

   After listening to the introduction, we look extremely nervous and excited. What we are nervous about is the heavy workload, heavy tasks, too few people and urgent projects. I am excited that it is the first time for me to come to such a large tomb. I also feel that the cultural relics and burial are unknown and somewhat mysterious. The gold-plated bronze wok and several gold-plated vehicles with the inscription "Zhongshan Neifu" and "Thirty-nine Years" taken out by the soldiers from the tomb attracted our great attention. In 1966, I excavated the tomb of Zhongshan Wang family in the Western Han Dynasty in Sanxian Mountain in Dingxian County, and also unearthed the bronze bell and the wrong gold and silver chariots and horses in the Inner House of Zhongshan. So when I saw these artifacts, I realized that it might be a high-level noble tomb of Zhongshan State in the Western Han Dynasty. The bronze ware was cast by the inner government, which manages the daily life of King Zhongshan, and has a time, which gives us a preliminary idea.

A bronze tablet engraved with the words "Zhongshan Neifu" unearthed from Han tombs in Mancheng.

   Under the guidance of Kou Junlin and others, our party went west along the 24-meter-long tunnel, which was more than one person high. It was very damp and cold in the cave, and white steam rose along the hole. First, a soldier went down, and we also went down from the hole one after another, and landed at 1.5 meters, which is the southernmost point of the south ear chamber of Liu Sheng’s tomb, King Jing of Zhongshan.

   The huge cave is dark, and the visibility is only about 2 meters with large flashlights. Several flashlights can be gathered together to see the ground situation in the cave. We walked north along the long hole, and from time to time there was a "tick-tock" and "tick-tock" dripping sound in the dark, which was very frightening. We were afraid and nervous inside, as if we had entered another world, and we could hear nothing but the dripping sound. The underwater sound flows down from the cracks in the mountain gap at the top of the cave and drops on the cliff surface and the big tile. The most worrying thing is the sudden collapse of the cave roof or the fear that there will be a big snake in the cave to hurt people. But nothing ventured, nothing gained, no matter how dangerous it is.

The north ear room of Liu Sheng’s tomb is a storehouse for food.

   We advance cautiously from south to north, lest we step on the cultural relics under our feet. The first thing I saw was a large number of slab tiles and tube tiles, which were stacked layer by layer, which seemed to be symmetrical in the north and south. The tiles were covered with rope patterns and chord patterns. This large tile was 55 cm long and 35-mdash wide. 40 cm, arranged in an orderly way, it seems that a huge roof has just collapsed. Although it is a little messy, it can be seen that the original arrangement law is mainly symmetrical between north and south, and the middle seems to be the roof. We walked along the two sides of the cave. When we gently uncovered a small part of the tiles, dazzling golden vehicles were exposed below, including gold-plated car frames, bow caps, car covers and so on. Followed by the orderly arrangement of the horse’s head bones, these horses are buried in order, the muscles have long rotted, and now only the bones are left, but the horse’s winding head and gold-plated bodyguard are placed in front of the horse’s head, which should be conscious killing and martyrdom. About 15 meters north, all you can see are real chariots and horses, and about 5 meters north, which is equivalent to the position of the front room (aisle). In addition to the gold-plated silver ornaments of luxury cars, a large number of dog skeletons have been found, which are also covered by collapsed tiles and slabs.

   Continuing northward from the tunnel, we entered a large north-south cave room, about 15 meters long and 4 meters high. This is a huge kitchen. The cave has a slightly higher terrain. A horse head and a water stone mill were found at the entrance, and there was a huge copper funnel-shaped grinding disc under the mill. On both sides of the cave, there are iron furnaces, pottery pots, retort, and rows of huge wine jars, on which the grade of wine is written in red ink. On the lid of the jar, there is a stalactite column about 5 cm high formed by dripping water from the top of the cave, which shows that it has been formed for a long time. On the north side, there are layers of big tiles, and on the lower side, there are mountains of pottery.

Liu Sheng’s tomb room

   From then on, I returned to the cross-shaped front room and tunnel, turned to the west, passed a seepage well, and the terrain was even lower, entering a large cave with a dome top of more than 200 square meters — — Middle room. The middle room is about 6 meters high, and it is a bare frame supported by a huge wooden structure. Because the wooden frame is decayed, the big tiles on the roof fall to the inner surface of the cave, and the layers are stacked naturally and orderly. It can be seen that the house vouchers are north-south, and some precious gold, silver or gold-plated bronzes, jade articles and lacquerware are buried in the tiles in disorder. The central room is surrounded by a drainage ditch, with a square groove on the wall for installing the frame. The ground is divided into three areas: the central area, the southern area and the northern area. The west wall is exposed with a glittering snowflake stone masonry stone gate, which should be the "inner bedroom" for burying the owner of the tomb. There is also an arched cloister-shaped semi-circular cave on both sides of the stone gate, in which no important cultural relics are found, only a few pieces of pottery are found. There are many relics in the middle room. The gold-plated bronze cup (wok) taken out from the middle room is engraved with an inscription on the mouth: "The bronze wok of Zhongshan Neifu, with a capacity of ten buckets, weighs a catty, and was made in September of 39." This bronze wok became an important basis for preliminarily judging the owner of the tomb and its age.

   It took us more than two hours to make a tour of the underground palace. With the light of the flashlight, we found the original road along the west side of the stone wall of the cave, stepped on the tiles, climbed up the round hole collapsed in the south ear chamber and returned to the ground.

   Du Rongquan and Zhang Zuliu agreed on the next work arrangement and returned to Shijiazhuang in the afternoon to report. Archaeologists also began the scientific cleaning, recording and mapping work with protection as the main task that afternoon.

Schematic diagram of Liu Sheng tomb

   This tomb includes the entrance of the tomb, the tunnel, the south ear room, the north ear room, the middle room, the main room and the cloister. According to the post-survey data, the total length of the cavern is 51.7 meters, the widest point is 37.5 meters, the highest point is 6.8 meters, and the volume of the cavern is 2700 cubic meters. The whole cave floor is paved with a layer of loess bed, and the side of the bed is paved with stone strips. The official entrance of the tomb is in the east, and it forms a central axis with the tunnel, middle room and main room in the west. The structure of the tomb spreads from north to south. Because the initial excavation was from the cave in the south ear room, the tomb door was cleaned up at the end. There is a pyramid-shaped mound in front of the tomb door, which is dug under the cliff face south of the main peak of Lingshan Mountain. The tomb is 1 north by east. The entrance of the pyramid-shaped mound is circular, and the two side walls are arc-shaped. From the vault to the ground, two layers of adobe are built, with a gap left in the middle, and then poured with molten iron to form a solid iron gate, which cannot be opened to form an iron wall; The iron gate is filled with large pebbles, stones and loess, which makes it impossible for future generations to dig and enter the tomb.

   Investigators will write a special report on the results of preliminary investigation and cleaning, especially the bronze wares found in the tomb, and submit it to the provincial government. After that, it was transferred to the CPC Central Committee and Premier Zhou, and finally to Guo Moruo, president of China Academy of Sciences. According to Premier Zhou’s instructions, Guo Moruo sent Hu Shouyong from China Academy of Sciences, Wang Zhongshu from the Institute of Archaeology and Lu Zhaoyin and his party of 13 people to Mancheng and Hebei Provincial Cultural Relics Team to form an excavation team on June 26th to clean up the tomb.

Guo Moruo visited the excavation site.

Guo Moruo (first from the left in the front row) is at the archaeological site of the Han Tomb in Mancheng.

   During the excavation of Liu Sheng’s tomb, Guo Moruo received a report from Hebei provincial government to the State Council. According to a large number of bronzes with the inscription "Zhongshan Neifu" unearthed in the tomb and the contents of "34 years" and "39 years" in the inscription, he first pointed out that this is the tomb of Zhongshan State in the Western Han Dynasty, and that only Liu Sheng, the first generation of Zhongshan King, was the king of Zhongshan State for more than 39 years, and then determined that this tomb was the tomb of Liu Sheng, the king of Zhongshan Jing in the Western Han Dynasty. While making a scientific conclusion on such a crucial academic issue, Guo Lao also gave instructions on relevant details. Shortly after Liu Sheng’s tomb was opened, according to Premier Zhou’s instructions, he went to the city to inspect and guide himself, regardless of his age and long journey, especially the danger of the warfare during the "Cultural Revolution" at that time.

   On July 21, the day before Guo Lao visited the city, the resident troops and archaeological teams received a notice: "Guo Lao is coming!" The excavation site and barracks apartment are boiling, and everyone is immersed in a very happy atmosphere like a holiday. According to the order given by Premier Zhou to the local garrison two days before Guo Lao came: "Guo Lao will visit the archaeological excavation site in the city, and the garrison will be responsible for the security work along the way." A sentry post was set 50 meters on both sides of the road along the way and escorted to the city.

   At 6 o’clock on the morning of July 22nd, Guo Lao and his party set off from Beijing, made a short stop in Baoding at 9 o’clock, and then went all the way to the army barracks in Mancheng. After a short rest, they drove straight to Lingshan cemetery.

   Guo Lao changed to a jeep at the foot of Nanling Mountain, and along the rugged mountain road, the car drove all the way to the level of Happy Valley Road in front of Liu Sheng’s tomb at the top of the mountain. Our archaeologists and the soldiers who participated in the excavation lined up in two rows to wait for Guo Lao. Guo Lao walked slowly out of the car accompanied by the head of the army, said hello to everyone, shook hands with the comrades one by one and asked everyone. Comrade Lu Zhaoyin, the head of the army, introduced Guo Lao.

   Guo Lao first visited the geographical features of Lingshan, and then entered the tomb under the guidance of archaeologists. At that time, the main entrance of Liu Sheng’s tomb had not been dug, and it was necessary to enter and exit through the south ear chamber through the collapsed tunnel entrance. For the sake of safety, a wooden ladder was set at the entrance of the tunnel before Guo Lao arrived, so that the escalator could go up and down. With the help of the staff, Guo Laoshun entered the tomb by wooden ladder. From the carriage house into the aisle, through the food storage room, through the middle room, and then into the main room and cloister, Guo Lao watched us and explained. The temperature inside the cave is very low, and Guo Lao and our staff are all wearing cotton coats. Guo Lao read it very carefully, and put forward academic opinions every time he finished reading it, especially the bronze wares with inscriptions unearthed in the tomb, and put forward the interpretation methods and meanings one by one. When visiting the main room where Liu Sheng was buried, he was very careful. He pointed out: "Liu Sheng is a vassal, and the burial system is the most noble. Liu Sheng, dressed in gold and jade clothes, confirmed the authenticity of the gold and jade clothes recorded in Historical Records, the Book of the Later Han Dynasty and other records for the first time, which has very important scientific value. " Guo Lao gave detailed instructions on the recording, mapping and photography of the archaeological site, and also put forward suggestions on using infrared film to shoot the stone wall of the main room.

   Guo Lao watched the North and South Lingshan Mountain, the main peak of Lingshan Mountain and the ancient road of Lingshan Mountain with great interest. While watching it, he also reminded everyone that "after the death of princes and nobles in the Han Dynasty, there was a system of repairing temples and trees", and quoted the examples of Taishique in Dengfeng, Henan Province and Gaoyique in Ya’ an, Sichuan Province. "There should be temples on this Lingshan Mountain. Have you found any remains?" Everyone replied that the architectural relics of the Western Han Dynasty have been discovered and are currently being studied. Guo Lao added: "There are a large number of artificial stone tablets in the north of the main peak and the junction with Liu Sheng’s tomb. If you want to check, there should be a queen’s tomb. Historical Records records that Liu Sheng had a son ‘ One hundred and twenty people ’ , "Hanshu" said he had ‘ One hundred people belong to Zizhi ’ , he ‘ Good wine and good meat ’ , and the ordinary brother of Emperor Wu, with extremely prominent position and great power, not to mention the rich Zhongshan, which is pyramid-shaped on the mountain ‘ Prince’s grave ’ It should be related to the historical records that he has many children. "It should be all his descendants."

   After visiting for about two hours, Guo Lao went down the mountain by car and left for Beijing at 4: 30 pm.

   Guo Lao’s inspection has brought great encouragement to the archaeologists. After more than 10 days of continuous work, people worked hard to clean up Liu Sheng’s tomb on August 2, and after detailed statistics, 5,509 cultural relics were unearthed.

Excavation of Queen Dou Wan’s Tomb

Changxin Palace Lantern Unearthed from Dou Wan’s Tomb

   On July 22, 1968, after Guo Lao returned to Beijing, he reported to Premier Zhou the discovery of Han tombs in Mancheng, and Premier Zhou gave instructions. Soon, the Hebei provincial government and the garrison troops received a notice from the State Council, demanding that the cave remains of Tomb No.1 be preserved in situ and the cultural relics be transported to Beijing for study, and decided that the original team would continue to excavate another tomb north of Liu Sheng’s tomb, namely Dou Wan’s tomb. On August 6th, the provincial government sent Comrade Zhang Tianfu to Beijing to study the next work, and at the same time sent a small number of people to conduct on-the-spot investigation to determine the specific location of Tomb 2. After 10 days’ rest, the excavation personnel gathered in the city on August 12. The China Academy of Sciences and the Hebei Provincial Government attached great importance to it and sent leading comrades to come. After conveying the relevant instructions of the central authorities, the excavation work was officially launched on August 13th.

   First, it starts from the north third of Tomb No.1.. There are no layered natural rocks on the slope, only rocks turned from the middle. Below the rubble is loess, and below it are the large and small stones that fill the tomb. After the layers were cleared, the top of the pyramid-shaped mound was exposed on the afternoon of August 14th. Judging from the accumulation of stones, the volume of the tomb is not too small. The arch coupons dug manually along the tomb door are cleaned downwards, and the brick and iron walls that seal the door are opened to enter the tomb. The structure in the tomb is basically the same as that in the No.1 tomb, including the tomb entrance, the tunnel, the south and north ear rooms, the middle room and the main room. Liu Sheng’s pyramid-shaped mound gate and Dou Wan’s pyramid-shaped mound gate are almost on the same level.

   The excavation of Dou Wan’s tomb began at 8: 30am on August 13th, 1968 and ended on September 19th, with 5,124 cultural relics unearthed.

   From the discovery of Tomb No.1 on May 23rd to the end of the excavation of Tomb No.2 on September 19th, the excavation of Liu Sheng and Douwan tombs lasted for 111 days. During the period from August 3rd to 12th, there were 10 days of rest and 101 days of actual field work.

Uncover the mystery of golden thread and jade clothes

Unearthed site of Liu Sheng’s tomb.

   The cultural relics buried in the Han tombs in Mancheng are extremely rich, with more than 10,000 precious cultural relics unearthed from the tombs of Zhongshan Wang Liusheng and his queen Dou Wan.

   Liu Sheng and Dou Wan were both dressed in gold and jade clothes after their death. Liu Sheng was a man and Dou Wan was a woman. It’s all gold thread. Here we mainly introduce Liu Sheng’s gold thread and jade clothes.

   The main room is the most abundant burial place in Liu Sheng’s tomb, and a large number of precious cultural relics are found in the main room. Liu Sheng is wearing a golden jade garment which was discovered for the first time in China. It comes out of the coffin of the main room. As far as the whole tomb is concerned, the main room is in the center of the whole tomb and belongs to the hidden coffin.

   On July 12th, the stone gate of the main room was opened. When archaeologists first saw such a strange burial suit woven with gold wire and shiny jade pieces, everyone gave a sigh unconsciously. Wow! I almost jumped for joy. For a group of archaeologists, some of us have been engaged in archaeological work for decades and have never seen such luxurious burial clothes. Everyone only knows from Records of the Historian, Hanshu and other relevant records that the emperors and princes of the Han Dynasty wore gold and silver jade boxes or jade boxes for burial after their deaths, but never saw the real thing. According to the cultural relics reports, before liberation, archaeologists unearthed jade pieces in the Western Han Tomb in Wang Lang Village, Handan. At that time, it was called "Zhu Li Shi" in "Mozi Festival Funeral". Everyone said in unison, "This important discovery is bound to cause shock at home and abroad."

   As a personal form, jade clothes are complete, including head, trunk, limbs, hands and feet, etc. The deceased was lying on his back in jade clothes, and his head was covered with a rectangular gold-plated jade-inlaid copper pillow. Put your hands on your lower abdomen, hold Yuhuan in your left hand and Yugui in your right hand. Cover the genitals with a round jade jar. There is a jade plug in the anus. There is a long-handled iron ring knife on the left side of the jade garment, and there is a gold belt on the side of the knife. There are two handles of jade tools and iron swords on the right side of the jade clothes. A large number of jade articles and weapons were buried between the coffins on the right side of the jade clothes. These are all things that the deceased carried with him before his death.

   Liu Sheng’s jade clothes, when cleaning the back room, were covered with a layer of rotten wood and patent leather due to the collapse of the slate at the top of the room and the collapse of the coffin. After gently removing the paint skin and rotten wood board ash with a bamboo stick and a brush, I found this golden jade garment made up of gold wire and jade pieces. The corpse of the owner of the tomb has been decayed for a long time, which has turned the jade garment into a 1.88-meter-long flat body composed of jade pieces. The head, coat, trousers, gloves and shoes have been deformed. Some gold wires with jade pieces have also been broken. Clean up and reinforce at the same time. Clean up the numbering, drawing, photographing and recording one by one at that time. If it has been found that the position is wrong, it should be restored to its original position, and the gold wire and jade piece should be reinforced one by one. So that all the parts of it are no longer loose and disorderly. Draw a large map on the spot. Mark the numbers on the drawing one by one, and take photos and records with the cleaning. But it is more detailed about the front. However, the back of the jade garment is still under pressure and technical work cannot be carried out. So do it indoors after taking it off.

The staff is at the archaeological site of the Han Tomb in Mancheng

   The method of taking it is to adopt the method of self-made metal wire mesh and dish out. According to the size of the jade garment, a rectangular frame is made of iron wire with a thickness of 6 mm, which is set around the jade garment. Use thin wire to pass back and forth from under the jade clothes in vertical and horizontal straight lines, and tighten and straighten the thin wire, so as not to be careless. Then, the two ends of the fine iron wire are twisted on the outer frame of the thick iron wire, so that the fine iron wire forms a square mesh under the jade clothes, and the jade clothes can be lifted more smoothly. In order to prevent the surface of the jade garment from being disordered during extraction, several layers of hemp paper were laid on the jade garment, and a layer of 2-mdash was poured on the hemp paper. 3 cm of plaster. After such treatment, the jade clothes become a whole, and the jade clothes can be extracted smoothly and steadily, put on the prepared mat, and spread two layers of hemp paper on the cotton with a thickness of about 5 cm, and put in a rectangular wooden box. Cover it with two layers of hemp paper, and then spread it with cotton and transport it indoors. When finishing, gently remove the hemp paper, cotton, gypsum and hemp paper in turn. Disassemble the screen, and repair the jade clothes according to the original big picture measured.

Golden wisp jade clothes unearthed from Dou Wan’s tomb (after restoration)

Golden wisp jade clothes unearthed from Liu Sheng’s tomb (after restoration)

   The shape of jade clothes is the same as that of human body, which is basically designed according to various parts of human body. Jade pieces with different shapes are used, including square, rectangle, quadrangle, polygon, trapezoid, triangle, ring wall and so on. Face, head and hand jade pieces are 1.5— 3 cm, width 1— 2 centimeters. Jackets, trousers and shoes are large, generally 4.5 cm long, 3.5 cm wide and 0.2&mdash thick; 0.35 cm.

   After each piece of Pian Yu is polished, the edges and corners are ground with hypotenuse, and holes are punched out at the four corners or around each piece, which are braided with gold wire. Jade garment is composed of 2498 Pian Yu pieces, and the weight of shared gold thread is about 1100g.

   Jade clothing is also called jade box or jade bang. According to the Records of Etiquette in the History of the Later Han Dynasty, the emperor’s jade clothes were made of gold thread, the princes and princes began to seal them, the nobles and princesses used silver thread, and the dignitaries and princess royal used copper thread. Jade clothes have been customized in the later Han Dynasty. According to the records, Liu Sheng can only use silver and jade clothes, but what actually appears is gold and jade clothes. There are only "jade clothes" and "jade sticks" in the records of Hanshu, but there is no distinction between gold, silver and copper strands. This is because it was not customized at that time.

   When it was discovered, the golden thread jade garment was flattened because of the collapse of the roof. There were no formed bones, and some comrades doubted whether there were any bones at that time. That is, whether there is a body in the original jade clothes. This problem has not been solved in the excavation site. After entering the room, it was discovered that the bones in the jade clothes had already turned into grayish brown powder due to the dissolution of groundwater and limestone, and the enamel shells of some teeth were also found inside the head. To be sure, the bones have decayed in the jade clothes, leaving only traces.

   This article is selected from the 163rd Collection of Literature and History Materials sponsored by Chinese People’s Political Consultative Conference Culture, Literature, History and Learning Committee and compiled by the Literature and History Museum of the Chinese People’s Political Consultative Conference. The article title, some subheadings and pictures are added by the editor. Zheng Shaozong, once the archaeological leader of Jehol Provincial Museum and the director of Hebei Provincial Institute of Cultural Relics.

Decoration management of Lianyungang residential quarters will be more standardized.

The author learned from the conference on the publicity and deployment of the Regulations on the Decoration and Renovation of Lianyungang Residential Quarters (hereinafter referred to as the Regulations) held on April 19 that the Regulations will be officially implemented on May 1. In the future, a written contract must be signed for building decoration activities, and it is strictly forbidden to carry out acts that affect the structural safety of buildings, and shall not endanger the legitimate rights and interests of other residents.   

The "Regulations" stipulate that if the decorator entrusts the decoration contractor to undertake the decoration project, it shall sign a written contract. If the main building or load-bearing structure is changed, the design scheme proposed by the original design unit and the examination opinions issued by the urban housing safety appraisal institution shall be submitted, and the approval procedures shall be handled in accordance with the regulations. In the specific decoration, it is strictly forbidden to implement the behavior that affects the building structure and production safety. The decorator shall post a public notice board in a prominent position in the residential area and at the decoration site, and the information such as the contact telephone number, construction time, supervision unit and supervision method of the decorator and the person in charge of the construction party. At the same time, effective measures should be taken to prevent or reduce the harm and pollution caused by waste gas, waste water, dust, vibration, noise, solid waste and construction lighting. It is forbidden to carry out noise-producing decoration in residential quarters from 12: 00 to 14: 00, from 19: 00 to 8: 00 the next day, and on legal rest days, holidays, senior high school entrance examination days and college entrance examination days. In decoration, effective measures should also be taken to avoid or reduce noise pollution to surrounding residents.   

Relevant departments and units will establish a supervision information platform for the decoration and renovation of residential quarters, and implement dynamic supervision on the decoration and renovation projects of residential quarters. In violation of the provisions of the "Regulations", the relevant departments shall be ordered to make corrections, and those who refuse to make corrections shall be given warnings and fines. Reportedly, residential quarters refer to areas where residential buildings are relatively concentrated in urban and rural areas, as well as shops, office buildings, public houses and community supporting houses that are brought into the property quarters for centralized and unified management.

Another new force to build cars fell, and Changjiang Automobile entered bankruptcy liquidation procedures.

  "The administrator appointed by the court has been stationed in the company in mid-September. Now the company is managed by the administrator, and the shareholders and actual controllers stand aside. We just assist in the work." On November 1, Li Feng (pseudonym), a senior official of Hangzhou Changjiang Automobile Co., Ltd. (hereinafter referred to as "Changjiang Automobile"), told the First Financial Reporter on the phone.

  On September 29th, the bankruptcy documents issued by Yuhang District People’s Court in Hangzhou showed that on August 24th, 2020, Yuhang District People’s Court of Hangzhou ruled to accept the bankruptcy liquidation case of Changjiang Automobile Co., Ltd., and appointed Zhejiang Jingheng Law Firm, Zhejiang Noriya Law Firm and Ningbo Kexin Certified Public Accountants Co., Ltd. as the administrators of Hangzhou Changjiang Automobile Co., Ltd. on September 11th, 2020. The creditors of Hangzhou Changjiang Automobile Co., Ltd. shall declare their creditor’s rights to the administrator and provide relevant evidential materials before November 11, 2020.

  "The manager’s direction is to restructure, reduce the burden, introduce funds, restart production and sales, and some investors are in contact. At present, there is progress but uncertainty." Li Feng said.

  According to the data, the predecessor of Changjiang Automobile was Hangzhou Bus Factory, which was established in 1954, and the latter stopped production in the late 1990s. In 2015, Hong Kong Wulong Electric Vehicle Group reorganized it and established Changjiang Automobile, which mainly produces pure electric CMB, light and medium-sized commercial buses and SUV series products. The first-phase design capacity is 100,000 vehicles per year.

  According to the planning of Changjiang Automobile, its business will initially focus on the field of new energy commercial vehicles, and in the future, after obtaining the production qualification of new energy passenger cars, it will produce A00-class and A0-class pure electric SUVs, etc., and make efforts in the passenger car market. In 2017, Changjiang Automobile obtained the production qualification of pure electric passenger cars and became a member of the new energy car-making boom.

  Li Feng said that the plight of Changjiang Automobile began in the second half of 2018. With the decline of state subsidies and the decline of market demand, the company began to have the problem of tight liquidity. "By 2019, with the further contraction of the market, the funds are getting tighter and tighter, and the days are getting harder and harder."

  He introduced that because the products are out of touch with the market demand, the sales volume of Changjiang Automobile has always been low. Last year, the sales volume of the company’s electric buses and buses was around 1,000. Since the second half of last year, Changjiang Automobile has substantially stopped production and started to default on employees’ wages. Before the Lunar New Year in January this year, the company only paid three months’ wages and still owed five months’ wages. Due to the exhaustion of company funds, the American order contract signed at the end of last year was unable to organize production. By October this year, Changjiang Automobile had been in arrears with employees’ salaries for 12 months.

  It is worth mentioning that, with the enthusiasm of the capital market, hundreds of new power companies have been born in China. With the differentiation of performance, a large number of new car-making companies have "fallen down", and the attitude of the capital market towards the new car-making forces is also changing. Since last year, many new car-making companies have reported unpaid wages and debts, including Bojun Automobile, Baiteng Automobile and Sailin Automobile.

  Wu Qiang (a pseudonym), a partner of an investment institution in Beijing, told the First Financial Reporter that it is almost difficult for enterprises that have not yet rolled off the production line or formed large-scale production to get financing, and investors’ money will be concentrated in the head enterprises, and the prospects of the new car-making forces with poor performance are not optimistic.

2018 Spring Festival New Year’s Eve Survey: How much does it cost? Where to eat? What to eat?

  Xinhua News Agency, Beijing, February 16th Question: How much does it cost? Where to eat? What to eat? — — Survey of New Year’s Eve Dinner in 2018

  Xinhua News Agency "Xinhua Viewpoint" reporter

  For Chinese, the New Year’s Eve is the brightest "peak moment" of the Spring Festival — — All the hard work and thoughts in a year are sitting around and enjoying the delicious moment, which turns into deep affection and happiness.

  How much did you spend on the New Year’s Eve dinner in 2018? Where did you eat? What’s the food? On New Year’s Eve, "Xinhua Viewpoint" reporters investigated the New Year’s Eve of different groups all over the country.

  How much does it cost: Most people in Beishangguang are from 100 yuan to 150 yuan.

  At 7 o’clock in the evening on New Year’s Eve, a restaurant in Beijing was packed with guests, and a family raised their glasses frequently. Some individual passengers in the lobby are still waiting in line to get the number, and the waiter who is too busy to touch the ground said that there are still 8 tables waiting in line in front.

  According to the survey of China Cuisine Association, the overall booking rate of New Year’s Eve dinner this year has increased steadily compared with last year. It is expected that the catering market will achieve double-digit growth during the Spring Festival Golden Week this year. Wu Ying, deputy secretary-general of China Cuisine Association, said: "The overall price of New Year’s Eve dinner is basically the same as last year, with a slight increase."

  The reporter’s investigation found that in first-tier cities such as Beijing, Shanghai and Guangzhou, a table for 10 people is basically 2,000 yuan, and the per capita "starting price" is from 100 yuan to 150 yuan, and the highest is to 300 yuan.

  "The price has not risen this year, and the per capita cost is more than 200 yuan in 150 yuan." Wang Hongqing, deputy general manager of Tongchunyuan, a Beijing time-honored brand, said that there were more bookings of 1,888 yuan and 2,388 yuan.

  The price of New Year’s Eve in second-tier cities is not low. In Changchun, the price of the New Year’s Eve dinner package for 10 to 12 people is mostly from 800 yuan to 2,000 yuan, and the average person spends it from 80 yuan to 180 yuan.

  In some big cities, a few high-end consumers make an appointment with chefs to cook New Year’s Eve dinner. According to the number and difficulty of dishes, the per capita cost is between 400 yuan and 500 yuan in 1000 yuan.

  In addition, this year’s New Year’s Eve dinner has a new feature. "The booking of semi-finished New Year’s Eve dinner has grown rapidly." Wu Ying said that some citizens prefer to buy semi-finished products, and after a little processing at home, they can taste dishes that are not easy to cook. This year’s semi-finished New Year’s Eve dinner is expected to increase by more than 10%, and the per capita consumption is mostly from 50 yuan to 100 yuan.

  It is understood that Beijing Tongchunyuan has prepared 400 semi-finished products, including 6 meat dishes, bean bags, Huangqiao biscuits and other staple foods, with prices ranging from 288 yuan to 498 yuan; Tongheju has booked more than 800 semi-finished products, more than double that of last year.

  "In my impression, I started to go to the restaurant for dinner in the mid-1990s. Since 1995, I have never been home before 9 o’clock on New Year’s Eve. " Wang Hongqing said that in the 1990 s, each table of New Year’s Eve dinner was two or three hundred yuan, which was almost half a month’s salary of the working class.

  Zhang Fangzhong, technical director of Huajia Yiyuan’s production department, said that in the 1990s, people who went out to eat New Year’s Eve had good economic conditions. After 2000, ordinary consumers began to eat New Year’s Eve outside. At that time, the better restaurants had a table of 688 yuan and 888. The main dishes are elbow, whole fish, whole chicken and lion’s head. After about 2005, many ordinary families began to eat New Year’s Eve in star-rated hotels.

  In contrast, eating at home is more economical. Liu Yanming, a citizen of Changchun, said that he bought elbow, shrimp, fish and other high-grade ingredients and wine, and the average person counted about 70 to 80 yuan.

  On the dinner table of Zhou Duchun, a poor household in Hengnan County, Hengyang City, Hunan Province, even the raw materials came from his own home. There are bean curd made from beans in the field, fried fish, braised pork and fried chicken, totaling more than 30 yuan. The old man’s daughter and son-in-law are working outside, so they can’t go home this year. The local government sent grain, oil and rice noodles to the old man years ago.

  Where to eat New Year’s Eve: The number of people eating out is increasing, and the proportion of first-and second-tier cities is higher than that of third-and fourth-tier cities.

  According to the survey of China Cuisine Association, the number of people who choose to eat out for New Year’s Eve dinner is increasing all over the country, and the proportion of eating out in first-and second-tier cities is higher than that in third-and fourth-tier cities. In addition, popularization and popularization are the mainstream.

  In Beijing, time-honored brands and branded restaurants are favored. Some time-honored brands have to book more than half a year in advance before they can have private rooms, and they have to turn over two or three tables a night. Many repeat customers booked this year’s dinner last year. However, some people want to eat something different from usual on this day, so some ethnic catering and western food are also booked hot.

  The Pearl River Night Tour "Water New Year’s Eve Dinner" launched by Guangzhou Passenger Shipping Company allows visitors to enjoy the night view of Guangzhou while enjoying the delicious New Year’s Eve dinner.

  Calling "takeaway" at home is a prominent feature of this year’s New Year’s Eve dinner. Many take-away platforms have launched New Year’s Eve delivery services. According to the data of "Hungry" and Baidu Takeaway, in the past two or three years, take-away orders have increased rapidly during the Spring Festival, and the consumption power of second-and third-tier cities has improved significantly. The per capita consumption of Baidu takeaway has nearly doubled compared with usual, reaching 80 yuan to 90 yuan. According to the data of Meituan, in 2016 and 2017, the area with the highest single average price was Sanya, which was close to 150 yuan. The average cost of take-away orders on New Year’s Eve is nearly twice as high as usual.

  New technology adds a new color to the New Year’s Eve dinner. In Beijing Box Horse Fresh Life Yizhuang Store, the staff told reporters that many citizens choose to eat New Year’s Eve here. "Buy and eat here, the picture is fresh!" Wu Feng, a customer who lives nearby, said that the ingredients here are all small packages, just like their own "big refrigerator", which can be delivered to the door in 30 minutes at the earliest.

  The New Year’s Eve dinner on the trip and on the way home is also warm. On New Year’s Eve, at the Kaixuan Road Highway Passenger Station in Changchun, the staff delivered dumplings to the passengers. Jilin Branch of China Southern Airlines has increased on-board catering, including rice, noodles and jiaozi.

  Of course, for many people, eating the family reunion dinner at home is still the deepest expectation and enjoyment. Ms. Lai, a migrant worker who has worked in Guangzhou for more than 10 years, returned to her hometown of Meixian, Guangdong for the New Year this year. She said that her 70-year-old mother-in-law looks forward to this day every year. She has to prepare a large family’s New Year’s Eve dinner, such as chicken, pigs, fish, vegetables, rice cakes, etc. In short, she has to make up 12 dishes, which means peace in the four seasons.

  What to eat on New Year’s Eve: Traditional eating habits are still powerful.

  Due to different customs and eating habits, New Year’s Eve dinners in different parts of China have different interests and are rich and colorful.

  Cao Baoming, a folklorist and president of Jilin Food Culture Research Association, said that the New Year’s Eve dinner embodies Chinese’s long-standing annual culture, and each dish and collocation has its own unique cultural connotation. For example, in some places, there must be Chinese cabbage on the New Year’s Eve, which means "hundred treasures", leek means "long time", hot pot means "flourishing" and rice cake means "rising year by year".

  Wang Peng, manager of a hotel in Wangtian ‘e New Village, Changbai County, Jilin Province, told the reporter that many southern tourists are very interested in the special New Year’s Eve dinner in Northeast China, and book the New Year’s Eve dinner in advance, such as classic dishes such as braised vegetables in cauldron, stewed pork vermicelli, and snacks such as sticky bean buns.

  According to Alibaba’s "2018 China New Year Consumption Report", the local products with hometown flavor are mostly the favorite ingredients for New Year’s Eve dinner for consumers in various regions. For example, ham favored by consumers in East China, sausage favored by consumers in South China, sea cucumber and frozen shrimp favored by consumers in North China.

  With the continuous improvement of living standards, people have more and more dishes on the dinner table, but the power of traditional eating habits is still strong.

  In Guangzhou, traditional boiled chicken and winter melon porridge are still kept on the dinner table. "Unexpectedly, a pound of lion’s head and elbow is almost a must-have for every table." Zhang Fangzhong said that people still pay more attention to the sense of ceremony of New Year’s Eve.

  In rural Henan, jiaozi eats meat stuffing on New Year’s Eve, and jiaozi eats vegetarian stuffing early in the morning. "Everyone in the village has to eat earlier than anyone else. When you go to jiaozi, you must set off firecrackers. Before you eat jiaozi, you must eat a mouthful of steamed bread, so that you will be strong in the coming year. " Gao Yong ‘an, an associate professor at Renmin University of China, said.

  Wei Qi, a professor at the School of Philosophy and Social Development in northwest university of politics and law, said that people in their hometown should eat noodles on New Year’s Eve. Mother cooked chicken soup and rolled noodles, and then fried shredded chicken, kelp and daylily into a scorpion and poured it on the noodles. "What I miss most is the taste made by my mother." (Reporter Guan Guifeng, Liu Shuo, Zheng Tianhong, Ying Zhou, Zhang Xinxin)

Suggestions on the Revision of People’s Republic of China (PRC) Government Procurement Law (Revised Draft for Comment) (Ⅱ)

   He Yilai, Guoxianqi, Song Jun

Two, "government procurement law" to amend the specific recommendations

According to the "ten principles" of the revision of the government procurement law, the author is right2022The following suggestions are put forward in the 2006 draft for comments.

(1) Suggestions on the revision of Chapter I General Provisions.

"General Provisions" is the core programmatic part of the legal text, its essence is to establish the basic framework, guiding ideology and core principles of the whole law, and another function of "General Provisions" is to put the contents that are required by this law but are scattered and not easy to stand alone in the general provisions, so as to make the contents of relevant chapters consistent and unified, and facilitate public learning and mastering.

Revision of "Article 1".

As a [legislative purpose and purpose], it is proposed to amend it to: This Law is formulated in order to standardize government procurement, improve the efficiency of the use of fiscal funds and other state-owned resources (assets), safeguard national interests and social public interests, protect the legitimate rights and interests of parties involved in government procurement, and promote the coordinated development of social economy and the building of a clean government.

Reason for amendment: [legislative purpose and purpose] is the "soul" of law, through which the core values and rules of law are embodied. From the historical mission of the government procurement system, government procurement itself is a tool and a means, so the government procurement law should regulate the government procurement behavior on the one hand, and promote the coordinated development of social economy through government procurement on the other. Therefore, "promoting the coordinated development of social economy" should be regarded as the core value goal of the law and must be reflected in the legislative purpose. This also provides a legal basis for government procurement to implement the policy function, and for government procurement not only to achieve a single goal of saving funds, but also to improve the "cost performance" of procurement projects and achieve "value for money". And "promoting the construction of a unified national market" is a phased work in a certain period. Although government procurement has the responsibility and obligation to promote the construction of a unified national market, it is not the core value goal of government procurement, but only a phased goal. Besides, in other clauses, there are also provisions related to the construction of a unified national market for government procurement.

(2) Suggestions on Article 5.

This article is changed from [government procurement budget] to【 Government Procurement Budget Performance Management 】. It is suggested that the government procurement budget should be compiled for government procurement projects and strictly implemented in accordance with the approved government procurement budget.

At present, the title of "government procurement budget" in the whole law is rather chaotic. Concepts related to budget include government procurement budget, estimated value, procurement budget and procurement project budget. These concepts are different. The law should be unified and defined when necessary.

(3) Suggestions on the revision of Article 6

Article 6 is about [Determination of Government Procurement Mode and Scope of Centralized Procurement], and it is suggested to combine centralized procurement with decentralized procurement in government procurement. Technology, services and other standards are unified, and items commonly used by purchasers should be included in the centralized procurement catalogue. The centralized procurement catalogue is determined and published by the State Council. Government procurement projects included in the centralized procurement catalogue shall be subject to centralized procurement. The centralized procurement catalogue shall be determined and published by the State Council. Government procurement projects included in the centralized procurement catalogue shall be subject to centralized procurement. " Start a new line.

(4) Suggestions for amending Article 7.

Article 7 is about the management system of government procurement quota standards, and the government procurement quota standards stipulated in this article are determined and published by the State Council.

"The procurement above the government procurement quota standard shall be implemented in accordance with the provisions of this Law, and the procurement that fails to meet the government procurement quota standard shall be implemented in accordance with the provisions of the procurement supervision and administration department of the State Council Municipal Government".

It is suggested to be revised as "The procurement of procurement items above the government procurement quota standard shall be implemented in accordance with the provisions of this Law, and the procurement of procurement items that do not meet the government procurement quota standard shall be implemented in accordance with the provisions of the procurement supervision and administration department of the State Council Municipal Government."

(5) Suggestions on the revision of Article 9.

Article 9 With regard to the provision of [disclosure of government procurement information], it is suggested to increase the disclosure of "dispute handling and performance evaluation" information. It is amended as "Information on government procurement, including procurement intention, procurement announcement, procurement documents, procurement results, dispute settlement, performance evaluation and supervision and punishment information, etc., shall be released to the public in a timely manner in the media designated by the government procurement supervision and administration department at or above the provincial level, except for information involving state secrets and commercial secrets and other information that may not be disclosed according to law".

(six) to add or adjust the relevant provisions to the "general provisions".

Provisions on the subject responsibility of the purchaser should be added. Therefore, it is suggested that Article 35 [Internal Control Mechanism of the Purchaser] be amended as [Main Responsibility and Internal Control Mechanism of the Purchaser], and amended as: "The purchaser shall perform the main responsibility of procurement activities according to law, ensure that the procurement behavior is legal and compliant, the procedures are due and the results are fair, and assume legal responsibility for the whole procurement process.

The purchaser shall establish and improve the internal control system of government procurement, clarify the working procedures and job responsibilities, strengthen the supervision and restriction mechanism, implement the performance target requirements, promote market competition, safeguard public interests and prevent procurement risks. "

Adjust Article 100 [Construction of Credit System] to "General Provisions". That is, the state strengthens the construction of the credit system in the government procurement market, establishes a unified and standardized credit record and credit evaluation system for the parties and related personnel in government procurement activities, and implements punishment for dishonesty and encouragement for trustworthiness according to law.

Adjust the [Digital Management] of Article 61 to the general provisions, because it is not a procedural provision, but a general requirement. "The state encourages the use of data messages and electronic information networks to carry out government procurement activities, promote the transparency, standardization and intelligence of transaction processes, public services, supervision and management, promote the application of electronic licenses, and realize the interconnection and sharing of government procurement information resources with other public service platforms".

(VII) Revision of Chapter II

The second chapter is about the parties involved in government procurement. Whether to use "government procurement parties" or "government procurement participants" depends on the contents stipulated in Chapter II. The legal status of the parties involved in government procurement is the core subject; Rights and obligations are to sign contracts and claim relief; Legal liability is directly responsible for contract or violation. The legal status of government procurement participants is the program assistant; Rights and obligations are to participate in the evaluation and provide professional advice under the entrustment.

If the second chapter only talks about "buyers and suppliers", then this chapter should be "government procurement parties", and if it also includes government procurement agencies, consulting experts and evaluation experts, then it should be "government procurement parties and participants".

Therefore, it is suggested that Chapter II be amended as "Parties and Participants in Government Procurement".

Government procurement parties refer to all kinds of subjects who enjoy rights and assume obligations in government procurement activities, including purchasers and suppliers.

Participants in government procurement refer to intermediary organizations and individuals who are entrusted by government procurement parties to handle government procurement affairs in government procurement activities, including agencies, consulting experts, evaluation experts, performance acceptance agencies, legal service agencies, electronic government procurement trading system providers and other third-party institutions.

The "procurement agency" is the trustee of the party "purchaser". It is not a party, but a participant. Similarly, consulting experts and evaluation experts are also trustees and participants.

With the division of labor in society becoming more and more detailed, there will be more principal-agent matters in government procurement activities. In the future, there will be not only the principal-agent of procurement, but also the principal-agent of consultation, the principal-agent of bidding, the principal-agent of relief, performance evaluation and file management. At present, the Measures for the Administration of Government Procurement Demand and the Measures for the Administration of Bidding and Purchasing Methods of Government Procurement Goods and Services in the administrative regulations on government procurement have stipulated the investigation of procurement demand and the bidding agency of suppliers. Therefore, the revision of this law must consider the management of principal-agent affairs in the whole process of government procurement, not just the "principal-agent" of procurement affairs.

Then, there is the "expansion problem" of purchasing principal-agent affairs.

(eight) on the revision of article seventeenth

Regarding the concept of "procurement agency", neither the Government Procurement Law nor the Interim Measures for the Administration of Government Procurement Agency has clearly defined it, nor has the logical relationship among agency (intermediary organization), procurement agency, social agency and centralized procurement agency (departmental centralized procurement agency) been clarified.

According to the author’s understanding, agency is a superordinate concept, including government procurement agencies and agencies in other fields (such as trademark agency and litigation agency).

Government procurement agencies include all agencies and intermediary organizations engaged in government procurement agencies. It includes: government procurement project feasibility study agent, procurement demand investigation agent, procurement implementation plan preparation agent, procurement mode demonstration agent, bidding agent, relief agent, performance evaluation agent and file management agent.

Government procurement agencies include centralized procurement agencies, departmental centralized procurement agencies and intermediary organizations engaged in procurement agency business.

With the above logical relationship, then "government procurement agency" is a professional term. The proposal in Article 17 is revised as [government procurement agency], and this article is revised as: government procurement agencies include centralized procurement agencies, departmental centralized procurement agencies and social procurement agencies.

Centralized procurement institutions are related institutions established by the people’s governments at or above the level of cities and autonomous prefectures with districts to implement centralized procurement according to law.

The centralized procurement institution of a department refers to an intermediary service organization set up by the purchaser according to the special requirements of the government procurement of the department and the system, and entrusted to handle the government procurement projects of the department and the system.

Social procurement agency refers to a profit-making legal person engaged in procurement agency business.

It is suggested that the management of departmental centralized procurement institutions should be increased in the future implementation regulations, and it should be included in the scope of assessment and inspection of centralized procurement institutions. And add: "The centralized procurement of departments should strictly follow the principle of" separation of procurement and management ",and at the same time accept the supervision and inspection of auditing and government procurement supervision and management departments".

(9) It is suggested that Article 18 [Work Requirements of Centralized Procurement Organizations] and Article 19 [Requirements of Centralized Procurement] be exchanged. First, there are requirements for centralized procurement, and then there are requirements for the work of centralized procurement institutions.

For example, "those that are suitable for batch centralized procurement in the centralized procurement catalogue" and "those that are not included in the centralized procurement catalogue" are colloquial and not rigorous.

"For projects with common special requirements in this department and this system, the competent budget unit is encouraged to collect the requirements of its own budget unit and organize procurement in a unified way".

"For procurement projects with similar needs, buyers are encouraged to jointly purchase voluntarily to improve efficiency".

It is suggested to amend it to: "The government procurement items in the centralized procurement catalogue are suitable for batch centralized procurement" and "The government procurement items not included in the centralized procurement catalogue"

(eleven) the revision of article twentieth

Article 20 is about "requirements for non-centralized procurement". "For government procurement projects outside the centralized procurement catalogue, the purchaser may entrust a procurement agency to handle them and purchase entrusted agency services in accordance with the provisions of this Law". However, there are no relevant provisions in this law on how purchasers purchase entrusted agency services.

Considering the law as a whole, at present, the purchaser is only required to choose the purchasing agency according to law, that is, to choose the entrusted agency service. If the choice is changed to more explicit "procurement" in the future, then at least the terms and provisions of "procurement agency service" will be added in the revision of the implementation regulations in the future.

(12) Amendments to Article 28

Article 28 is about [policy makers and implementation measures]. In order to promote the development of small and medium-sized enterprises, "subcontracting" should be regarded as an implementation measure.

It is suggested to be revised as follows: the government procurement policy objectives are implemented through compulsory procurement or priority procurement measures such as formulating procurement demand standards, reserving procurement shares, evaluating preferential treatment, ordering first purchase, subcontracting, etc.

(XIII) General revision opinions on Chapter IV Procurement Demand Management.

Adding procurement demand management to government procurement law, grasping the foundation and core of government procurement management, but emphasizing its importance does not mean to reflect all its management requirements and regulations in law. The legal provisions should be principled, important and unchangeable, and the relevant specific operational provisions should be placed in the implementation regulations and relevant departmental regulations.

Suggestions, regardless of "general provisions" and "special provisions". Procurement demand management only talks about three contents, one is the compilation of government procurement budget and the compilation of procurement project budget; The second is procurement demand management, including procurement demand definition and preparation requirements, procurement demand investigation; The third is the preparation of procurement implementation plan.

Put the content of "special provisions" in departmental regulations, because the relevant provisions may be adjusted and revised at any time, and the government procurement law cannot be revised frequently because of its adjustment.

Suggestion: Add one item "Government Procurement Budget and Procurement Project Budgeting", keep Article 30 "Procurement Demand Management" and Article 31 "Procurement Demand Investigation", delete Article 32 "Estimated Procurement Value" and merge it into "Government Procurement Budget and Procurement Project Budgeting", and put Article 33 "Estimated Procurement Value and Procurement Price Limit" as a requirement in the added "Government Procurement Budget and Procurement Project Budgeting". Article 34 [Preparation of Procurement Implementation Plan] is retained, and Article 35 [Internal Control Mechanism of the Purchaser] is placed in Chapter 2 "Parties and Participants in Government Procurement" as a requirement for the purchaser. All the contents of "special requirements" are put into the implementation regulations or departmental rules.

(14) Suggestions on specific amendments to Chapter IV.

The provisions in the fourth chapter mainly draw lessons from the "Measures for the Management of Government Procurement Requirements", but because this method is rough and colloquial, it still needs to be polished and standardized when it becomes law. Such as "there is no relevant national standard" and "if there is a clear procurement budget, the procurement budget can be used as the estimated value of the procurement project". Does it mean that the procurement project may not have a procurement project budget?

The whole expression is not very rigorous, including "project", "procurement project" and "government procurement project". Purchase Budget, Purchase Project Budget, Estimated Value of Purchase Project and Total Purchase Amount of Project. Should be unified.

(fifteen) suggestions for the overall revision of the "Chapter V Government Procurement Mode"

"Bidding" is a procurement method, but according to more than 20 years’ practice, a specific amount standard applicable to "bidding" procurement method should be determined. As one of the prerequisites, it is in line with the procurement project of "being able to determine detailed specifications and specific requirements". Only when this specific amount standard is reached can the bidding procurement method be selected, which is conducive to standardizing procurement behavior and improving procurement efficiency.

Regarding the "two-stage bid opening and bid evaluation" in the "procurement project with complex technology or strong professionalism, the purchaser can adopt two-stage bid opening and bid evaluation for the part of the supplier’s bidding documents that does not contain quotation", this is not a strict two-stage bidding, andGPAThere is a difference between the two stages of bid evaluation. It’s just a phased review.

The definition of inquiry purchase method cannot be simply applied.2003The edition of "technology and service standards are unified, and the market supplies stable and sufficient services and projects", because "stable and sufficient market supplies" cannot be matched with "projects".

(XVI) Revision of Chapter VI Government Procurement Procedures

Although the author has repeatedly proposed to increase the government procurement procedures, he does not recognize the provisions of the government procurement procedures in the draft for comments, especially the "general provisions" should be the basic provisions of the government procurement management and operation procedures and processes, and other provisions should be placed in the implementation regulations or departmental regulations.

The management and operation rules and procedures of government procurement correspond to the main body and responsible person of its procurement activities. For example, from the feasibility study of government procurement projects to the filing of final procurement data. What are the responsibilities of the purchaser, what are the responsibilities of the regulatory authorities, and what can be entrusted by the purchaser to others. The procedures of a complete procurement project should be: feasibility study of procurement project, preparation of procurement project budget, approval and release of government procurement budget, disclosure of intention, formulation of procurement demand, preparation of procurement implementation plan (selection of procurement method, determination of procurement form, formulation of contract, etc.), award and implementation stage of contract (people call it small concept procurement), settlement of disputes, signing and performance of contract, and acceptance.

It is suggested that the "Specific Procedures of Various Purchasing Methods in Section II" be revised to "Operating Procedures of Purchasing Methods"

Even if it is suggested that some of the general provisions in the first section should be put into implementing regulations or departmental regulations, some provisions should be revised. For example, "effective competition, open competition, limited competition and non-competition" make it difficult for people to distinguish. How to translate it into foreign languages in the future?

Article 40 There is also a "total value of government procurement projects". What is the connection and difference between this and "estimated value of procurement projects"?

"Single-source procurement is a non-competitive procurement method, which should be approved by the procurement supervision and management department of the people’s government at or above the city or autonomous prefecture level before the start of procurement activities." This provision is original.2003Version, and "the approval of the people’s government procurement supervision and management department" is wrong. "Government procurement" is a technical term, which is generally inseparable. If the sentence is taken in its original meaning, "people’s government", "procurement supervision and management department" or "people" and "government procurement supervision and management department" are all wrong.

As for "procurement documents", procurement documents are a special direction, which are generally divided into big concept procurement documents and small concept procurement documents, and all procurement-related documents are procurement documents. Therefore, there should be a difference.

Regarding the "waiting period", people generally refer to the bidding procurement method as "waiting period", while other procurement methods are called response time, so it is suggested to unify it as "response period" or "response time".

Regarding the use of "termination", "termination" means stopping and not continuing. Except for those who cancel the procurement task due to major changes, they will not continue the procurement activities, and others will only temporarily stop and suspend.

(XVII) Revision of Article 60 [Requirements for Procurement Archives Management]

It is best to arrange the documents according to the steps and procedures (sequence) of procurement. It is suggested to amend it to:

Documents and materials include procurement project budget, intention disclosure, procurement demand investigation, procurement implementation plan, procurement documents, procurement document correction materials, bidding, response documents, evaluation criteria, evaluation report, calibration documents, government procurement contracts, acceptance certificates, query replies, complaint handling decisions, procurement activity records and other relevant documents and materials.

(XVIII) Amendment to Article 63 [Procedures for Competitive Negotiation]

Will "and clarify the contents of the negotiations, including the indicators that have determined the solution but need to be refined, and the evaluation and acceptance criteria that need to be clarified, or the suppliers provide various parts of the solution and the corresponding evaluation and acceptance criteria, etc.; Reduce the rules and standards of suppliers ",change" reduce "to" and clarify the negotiation contents, including the indicators that have been determined but need to be refined and the evaluation and acceptance criteria that need to be clarified, or the suppliers provide all parts of the solution and the corresponding evaluation and acceptance criteria; The evaluation method shall specify the main evaluation factors and the rules and standards for eliminating suppliers by weight.

In competitive negotiation procurement, it is possible that the qualification conditions of suppliers will change after changing the procurement requirements. Therefore, for procurement negotiations that have changed the procurement requirements, a new announcement should be made according to the new procurement requirements, and this provision must be added. This is another form of two-stage bidding.

(XIX) Revision of Article 65 [Procedures for Innovative Cooperation Ways]

Generally speaking, the word "stage" is too much for innovative cooperation methods and procedures.

As for "the negotiating team focuses on negotiating with a single supplier separately", the author thinks it is not necessary. It is better to talk about some issues together, and more suggestions can be obtained through mutual "discussion".

"Innovative product promotion and application. Before the commercialization of innovative products, other purchasers can use the first purchase price as the maximum price to purchase for trial; Innovative products involving national security may require purchasers to make compulsory purchases. " The two "may" do not have the same meaning, and can be modified as: "Promotion and application of innovative products. Before the commercialization of innovative products, other purchasers can purchase the trial at the first purchase price as the maximum price; For innovative products involving national security, relevant departments should require purchasers to make compulsory purchases. "

(20) Revision of Article 67 [Procedures for Procurement Methods of Framework Agreement]

"(two) to determine the supplier. According to the framework agreement, the purchaser or service object selects the second-stage supplier from the first-stage shortlisted suppliers and concludes the procurement contract by means of direct selection, waiting or competition. The procurement contract awarded according to the framework agreement shall not substantially modify the terms stipulated in the framework agreement. "

It is revised as "(2) Determining the supplier of the transaction. According to the framework agreement, the purchaser or service object selects the supplier from the shortlisted agreement by means of direct selection, waiting or competition, and concludes a contract for specific procurement projects. The procurement contract awarded according to the framework agreement shall not substantially modify the terms stipulated in the framework agreement. "

(XXI) Amendment to Article 71 [Form of Contract]

Therefore, it is suggested that Article 71 [Form of Contract] be placed after Article 68 [Application of Contract]. Amended as: "The government procurement contract shall be in written form.

Chapter VII The contents of government procurement contract management are suggested to be adjusted as follows:

Application of Contract, Form of Contract, Type of Contract, Basic Contents of Contract, Requirements of Contract, Prohibition and Subcontracting of Contract, Performance Bond of Contract, Announcement of Contract, Signing Time of Contract, Contract and Filing, Contract Addition, Contract Modification, Suspension or Termination, and Contract Performance

There is another "total contract price" in the contract. What is the relationship between "total contract price" and "contract price"?

(XXII) Revision of Chapter VIII Dispute Settlement

There are three suggestions for the revision of Chapter VIII dispute settlement. First, it is suggested to add a "consultation" clause. Consultation is not a precondition for questioning or complaining. The second is to combine the current reform of the "administrative adjudication mechanism" and add mature things to the clauses. The third is to handle the complaint by the "government procurement supervision and management department at the same level" and modify it to "the department specified by the government department at the same level or the government procurement supervision and management department".

Article 82 If a supplier believes that his legitimate rights and interests have been harmed by the procurement documents, procurement process, bid winning, transaction closing and shortlisting results, he may question the purchaser or the procurement agency entrusted by him in writing. It is revised as: "If the supplier thinks that the procurement documents, the procurement process, the results of winning the bid, closing the transaction and being shortlisted have harmed his legitimate rights and interests, he may ask the purchaser or the procurement agency entrusted by him in written form".

(twenty-three) on the revision of Chapter IX supervision and inspection.

The key points of supervision and inspection modification suggestions are:

First, it is necessary to supervise and inspect the main responsibilities of the parties and the main participants. Therefore, in the future implementation regulations, there should be a list of responsibilities (scope of responsibilities) of all parties and main participants. Second, it is necessary to strengthen supervision and inspection of centralized procurement of departments. Third, the contents of supervision and inspection should be formulated separately for centralized procurement institutions and social procurement agencies. Fourth, purchasers and centralized procurement institutions cannot be juxtaposed, one is the legal subject and the other is the trustee.

(XXIV) Amendment to Article 101 [Duties of the Purchaser]

The responsibility of the purchaser is mainly based on the main responsibility of the purchaser, adding relevant clauses and adjusting its order according to the government procurement procedures. Recommendations are:

1.Failing to formulate or implement the internal control provisions of government procurement;

2.Not strictly in accordance with the approved budget;

3.Failing to publish government procurement information in the designated media according to law;

4.Failing to determine the procurement demand and prepare the procurement implementation plan in accordance with the provisions of this law;

5.In violation of the provisions of this law, the organization form of procurement is determined, the government procurement method is selected, the competition scope, evaluation method and contract pricing method are formulated, or the procurement procedures stipulated in this law are violated;

6.Raising procurement standards without authorization;

7.Differentiate or discriminate against suppliers under unreasonable conditions;

9.Failing to reply to the supplier’s query within the time limit or failing to cooperate with complaint handling or administrative reconsideration;

10.Collusion with other participants in government procurement;

11.Accepting bribes or seeking other illegitimate interests in the procurement process;

12.Divulging state secrets or commercial secrets, disclosing personal information that is not allowed to be disclosed according to law or disclosing procurement projects that have not been disclosed;

13.Illegally changing the results of bid winning, transaction and shortlisting, or failing to sign a procurement contract or framework agreement with the bid winning, transaction and shortlisted suppliers within the statutory or agreed time limit after the notice of bid winning, transaction and shortlisting is issued;

14.In violation of the provisions of this law, the government procurement contract is changed or dissolved without authorization;

15.Failing to accept the supplier’s performance in accordance with the provisions of this law;

16.Failing to properly preserve the documents and materials of procurement activities according to law, or forging, altering, concealing or destroying documents and materials illegally;

17.Failing to evaluate the performance of government procurement according to law;

18.Refusing the relevant departments to carry out supervision and inspection according to law, or providing false information in the dispute settlement, supervision and inspection carried out by the relevant departments according to law;

19.Violation of other provisions of this law.

(25) Amendment to Article 102 [Responsibilities of Procurement Agency]

"If a procurement agency is under any of the following circumstances, it shall be ordered to make corrections within a time limit, given a warning, and may impose a fine of not less than 50,000 yuan but not more than 200,000 yuan on the procurement agency". Government procurement agencies include centralized procurement agencies, and it is still financial money to impose fines on centralized procurement agencies.

Therefore, this "procurement agency" should refer to the social procurement agency.

(XXVI) Amendment to Article 103 [Responsibilities of Centralized Procurement Institutions]

With the determination of the procurement method of framework agreement, centralized procurement institutions have certain responsibilities in the procurement of framework agreement. Therefore, relevant penalties for failure to perform their duties should be added to the responsibilities of centralized procurement institutions.

(XXVII) Amendment to Article 105 [Responsibilities of Suppliers]

What is the concept of "purchase amount" on the issue of "imposing a fine of more than five thousandths and less than ten thousandths of the purchase amount"? Budget for purchasing projects? Estimated value of procurement project? Supplier’s own quotation? Contract price? Winning bid? This must be clear, otherwise it will be controversial. It is suggested that the quotation submitted by the supplier shall prevail. This is the least controversial.

(28) It is suggested to add a chapter on "Exceptions".

Put Article 113 [Provisions on the Procurement of Loans and Grants], Article 114 [Provisions on the Procurement of Loans and Grants] and Article 115 [Military Procurement] in the exception chapter, and add [Procurement under special circumstances], such as: procurement under particularly favorable conditions that only appear in a short time due to liquidation, bankruptcy or auction, etc., and this Law is not applicable.

(XXIX) Amendment to Article 116 [Legal Application of Bidding and Procurement Methods for Projects]

It is suggested to delete Article 116 [Legal Application of Bidding and Procurement Methods for Projects] and make special provisions on bidding and procurement methods for government procurement projects in the implementation regulations and departmental rules.

(30) Amendment of Article 117 [Government Procurement Industry Association]

Revised as:The government procurement association is an autonomous and self-disciplined social organization in the government procurement industry.Conduct activities independently in accordance with laws, administrative regulations and articles of association.

Professor Lu Geyu: Insist on seeking truth from facts and innovation, adhere to academic integrity, and do meaningful and tasteful scientific research.

Enhance the sense of innovation and do scientific research with taste.

Innovation is the key to scientific research. According to different research attributes, innovation has different types: original innovation, cutting-edge innovation, technological innovation, integrated innovation, applied innovation and so on. No matter what kind of innovation, the innovation subject needs to have innovative consciousness, put forward innovative ideas, carry out innovative practice and produce innovative results. Innovation consciousness is the premise of scientific innovation activities. Researchers should consciously enhance their innovation consciousness, not follow others’ advice, follow the crowd and chase hot spots, think independently, dare to be the first and find a new way, and on the basis of predecessors’ work, through profound insight, rich imagination, careful thinking and concrete practice, find problems, raise problems and then solve them.

Academician Gao Dingsan, the founder of the Institute of Electronics of Jida University, was keenly aware of the importance of semiconductor devices in the mid-1950s, and took the lead in developing high-power germanium rectifiers and point-contact germanium diodes in China, which started the research of semiconductor devices in China. This innovative consciousness and spirit can be passed down and carried forward among the new generation of young scholars. Professor Feng Li, winner of the National Outstanding Science Foundation and State Key Laboratory of Supramolecular Structures and Materials, used the solid physical and device foundation laid during his undergraduate and doctoral years in the School of Electronics and combined with his years of research practice in the field of organic optoelectronics, put forward and verified a new concept of organic electroluminescence with two-line exciton emission, which broke through the limitations of closed-shell molecules of organic electroluminescent materials, opened up a new field of free-radical open-shell molecular electroluminescence, and wrote a strong stroke for China scholars in the field of organic optoelectronics.

Innovation needs taste. Taste is awe of the profession, demanding of oneself and respect for peers. Taste also reflects the pride, persistence, perfection and craftsman spirit of researchers. Teachers in Jilin University should cultivate innovative consciousness, carry out tasteful research, contribute to mankind, serve the country, serve the society and achieve themselves.

Adhere to the spirit of seeking truth from facts and do meaningful scientific research.

Seeking truth from facts is the key to scientific research. Seeking truth is to pursue scientific truth, discover real phenomena, obtain real data, reveal the essence and connotation of science, and then expand the boundary of human cognition, and use it to transform the world and make it a better place. The process of seeking truth from facts is a painful and happy one, and this process will inevitably encounter many difficulties and challenges, some of which are confusion of thinking methods, some are lack of hardware conditions, and some are shortcomings of the research team. However, no matter what kind of situation you encounter and what kind of situation you are in, as long as you are realistic and do not change your mind, you will open roads and bridge rivers, overcome all kinds of difficulties and obstacles, and finally reach the other side of scientific truth.

Jilin University has an academic tradition of seeking truth from facts, and the old president of Tang Aoqing is a model of seeking truth from facts. In 1986, Mr. Tang Aoqing stepped down as the principal and became the director of the National Natural Science Foundation of China. In addition to his busy management work, he still insisted on the research of polymer solidification theory and scale. In five years, he wrote 104 personal letters to his collaborators and doctoral students in Beijing to discuss the progress of research and the problems he encountered. As early as 1960s, Mr. Tang Aoqing got the sol-gel distribution formula by using the theory of dynamic random branching, and he wanted to get the polymer solidification theory on this basis. However, when dealing with the problem of internal Aa cross-linking, Mr. Tang found the shortcomings of previous work. In his letter to his collaborator, he wrote: "I found that there was an error in the previous derivation of the problem of internal Aa cross-linking. I was aware of this problem when I visited West Germany. After reading your letter, the problem became clearer. I re-derived the formula and attached it. Please ask Comrade Zesheng to do some concrete calculations and verify it to see if it is correct." (Quoted from Tang Aoqing and His Disciples, Xiamen University Press, November 2015, p. 161) Between the lines, Mr. Tang’s scientific spirit of seeking truth in learning is reflected, which is a model for our people to learn, and a scholarly character and spiritual wealth that Jilin University should cherish and inherit.

Professor Liu Shiying, the late famous optoelectronics scientist in the Institute of Electronics, is also a good teacher who is realistic. Mr. Liu is a founding veteran of the Institute of Electronics and one of the founders of the State Key Laboratory of Integrated Optoelectronics. He has made outstanding research achievements in integrated circuits, semiconductor lasers, integrated optoelectronics and organic optoelectronics. He is not only active in thinking, rigorous in academic research, and realistic, but also teaches young teachers and students by example. Whenever young teachers and graduate students report on their scientific research work, Mr. Liu will ask about the details of the experiment and the physical nature of the experimental phenomenon. The young teachers and graduate students who were questioned felt humiliated and embarrassed at that time. However, after they calmed down, they will feel that this kind of realistic style of study is very important, and they will strictly demand themselves and then teach them to their own students, gradually forming a rigorous and realistic style.

Stick to academic integrity and be a convincing good scholar

Academic integrity is the life of academics and also the life of scholars. Academic misconduct or academic anomie not only destroys the atmosphere of academic community, leads to the prevalence of unhealthy trends, but also misleads and interferes with the research of other scholars. If papers based on false data are published, peer scholars will track, repeat and verify these results. When they don’t get the same or similar results, peer scholars will first suspect that there is something wrong with their own experimental methods or details, thus spending a lot of time, energy and resources to repeat experiments, resulting in a lot of waste of time and resources, which is a direct damage to peer scholars. Therefore, adhering to academic integrity is the basic requirement and professional bottom line of scientific research teachers.

In recent years, the alienation tendency of evaluation criteria has led to impetuous wind. Aiming at publishing papers with high impact factors, keeping up with hot spots, frequently switching research directions, not deeply exploring experimental phenomena, not excavating the scientific essence and connotation, and lacking in depth and systematicness in research are also bad habits that need to be broken urgently. Every year, I spend more energy on revising project applications for some teachers. Most of the applications are novel and innovative, and the key scientific issues are concise and accurate, and the research content and scheme are concrete and feasible. The application is carefully written and can express the research to be carried out in the demonstration with accurate language and strict logic. However, some teachers’ project books are in contrast with the published research papers. The reason is that these teachers only pay attention to the appearance of research, neglect to ask and think about the connotation of their own research, and lack deep insight and understanding of the development trend in this field. Pursuing scientific truth and carrying out innovative research, like teaching and educating people, is a sacred and lofty cause and an important mission of universities. We should cultivate the sense of innovation, adhere to the spirit of seeking truth from facts, adhere to academic integrity, and be a good teacher with taste, character and bottom line.

A series of articles on teachers’ morality and the construction of study style;

President Zhang Xi: Some thoughts on the construction of teachers’ morality and study style

Moral Education, Truth-seeking and Innovation —— Speech at the 2020 Teacher’s Day Celebration and Commendation Conference of Jilin University

Seeking Truth and Pursuing Excellence —— Speech at the Opening Ceremony of Class of 2020 Freshmen

Principal Zhang Xi: Practice of Integration of Research and Learning

Professor Liu Zhongshu: Creating Excellent School Spirit and Learning Style and Strengthening the Construction of Teaching Staff

Professor Chi Baorong: The Soul of a Virtue Teacher; Teaching by example is better than teaching by words.

Professor Sun Zhengyu: Supporting teaching with scientific research and cultivating people with theory.

Professor Zhang Hanzhuang: Deepening Curriculum Construction and Practicing Education Mission

Professor Cai Lidong: Shielding the ego from crossing the ID and forging the ego.

Academician Ren Luquan: The cultivation of teachers’ morality lies in seeking truth and the cultivation of study style lies in seeking truth.

Professor Han Xiping: To be a new era teacher with noble morality and responsibility.

Jilin University held a special education report meeting on the construction of teachers’ morality and study style

Professor Jiang Qichuan: Fulfilling the mission and responsibility of a people’s teacher.

Jilin University held a special education report meeting on "Pre-service training of teachers in Jilin University and the construction of teachers’ morality and study style"

Jilin University held the third report meeting on the special education of "Pre-service training for teachers and the construction of teachers’ morality and study style". Professor Zhang Hanzhuang gave a report entitled "Do not forget your initiative mind remembers its mission"

Professor Wei Cuncheng: Teaching and scientific research are complementary.

For more information, please clickTeachers’ morality and the construction of study styleSpecial topic:

Notice of the General Office of Yunnan Provincial People’s Government on Printing and Distributing Yunnan Earthquake Emergency Plan

State and municipal people’s governments, provincial committees, offices, departments and bureaus:

"Yunnan earthquake emergency plan" has been agreed by the provincial people’s government and is hereby issued to you, please earnestly organize the implementation. The Yunnan Earthquake Emergency Plan (Yun Zheng Ban Fa [2014] No.16) issued on April 4, 2014 shall be abolished at the same time.

General Office of Yunnan Provincial People’s Government

December 21, 2021

(This piece is publicly released)

Yunnan earthquake emergency plan

1 General rules

1.1 Guiding ideology

Guided by the Supreme Leader’s Socialism with Chinese characteristics Thought in the New Era, thoroughly implement the important exposition of the Supreme Leader’s General Secretary on preventing and resolving major security risks, disaster prevention, mitigation and relief, and inspect the spirit of Yunnan’s important speech, adhere to the people first, life first, adhere to the combination of prevention first, prevention and rescue, adhere to the unity of normal disaster reduction and abnormal disaster relief, strengthen the construction of emergency rescue capabilities, and standardize the earthquake emergency rescue command system. Organize earthquake emergency prevention and disposal according to law, scientifically, efficiently and orderly, minimize the risk of earthquake disasters, reduce casualties and economic losses, and provide security for realizing high-quality economic and social development in our province.

1.2 Compilation basis

People’s Republic of China (PRC) Emergency Response Law, People’s Republic of China (PRC) Earthquake Preparedness and Disaster Mitigation Law, Regulations on Natural Disaster Relief, Regulations on Destructive Earthquake Emergency, Regulations on Military Participation in Emergency Rescue and Disaster Relief, Regulations on Earthquake Preparedness and Disaster Mitigation in Yunnan Province, National Earthquake Emergency Plan, and Implementation Opinions of Yunnan Provincial People’s Government of Yunnan Provincial Committee of the Communist Party of China on Promoting the Reform of Disaster Prevention and Mitigation System and Mechanism.

1.3 Scope of application

This plan is applicable to the response to earthquakes in Yunnan Province and earthquakes in neighboring provinces (autonomous regions and municipalities) and neighboring countries that affect Yunnan Province.

1.4 working principles

Adhere to the working principles of Party committee leadership and government leadership, giving priority to prevention, combining peacetime and wartime, military and civilian cooperation, social participation, graded responsibility, territorial priority, resource sharing and rapid response.

2 organizational system

2.1 Provincial Earthquake Relief Headquarters

2.1.1 Provincial Earthquake Relief Headquarters is responsible for unified command and coordination of earthquake prevention and disaster reduction, earthquake relief, recovery and reconstruction in the whole province under the guidance of the leadership of the provincial party committee and the provincial government and the the State Council Earthquake Relief Headquarters; To guide the work of state and municipal earthquake relief headquarters; Complete other tasks assigned by the Provincial Party Committee, the provincial government and the the State Council Earthquake Relief Headquarters.

2.1.2 Provincial Earthquake Relief Headquarters: Provincial Party Committee Propaganda Department, Provincial Party Committee Network Information Office, Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Department of Education, Provincial Department of Science and Technology, Provincial Ethnic and Religious Committee, Provincial Public Security Department, Provincial Civil Affairs Department, Provincial Department of Justice, Provincial Department of Finance, Provincial Department of Natural Resources, Provincial Department of Ecological Environment, Provincial Department of Housing and Urban-Rural Development, Provincial Department of Transportation, Provincial Department of Agriculture and Rural Affairs, Provincial Department of Water Resources and Provincial Department of Commerce. Provincial Emergency Department, Provincial Audit Office, Provincial Foreign Affairs Office, Provincial State-owned Assets Supervision and Administration Commission, Provincial Market Supervision Bureau, Provincial Radio, Film and Television Bureau, Provincial Energy Bureau, Provincial Forestry and Grass Bureau, Provincial Bureau of Statistics, Provincial Water Diversion Construction and Management Bureau in Central Yunnan, Provincial Grain and Reserve Bureau, Communist Youth League Committee, Provincial Red Cross Society, Provincial Federation of Supply and Marketing Cooperatives, Yunnan Airport Group, China Railway Kunming Bureau Group Co., Ltd., Kunming Customs, Provincial Communications Administration, Provincial Seismological Bureau, Provincial Meteorological Bureau, and so on.

2.1.3 The commander of the provincial earthquake relief headquarters is led by the provincial people’s government, and the deputy commander is the deputy commander of the Yunnan Military Region, the deputy commander of the 31663 Army, the deputy commander of the Yunnan Armed Police Corps, the deputy secretary-general of the provincial government, the director of the provincial emergency department, the director of the provincial housing and urban construction department, the director of the provincial seismological bureau, the chief of the provincial fire rescue corps and the chief of the provincial forest fire brigade. Under the office in the provincial emergency department, the director is in charge of the leadership of the provincial emergency department, and the deputy director is in charge of the leadership of the Provincial Seismological Bureau and the Provincial Department of Housing and Urban-Rural Development.

After the occurrence of a major earthquake, the "XXX·X earthquake relief headquarters" (hereinafter referred to as the special headquarters) was established as appropriate, and several working groups, such as comprehensive coordination, were set up to be responsible for unified command and coordination of earthquake relief work for specific earthquake disasters. After the earthquake relief, the special headquarters was cancelled according to the procedure.

2.2 state, city, county and district earthquake relief headquarters

State, city, county and district people’s governments shall set up earthquake relief headquarters, which shall be responsible for unified leadership, command and coordination of earthquake prevention and disaster reduction, earthquake relief, recovery and reconstruction in their respective administrative areas; Implement the decision-making arrangements of the CPC Central Committee and the State Council and the work requirements of the provincial party committee, the provincial government and the provincial earthquake relief headquarters, and cooperate with and assist the provincial earthquake relief headquarters and its working group to carry out their work.

3 response mechanism

3.1 Earthquake disaster classification

Earthquake disasters are divided into four levels: particularly serious, major, large and general.

3.1.1 A particularly serious earthquake disaster refers to an earthquake disaster that caused more than 300 deaths (including missing) in the province, or the direct economic loss accounted for more than 1% of the province’s GDP in the previous year.

An earthquake of magnitude 7.0 or above occurred in densely populated areas, and an earthquake of magnitude 6.5 or above occurred in densely populated areas, which was initially judged as a particularly serious earthquake disaster.

3.1.2 A major earthquake disaster refers to the death (including missing) of more than 50 people and less than 300 people in the province.

Earthquakes with magnitude above 6.0 and below 7.0 occurred in densely populated areas, and earthquakes with magnitude above 5.5 and below 6.5 occurred in densely populated areas, which were initially judged as major earthquake disasters.

3.1.3 A major earthquake disaster refers to the death (including missing) of more than 5 people and less than 50 people in the province.

Earthquakes of magnitude above 5.0 and below 6.0 occurred in densely populated areas, and earthquakes of magnitude above 4.5 and below 5.5 occurred in densely populated areas, which were initially judged as major earthquake disasters.

3.1.4 General earthquake disaster refers to the death (including missing) of less than 5 people in the province.

Earthquakes of magnitude above 4.5 and below 5.0 occurred in densely populated areas, and earthquakes of magnitude above 4.0 and below 4.5 occurred in densely populated areas, which were initially judged as general earthquake disasters.

3.2 Graded response

3.2.1 Classification of Response Levels

According to the classification of earthquake disasters, the provincial emergency response to earthquake disasters is divided into grade I, II, III and IV. Respond to particularly serious earthquake disasters and start a level I response; Respond to major earthquake disasters and start level II response; In response to a major earthquake disaster, start a level III response; In response to general earthquake disasters, a Class IV response was initiated.

3.2.2 Response Level Start-up

(1) The provincial emergency response shall be initiated by the Provincial Disaster Reduction Committee. The state, city, county and district emergency response shall be initiated by the disaster reduction committee at the corresponding level.

(2) When the provincial level I and II emergency response is started, the provincial earthquake relief headquarters is responsible for unified leadership, command and coordination of the province’s earthquake relief work; When the provincial level III emergency response is started, the state and municipal earthquake relief headquarters shall be responsible for unified leadership, command and coordination of the earthquake relief work in their respective administrative regions; When the provincial level IV emergency response is started, the county, city and district earthquake relief headquarters shall be responsible for unified leadership, command and coordination of earthquake relief work in their respective administrative regions. When the provincial level III and IV emergency response is started, the provincial earthquake relief headquarters will send a working group to guide the earthquake relief work as appropriate.

(3) The people’s governments of states, cities, counties and districts shall determine the earthquake emergency response level at the corresponding level according to the earthquake disaster situation. Neighboring states and cities shall, according to the disaster situation, start the emergency response at the corresponding level in their respective administrative regions as appropriate.

(4) After the emergency response is started, it should be adjusted according to the development of the disaster or the start of the superior response in time to avoid insufficient response or excessive response. According to the principle of "whoever issues it will terminate it", the emergency response will be terminated in time when the staged work of earthquake relief is over.

4 Prevention and early warning

4.1 Team Capacity Building

4.1.1 All member units shall, in accordance with the unified deployment of the provincial earthquake relief headquarters, strengthen the construction of professional emergency rescue teams such as provincial earthquake disaster emergency rescue, fire rescue, forest fire rescue, medical and health rescue, traffic rescue, communication emergency rescue, geological disaster rescue, mine rescue and dangerous chemical rescue, equip with necessary materials, equipment and equipment, and regularly carry out coordinated drills to improve their ability to jointly respond to earthquake disasters.

4.1.2 Provincial State-owned Assets Supervision and Administration Commission is responsible for guiding provincial state-owned enterprises to strengthen the construction of earthquake emergency rescue teams, give play to the advantages of industry and location, and prepare for emergency rescue. Property units, management or production and business units of lifeline engineering facilities such as water supply, power supply and gas supply should strengthen the construction of emergency repair teams.

4.1.3 State, city, county and district people’s governments should organize and mobilize all social forces, establish grassroots earthquake rescue and relief teams, and strengthen daily management and training. Neighboring states, cities, counties, and districts’ earthquake relief headquarters and member units should establish a sharing mechanism to share basic earthquake data, emergency forces, relief materials and other information, jointly formulate special earthquake emergency plans, regularly carry out joint training and joint performances, and prepare for cross-regional support. All localities and relevant departments should give full play to the role of the Communist Youth League and the Red Cross Society, rely on social groups, enterprises, institutions and communities to establish a volunteer team for earthquake emergency rescue, and form a social mobilization mechanism for extensive participation in earthquake emergency rescue.

4.1.4 All kinds of earthquake relief teams should be equipped with necessary medical surgical masks, medical protective masks, hand-free disinfectant (gel), medical isolation suits, medical protective suits, latex gloves and other epidemic prevention and control materials, and do a good job in epidemic prevention and control training.

4.2 Construction of command system

4.2.1 The offices of earthquake relief headquarters at all levels should establish and improve the information collection and transmission mechanism and smooth channels, so as to realize timely feedback of earthquake situation and disaster situation, rapid docking of task requirements and accurate assessment of disaster losses, and ensure scientific decision-making, efficient command and accurate scheduling of earthquake relief headquarters at the corresponding level.

4.2.2 Governments at all levels and relevant departments should adhere to the principle of being effective, practical and easy to use, improve and perfect the earthquake emergency plan and the work plan for emergency handling of particularly serious earthquake disasters, and form a horizontal and vertical earthquake emergency plan system. State, city, county, district people’s governments and their relevant departments should improve the earthquake relief headquarters, implement relevant guarantees, equip emergency communication, command, lighting and office equipment, determine emergency commanders, and clarify the division of responsibilities.

4.3 Disaster relief materials and funds preparation

4.3.1 Provincial Development and Reform Commission, Provincial Emergency Department, Provincial Health and Wellness Committee, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Grain and Reserve Bureau and other departments should reserve earthquake relief materials in accordance with the relevant provisions of the state and our province, build, rebuild, expand and utilize the national material reserve library, establish and improve the emergency material reserve network and production, allocation and emergency distribution system, and ensure the life relief materials, daily necessities and medical devices needed for earthquake emergency work.

4.3.2 State, city, county and district people’s governments and their relevant departments shall, in accordance with relevant laws and regulations, do a good job in emergency material storage, and ensure the production and supply of emergency materials, daily necessities and emergency equipment by signing agreements with relevant production and operation enterprises.

4.3.3 Governments at all levels should ensure that the funds needed for earthquake prevention and disaster reduction and earthquake relief work are included in the budget management. Give appropriate support to areas that have reached the provincial emergency response, are greatly affected by earthquake disasters and have financial difficulties. Provincial Emergency Department, Provincial Department of Finance, Provincial Development and Reform Commission and other departments should actively apply for relevant policies and financial support from relevant state ministries and commissions according to the earthquake disaster losses. Encourage States, cities or regions with outstanding earthquake disaster risks to actively participate in the pilot and promotion of earthquake insurance in light of their own reality.

4.4 Construction and management of emergency shelters

4.4.1 State, city, county, district people’s governments and their relevant departments should use squares, green spaces, parks, schools, stadiums, etc. to set up emergency shelters according to local conditions, equipped with necessary facilities and materials such as transportation, communication, water supply, power supply, sewage discharge, environmental protection, etc., and make overall consideration of the needs of epidemic prevention and control.

4.4.2 Schools, hospitals, theaters, shopping malls, hotels, stadiums and other crowded places should be equipped with earthquake emergency evacuation passages, equipped with necessary life-saving and risk-avoidance facilities and equipment to ensure smooth passage and exit. Relevant units shall regularly test and maintain alarm devices and emergency rescue facilities and equipment to keep them in good condition.

4.5 Infrastructure preparation

4.5.1 Provincial Public Security Department, Provincial Department of Transportation, Provincial Department of Natural Resources, Yunnan Airport Group, China Railway Kunming Bureau Group Co., Ltd. and other departments and units should coordinate the establishment of emergency transportation security systems for roads, railways, aviation and water transportation, strengthen unified command and dispatch, formulate necessary traffic control measures, and establish and improve the green channel for emergency rescue.

4.5.2 Provincial Communications Administration and other units should establish and improve the emergency communication guarantee mechanism, formulate a "white list" of earthquake emergency communication guarantee, and give priority to ensuring smooth emergency communication in key areas, key departments and key populations. Establish an emergency communication support system that combines wired and wireless communication, and the basic communication network is matched with the mobile communication system to ensure the smooth communication of earthquake emergency rescue and get through the public communication network in the disaster area as soon as possible.

4.5.3 Provincial Department of Housing and Urban-Rural Development, Provincial Department of Transportation, Provincial Department of Water Resources, Provincial Department of Industry and Information Technology, Provincial Energy Bureau, Provincial Seismological Bureau and other departments should strengthen the supervision and management of seismic fortification of major construction projects, lifeline projects and other infrastructure. Departments in charge of various industries should promptly organize the reinforcement of old facilities.

4.5.4 Provincial Department of Natural Resources, Provincial Department of Water Resources, Provincial Department of Housing and Urban-Rural Development, Provincial Energy Bureau and other departments should make overall plans for the construction of emergency water supply and gas supply to ensure the safety of emergency water supply and gas supply.

4.5.5 The Provincial Energy Bureau and the electricity regulatory authorities shall guide, coordinate and supervise the power operation enterprises to strengthen the construction of power infrastructure and power dispatching system to ensure the power supply needs in disaster areas.

4.5.6 Provincial Radio and Television Bureau is responsible for restoring the damaged radio and television transmission network.

4.5.7 During the epidemic prevention and control, it is necessary to implement epidemic prevention and control measures, and make overall preparations for isolation points and temporary designated hospitals.

4.6 Publicity, training and drills

4.6.1 Emergency, publicity, education, culture and tourism, science and technology, radio and television, press and publication, earthquake and other departments should cooperate closely to carry out legal knowledge and publicity and education on earthquake prevention and disaster reduction, mobilize the public to actively participate in earthquake prevention and disaster reduction activities, and improve the ability of earthquake prevention and disaster reduction and self-help and mutual rescue of the whole society. Schools should incorporate the knowledge of earthquake prevention and disaster reduction and self-help and mutual aid into publicity and education, strengthen the training of professionals in earthquake prevention and disaster reduction, and the competent departments of emergency, education and earthquake should strengthen guidance and supervision.

4.6.2 Governments at all levels and their relevant departments should establish and improve the training system for earthquake prevention, disaster reduction and relief, and organize relevant departments, rescue teams and volunteer teams to carry out earthquake disaster knowledge and rescue skills training in light of local conditions.

4.6.3 People’s governments of states, cities, counties and districts in key earthquake danger areas shall carry out at least 2 times a year, and people’s governments of other states, cities, counties and districts shall carry out at least 1 earthquake comprehensive emergency drill every year. Departments in charge of various industries at all levels shall carry out at least one special earthquake emergency drill or drill with earthquake emergency as an important content every year.

4.7 emergency preparedness inspection

4.7.1 Emergency preparedness inspection shall be carried out by combining self-inspection with spot check in accordance with relevant regulations. The Provincial Emergency Department, the Provincial Department of Housing and Urban-Rural Development and the Provincial Seismological Bureau shall, jointly with relevant departments, form a joint inspection team to regularly or irregularly inspect the earthquake emergency preparedness in the province.

4.7.2 The people’s governments at the state, city, county and district levels shall regularly organize relevant departments to inspect the earthquake relief headquarters and its operation, emergency plan and working mechanism, command system, material reserve, fund guarantee, emergency communication ability, emergency shelter construction and management, popular science propaganda, rescue team, volunteer team, earthquake monitoring and earthquake situation tracking, and the seismic fortification of various engineering facilities.

4.8 Monitoring and forecasting and disaster reporting mechanism construction

4.8.1 The Seismological Bureau of the province should strengthen the construction of seismic network in the whole province, be responsible for collecting and managing all kinds of seismic observation data in the whole province, and put forward opinions on the determination of annual key dangerous areas and the work of earthquake prevention and disaster reduction; Immediately report the earthquake information to the provincial people’s government and the office of the provincial earthquake relief headquarters, and put forward emergency preventive measures. The earthquake work departments of each state, city, county and district should strengthen earthquake monitoring, earthquake tracking and monitoring, and group monitoring and prevention, and make comprehensive analysis and judgment on earthquake prediction opinions and abnormal phenomena that may be related to earthquakes in a timely manner.

4.8.2 The Seismological Bureau of the province should standardize the release of earthquake early warning information, and, in conjunction with relevant units, rely on radio and television, mobile phones, internet and other means to improve and perfect the earthquake early warning information platform of the whole province, release earthquake early warning information quickly and accurately, and guide the people to do a good job in emergency avoidance.

4.8.3 After an earthquake of magnitude 4.0 or above occurs in the province, the Seismological Bureau of the province shall promptly report the time, place, magnitude, focal depth, measured intensity of instruments and other information of the earthquake to the provincial party committee, the provincial government and the provincial earthquake relief headquarters, and timely report the relevant information and release the earthquake information to the society.

4.8.4 The member units of the provincial earthquake relief headquarters shall collect and summarize the disaster information of the industry in a timely manner, analyze and evaluate the disaster relief needs, report to the office of the provincial earthquake relief headquarters, and report to the relevant state ministries and commissions in a timely manner. The office of the provincial earthquake relief headquarters should collect and summarize the information on the disaster situation and disaster relief work in a timely manner, report it to the provincial people’s government and the emergency department, and send a copy to the relevant member units of the provincial earthquake relief headquarters.

5 emergency response

5.1 Launch and Release

The determination and start of the provincial emergency response level shall be submitted for approval by the Provincial Disaster Reduction Committee in accordance with the procedures, notified to the member units of the Provincial Disaster Reduction Committee, reported to the National Disaster Reduction Committee, and released to the public through authoritative media in a timely manner.

5.2 Emergency response measures

5.2.1 When Class I and II emergency response is started.

(1) The provincial people’s government arranged for the deployment of earthquake relief work at the first time, the Provincial Seismological Bureau released the earthquake situation at the first time, and the Provincial Emergency Department released the disaster situation in time. The provincial earthquake relief headquarters held an emergency meeting to analyze and judge according to the situation, and further deployed the earthquake relief work.

(2) The provincial people’s government led the responsible comrades of the member units of the provincial earthquake relief headquarters to form a working group to rush to the disaster area to organize and direct earthquake relief operations. All member units and relevant departments sent field teams to the disaster area to carry out their work.

(3) Relevant member units of the Provincial Earthquake Relief Headquarters coordinated rescue forces such as fire fighting, forest fire fighting, aviation rescue, People’s Liberation Army stationed in Yunnan, armed police force, militia, transportation, communication, medical care and social relief to rush to the disaster area to carry out earthquake relief. After the rescue forces entered the disaster area, they accepted the unified command and deployment of the provincial earthquake relief headquarters.

(4) The Office of the Provincial Earthquake Relief Headquarters initiated relief measures such as allocation of relief materials and financial guarantee.

(5) The Office of the Provincial Earthquake Relief Headquarters shall, depending on the situation, organize a working group behind the special headquarters according to the pre-grouping scheme, and do a good job in overall coordination, information submission and decision-making service guarantee.

(6) The office of the provincial earthquake relief headquarters coordinates the government of the disaster area to set up a special headquarters in the epicenter or choose a place that is conducive to command, convenient for work, safe and reliable, divide the areas of work, life and security, establish and improve measures such as transportation, communication, power supply, water supply, flood control, lightning protection, safety, confidentiality and epidemic prevention and control, and serve the earthquake relief work.

5.2.2 When Class III emergency response is started.

(1) The provincial people’s government arranged for the deployment of earthquake relief work at the first time, the Provincial Seismological Bureau released the earthquake situation at the first time, and the Provincial Emergency Department released the disaster situation in time.

(2) The Provincial Earthquake Relief Headquarters formed a working group to rush to the disaster area to guide the earthquake-stricken areas to organize earthquake relief. Relevant member units sent on-site teams to the disaster areas to support and guide the earthquake relief in the disaster areas.

(3) The Office of the Provincial Earthquake Relief Headquarters initiated relief measures such as the allocation of relief materials and financial guarantee.

(4) The relevant member units of the provincial earthquake relief headquarters coordinate rescue forces such as fire fighting, forest fire fighting, aviation rescue, People’s Liberation Army stationed in Yunnan, armed police force, militia, transportation, communication, medical and health care, and social relief to rush to the disaster area to carry out earthquake relief. After the rescue forces entered the disaster area, they reported to the state and municipal earthquake relief headquarters for the record and accepted the task deployment in a unified manner.

5.2.3 When Class IV emergency response is started.

(1) The Office of the Provincial Earthquake Relief Headquarters collects, analyzes, judges and publishes information on earthquake situation and disaster, and coordinates the deployment of earthquake relief related work.

(2) The Office of the Provincial Earthquake Relief Headquarters made suggestions, formed a provincial earthquake relief working group as appropriate, and rushed to the disaster area to guide the earthquake relief work.

(3) The Office of the Provincial Earthquake Relief Headquarters initiated relief measures such as the allocation of relief materials and financial guarantee.

(4) The relevant member units of the provincial earthquake relief headquarters coordinate fire rescue, forest fire protection, aviation rescue, militia, medical and health rescue forces to rush to the disaster area to carry out earthquake relief. After the rescue forces entered the disaster area, they reported to the county-level earthquake relief headquarters for the record and accepted the task deployment in a unified manner.

6 disposal procedures

6.1 Disposal of particularly serious and major earthquake disasters

6.1.1 Emergency Disposal of Provincial Earthquake Relief Headquarters

(1) Information collection, summary and release

The offices of earthquake relief headquarters at all levels are responsible for collecting, counting and summarizing the disaster information at the corresponding level and reporting it step by step on time. The Office of the Provincial Earthquake Relief Headquarters is responsible for collecting and summarizing the spirit of the instructions of the central leading comrades and provincial leaders, and doing a good job in conveying and supervising the implementation. The competent departments of various industries are responsible for collecting and summarizing the information on the disaster situation and disaster relief work in their respective industries and reporting it to the office of the earthquake relief headquarters at the corresponding level. Disaster information should be standardized and reported on time, and important information should be reported immediately.

Disaster information should be strictly verified to ensure accuracy. The disaster information reported by the relevant provincial departments and units to the relevant state ministries and commissions should be consistent and synchronized with the disaster information submitted to the office of the provincial earthquake relief headquarters.

Disaster information is released to the public by the provincial earthquake relief headquarters.

(2) Comprehensive coordination

The office of the provincial earthquake relief headquarters will do a good job in comprehensive coordination of earthquake relief and decision-making service guarantee for the first time. After the establishment of the special headquarters, the comprehensive coordination group shall perform the comprehensive coordination duties; Relevant departments and units directly under the provincial level shall coordinate the earthquake relief work in this industry.

The Yunnan Military Region took the lead in establishing a military-ground docking and liaison mechanism, and was responsible for the delineation, task allocation and coordination, disaster relief data statistics of the PLA, the Armed Police Force and the militia forces, and organized relevant guarantees.

(3) Personnel search and rescue

Organize earthquake disaster emergency rescue team, fire rescue team, forest fire rescue team, People’s Liberation Army stationed in Yunnan, Armed Police Force, Mine Rescue Team, Dangerous Chemicals Emergency Rescue Team and other forces, give full play to professional advantages, scientifically distinguish forces, pay attention to rescue, rescue and medical evacuation, and carry out grid-based accurate search and rescue.

(4) medical treatment and health and epidemic prevention

Organize medical and health teams, set up temporary hospitals or medical points, rescue injured people, and send medical teams to assist search and rescue teams in on-site treatment of buried personnel; According to the need to divert the seriously wounded, the implementation of remote treatment; Strengthen the organization and dispatch of ambulances, medicines, medical devices and plasma to ensure the needs of disaster areas; Testing the safety of drinking water sources, food and medicines in disaster areas, and carrying out epidemic prevention and control and psychological assistance.

(5) Resettlement of the affected people

According to the "six haves" requirements of having food, clothing, clean water to drink, safe temporary shelter, timely treatment for illness and safe school buildings, assist the local government to transfer and resettle the affected people, allocate tents, clothing, food and other relief materials, and receive and arrange donated funds and materials for disaster relief.

Provincial Emergency Department, Provincial Department of Commerce, Provincial Grain and Reserve Bureau, Provincial Federation of Supply and Marketing Cooperatives and other departments are responsible for the emergency deployment of food, food, drinking water, refined oil and other relief materials to ensure the daily necessities and market supply of the people in the disaster areas.

The Provincial Department of Education is responsible for guiding the administrative departments of education and sports in disaster areas to properly resettle teachers and students at school and organize the resumption of classes in a timely manner.

The Provincial Department of Culture and Tourism is responsible for the evacuation and resettlement of passengers in disaster areas.

The Provincial Department of Housing and Urban-Rural Development takes the lead, and the Provincial Department of Education, the Provincial Health and Health Commission and other departments cooperate to guide the relevant administrative departments in the disaster areas to carry out emergency safety assessment and earthquake damage investigation on the construction projects and civil housing in public places such as schools and hospitals in the disaster areas, and classify and identify the construction safety.

The Provincial Red Cross Society is responsible for applying for disaster relief assistance in accordance with relevant procedures, accepting emergency assistance from the international community, and sending Red Cross rescue teams to participate in disaster relief.

(6) The aftermath of the victims

The Provincial Civil Affairs Department guides the cremation of the remains of the victims and the comfort of the families of the victims. The provincial public security department guides the DNA identification of the victims who cannot be identified.

(7) Transportation

Provincial Public Security Department, Provincial Department of Transportation, Yunnan Airport Group, China Railway Kunming Bureau Group Co., Ltd., China Eastern Airlines Yunnan Co., Ltd. and other departments and units are responsible for quickly identifying traffic interruptions, implementing traffic control, opening up a green channel for earthquake relief, repairing damaged roads, railways, ports, airports and other facilities, and ensuring the passage of disaster relief teams and vehicles; Coordinate emergency transportation capacity to ensure disaster relief transportation demand.

(8) Emergency communication

Provincial Communications Administration is responsible for organizing and coordinating communication operators, quickly repairing damaged communication facilities, enabling emergency communication equipment, setting up temporary dedicated lines, ensuring smooth communication for earthquake relief, and rushing through the public communication network in disaster areas as soon as possible.

(9) Power supply

The Provincial Energy Bureau and Yunnan Power Grid Corporation are responsible for organizing and mobilizing emergency repair teams, repairing damaged power facilities and equipment, and enabling emergency power generation equipment to ensure the electricity demand and safety of on-site command institutions, temporary resettlement sites and other places.

(10) Water supply and gas supply facilities

The Provincial Department of Housing and Urban-Rural Development, the Provincial Water Resources Department and the Provincial Energy Bureau are responsible for organizing forces to carry out emergency repairs on important infrastructure such as water supply and drainage, gas and so on in disaster areas, and restore the security function as soon as possible.

(11) Disaster monitoring

The Provincial Seismological Bureau is responsible for strengthening earthquake monitoring, timely reporting aftershock information, and reporting opinions on earthquake trend judgment.

The Provincial Meteorological Bureau is responsible for strengthening real-time meteorological monitoring and timely reporting meteorological conditions in disaster areas.

The Provincial Department of Natural Resources is responsible for strengthening the monitoring, early warning and prevention of geological disasters, and taking emergency measures for geological disasters found.

The Provincial Department of Ecology and Environment is responsible for organizing the ecological and environmental departments in the disaster areas to monitor the environmental pollution in the disaster areas and assisting the government in the disaster areas to take pollution prevention and control measures.

Provincial Department of Ecology and Environment, Provincial Health and Wellness Commission, Provincial Emergency Department, Provincial Energy Bureau, Provincial Fire and Rescue Corps and other departments and units are respectively responsible for strengthening the inspection and monitoring of dangerous chemical facilities, radioactive substances, oil and gas pipelines, inflammable, explosive and toxic and harmful substances that may cause secondary disasters, and preventing and handling incidents such as explosions, fires, toxic and harmful substances and leakage of radioactive substances that may cause secondary disasters.

The Provincial Department of Natural Resources, the Provincial Department of Industry and Information Technology, the Provincial Department of Water Resources, the Provincial Emergency Department, the Provincial Energy Bureau and other departments are responsible for closely monitoring key industries such as reservoirs, dammed lakes, mines, tailings ponds, metallurgy, hazardous chemicals production and operation enterprises and major potential risks in accordance with their functions and duties, and finding dangerous situations in time and properly handling them.

(12) Public security and stability

The Provincial Public Security Department and the Yunnan Armed Police Corps are responsible for social security management and security work in disaster areas, strengthening the vigilance against key targets such as party and government organs and financial units, resettlement sites, storage warehouses, distribution points for relief materials, prisons, detention centers and detention points, and preventing and responding to violent terrorist incidents, preventing and cracking down on various illegal and criminal activities, and maintaining social stability.

(13) Social mobilization

Provincial Emergency Department and Provincial Civil Affairs Department are responsible for the service management of social workers and volunteers; Set up a service platform in time, unify the docking of social work service agencies and recruit volunteers, and do a good job in the dispatch of social workers and volunteer service teams and related services; According to the needs of the disaster areas, we will publish a guide to the demand for volunteer services to guide social workers and volunteers to participate in disaster relief in a safe and orderly manner. The Provincial Emergency Department, the Provincial Red Cross Society, the Provincial Charity Federation and public welfare social organizations with the purpose of disaster relief carry out donation activities, and do a good job in receiving, counting, managing, distributing, using, publicizing and giving feedback of donated money and materials. The emergency department shall, jointly with the supervision, auditing, finance and other departments, supervise and inspect the use and distribution of disaster relief donations in a timely manner.

(14) Foreign affairs

The Foreign Affairs Office of the province and other departments shall, jointly with the local government, properly resettle the overseas personnel in the disaster area and inform the consular offices of relevant countries and regions in China of the relevant situation in a timely manner.

The Propaganda Department of the Provincial Party Committee, the Foreign Affairs Office of the Province, Kunming Customs and other departments should promptly handle the entry of rescue teams, experts and relief materials from abroad into Yunnan, and handle and arrange news reporters from abroad to cover the disaster areas.

(15) news propaganda

The Propaganda Department of the Provincial Party Committee, the Network Information Office of the Provincial Party Committee, the Provincial Emergency Department, the Provincial Public Security Department, the Provincial Seismological Bureau and other departments held timely press conferences to announce the earthquake situation, disaster situation and disaster relief work to the public, strengthen the management of news propaganda work, correctly guide public opinion, and timely discover and deal with public grievances.

(16) direct economic loss assessment

Provincial Seismological Bureau is responsible for organizing earthquake disaster investigation and loss assessment; The relevant departments and units directly under the provincial level and the disaster-stricken government are responsible for carrying out disaster verification and statistics, forming disaster reports in time and submitting them to the Provincial Seismological Bureau, and cooperating with the Provincial Seismological Bureau to carry out direct economic loss assessment of disasters. The direct economic loss assessment report of the disaster shall be submitted to the provincial people’s government and copied to the office of the provincial earthquake relief headquarters.

(17) Termination of emergency response

When the emergency rescue work has been completed, the emergency rescue and disaster relief work has basically ended, the emergency transfer and resettlement work has basically been completed, the secondary disasters of the earthquake have basically been eliminated, and the "lifeline projects" such as transportation, electricity, communication and water supply have been rushed through, and the social order in the disaster area has basically been restored, the emergency response has been terminated, and the rescue workers have been evacuated from the disaster area in an orderly manner.

(18) Resume production

The Provincial Development and Reform Commission, the Provincial Department of Finance, the Provincial Department of Housing and Urban-Rural Development, the Provincial Department of Commerce, the Provincial Emergency Department, the Provincial Department of Industry and Information Technology, the Provincial Department of Agriculture and Rural Affairs, the Provincial Department of Natural Resources, the Yunnan Banking Insurance Regulatory Bureau and other departments should investigate and verify the damage of the affected industrial, mining, commercial, agricultural and other engineering buildings in accordance with the division of responsibilities, implement supporting funds and materials, urge relevant insurance institutions to make efficient claims and help resume production.

6.1.2 Emergency response by the disaster-stricken government

The disaster-stricken government is responsible for verifying the disaster situation and reporting it to the government at the next higher level and the earthquake relief headquarters in time, and the leapfrog report can be synchronized in special circumstances; Organize and mobilize cadres and masses in disaster areas to quickly carry out self-help and mutual rescue; Organize local fire rescue and other rescue teams to carry out personnel search and rescue and medical rescue; Implement traffic control to ensure smooth traffic in disaster areas; Open emergency shelters and transfer and resettle the affected people in time; Emergency dispatch of relief tents, daily necessities and other relief materials and equipment to ensure the basic needs of the affected people; Organize forces to repair communications, electricity, transportation, water supply, gas supply, radio and television and other infrastructure; Take measures to prevent secondary disasters; Strengthen the vigilance of important targets and public security management, prevent and crack down on all kinds of illegal and criminal activities, and maintain social stability; Do a good job in propaganda and reporting on earthquake relief and correctly guide public opinion; According to the arrangements of the provincial party committee, the provincial government and the provincial earthquake relief headquarters, do a good job in relevant work.

6.2 Disposal of Large and General Earthquake Disasters

When a major earthquake disaster occurs, the provincial earthquake relief headquarters will send a working group as appropriate to coordinate rescue forces to participate in earthquake relief and guide the disaster-stricken government to do a good job in earthquake relief; When dealing with general earthquake disasters, give guidance and support as appropriate.

6.3 Summary of Emergency Disposal

After the end of the earthquake emergency response, the member units of the provincial earthquake relief headquarters and the disaster-stricken government should make a comprehensive summary of the earthquake relief work, form a report and submit it to the provincial people’s government, and send a copy to the office of the provincial earthquake relief headquarters.

7 Transitional resettlement and recovery and reconstruction

7.1 Transitional resettlement

Under the unified leadership of the provincial people’s government, the transitional resettlement work shall be organized and implemented by the disaster-stricken government according to the principle of graded responsibility, and the relevant member units of the provincial earthquake relief headquarters shall give guidance and support according to their duties.

7.2 Compilation and implementation of recovery and reconstruction planning

After the particularly serious earthquake disaster, in accordance with the decision-making and deployment of the State Council, the Provincial Development and Reform Commission took the lead, with the participation of the Provincial Department of Housing and Urban-Rural Development, the Provincial Department of Education, the Provincial Department of Transportation, the Provincial Department of Agriculture and Rural Affairs, the Provincial Health and Health Committee and other departments, responsible for organizing the preparation of post-disaster recovery and reconstruction plans, and providing a basis for the State Council to formulate recovery and reconstruction plans; After the occurrence of major earthquake disasters, the Provincial Development and Reform Commission takes the lead, with the participation of the Provincial Department of Housing and Urban-Rural Development, the Provincial Department of Education, the Provincial Department of Transportation, the Provincial Department of Agriculture and Rural Affairs, and the Provincial Health and Wellness Committee, and is responsible for organizing the preparation of post-earthquake recovery and reconstruction plans and organizing their implementation; After the occurrence of a major earthquake disaster, the people’s government of the disaster-stricken state and city shall be responsible for organizing the preparation of the post-earthquake recovery and reconstruction plan and organizing its implementation; After the general earthquake disaster, the county-level government in the disaster area is responsible for organizing the preparation of the post-earthquake recovery and reconstruction plan and organizing its implementation.

8 Emergency treatment of other earthquake events

8.1 Emergency response to earthquake events in neighboring provinces (autonomous regions and municipalities)

In case of earthquake disaster in neighboring provinces (autonomous regions and municipalities), depending on the degree of its impact on our province, the corresponding emergency response should be started to do a good job in earthquake relief.

8.2 Emergency response to earthquake events in neighboring countries

Earthquakes in neighboring countries, depending on their impact on our province, carry out the following work:

(1) The Seismological Bureau of the province timely reports the earthquake situation to the provincial party committee, the provincial government and the provincial earthquake relief headquarters.

(2) According to the earthquake situation and disaster situation in our province, start the corresponding emergency response and do a good job in earthquake relief.

(3) The Propaganda Department of the Provincial Party Committee, the Foreign Affairs Office of the Province, the Provincial Emergency Department, the Provincial Department of Commerce and other departments shall keep abreast of the disaster situation, public opinions and responses of the international community and report them to the provincial party Committee, the provincial government and the provincial earthquake relief headquarters. Relevant departments and units shall do relevant work in accordance with the requirements of national deployment.

(4) The people’s governments of border states, cities and counties and their relevant departments are responsible for the evacuation, evacuation and temporary resettlement of tourists, businesses and affected people.

8.3 Disposal of Other Earthquake Events

8.3.1 Emergency preparedness events

Emergency preparedness event refers to an event that needs to be implemented when the provincial people’s government issues short-term and imminent earthquake prediction (referring to the possibility of a destructive earthquake of magnitude 5.0 or above in the next three months).

(1) The Provincial Seismological Bureau is responsible for strengthening earthquake monitoring, verifying earthquake anomalies, and timely reporting opinions on earthquake trend judgment.

(2) The Provincial Emergency Department is responsible for coordinating the relevant provincial departments and units to guide and urge the state, city, county and district people’s governments in earthquake prediction areas to prepare for earthquake prevention and rescue.

(3) Provincial Public Security Department, Provincial Department of Natural Resources, Provincial Department of Ecological Environment, Provincial Department of Housing and Urban-Rural Development, Provincial Department of Transportation, Provincial Department of Water Resources, Provincial Emergency Department, Provincial Seismological Bureau and other departments are responsible for evaluating the possible consequences of earthquake events and taking countermeasures.

(4) The rescue teams of the Provincial Health and Wellness Commission, the Provincial Emergency Department, the Provincial Fire Rescue Corps, the Provincial Forest Fire Brigade and other departments and units should make good preparations for emergency rescue, and coordinate the PLA and the Armed Police Force stationed in Yunnan to make good preparations for emergency rescue.

(5) Provincial Department of Transportation, Provincial Communications Administration, Yunnan Airport Group, China Railway Kunming Bureau Group Co., Ltd., Yunnan Power Grid Corporation, Yunnan Regional Headquarters of China Anneng Group and other departments and units revised and improved the emergency transportation, communication and power supply guarantee scheme to strengthen the safety protection of relevant facilities and equipment. The Provincial Emergency Department, the Provincial Grain and Reserve Bureau, and the Provincial Department of Commerce are ready to dispatch earthquake relief materials.

(6) Provincial Party Committee Propaganda Department, Provincial Party Committee Network Information Office, Provincial Public Security Department, Provincial Emergency Department and other departments strengthen news propaganda and public opinion analysis to maintain social stability.

When a destructive earthquake occurs in the forecast area, it shall be disposed in accordance with the relevant provisions of this plan; When the Provincial Seismological Bureau makes a judgment on the trend that there will be no destructive earthquakes of magnitude 5.0 or above in the forecast area in the future, the emergency preparedness work will be terminated.

8.3.2 Earthquake rumor events

When earthquake rumors appear in the province and have a serious impact on the normal production and living order of society, the people’s governments of prefectures, cities, counties and districts and their relevant departments should deal with them scientifically and effectively at the first time. The Propaganda Department of the Provincial Party Committee, the Network Information Office of the Provincial Party Committee, the Provincial Public Security Department, the Provincial Emergency Department, the Provincial Seismological Bureau and other departments sent experts to analyze the causes of rumors according to the situation and assist the local government in handling public opinion.

9 supplementary provisions

9.1 Reward and Punishment

Advanced collectives and individuals who have made outstanding contributions in earthquake relief work shall be commended in accordance with relevant regulations; For those who neglect their duties in earthquake relief work and cause losses, seriously falsely report or conceal the disaster situation, the parties concerned shall be investigated for their responsibilities in accordance with relevant state laws and regulations, and if the case constitutes a crime, their criminal responsibilities shall be investigated according to law.

9.2 Plan Management and Update

9.2.1 After the implementation of this plan, all member units of the provincial earthquake relief headquarters should organize publicity, training and drills of the plan according to the actual task, and the office of the provincial earthquake relief headquarters should organize timely revision and improvement according to the actual situation.

9.2.2 The earthquake emergency plan and the emergency treatment plan for particularly serious earthquake disasters formulated by governments at all levels shall be reported to the government at the next higher level and the office of the earthquake relief headquarters for the record; The relevant departments and units to develop the department, the system of earthquake emergency plan, especially major earthquake disaster emergency disposal work plan submitted to the earthquake relief headquarters office for the record.

9.2.3 Management units of infrastructure such as transportation, water conservancy, electric power, communication, petrochemical, radio and television, public service institutions and units such as schools, hospitals and pension institutions, as well as production and business units such as mines, metallurgy, chemicals and dangerous chemicals that may have secondary disasters and construction units under construction, should formulate earthquake emergency plans or emergency plans including earthquake relief contents, and send them to the local county-level industry authorities.

9.3 Noun Interpretation

9.3.1 The densely populated areas mentioned in this plan refer to areas with population density of more than 101 people per square kilometer; A densely populated area refers to an area with a population density of more than 25 people and less than 101 people per square kilometer.

9.3.2 The term "above" in this plan includes this number, and "below" does not include this number.

9.4 Plan Interpretation

This plan shall be interpreted by the office of the provincial earthquake relief headquarters.

9.5 implementation time of the plan

This plan shall come into force as of the date of issuance.

Serious medical accident! Official notification of "five newborns died in hospital"

  Cctv news: 8 o’clock, witness the news every day. CCTV will sort out the big and small things that happened around us within 24 hours for you.

  [concern]

  Serious medical accident! Official notification of "five newborns died in hospital"

one

Network mapping

  On May 11th, the reporter learned from Guangdong Provincial Health and Wellness Committee and relevant departments of Foshan City that the recent neonatal infection in Shunde Hospital of Southern Medical University was a serious medical accident caused by enterovirus and poor management. At present, the incident has been properly handled, no new cases of infection have occurred, and the institutions and personnel involved have been seriously investigated.

  The relevant person in charge of the Guangdong Provincial Health and Wellness Committee said that after the incident, Guangdong Province quickly set up an incident investigation team and an expert working group to seriously find out the reasons and take effective measures to properly handle the diagnosis and treatment of children and related aftermath. Through epidemiological investigation, clinical case analysis, hospital infection investigation and analysis and pathogen detection, it has been found that this is a hospital infection event caused by enterovirus (echovirus 11). Five children with basic diseases such as neonatal pneumonia died, 13 infected cases were cured and discharged, and one case is still in hospital, and the condition is stable. After comprehensive investigation, no new cases of infection were found in the relevant hospitals.

  According to the investigation, the incident was a serious medical accident caused by lax hospital management, imperfect and unfulfilled hospital infection prevention and control rules and regulations, lack of hospital infection monitoring in neonatal department, and failure to report hospital infection as required.

  The local health authorities ordered the neonatal ward of the hospital to suspend business for rectification in accordance with the Measures for the Administration of Hospital Infection and the Detailed Rules for the Implementation of the Regulations on the Administration of Medical Institutions. Instruct the hospital to strictly implement rectification within a time limit in view of existing problems; Supervise the hospital to actively do a good job in the follow-up of children and family care. The Provincial Health and Wellness Committee has deployed medical and health institutions in the province to comprehensively investigate the prevention and control of hospital infection, find hidden dangers, plug loopholes, strengthen management, and prevent similar incidents.

  At the same time, the reporter was informed that the relevant departments seriously dealt with the responsible person of the incident, and gave the party secretary and dean of Shunde Hospital of Southern Medical University the revocation of the party position and dismissal; Give the deputy director in charge of the Shunde District Health and Wellness Bureau of Foshan City the revocation of his position within the party and dismissal; Other responsible persons have also been seriously dealt with.

  [domestic]

  Good news! The reimbursement rate of this medical insurance has increased from 50% to 60%.

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  The "Notice on Doing a Good Job in Basic Medical Security for Urban and Rural Residents in 2019" formulated by the National Medical Insurance Bureau and the Ministry of Finance was officially released. According to the Notice, the financing standards for medical insurance and serious illness insurance for urban and rural residents will continue to be improved. This year, the per capita financial subsidy standard for medical insurance for residents will be increased by 30 yuan, reaching no less than that of 520 yuan per person per year, and half of the new financial subsidy will be used to improve the guarantee capacity of serious illness insurance, that is, 15 yuan will be added to the per capita financing standard for serious illness insurance in 2018. At the same time, the level of treatment guarantee has been steadily improved, and the reimbursement rate within the policy scope has been increased from 50% to 60%.

  At the end of the fifth working day, Yutu II has walked a total of 190.66 meters!

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  Yutu-2 patrol has completed the scientific exploration of the fifth day and entered the fifth night at 11: 05 am on the 11th. In five months’ work, Yutu II has walked 190.66 meters. During the moving process, Yutu-2 carried out the boot detection of the patrol infrared spectrometer, panorama camera, neutral atom detector, lunar radar and other payloads as planned, and the data received by the ground was normal.

  The track laying of the longest tunnel of Chongli Railway entered the final sprint stage.

  The reporter learned from Beijing Railway Bureau that on the 11th, the tunnel with the longest mileage, the highest technical requirements and the most complicated working conditions of Chongli Railway — — Track laying of Zhengpantai Tunnel was officially completed. This marks that the track-laying project of Chongli Railway has entered the sprint stage.

  Shanxi launched an accountability investigation on "copying" the environmental protection rectification plan

  According to the deployment requirements of the Shanxi Provincial Party Committee, the Supervision Committee of the Shanxi Provincial Commission for Discipline Inspection conducted interviews with responsible comrades of Taiyuan City, Yuci District of Jinzhong City, Quwo County of Linfen City and Changzhi Energy Bureau on the problems of copying and falsifying the rectification plans of some localities and units pointed out by the Second Central Ecological Environmental Protection Inspector Group "Looking Back", and initiated an accountability investigation mechanism.

  Employment certification materials become the conditions for issuing certificates? The Ministry of Education emphasizes "four prohibitions" in colleges and universities.

one

  At present, it is the peak period for graduates to sign employment contracts. The media found that there are still some colleges and universities that require all graduates to sign employment agreements or provide employment certificates, suggesting that employment certificates will be used as a condition for thesis defense or certificate issuance, which seriously damages the rights and interests of graduates and causes adverse social impact. In this regard, the Ministry of Education recently issued a notice, emphasizing that it is not allowed to link the issuance of graduation certificates and degree certificates with the signing of graduates. In the "Notice", the Ministry of Education made it clear that colleges and universities should strictly implement the "four no’s" regulations, and it is not allowed to force graduates to sign employment agreements and labor contracts in any way, and it is not allowed to link the issuance of graduation certificates and degree certificates with the signing of graduates. It is not allowed to persuade graduates to sign false employment agreements on the grounds of household registration custody, and it is not allowed to use graduates’ internship and trainee certification materials as employment certification materials.

  [international]

  Sharp differences? The talks between Russian and Japanese foreign ministers are controversial on this issue.

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  Russian Foreign Minister Lavrov held talks with visiting Japanese Foreign Minister Tarō Kōno. Russian Foreign Minister Lavrov said that there are still huge differences between Russia and Japan on the issue of signing a peace treaty. The talks are the third round of talks between Russia and Japan on the issue of signing a peace treaty this year. The two sides held talks for two and a half hours. At the press conference after the talks, Tarō Kōno said that the two sides failed to resolve their differences on the peace treaty.

  Venezuelan government arrested vice-president of parliament, and Supreme Court ruled that zambrano was deprived of his freedom.

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  On the 10th local time, the Supreme Court of Venezuela ruled that zambrano was deprived of his freedom, following the arrest of zambrano, the first vice-chairman of the Venezuelan Parliament and an important member of the opposition party, for his involvement in the attempted military coup. Zambrano is the first vice-chairman of the Venezuelan opposition-controlled parliament and the main speaker of the parliament, and also the vice-chairman of the main opposition party "Democratic Action Party". On the 7th, the Venezuelan Constituent Assembly decided to cancel the judicial immunity of seven opposition party members who participated in the attempted military coup, including zambrano. The Supreme Court of Venezuela previously ruled that the actions of the seven opposition party members were suspected of "treason, usurpation of power, sedition and conspiracy to commit crimes" and demanded judicial action against them.

  Nearly 180 countries from all over the world gathered in Geneva, and the proposal of new rules for trade in waste plastic products was passed.

  In the past two weeks, government officials from nearly 180 countries gathered in Geneva to discuss how to better deal with the global trade of recyclable and recycled waste plastic products. More standardized global trade rules for waste plastic products are being formulated. At 6 pm local time on the 10th, a proposal on trade rules of waste plastic products initiated by Norway was finally passed.

  "Ghost Town" Chernobyl: The First 3D Radiation Dose Mapping of Multiple Animals Returning

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  A team of British experts conducted a two-week radiation test at the Chernobyl nuclear power plant and its surrounding areas. They installed a customized radiation detector on the drone to draw a 3D radiation dose map in this area. The researchers launched a total of 50 drones, starting from a small village 13 kilometers away from the radiation center and flying deep into the core polluted areas including the "Red Forest". The flying height of this UAV is between 45 meters and 60 meters, the flying speed is about 65 kilometers per hour, the shortest distance from the power station is only 500 meters, and the radiation dose drawing range reaches 15 square kilometers. Although after 33 years, humans can’t go here as a regular scenic spot at will, but some animals are beginning to return gradually. Wild horses, wolves, elk, brown bears and more than 200 kinds of birds have appeared in the restricted area.

  A large-scale riot occurred in a prison in Indonesia, and more than 100 prisoners escaped.

one

  On the morning of the 11th local time, riots broke out in a prison in Siak District, Sumatra Island, and a fire broke out in the guard center, so the prisoners took the opportunity to break the door and flee. Local police said that 115 people have been arrested through large-scale raids, but dozens of people are still at large. At present, Indonesian police continue to search for other fugitives with the assistance of the army and surrounding communities. There are nearly 650 people in this prison. There are reasons for the riots. According to the police, the guards beat several prisoners who used methamphetamine that day, and then the riots got out of hand. Up to now, three detainees have been stabbed and one policeman was shot in the riot.

  Society

  The female "Lao Lai" watched the Reunion 4 and basked in the movie ticket in Tik Tok, which was taken away by the judge on the spot.

one

  The woman Wang was included in the list of untrustworthy executors by Zhejiang Ninghai Court because she owed more than 100,000 yuan, but she played hide-and-seek with the judge. Recently, Wang’s creditor found that Wang had exposed a ticket stub of Fulian 4 movie on Tik Tok, which provided her own position information in real time and accurately, and then provided it to the executive judge. After only 30 minutes, the executive judge took Wang, who was enjoying the special effects blockbuster, away from the cinema. Because of refusing to fulfill the repayment obligation, the court made a decision to impose a 15-day judicial custody on the executed person Wang.

  An explosion occurred in a hotel in Taiyuan, Shanxi, and 11 people were injured and sent to hospital.

one

  On the morning of May 11th, an explosion occurred in a hotel on Qianfeng South Road, Wanbailin District, Taiyuan City, Shanxi Province. The reporter learned from the emergency department of Taiyuan City that 11 people were injured in the accident and all of them were sent to Wanbailin District Central Hospital for treatment. At present, the injuries are not serious. The cause of the accident is under investigation.

  Five people died in a fire in a rented house in Guilin, and the investigation found that it was caused by an electrical fault of an electric vehicle.

one

  At 9: 00 am on May 11th, the reporter learned from the Propaganda Department of Yanshan District of Guilin that on May 5th, a fire broke out in a rented house built by a villager in Xilong Village, Yanshan Town, Yanshan District of Guilin City. According to the investigation by the fire department, the fire time was 6: 39 on May 5, 2019; The cause of the fire was the electrical failure of the electric bicycle in the north hall on the first floor of Liu’s private house in Xilong Village, Yanshan Town, Yanshan District, Guilin City. Five people were killed, six were seriously injured and 32 were slightly injured in the fire. The fire area was about 28 square meters.

  Wonderful! Women’s online shopping for 18 clothes will be returned after the photos are aired.

  Recently, a woman used the 7-day no-reason-to-return service rule to wear brand-name new clothes every day, and then applied for a return, which made a lot of noise on the Internet. The vast majority of netizens believe that the girl’s move is not appropriate.

  A child in a kindergarten in Maanshan City was stabbed and the suspect was controlled.

one

  On May 11th, Weibo, the public security bureau of Maanshan City, Anhui Province, reported that at about 17: 00 on May 8th, the command center of the bureau received an alarm from the parents of students in Wan Jia Kindergarten in the East, saying that a suspected needle eye was found in the child. The bureau immediately arranged for the police to rush to the scene for disposal, and quickly set up a special work class composed of criminal investigation, forensic medicine, legal system and other departments to fully carry out the investigation. Bring the teachers and nurses of the involved classes to the public security organs for questioning, arrange for the children to be taken to the hospital by their parents for examination, learn about the situation from the children and their parents, and extract and fix the surveillance video and on-site physical evidence. At present, the public security organs have filed a case for investigation. Except for one person who was suspended for investigation by the public security organs because of pregnancy, three suspects have been criminally compulsory by the public security organs, and three people have been dismissed from kindergartens.

  The woman fled abroad after defrauding tens of millions of yuan, taking a short video to expose her whereabouts.

one

  From 2016 to 2018, criminal gangs headed by Zhang illegally absorbed more than 14 million yuan of public deposits in Baiyun District of Guiyang City, and nearly 200 people were injured. After the incident, the remaining suspects were arrested one after another, and Zhang has been missing. In March this year, a short self-portrait video posted by Zhang on Tik Tok attracted the attention of the police. In the video, Zhang was arrogant and claimed that "people all over the world are looking for me". It was identified that Zhang should be in Little mongla, Myanmar. With the assistance of the Myanmar police, Zhang has been arrested and handed over to our public security organs.

  [face]

  [Putin] participated in the ice hockey exhibition and scored 10 goals to lead the team to win the championship.

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  Russian President Vladimir Putin participated in the exhibition match of the 8th All-Russian Night Ice Hockey League held in Sochi, in which one scored 10 goals and led the team to win the championship. It is understood that after every Victory Day military parade in Russia, Putin will visit the Ice Hockey Festival and enjoy playing ice hockey with government officials.

  [Merkel] Better implementation of the Belt and Road Initiative can be discussed through the case of Hamburg Port.

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  German Chancellor Angela Merkel recently said that the Belt and Road Initiative is a "good idea". Hamburg Port is one of the nodes along the Belt and Road, and China plays a prominent role in the transshipment business of this port. Through the case of Hamburg, we can explore how to implement the "Belt and Road Initiative" in the best way.

  [Zhou Jian] Deaf and deaf takeaway brother flies to save the old man who fell into the water.

one

  Near Wenfeng Bridge in Huizhou District, Huangshan City, Anhui Province, an old man fell from the bridge into the river. At a critical moment, a takeaway brother ran to the dam and jumped into the river at a speed of 100 meters, struggling to drag him to the bank of the river, and with the help of other enthusiastic citizens, he successfully rescued the old man. When registering at the police station, I found out that this takeaway brother is actually a deaf-mute and has a special identity. He is an excellent disabled athlete and has won many gold medals in swimming competitions. His name is Zhou Jian, and he is a post-95 generation. He loves swimming and martial arts since he was a child and has a good physical quality.

  See you at 8 o’clock tomorrow!

  Editor: Zhao Jin

Review on the Management of the 2022 Annual Board of Directors of Kede CNC

The business review of the 2022 annual board of directors of Kede CNC is as follows:

  I. Discussion and analysis of business conditions

In 2022, the company around the annual business objectives, relying on the advantages of the whole industrial chain and product technology, continued to strive to open up the market, increase production capacity, break through the influence of various unfavorable factors, and maintained a good momentum of steady growth. The income from main business, net profit after deducting non-recurring gains and losses, new orders and output all increased rapidly. The net profit attributable to owners of the parent company decreased slightly year-on-year due to the higher government subsidies included in non-recurring income in the same period of last year.

(a) the main business situation

In 2022, the company’s operating income was 315 million yuan, a year-on-year increase of 24.39%; The net profit attributable to shareholders of listed companies was 60,453,800 yuan, a decrease of 17.04% compared with the same period of last year. The main reason for the decrease in net profit was the high amount of government subsidies included in the current non-recurring gains in 2021, which had a great impact on the current net profit growth (specifically, the impact of non-recurring gains and losses on net profit in 2022 was about 22,264,600 yuan, and the impact of non-recurring gains and losses on net profit in 2021 was about 22,264,600 yuan). The net profit after deducting non-recurring gains and losses was 38,189,100 yuan, a year-on-year increase of 45.12%; Gross profit margin of main business is 42.40%; The output of the whole machine was 230 units, up 45.57% year-on-year; During the reporting period, new orders increased by 30% year-on-year.

(2) New breakthroughs have been made in market expansion.

The company insists on import substitution as the core, and on the basis of deepening cooperation with original customers and deepening and strengthening the aerospace field, it strives to open up new fields, new customers and other industrial fields. In 2022, the company made new progress in overseas orders, new energy vehicles, energy, knives, machinery and equipment.

1. Breakthrough growth was achieved in overseas market sales.

In 2022, the company expanded overseas sales channels, opened European and Asian markets, and exported five-axis CNC machine tools, and the export orders increased rapidly. In 2022, the company’s export order products include five-axis vertical machining center, five-axis horizontal machining center, five-axis horizontal milling and turning compound machining center and many other products.

2. Vigorously promote the expansion of new customers.

In 2022, the company actively explored new customers in various fields, and made new progress in energy, tools, automobiles and other fields in addition to adding many new customers in typical military and military supporting fields.

The automobile field is an important downstream industry of machine tools, which is closely related to the machine tool industry. With the rising situation of new energy vehicles, the machine tool industry will usher in new opportunities. Through the comprehensive distribution and direct sales, the company has effectively expanded many customers in the automotive field. Business expansion has been achieved in the processing fields of new energy vehicles such as battery motor housings, bogies, front and rear axles and transmission housings.

The upgrading and transformation of the energy field provides further application potential for five-axis machine tools, such as the processing of core components such as compressors, pumps and gears in wind power and water conservancy industries, and the processing of shaft components related to high-pressure injection in oil production wells. The company has expanded high-quality customers in the energy field in many regions of China and reached a long-term cooperative partnership.

Tool industry is the basic industry in machinery manufacturing industry and major technical fields. Because the materials of CNC tools are generally cemented carbide, high-performance high-speed steel and superhard materials, grinding has become the mainstream processing technology of CNC tools. The company’s five-axis tool grinding center with high grinding rigidity and high stability can be used to process all kinds of cutters with high precision and complex shapes, such as milling cutters, drills, reamers and taps. In 2022, the company expanded many new partners in this field on the basis of strengthening cooperation with important partners in the original key tool field.

With the overall rapid development of domestic high-end manufacturing industry, the demand for five-axis CNC machine tools is increasing day by day, and there is a shortage of related professionals. By introducing high-end five-axis CNC machine tools and establishing training bases, domestic colleges and universities learn core technologies and cultivate professionals by combining systematic courses with practical experience. As a five-axis machine tool manufacturer with the whole industrial chain, the company has many years of cooperation experience with universities. During the reporting period, the company provided many universities with a variety of equipment, such as a five-axis vertical machining center and a horizontal milling and turning compound machining center, which helped to cultivate high-tech talents in the field of numerical control, helped universities to have a deeper understanding of five-axis numerical control programming and system operation, as well as core technologies such as machine tool structure design, motorized spindle and direct-drive turntable. At the same time, the operation training of five-axis CNC machine tools of Kede CNC brand was advanced to universities, which was the brand.

3. Continue to deepen the cooperation with existing customers.

During the reporting period, the company continued to deepen its cooperation with its original customers, and constantly improved its personalized service level and solution ability, which was recognized by more customers. In 2022, the repurchase rate of high-end CNC machine tools added by the company was about 40%.

4. New products continue to be favored by the market.

During the reporting period, the company launched four new products: KTM120 five-axis horizontal boring and milling machine compound machining center, Dechuang series KCX1200TM five-axis horizontal milling machine compound machining center, Dechuang series DMC50 five-axis vertical machining center and KBTG1000 high-speed blade tip grinding machining center.

KTM120 Five-axis Linkage Horizontal Boring and Milling Machine Compound Machining Center marked the Austrian WFL products, and the sales unit price was high. As soon as it was launched, it reached a cooperation with an aircraft landing gear manufacturer to achieve sales. Aircraft landing gear is one of the most difficult parts in the aviation field, and the same type of processing equipment in China depends on imports. This product will have a broader market space in the field of large aircraft in the future. Dechuang series KCX1200TM five-axis horizontal milling compound machining center can meet the processing needs of parts in medical, new energy vehicles, molds, wind power, aerospace and other industries. The first product is to sign a sales contract with a company in the field of nuclear equipment, which is used for processing parts such as opening and closing nuts of nuclear equipment. Dechuang series DMC50 five-axis vertical machining center is suitable for high-efficiency and high-precision machining of parts in aerospace, cutting tools, precision molds, medical devices, new energy vehicles and other industries. KBTG1000 high-speed blade tip grinding center, this product is mainly used for grinding the rotor blade tips of aero-engines and marine engines, focusing on the requirements of efficient and high-precision automatic machining of integral impellers and bladed disks (axial flow) of aero-engines.

As of the publication date of this report, all the above new products have formed batch orders in aviation, aerospace, nuclear power of warships, automobiles and overseas markets.

(3) R&D projects and technological achievements

During the reporting period, the company continued to invest in research and development, with a total investment of 114,378,100 yuan, accounting for 36.26% of the operating income. The company has hosted or participated in 7 national-level projects, and received 41.32 million yuan from the central government, 1 provincial-level project, and 600,000 yuan from the central government to guide local scientific and technological development. The new project involves the development of high-speed bridge five-axis gantry machining center, five-axis horizontal milling compound machining center and other equipment, as well as the performance improvement and engineering application verification of key functional components such as turntable, swing head and motorized spindle.

The advantages of the company are comprehensive product layout, high degree of self-control and continuous innovation. During the reporting period, the company completed the development of four new products and put them on the market, including KTM120 five-axis horizontal boring and milling machine compound machining center, Dechuang series KCX1200TM five-axis horizontal milling machine compound machining center, Dechuang series DMC50 five-axis vertical machining center, KBTG1000 high-speed blade tip grinding machining center, in which the high-speed blade tip grinding machining center is a new special machine based on the original four general models and two special models.

During the reporting period, the company added 55 authorized patents, including 7 international invention patents and 6 domestic invention patents. By December 31st, 2022, the company and its holding subsidiaries had 251 authorized patents, including 93 domestic invention patents, 13 international invention patents, 139 utility model patents and 6 design patents. There are 60 software copyrights and 3 works copyrights. The company has participated in the formulation of 24 national standards and 10 industry and group standards.

(IV) Production capacity construction progressed smoothly.

During the reporting period, with the company’s self-made five-axis machining center and the introduction of horizontal plus flexible manufacturing line, gantry production line, horizontal machining center and gantry machining center, the machining ability of functional parts was further improved. The whole machine production capacity of the company has steadily increased. In 2022, the whole machine production reached 230 sets (including multi-model and multi-specification products such as five-axis vertical machining center, horizontal machining center, gantry machining center, horizontal milling and turning compound machining center and five-axis tool grinding center), with a year-on-year increase of 45.57%.

(V) Financing situation

During the reporting period, the company initiated and completed the issuance of RMB ordinary shares (A shares) to specific targets in 2022, with 2,457,757 non-public shares, which were issued to National Manufacturing Transformation and Upgrading Fund Co., Ltd. and Guotai Junan Securities Co., Ltd., raising a total of RMB 159,999,980.70, and the newly added shares were registered and settled in China Securities on July 29, 2022.

This issuance has injected capital into the company to realize the rapid development and expanded application of domestic high-end equipment, and further accelerate the construction of production capacity, which will help to provide more "Made in China" high-end equipment for aviation, aerospace, military industry, energy, automobiles, knives and many other fields.

II. Description of the main business, business model, industry situation and research and development of the company during the reporting period:

(a) the main business, main products or services.

1. Main business

The company has always been committed to the technical breakthrough, design innovation, fine manufacturing and standard formulation of five-axis CNC machine tools, high-grade CNC systems and key functional components, and has formed the core technology with independent intellectual property rights, which has the ability to achieve the company’s important established strategic goal of "import substitution". The company’s main business is five-axis CNC machine tools, high-grade CNC systems, key functional components and flexible automation production lines. The company’s main products include serialized five-axis vertical (including turning milling), five-axis horizontal (including turning milling), five-axis horizontal milling compound, five-axis gantry four general machining centers, five-axis tool grinding, five-axis blade grinding center and high-speed blade grinding center, as well as high-end CNC systems serving high-end CNC machine tools, servo drives, serialized motors, serialized sensing products, motorized spindles, milling heads, turntables and other key functional components.

On the basis of comprehensive product layout, in addition to the high-end KD series built for the military field, the company has developed a cost-effective Dechuang series for the processing requirements of the civil field to meet the needs of diversified customers. At the same time, the company provides flexible automatic production line business, that is, taking high-end CNC machine tools as the core, integrating fixture and tool scheme, matching with automatic logistics system, warehousing system, etc., relying on computer control and combining various production modes, flexible and automatic production of various products can be realized. It has the characteristics of high equipment utilization rate, strong product adaptability, high product quality and high production efficiency.

For a long time, China’s high-end five-axis CNC machine tools have relied heavily on imports. The main reason is that its development needs first-class precision machine tool design and manufacturing technology, and it can only be realized by close cooperation with cutting-edge CNC technology. It is extremely difficult to develop core technologies and form industrialization capabilities. Different from traditional CNC machine tools, the company’s five-axis CNC machine tools have the advantage of supporting the machining ability of complex spatial features, making it easier to realize multi-process compound machining and having higher machining efficiency and accuracy. Through years of technical research and accumulation, the company has formed core technical capabilities such as high-grade CNC system technology, universal and special five-axis CNC machine tool technology, direct-drive functional parts technology, high-performance servo drive system technology, high-performance sensing and detection technology, high-performance high/low-speed torque motor technology and high-performance motorized spindle motor technology.

The company’s five-axis CNC machine tool products mainly serve the processing and manufacturing of complex and precise parts in the fields of aviation, aerospace, military industry and so on, and are the necessary way to process turbine machinery parts such as impellers, bladed disks and blades. In addition, there are many successful cases in civil industries such as core parts of power generation equipment, cemented carbide tools, petroleum industry, precision molds, and automobile parts manufacturing. The CNC system and key functional components such as torque motor, spindle motor, servo motor, motorized spindle, laser interferometer, laser tool setting instrument, encoder, turntable, milling machine, etc. developed by the company belong to the core key components of high-end CNC machine tools, which directly determine the function, performance, reliability and profitability of high-end CNC machine tools. In recent years, high-grade CNC systems and key functional components have been sold separately.

Pre-sales technical service and after-sales maintenance service are also important competitive advantages of the company. Through pre-sales technical support, the company customizes a complete set of processing technology schemes, trial processing and turnkey projects for users to promote sales orders and establish stable, close and long-term cooperative relations with customers. The company’s after-sales service support benefits from the company’s high autonomy rate and localization advantage, which has faster response speed and lower service cost than the transnational after-sales service of international CNC machine tool enterprises. Pre-sales and after-sales personnel have mastered the most advanced market information, grasped the development trend of the industry, collected new directions, new processes and product improvement opinions and fed them back to the R&D system in time, forming a closed-loop control of the company’s product quality and realizing a benign iterative upgrade of the products. It is predicted that the supporting businesses such as pre-sales and after-sales services will also enter a period of rapid growth in the future, which can contribute more benefits to the company.

2. Main products and services

The company’s main products are high-end CNC system products with independent intellectual property rights and core technologies, high-end CNC machine tools and key functional components, which can realize the research and development and manufacturing of various types of products in high-end equipment manufacturing in aviation, aerospace, weapons and civil fields, with independent and controllable core technologies and strong "import substitution" ability.

(1) High-grade CNC system products

High-end CNC system is the control core of high-end CNC machine tools. Among them, GNC series high-end CNC system has achieved several iterations of GNC60/61/62, and GDU series servo driver has achieved several iterations of GDU/GDUA/GDUB/GDUC, reaching the same level of advanced foreign products. At the same time, the products are open and adaptable, which is an important core component of the company’s high-end CNC machine tools. The high-end CNC system independently developed by the company, because of its excellent design framework and rich functions, provides strong support for the application of various types of high-end CNC machine tools and the development of new products. The ability to independently develop high-end CNC systems is also an important strategic layout direction of many foreign high-end CNC machine tool development enterprises.

(2) High-end CNC machine tools

The company’s high-end CNC machine tools include four general machining centers (five-axis vertical, five-axis horizontal, five-axis horizontal milling and turning compound, five-axis gantry machining center) and three special machining centers (five-axis tool grinding center, five-axis blade machine and high-speed blade tip grinding center), totaling seven series of machining center products. In terms of product layout, there are both high-end KD series for the military field and cost-effective Dechuang series for the civilian field. The product line covers most high-end CNC machine tools with processing types and sizes in the field of high-end CNC machine tools, and the performance of the products is basically the same as that of advanced foreign products, so it can meet the processing needs of multi-type and multi-size components in most high-end manufacturing industries such as aviation, aerospace, weapons, energy and automobiles.

(3) Key functional components

The company’s key functional parts products include serialized motors, serialized sensing products, motorized spindles, milling heads, turntables, etc. The key functional parts products have been fully applied to various types of high-end CNC machine tools products of the company. Thanks to a large amount of technical accumulation of independent research and development of key functional components, the adaptability and response speed of collaborative research and development between high-end CNC machine tool products and key functional components are obvious, which provides strong support for the company’s products to quickly respond to market demand, and can also serve aviation, aerospace, military industry, mechanical equipment, robots, automation and other fields as independent products.

(4) Flexible automatic production line

In order to meet users’ demand for high-quality development of manufacturing such as improving production efficiency, automation and flexibility, the company provides users with a complete solution of flexible automatic production line, which covers a complete turnkey production line including high-end machine tools, fixtures, cutters, process plans, logistics systems, storage systems and production control systems. The solution has a high localization rate and can be applied to aerospace, automobiles, mechanical processing and many other fields to realize the flexibility of parts from blank to finished products.

Schematic diagram of flexible automatic production line To sum up, the company’s main products have independent intellectual property rights and core technologies, and can realize the research and development and manufacturing of various types of products in high-end equipment manufacturing such as aviation and aerospace, from high-end CNC systems and key functional components to high-end CNC machine tools, with independent control and strong "import substitution" ability. The company’s main products are rich in specifications and comprehensive in layout, and have distinctive characteristics in the domestic high-end machine tool manufacturing field, forming a large number of successful cases of processing key parts of high-end equipment represented by "the jewel in the industrial crown" aero engines, which have been well received by users.

(II) Main business models

1. Purchasing mode

The company’s procurement mode mainly includes two links: procurement strategy formulation and supplier management. The company implements planned procurement according to the production and R&D plan. The specific mode is as follows:

(1) Multi-price comparison and bargaining: The company selects suppliers within the scope of the Qualified Suppliers List to conduct multi-price comparison and bargaining to ensure the highest cost performance and reasonable procurement cost of purchased materials. By strengthening the continuous tracking and in-depth analysis of the main raw material markets such as metal and nonmetal materials, parts and products, electronic components, etc., the company makes purchasing plans according to the production and R&D plans, and adjusts the purchasing scale during the peak and trough periods, so as to minimize the possible adverse impact of raw material price fluctuations.

(2) Centralized procurement and strategic cooperation: for products with long delivery cycle, the company adopts a centralized procurement strategy, and the procurement of such materials is the responsibility of the company’s materials department; For important suppliers, the company adopts strategic cooperation to ensure the timely supply and stable quality of main raw materials.

The main procurement process of the company’s raw materials is as follows:

2. Production mode

The company’s products are characterized by the customization function on the general platform, so as to meet the individual needs of different customers. Therefore, the company generally adopts the production mode of "fixing production by sales", based on the order contract, carries out product design and development according to the needs of users, formulates the process route, and organizes production in combination with the delivery plan and production capacity. For the standard components, based on market forecast and historical order trend in the same period, moderate pre-production will be carried out.

In terms of production organization, the company generally follows the principle of "fixing production by sales and keeping reasonable inventory of standard components", and according to the sales plan and actual sales situation, formulates the production plan and issues it to the production workshop to organize production. For highly customized products, because different users have different requirements on product configuration, performance, parameters, etc., the company will deliver the customized requirements to the R&D center for design and development. After both parties reach an agreement, they will sign a sales contract for stocking and production.

In terms of production operations: the production department strictly implements the process control requirements determined by the design department and the production technology center, and implements the production plan. The Quality Management Department sets up key control points according to product performance requirements and related processes, and formulates control items and target values, and supervises production operators to strictly implement process requirements and operation instructions.

The company entrusts some non-core processes and non-core parts to external units for processing and production, and the external processing expenses account for a low proportion of the current main cost. External processing price is mainly based on processing difficulty, processing cost and other factors, and is determined through price comparison and negotiation.

3. Sales model

At present, the company mainly focuses on direct sales, supplemented by distribution.

(1) Direct selling mode

First of all, the company combines its own technical characteristics and advantages, fully investigates the market demand, carries out user industry analysis, deepens the understanding of high-end user needs through cooperation with leading user enterprises and scientific research institutes, accurately defines products, cooperates with users to carry out process verification, rapidly iterates and accelerates product maturity, gradually forms application demonstrations, expands and forms excellent cases, expands good influence in target industries, forms influence radiation on leading enterprises and their supporting enterprises, and accelerates the formation of good user reputation in the market; Secondly, in recent years, the company has actively participated in various professional exhibitions at home and abroad, such as China International CNC Machine Tool Exhibition (CIMT), China CNC Machine Tool Exhibition (CCMT), China International Industry Fair (CIIF), Taiwan, China Machine Tool Exhibition (TMBA), Russian International Machine Tool Exhibition (METALLOOBRABOTKA), Chongqing Lijia Exhibition, Qingdao International Machine Tool Exhibition, CIE Industry Expo, Shenzhen Greater Bay Area Expo, etc., and concentrated on releasing new products and technologies and displaying a large number of application cases. At the same time, the company actively publishes papers or new product information in authoritative magazines in related industries to expand the company’s influence in the industry; And expand business through new media to enhance the company’s brand awareness.

At present, the direct selling market is divided into East China, North China, Northwest China, South China, Southwest China, Central China and Northeast China according to their market maturity, and each region has a regional sales director.

The direct selling model is supported by the pre-sales technical ability, and promotes sales by customizing a complete set of processing solutions and turnkey projects for users. Pre-sales technology department makes process plan and sample trial production for users, and the company’s process technology output ability greatly enhances customer stickiness and promotes the completion of documents. In addition to effectively promoting sales, we also have the most advanced market information, truly understand the needs of users, grasp the development trend, new direction and new technology of the industry, and give timely feedback to the company’s R&D system, so as to promote product technology upgrading.

At the same time, the company established a training system to serve users through multi-channel training mode, which solved the phenomenon of "five-axis technology is difficult to get started" and "high-grade machine tools are not used well".

The company’s pre-sales technical service model is the core competitiveness of the company’s sales, which has obvious advantages compared with foreign manufacturers in the domestic market.

(2) Distribution mode

At present, the company’s distribution mode is mainly based on reporting projects and buyout mode. The distributor’s main role is to obtain users’ needs and report the project to the company’s sales department; After obtaining the information, coordinate the pre-sales support personnel to follow up the project and carry out scheme design, trial processing and other links; Authorized dealers to bid, and the company provides technical support; Companies sign contracts with distributors, and distributors sign contracts with end users. The company gives priority to the dealers who have the sales experience of well-known foreign five-axis machine tool brands and are proficient in the user’s industry technology.

The main sales processes of the company’s main products are as follows:

4. R&D mode

The company has a sound research and development system to support the company’s overall product research and development and product life cycle management. At the whole company level, research institutes, design institutes, production technology departments, marketing departments, materials departments, production and quality departments constitute a complete product development process. The marketing department put forward the product development demand, and the research institute and design institute completed the project establishment, product R&D design, process development and opened up the trial production and testing process of products. The production and quality departments are involved in the technical preparation of new product production from the process development stage to ensure that the production technical data of products are smoothly transferred to the production system. The materials department cooperates with product development and is responsible for the procurement of various raw materials and equipment.

The company’s new product development project management is divided into four stages: project establishment, design, trial production and project completion. After the product is mass-produced, the R&D department will also assist the production department to continuously improve the mass-produced products.

The company formulates control procedures for new product design and development, clearly defines the process of new product development and design management, and defines the work processes such as project initiation stage, design stage, trial production stage and project completion stage. Process monitoring is accompanied by the whole process to ensure project management progress and work quality, effectively control research and development costs, ensure that products can meet the project objectives and relevant requirements of customers, and at the same time ensure that products meet the requirements of environmental and occupational health and safety management systems and the provisions of relevant laws and regulations.

(3) the industry situation

1. The development stage, basic characteristics and main technical threshold of the industry.

The company is a high-tech enterprise engaged in the design, research and development, production, sales and service of five-axis CNC machine tools and their key functional components, and high-end CNC systems. It is one of the few innovative enterprises in China that independently master high-end CNC systems and high-end CNC machine tools. According to the National Economic Industry Classification (GB/T4754-2017), the company’s industry is "C342 Metal Processing Machinery Manufacturing"; According to the Guiding Catalogue of Key Products and Services of Strategic Emerging Industries (revised in 2016), the company’s main products conform to "2.1 Intelligent Manufacturing Equipment Industry 2.1.4 Intelligent Processing Equipment" in the catalogue.

Five-axis CNC machine tool is a kind of machine tool with high technology content and high precision, which is specially used for machining complex curved surfaces. It has the advantages of wide application range, fine machining quality and high working efficiency, and is considered to be the most important machining tool for machining key components in aerospace, shipbuilding, precision instruments, power generation and other industries. According to the data released by QYResearch, the global five-axis CNC machine tool market sales will reach US$ 6.755 billion in 2020, and will increase year by year thereafter. It is estimated that it will reach US$ 13.835 billion in 2027, with a compound growth rate of about 10.79% from 2020 to 2027. In 2020, the domestic five-axis CNC machine tool market will be 665 million US dollars, accounting for 9.85% of the global market, and it is expected to reach 1.589 billion US dollars by 2027, when its share in the global market will reach 11.49%, with a compound growth rate of 13.25% from 2020 to 2027, which is higher than the global market.

The development of five-axis CNC machine tools needs strong precision machine tool design and manufacturing technology, and it can only be realized by close cooperation with cutting-edge CNC technology, so it is extremely difficult to develop and industrialize products. The development of five-axis CNC machine tools in China started late. At present, there are few domestic enterprises that can independently develop and produce, and the supply of domestic products is difficult to meet the domestic market demand. The domestic market is mainly occupied by multinational companies with hundreds of years of machine tool production experience in developed industrial countries such as Germany, Japan and the United States. However, in recent years, a number of five-axis CNC machine tool enterprises, including companies, have emerged in China, and their products have gradually been recognized by the market, gradually forming an import substitution trend.

2. Analysis of the industry position of the company and its changes.

The company is one of the few innovative enterprises in China with dual R&D systems for high-end CNC systems and high-end CNC machine tools. Through years of continuous R&D and innovation, it has formed the product layout of high-end CNC system products, high-end CNC machine tools and key functional components with independent intellectual property rights and core technologies. It can realize the R&D and manufacturing of various types of products in aviation, aerospace and other high-end equipment manufacturing, with independent and controllable core technologies and strong "import substitution" ability. The company’s main products are rich in specifications and comprehensive in layout, and have distinctive characteristics in the domestic high-end machine tool manufacturing field.

On the one hand, international advanced high-end machine tool enterprises, such as Haas, Otaru, Madzak, Fanuc, Demaji, and Fidia, have continuously extended their own technology chains and industrial chains, adopted personalized numerical control systems and some key functional components independently developed, and some enterprises have also sold them to the outside world. This business model not only ensures the safety and controllability of products, but also has higher market core competitiveness. The development model of the whole industrial chain, the whole talent chain and the whole technology chain established by the company can promote the continuous iterative improvement of the company’s own product technology and lay a solid foundation for the company’s products to benchmark international advanced products. At the same time, it can guarantee the technical safety of the company’s own products and the safety of the national high-end equipment industry, and make contributions to solving some "stuck neck" problems in the field of high-end equipment.

On the other hand, the localization rate of domestic high-end machine tools is less than 10%, and there is huge room for import substitution. However, the number of domestic enterprises engaged in high-end machine tools and their production and sales volume are still far from those of developed countries, and high-end CNC systems and key functional components are still mainly imported. With the rapid development of domestic high-end equipment, the demand for domestic CNC systems and key functional components is constantly increasing. The company can provide domestic enterprises with mature high-end CNC systems and key functional components, and at the same time meet all kinds of customization needs. The company can form strategic cooperation with domestic machine tool manufacturers, provide high-quality domestic CNC systems and key functional components solutions for domestic equipment, break foreign technology monopoly and promote innovation and promotion of domestic machine tool industry.

The company has presided over or undertaken 29 major national science and technology projects and 17 other national and local R&D projects. The company has participated in the formulation of 24 national standards and 10 industry and group standards. Authorized 93 domestic invention patents and 13 international invention patents. The five-axis CNC machine tools, high-grade CNC systems and key functional components independently developed by the company are the first sets in China, which have played a leading role in the breakthrough of CNC core technology in the field of high-end CNC machine tools in China and played a core role in realizing the strategic goal of "import substitution" of the company.

According to the data of China Machine Tool Industry Yearbook in 2021, there are 45 enterprises producing machining center products in the annual report of China machine tool industry in 2020, including Jinan No.2 Machine Tool, Shenyang Machine Tool, () and other large domestic state-owned enterprises and comparable listed companies (), Haitian Seiko, Guosheng Zhike, etc. The counted enterprises basically cover most domestic key and large machining center manufacturing enterprises in the industry.

From the perspective of the sales volume of the association statistics, the proportion of five-axis vertical machining centers sold by the company in 2020 is 13.62%; From the perspective of sales amount, the proportion of five-axis vertical machining centers sold by the company is 22.24%. No matter from the perspective of sales volume or sales amount, the market share of the five-axis vertical machining center sold by the company is at a high level.

3. The development of new technologies, (), new formats and new models during the reporting period and the future development trend.

According to Foresight Industry Research Institute’s Report on Market Demand Forecast and Investment Strategic Planning of CNC Machine Tool Industry in China, it is predicted that the market scale of CNC machine tools in China will grow steadily and rapidly in the future, reaching 572.8 billion yuan by 2024.

Forecast of China CNC Machine Tool Market Scale from 2019 to 2024

1) The promotion and popularization of new technology-five-axis linkage machining technology is the future development direction of the industry.

It is necessary to process complex curved surfaces in industry. Many key parts in ships, airplanes, rockets, satellites and spaceships have certain particularities and processing difficulties, which cannot be met by traditional processing methods. Only by using five-axis linkage, high-speed and high-precision CNC machine tools can the processing requirements be met.

With the trend of automobile lightweight, the traditional parts composed of multiple parts are integrated into a single part, and the processing characteristics of parts are changed from plane to space. At present, the major international suppliers of automobile parts processing equipment, including rabo, Madzak and Demaji, use a large number of five-axis machine tools to set up production lines.

2) New format-demand transformation from single machine tool that only completes a single process to flexible manufacturing unit that completes multiple processes.

Flexible manufacturing unit (FMU) is a manufacturing unit composed of single or multiple five-axis machining centers or compound machining centers and small automatic logistics devices to meet the requirements of efficient processing of multi-variety and small batch parts.

With the intensification of competition and rising costs of downstream production enterprises, especially the sharp rise of labor production costs and the increasingly frequent shortage of labor, more unmanned or less humanized manufacturing systems have begun to appear, and downstream customers’ demand for flexible manufacturing units that respond quickly to the processing market with multiple varieties and small batches will rise. Flexible manufacturing unit will appear as a complete set of equipment of "CNC machine tool+small logistics device (industrial robot, automatic pallet library, truss manipulator, etc.)", which will solve the pain point of the sharp rise of labor production cost in time and realize unmanned or less people.

3) New mode-from single product sales to intelligent manufacturing system integration scheme.

For a long time, most CNC machine tool enterprises in China only focus on producing machine tool products in a certain field, and do not have the ability to provide solutions for automated production lines. In recent years, downstream enterprises have put forward new demands for machine tool suppliers, and tend to cooperate with suppliers who have complete equipment production capacity, provide complete solutions or undertake more complex engineering general contracting projects and automation system transformation capabilities. Intelligent manufacturing system integrators with "turnkey" engineering capability of automated, flexible and intelligent production lines will be able to meet customers’ personalized, customized and differentiated production needs, thus improving customer stickiness. In addition, the encouragement of national and local policies for the construction of automated production lines in manufacturing industry will certainly promote the transformation of intelligent manufacturing equipment suppliers into intelligent manufacturing system integration solution providers.

(IV) Core technologies and R&D progress

1. Core technologies and their advanced features and changes during the reporting period.

The company has mastered the core technology of independent research and development of the main products, five-axis CNC machine tools, high-grade CNC systems and key functional components. Relying on the complete talent chain, technology chain and industrial chain, under the support of continuous high-intensity independent innovation, a number of key core technologies leading domestically and advanced internationally have been formed and mastered. It mainly includes high-grade CNC system technology, universal five-axis CNC machine tool technology, special five-axis CNC machine tool technology, direct-drive functional component technology, high-performance servo drive system technology, high-performance sensing and detection technology, high-performance low-speed torque motor technology, high-performance high-speed torque motor technology, high-performance motorized spindle motor technology, etc., which realizes the effective transformation of technical achievements. The function, control accuracy and processing efficiency of the product have reached the international advanced level. Mastering independent and controllable core technologies has played a core role in the company’s strategic goal of "import substitution".

During the reporting period, on the basis of the original four general technology platforms and two special technology platforms, the company continued to deepen research and development. In order to promote the high-speed and high-quality development of aviation industry, improve the performance of domestic aero-engines, and realize the machining of rotor blade tips of aero-engines by using domestic industrial parent machines, the company successfully launched the technical platform of high-speed blade tip grinding center to form a special plane for high-speed blade tip grinding machining center. Focusing on the common models and high-end CNC system technology in the core technology field, the company has added 7 internationally authorized invention patents and 2 domestically authorized invention patents, mainly aiming at the technical iteration of five-axis horizontal machining center, five-axis turning milling center and GNC6X series CNC system.

Realize multi-directional improvement and promotion in basic common technology;

1. A breakthrough has been made in the installation process of super-high excess cone expansion sleeve for high-speed motor rotor applied to the motorized spindle of CNC machine tools, and the process verification has been successfully completed;

2. The torque motor used for the spindle of CNC machine tools is designed for lifting, and the torque coefficient of three models has been improved by 1.5-2 times, which can effectively reduce the power consumption of machine tools;

3. Further develop advanced measurement cycle function, additional function and adaptive processing detection function suitable for various models;

4. Upgrade the hardware platform of CNC system controller, greatly improve the system computing power and communication efficiency, and enrich the types of communication access;

5. Provide process support for special machine tools such as tip grinding, tooth scraping and multi-channel linkage, provide the process package of fine and excellent curved surface, improve the machining accuracy and efficiency of five axes, expand the access ability of peripheral equipment such as tool setting instrument, and enrich the shaft debugging function;

6. Develop a new generation of servo current loop software and hardware technology, which reduces the terminal control vibration and servo error, and then improves the surface processing quality of the workpiece;

7. In the position feedback link, the sine and cosine signal subdivision algorithm is upgraded, which effectively reduces the motor speed fluctuation and improves the spindle processing effect;

8. A new trajectory optimization and speed planning algorithm is designed to further improve the machining performance of high-speed and high-precision surfaces, meet the machining requirements of complex surfaces, give full play to the mechanical properties of machine tools, and finish the machining of complex surfaces with high efficiency and high quality.

The continuous optimization and improvement of core technologies have fully consolidated the company’s technological advantages and further enhanced the market competitiveness of products.

2. R&D achievements obtained during the reporting period

(1) Intellectual property rights acquired during the reporting period

By December 31st, 2022, the company and its holding subsidiaries had owned 251 patents, including 106 invention patents (including 13 international invention patents and 93 domestic invention patents), 139 utility model patents and 6 design patents, 60 computer software copyrights, 57 trademarks and 3 works copyrights. There are 226 patents under application, including 87 international invention patents, 132 domestic invention patents and 7 utility model patents.

During the reporting period, the company granted 55 new patents, including 7 international invention patents, 6 domestic invention patents and 42 utility model patents. There are 90 new patents, including 65 international invention patents, 18 domestic invention patents and 7 utility model patents.

(2) Awards won during the reporting period

In February 2022, the company’s independent and controllable platform-based high-grade horizontal five-axis machining center won the award of "2021′ Kechuang China’ list-key technology to break through shortcomings in equipment manufacturing field" issued by China Association for Science and Technology; In October 2022, the project "Development and Application of Serialized High Power Density, High Efficiency, High Performance and High Reliability Servo Drive Device" was selected by Dalian Science and Technology Bureau as the first prize of Dalian Science and Technology Progress Award in 2022; In October 2022, KMC600SU, a high-dynamic five-axis vertical machining center, was selected as "Top Ten Product Quality" by cmtba. In November 2022, the company was awarded the "Mechanical Industry Quality Award" by China Machinery Industry Quality Management Association; In November 2022, the company’s project "Key Technologies and Applications of Digital Workshop Interconnection Based on Information Model" was selected as the third prize of Science and Technology Progress Award by China Instrumentation Society; In November 2022, the company’s R&D team was awarded the title of "Excellent Innovation Team in Mechanical Industry" by China Machinery Industry Federation; In December 2022, the company was recognized as the provincial enterprise technology center in 2022 by the Liaoning Provincial Department of Industry and Information Technology.

(3) Research and development of new products during the reporting period

During the reporting period, on the basis of the original four general technical platforms and two special technical platforms, the company continued to deepen research and development, and successfully launched the third special technical platform-the high-speed blade tip grinding center technical platform. The equipment of high-speed blade tip grinding center has the characteristics of "high", "fine" and "sharp" in technical level compared with Spanish Danobate products. The introduction of this series of products will help to promote the high-speed and high-quality development of aviation industry, improve the performance of domestic aero-engines, realize the grinding of rotor blade tips of aero-engines and marine engines, and fill the domestic gap. At the same time, three new products were successfully developed and put on the market to achieve sales. Including KD series KTM120 five-axis horizontal boring and milling machine compound machining center, Dechuang series KCX1200TM five-axis horizontal milling machine compound machining center and Dechuang series DMC50 five-axis vertical machining center. New products quickly get market response and realize sales. For aviation, aerospace, weapons, energy, ships, automobiles, mechanical equipment, medical equipment and other industries, large-scale shaft and special-shaped rotary parts are processed efficiently. Typical customers are customers who process key parts such as aircraft landing gear, nuclear equipment and missile body.

3. Table of R&D Investment Reasons for the significant changes in the total R&D investment compared with the previous year

During the reporting period, R&D investment increased by 47.44% compared with the same period of last year, mainly because the company undertook more national R&D projects, and many projects entered the stage of high R&D investment during the reporting period.

4. Research projects

The situation shows that there is none.

5. R&D personnel

6. Other notes:

Iii. Analysis of core competitiveness during the reporting period

(A) analysis of core competitiveness

1, adhere to independent innovation, continuous technology accumulation

The company attaches great importance to the research and development of innovative technologies and adheres to the development strategy of independent and controllable core technologies. By December 31st, 2022, the company had 106 authorized invention patents (including 93 domestic invention patents and 13 international invention patents), 139 utility model patents, 6 design patents, 60 software copyrights, 57 trademarks and 3 works copyrights. He has undertaken 29 national science and technology major projects "High-grade CNC machine tools and basic manufacturing equipment" and 17 other national and local R&D projects; The company has participated in the formulation of 24 national standards and 10 industry and group standards. The core technologies and patents mastered by the company and the continuous improvement of independent innovation ability are one of the keys to the company’s core competitiveness.

During the reporting period, on the basis of the original four general technical platforms and two special technical platforms, the company continued to deepen research and development, and successfully launched the third special technical platform-the high-speed blade tip grinding center technical platform. The equipment of high-speed blade tip grinding center has the characteristics of "high", "fine" and "sharp" in technical level compared with Spanish Danobate products. The introduction of this series of products will help to promote the high-speed and high-quality development of aviation industry, improve the performance of domestic aero-engines, realize the grinding of rotor blade tips of aero-engines and marine engines, and fill the gaps in China. At the same time, the company introduced three new products, including KTM120 five-axis horizontal boring and milling machine compound machining center of KD series, KCX1200TM five-axis horizontal milling machine compound machining center of Dechuang series and DMC50 five-axis vertical machining center of Dechuang series. The continuous introduction and iteration of new products make the company maintain a strong market competitiveness.

2. The core key functional components are self-controllable, and high-end machine tools can be replaced by imports.

The company has a complete talent chain, technology chain and industrial chain. The autonomy rate of the main product five-axis CNC machine tools reaches 85%, and it has mastered the core key technologies of high-grade CNC systems, key functional components and the whole industrial chain of five-axis CNC machine tools. Products are widely used in aviation, aerospace, weapons, ships, automobiles, molds, energy, machinery and equipment, electronics and other industrial fields to achieve import substitution. The GNC series high-grade numerical control system independently developed by the company is benchmarked against Siemens 840D. The report issued by China Machine Tool Supervision and Monitoring Center shows that the GNC series high-grade numerical control system of Kede CNC can reach 95.85% of Siemens 840D in function. The company’s self-developed and self-made key functional components are comprehensive in product types and rich in specifications, including torque motors, spindle motors, servo motors, motorized spindles, turntables, milling heads, laser interferometers, laser tool alignment instruments, wireless probes, laser rulers, encoders and so on. Functional parts products have been matched with the company’s self-produced five-axis CNC machine tools in batches, and batch independent sales have been realized.

3. Double R&D system of high-end CNC system and high-end CNC machine tool, and more efficient iterative promotion.

The company is one of the few innovative enterprises with high-end CNC system and high-end CNC machine tool dual R&D system in China, and one of the few high-tech enterprises based on comprehensive and independent innovation technology system in China at present. It can plan and design machine tool structure, optimize machine tool configuration elements, and customize functional components and functional development for machine tool host according to user’s technological requirements. With the support of dual R&D system, the company’s five-axis CNC machine tools, its key functional components and high-grade CNC system have achieved rapid iterative improvement in function, performance and reliability from the market end to the R&D end.

4. Pre-sales technology and after-sales service have obvious advantages and provide professional solutions.

With the multi-disciplinary and multi-professional pre-sales technical team, the company can tailor a complete set of high-end manufacturing and processing solutions for users in aviation, aerospace, weapons, ships, automobiles, molds, energy, mechanical equipment, electronics and other industries, provide them with flexible and diverse five-axis CNC machine tools, open the functions of high-end CNC systems to customers to the greatest extent, support personalized configuration adjustment, and realize the optimal use of the company’s products. In the after-sales service stage, in view of the technical problems encountered by customers in actual processing and manufacturing, the company can provide quick response and cost-controlled after-sales solutions to meet customers’ multi-level needs. Efficient pre-sale, in-sale and after-sale market service ability is one of the important factors affecting the company’s market profitability.

5. Facing the future manufacturing development needs, provide a complete production line turnkey scheme.

Thanks to the high localization rate and autonomy rate, relying on the complete talent chain, technology chain and industrial chain foundation, combined with the application accumulation of deep cooperation among users in many fields, the company has the turnkey engineering ability of flexible production line, which can meet the personalized, customized and differentiated production needs of customers. Solve the downstream customers’ demand for multi-variety and small batch processing, solve the pain point of the sharp rise in labor production costs, and realize unmanned or less people. With the further accumulation and promotion of the company’s flexible production line business, it will provide complete domestic production line solutions for users in more fields in the future, reduce the difficulty of the transformation and upgrading of users’ manufacturing industry, help users quickly realize the transformation and upgrading of their manufacturing capabilities, and create higher profits for users.

6. In-depth cooperation among key users in many fields and application demonstration to promote market growth.

The company has established four general machining centers and three special machining center technology platforms, which can realize the rapid application verification of high-grade CNC systems and key functional components. At the same time, the company has established a cooperation mode of "co-innovation, co-promotion and co-benefit" with key enterprises in aviation, aerospace, automobile, cutting tools, energy, ships, weapons and other industries. With the support of the national science and technology major project "High-grade CNC machine tools and basic manufacturing equipment" and other platforms, the company’s products have been verified in the processing and manufacturing of key parts of key users in various fields, which not only realizes the rapid verification and upgrading of products, but also plays an application demonstration role in the user industry.

7. Innovative team advantages

In the process of independent innovation, the company has built and precipitated a multi-level, multi-disciplinary and multi-disciplinary team of innovative talents, and established an innovative technical team headed by general manager Chen Hu. At the end of the reporting period, there were 186 R&D teams, with professionals covering R&D, design, manufacturing, assembly, testing and other fields of high-end equipment at home and abroad. Chen Hu, the general manager, graduated from the Department of Precision Instruments and Mechanics in Tsinghua University with a doctorate degree. He served as the leader of the working group of the national fieldbus standard alliance for numerical control systems, enjoyed the special allowance of the State Council, and was selected as the young and middle-aged scientific and technological innovation leader in the "Ten Thousand Talents Program" of the Central Organization Department and the Ministry of Science and Technology. Dr. Chen Hu is a senior expert in China’s CNC system and CNC machine tool industry. He has been engaged in the research and development of high-end CNC systems and high-end CNC machine tools for a long time, and led the company’s technical team to conquer all kinds of high-end five-axis CNC machine tools and their key functional components and high-end CNC systems, and established a complete CNC technology chain and industry that attracted the attention of the industry.

8. Brand advantage

The company is a national high-tech enterprise, awarded the title of "Little Giant" by the Ministry of Industry and Information Technology, and recognized as the provincial enterprise technology center in 2022 by the Liaoning Provincial Department of Industry and Information Technology. High-end CNC machine tools have won the Chun Yan Prize in machine tool industry for many times, and the products of KMC800U five-axis linkage vertical machining center have entered the "Supply Catalogue of Domestic High-end CNC Machine Tools in Military Industry", and KMC600SU high-dynamic five-axis linkage vertical machining center has been selected as "Top Ten Product Quality" by cmtba. The project "Five-axis high-quality and high-efficiency precision machining complete process and manufacturing system for aerospace complex components and its demonstration application" won the first prize of scientific and technological progress in China machinery industry, and the project "Key technologies, standards and applications of open CNC system" won the first prize of scientific and technological progress in Liaoning province. The project "Development and application of serialized high power density, high efficiency, high performance and high reliability servo drive device" was selected by Dalian Science and Technology Bureau as the first prize of Dalian Science and Technology Award in 2022, and the project "Key technologies and applications of digital workshop interconnection based on information model" was awarded by China. The company’s products and services have won a good market reputation in key industries such as aviation, aerospace and weapons. The company has established a complete talent chain, technology chain and industrial chain, which has enabled the company to have stronger continuous innovation ability. The mode of "co-innovation, co-promotion and co-benefit" established by the company and users has enabled the company to have better market response ability.The company will continue to provide users with complete domestic high-end manufacturing solutions, constantly promote the application of high-end CNC systems and key functional components in other machine tool enterprises in the machine tool industry, and strive to build the company into a leading enterprise at home and abroad in the field of high-end manufacturing.

(II) Events that have seriously affected the core competitiveness of the company during the reporting period, impact analysis and countermeasures.

Fourth, risk factors

(A) Not yet profitable risk

(2) Risk of sharp decline in performance or loss

(C) core competitiveness risks

At present, the company’s main business products continue to be developed in aerospace, automobile, machinery, mold and other fields, and the demand for the company’s products varies in different fields. If the company can’t quickly adapt to the process differentiation demand in different fields, quickly carry out technical iterative upgrading, enrich the varieties of five-axis CNC machine tools, provide differentiated five-axis CNC machine tools that meet the processing needs in different fields, and provide users with the best processing scheme, it will face adverse effects such as the products can’t adapt to the new market demand, resulting in slower revenue growth.

(4) Operational risks

1, the risk of increased competition

For a long time, the domestic market of five-axis CNC machine tools with the highest technology content is mainly occupied by multinational companies with hundreds of years of machine tool production experience in developed industrial countries such as Germany, Japan and the United States. Domestic independent production capacity is concentrated in the low-end market, and there are very few China enterprises that can independently develop five-axis CNC machine tools.

In recent years, due to the realistic demand of China’s aerospace engine, marine propeller, heavy generator rotor and other strategic equipment industries for high-end CNC machine tools, the state has continuously increased its support for the high-end CNC machine tool industry, and the technical level of China’s high-end CNC machine tool industry has been continuously improved. The performance and function of five-axis CNC machine tools produced by a few excellent domestic manufacturers can meet the needs of import substitution. The gradual rise of high-end CNC machine tool manufacturers in China may attract the attention of competitors and intensify competition. Coupled with the rapid growth of China’s high-end CNC machine tool market and the increasing awareness of the importance of import substitution, it will attract more potential entrants. Therefore, the company faces the risk of intensified market competition.

2. The risk that large foreign-funded enterprises still occupy the main market share in high-end segments.

Most of the large foreign-funded enterprises in the industry are large enterprises integrating upstream functional components and CNC system production, whole machine manufacturing and product sales. Based on the accumulation of industrial countries in architecture design, processing technology, industrial scale and talent echelon for hundreds of years, the reliability and accuracy of its high-end industrial products have obvious advantages over China’s emerging technology enterprises. Therefore, in the field of five-axis CNC machine tools, CNC systems and key functional components with high technical difficulty, downstream users in China still mainly choose foreign advanced products under the condition of free import, resulting in the products of large foreign-funded enterprises still occupying the main market share in the segmentation field.

3. Risks of upstream raw material procurement

The key functional parts of the company are mainly produced independently, and the external procurement is mainly standard parts, but the parts such as guide rails, lead screws and bearings are still mainly purchased externally. In the future, if the international trade friction intensifies, technical protection is strengthened or the demand of competitors increases, the parts such as guide rails, lead screws and bearings will face the risk of sharp price increase or prolonged supply cycle, which will adversely affect the company’s production and operation.

(V) Financial risks

1. Risk of fluctuation of gross profit margin

During the reporting period, the company’s main users were the aerospace industry, and its customization requirements for high-end CNC machine tools were higher in terms of processing accuracy and processing efficiency, and its gross profit margin was relatively high. With the gradual acceleration of the company’s marketization process, the company’s products are expanding into many fields such as precision molds, automobiles, clean energy and construction machinery. Due to the differences in customized configuration of high-end CNC machine tools used by different industries and users, the gross profit margin of related products will also be different, and the change of downstream customer structure may make the overall gross profit margin of the company fluctuate. Moreover, in order to meet the downstream market demand, industry competitors are also investing in or increasing the research and development and production of five-axis CNC machine tools. If the market competition intensifies in the future, the national policy is adjusted or the company fails to maintain the leading position in products, and the selling price of products and the purchasing price of raw materials are adversely changed, the company’s gross profit margin is also at risk of decline.

2. The risk of bad debts caused by the increase in the balance of accounts receivable.

The company has made provision for bad debts for accounts receivable according to the accounting standards. The company’s accounts receivable scale increases with the growth of operating income. If the economic situation worsens or customers have major operational difficulties, the company will face the risk of difficulties in collecting accounts receivable.

(VI) Industry risks

As an important part of intelligent equipment manufacturing industry, high-grade CNC machine tools are strategic industries for national economic and social development. The state has issued a series of encouragement policies to support and promote the development of China’s high-end CNC machine tools and basic equipment manufacturing industry, and enhance industrial innovation ability and international competitiveness. With China’s military modernization and the transformation and upgrading of manufacturing industry, the demand for independent control of core technologies is increasingly urgent, and the country’s industrial policy continues to increase. If the support of relevant national industrial policies is weakened in the future, it will have a negative impact on the company’s development.

(VII) Macro-environmental risks

The company’s downstream customers are mainly military enterprises that process aero-engines and missile engines, as well as civil manufacturing enterprises in the fields of precision molds, automobiles, clean energy, domestic commercial aircraft and construction machinery. The development of industries where downstream customers are located is highly correlated with the macroeconomic cycle. The adjustment of macroeconomic policies and its periodic fluctuations will have a great impact on the structural upgrading of downstream industries, as well as the operating conditions of end customers, capital turnover speed and fixed assets investment decisions, thus affecting the demand for high-end CNC machine tools.

If the macroeconomic growth rate continues to decline in the future and the downstream industries are depressed for a long time, it may exceed the company’s ability to cope through customer structure adjustment and internal tapping, which will have a great adverse impact on the company’s operation for a period of time.

(8) Risks related to depositary receipts

(9) Other major risks.

V. Discussion and analysis of the company’s future development

(A) the industry pattern and trends

1. For a long time, domestic CNC machine tools have been in a situation of "low-end civil war, mid-end competition and high-end failure", and the high-end market has been occupied by foreign brands.

Developed countries and regions have a long history in the industry of advanced manufacturing equipment such as high-end CNC machine tools, and related enterprises have accumulated advantages in technology, brand and capital, and have the first-Mover advantage, occupying the high-end market. The domestic market of five-axis CNC machine tools with the highest technology content is mainly occupied by multinational companies with hundreds of years of machine tool production experience in developed industrial countries such as Germany, Japan and the United States. The domestic independent production capacity is concentrated in the low-end market, and there are very few China enterprises that can independently develop five-axis CNC machine tools. According to the Outline of the Development of Machinery Industry in the 14th Five-Year Plan, at present, the self-sufficiency rate of high-end CNC machine tools in China is less than 10%, which basically depends on imports. Therefore, the main competitors of China’s five-axis CNC machine tool enterprises represented by the company are mainly international manufacturers.

2. China is a big machine tool consumer, attracting a large number of international brand CNC machine tool enterprises to stay in the China market.

China has become the most important machine tool consumption market in the world. According to the data of German Machine Tool Manufacturers Association (VDW), the consumption of machine tools in Chinese mainland in 2021 was 23.6 billion euros, up 27% year-on-year, accounting for about 34% of the global market. However, on the whole, China’s machine tool industry presents the development characteristics of "big but not strong", and the field of high-end CNC machine tools is still a weak link with strong import dependence.

According to the data of cmtba, in 2022, the import volume of metal processing machine tools in China reached US$ 6.6 billion, of which the total amount of imported machining centers was US$ 2.37 billion. The average price of imported machining centers increased significantly year-on-year, the proportion of imported high-end machining centers increased, and there was huge room for domestic substitution.

In April 2022, Nippon Denso (which owns Mitsubishi Heavy Industries, OKK and other machine tool enterprises) expanded its factory area in Pinghu, Zhejiang Province from the original planned 60,000 square meters to 200,000 square meters to produce gear processing machine tools. At the same time, Demajisen Seiki invested 100 million US dollars to build Pinghu factory, with an estimated annual output of 2,200 machining centers. In the same year, Demajisen Seiki opened Tianjin Green Factory and Shanghai Medical Device Technology Center. In June, 2022, German Wheeler Xile Machine Tool (Qingdao) Company laid the foundation stone for the new Jimo factory covering an area of 73,000 square meters, and it is estimated that it will achieve the production of 300 five-axis and horizontal processing machine tools. In July 2022, the foundation stone was laid for the second phase factory of German (SW) Esway Machine Tool Co., Ltd., and China will become the largest overseas R&D and manufacturing base in the world, with an annual production capacity of about 350 machining centers. Thus, the continuous investment of foreign-funded enterprises in China market shows the high prosperity and development space of domestic five-axis machine tool industry.

3. China machine tool industry is transforming into a high-end field.

Five-axis CNC technology is one of the important standards to measure the manufacturing ability and technical level of complex precision parts in a country. Five-axis CNC machine tool is the only means to solve the cutting of key industrial products such as aerospace and aero-engine impeller, impeller, blade and marine propeller. From the Batumi List after World War II to the Wassenaar Agreement after the Cold War, the developed countries in the west have always adopted the five-axis CNC system and five-axis CNC machine tools as strategic materials to implement the export license system, and imposed strict technical blockade and export restrictions on many countries, including China.

After decades of development, the domestic CNC machine tool industry has been developing independently and drawing on foreign experience. From scratch, it has grown continuously, resulting in such established enterprises as Shenyang Machine Tool (000410.SZ) and Qinchuan Machine Tool (000837.SZ), which are in the forefront of the world, as well as a number of core design technologies and manufacturing processes such as Kede CNC, which can provide high performance for their own dedicated application fields and product types.

In recent years, with the help of favorable market conditions such as the transformation of China’s manufacturing industry, the rising demand for high-end CNC machine tools, and the huge import substitution space, such emerging manufacturers have made great efforts to develop their own products and technical level, enhanced their financial strength through public financing and other means, achieved remarkable development, and rapidly increased their market share.

4. The rapid development of high-end manufacturing industry has brought new development opportunities for domestic high-end machine tools.

At present, China is in an important stage of transformation from a manufacturing power to a manufacturing power. The intelligent manufacturing equipment industry is the basic guarantee for the adjustment and upgrading of the entire economic structure and the leading industry for the transformation and upgrading of the national economy. In the new round of industrial upgrading, high-end manufacturing industry will gradually replace simple manufacturing industry, and manufacturing industry will gradually change from labor-intensive industry to technology-intensive industry. This transformation and upgrading will also promote the technological upgrading of the intelligent manufacturing equipment industry, which will greatly increase the market demand of middle and high-end CNC machine tools. High-end CNC machine tools are mainly used in aviation, aerospace, nuclear, electronics, ships, weapons, energy, automobiles, molds, knives and other key industries, especially aviation, aerospace and military industries. The demand for localization is urgent, the stock needs to be updated urgently, and the market growth is expected.

Taking the aviation industry as an example, high-end CNC machine tools mainly serve the processing of key parts of military aircraft and civil aircraft. In the civil aircraft market, Comac China has launched three classes of passenger aircraft, namely ARJ21, C919 and CR929. On December 9, 2022, Comac China delivered the world’s first C919 large passenger plane to China Eastern Airlines, marking a new milestone in the development of large aircraft. According to the "2022 Shanghai Science and Technology Progress Report" issued by the Shanghai, China Municipal Science and Technology Commission, "by the end of 2022, the C919 large passenger aircraft had received 1,035 orders from 32 customers; In December 2022, the ARJ21 new regional aircraft was delivered to the first overseas customer, Indonesian Lingya Airlines. ARJ21 received 690 orders from 25 customers and delivered a total of 100 aircraft to 9 domestic and foreign customers. " According to the Market Forecast Annual Report of Comac China (2022-2041) issued by Comac China, with the steady rise of China’s economy, China’s civil aviation industry will enter a period of development quality improvement and pattern expansion. By 2041, the fleet size of China will reach 10,007, accounting for 21.1% of the global passenger aircraft fleet. China aviation market will become the largest single aviation market in the world.

According to the report on the draft government budget released by the National People’s Congress on March 5, 2023, China’s military budget in 2023 was 1,553.7 billion yuan, up 7.2% year-on-year, and the increase rate was 0.1 percentage point higher than that in 2022. It was also the third consecutive year since 2021 that China’s military budget rose slightly, and the situation of strengthening the army was urgent. At present, the international environment is deteriorating, regional conflicts and confrontation between great powers are escalating, and it is reasonable and urgent to speed up national defense investment. China’s military industry is still in the stage of compensatory development. The aerospace and military industries, represented by missiles, rockets and satellites, have entered the stage of rapid expansion of production, and high-end CNC machine tools have played a strong support and guarantee role in aviation, aerospace and military industries.

In addition to the urgent demand for five-axis CNC machine tools in key industries such as aviation, aerospace and military industry, with the transformation of automobile to lightweight and integration, "one-piece die casting" forms a variety of special-shaped components, which provides more opportunities for five-axis CNC machine tools in finishing. The processing of battery, motor housing, reducer housing, bogie, front and rear axle and other parts of new energy vehicles has become a new growth point of five-axis machine tools. According to the latest data from China Association of Automobile Manufacturers, in 2022, the production and sales of new energy vehicles reached 7.058 million and 6.887 million respectively, up by 96.9% and 93.4% year-on-year, and the market share reached 25.6%. With the continuous expansion of the new energy automobile industry, the integrated processing equipment and automatic production line of automobile parts will usher in more development opportunities. At the same time, due to insufficient overseas supply and greatly enhanced export competitiveness of China automobile enterprises, automobile exports exceeded 3 million vehicles in 2022, up 54.4% year-on-year, effectively boosting the overall growth of the industry.

Tool is a tool used for cutting in mechanical manufacturing, and it is the basic industry in mechanical manufacturing and major technical fields, accounting for about 90% of the whole mechanical processing workload, which directly determines the production level of mechanical manufacturing. According to the data of cmtba, China Customs and Forward-looking Industry Research Institute, in 2022, the tool export value was 23.187 billion yuan, up 2.98% year-on-year; The import value of cutting tools was 9.732 billion yuan, down 8.47% year-on-year. The export value is obviously greater than the import value, and the dependence on imports continues to decline. The continuous increase of China’s tool export shows that domestic tool products occupy an important position in the world tool market. China needs to import more than 1,000 five-axis tool grinders every year, and the company’s five-axis tool grinding center is one of the few equipment in China that can grind complex tools such as ball end mill and corrugated knives, and has a good market prospect.

5. Support of national industrial policies

As an important part of equipment manufacturing industry, CNC machine tools have become one of the important material bases of national industrial modernization. Our government has always attached great importance to the development of CNC machine tool industry and its sub-sectors, and has successively issued a series of relevant policies to guide industry participants to increase R&D investment, strengthen innovation awareness, break through technical bottlenecks, improve the effective supply of common technologies and high-end products, and meet the market demand in downstream areas.

On May 8, 2015, the State Council officially issued "Made in China 2025", which became the action program for guiding the adjustment of industrial structure and upgrading of manufacturing industry, and then implementing the strategy of building a strong country. High-end equipment is the foundation of manufacturing transformation. In order to promote the transformation and upgrading of manufacturing industry, the Chinese government has vigorously promoted the development of high-end equipment industry and issued a series of industrial policies. In 2018, the Bureau of Statistics issued the Classification of Strategic Emerging Industries (2018), which listed metal cutting machine tools, metal forming machine tools, machine tool control systems, machine tool functional parts and accessories as "intelligent manufacturing equipment industry" in the "high-end equipment manufacturing industry". In November 2019, thirteen ministries and commissions, including the Ministry of Industry and Information Technology and the National Development and Reform Commission, jointly issued the "Special Action Plan for Improving the Design Capability of Manufacturing Industry (2019-2022)", clearly pointing out that in the field of high-end CNC machine tools, it is necessary to achieve a breakthrough in original design, strengthen the key design of high-end equipment manufacturing industry, and focus on breaking through the system development platform and servo mechanism design. In March, 2021, the Fourth Session of the 13th National People’s Congress voted to pass the 14th Five-Year Plan for National Economic and Social Development in People’s Republic of China (PRC) and the Outline of Long-term Goals in 2035. The Outline emphasizes promoting the optimization and upgrading of manufacturing industry, deeply implementing intelligent manufacturing and green manufacturing projects, developing a new service-oriented manufacturing model, promoting the high-end intelligent greening of manufacturing industry, cultivating advanced manufacturing clusters, and promoting the innovative development of high-end CNC machine tools and other industries.

Therefore, the new round of industrial structure adjustment and upgrading is bound to replace the traditional manufacturing industry with advanced manufacturing industry. This transformation and upgrading will greatly increase the update demand of high-performance CNC machine tools as one of the industrial mother machines. The State Council’s Opinions of the State Council on Accelerating the Revitalization of Equipment Manufacturing Industry, High-grade CNC Machine Tools and Basic Manufacturing Equipment, and China Machinery Industry Federation’s Outline for the Development of Machinery Industry in the Tenth Five-Year Plan all provide strong policy support for the development of high-grade CNC machine tool industry represented by five-axis CNC machine tools.

(II) Company development strategy

As a technology-intensive enterprise, the company adheres to the development strategy of independent and controllable core technology. Adhere to the technology platform route, and customize the design with common technology to maximize the product value. By establishing a management system in line with the company’s strategic objectives, improving the company’s organizational structure with modern enterprise management system and corporate governance structure, providing customers with high-quality products and services with technological innovation, and rationally expanding the production scale by using the capital market, the company’s comprehensive competitiveness and sustainable development ability will be continuously improved to meet the diversified and personalized needs of different users and continue to create value for customers.

Based on the existing four universal five-axis technology platforms and three special plane series, the company will integrate special processing and efficient processing technology, improve the high-low product series, and complete the national layout of R&D, production, service and talents. On the basis of maintaining the market advantages of small and medium-sized aero-engines, missile engines, high-precision inertial navigation and missile body parts, we will increase the market share of key parts processing equipment such as large engines and aircraft structural parts; In view of the demand for processing equipment in the fields of automobiles, molds, knives, mechanical equipment and energy, the company gradually exerted its strength to expand its share in the civilian products market; Pay attention to the emerging market demand in electric vehicles, motion control and other fields, and realize the sales extension of key functional components, so as to become a new kinetic energy for high-speed income growth; Improve the complete solution ability of automated production line to meet the market business needs. Independent incubation of special motors, new sensors and other products in a timely manner, exploring new areas of the company’s growth.

1. Technical strategy

(1) adhere to the technology platform.

Focusing on four general five-axis technology platforms (vertical plus, horizontal plus, gantry and horizontal milling car) and three special five-axis technology platforms (tool grinding, blade machine and high-speed blade tip grinding), the company has carried out technology extension, adhered to the technology platform route, and gradually integrated external resources while relying on its own technology accumulation. Focus on modularization and standardization of unit technology, so as to facilitate the reuse of core technology, on the one hand, achieve the effect of maximizing value, on the other hand, it is easy to expand the application of technology to other fields to realize the independent evolution and development of unit technology.

(2) Attach importance to engineering ability

Guide the research and development direction with the market technical demand, promote the engineering and commercialization of scientific research results by using the technology platform, and form various products that meet the market demand; Engineering capabilities, including market research and demand analysis, product definition, performance optimization iteration, etc., are built as core competitiveness different from universities and other research forces.

(3) Establish the concept of open innovation.

Establish an "open, integrated, inclusive and innovative" corporate culture, build a socialized R&D platform with R&D as the core, promote the integration with technical resources around the industry, and improve the overall integration of products. Deeply cultivate institutions and personnel at all levels in the user industry to grasp the development trend of the industry and seize market opportunities; Recruit and train professionals in various industries, build a professional self-operation team, and realize independent accounting in manufacturing, marketing and other institutions.

2. Business strategy

(1) Internal business strategy

First, master the core research and development capabilities. Resolutely guide the research and development direction with market demand, and make use of platform advantages and technology accumulation advantages to achieve rapid engineering and rapid iteration.

Second, build a professional manufacturing system. Improve production planning ability, supply chain management ability and quality control ability; Form a complete, clear and controllable production management system, from functional components to the whole machine, form a vertical line management mechanism, and have the ability to expand and copy or support their own production capacity at any time.

Third, the implementation of human resources strategy. Excavate all kinds of outstanding talents and set up specialized teams (sales, technology and production) for specific industries; Improve the equity incentive and performance appraisal system, and realize the common growth of talents and companies through shareholding platforms.

(2) foreign business strategy

The company will strengthen its core pre-sales and after-sales capabilities. Improve the pre-sales plan ability and service ability, and issue pre-sales plans to drive relevant R&D and production work; Improve after-sales ability, improve response speed and problem solving efficiency. In addition, the company will strengthen the export standards, and solve the problem of the company’s current insufficient production capacity by integrating outsourcing resources and low-matching series of cooperative production.

3. Product strategy

The company will take the brand value of Kede CNC as the core, focus on the national strategic policy support, and take five-axis CNC machine tools as the carrier to build the brand value of Kede CNC and establish a good reputation in the industry; A complete system from providing five-axis complete machine equipment to providing flexible units and then to flexible production lines. Gradually complete the systematic layout of functional components, and master the independent research ability of core functional components such as CNC system, motor and motorized spindle, sensor and turntable. Further expand the professional radiation of components, based on the reputation of machine tools, expand the application fields of components, and promote the application from machine tools to aerospace, aviation, automobiles, mechanical equipment and other fields. In terms of product layout, it will be dominated by high-low distribution and differentiated structure. High-end models will bring high added value and high profits, and ordinary mass production models will ensure the liquidity of enterprises.

(3) Business plan

1. Actively expand the business scale and complete the construction of fundraising projects.

In order to meet the needs of the company’s development strategy, according to the company’s actual situation, actively explore and study the company’s new business and new customer expansion work, adhere to import substitution as the core, develop and improve other industrial fields on the basis of deepening and strengthening the aerospace field, give full play to the advantages of the whole industrial chain, full technology chain and full talent chain, and gain a foothold in the market with efficient solutions, cost-effective products and high reliability. Combined with the actual situation of obtaining investment funds, we will complete the construction of investment projects, rapidly increase production capacity and respond to market demand.

2. Continue to introduce scientific and technological talents and enhance technical reserves.

On the basis of existing personnel, the company will introduce all kinds of technical talents as needed, optimize the talent structure, attract high-end talents, and provide sufficient technical talent reserves for the subsequent development of the company. In terms of technology development, the company will optimize and improve the existing technology, develop the technology of high-end CNC machine tools and related core functional components with its own intellectual property rights according to the ever-developing demand trend, and actively explore cooperation with universities at home and abroad to maintain technological leadership.

3. Improve management ability and ensure product quality.

With the expansion of the company’s production scale, especially the future fundraising projects will be put into production and operation, which will put forward higher requirements for the company’s management ability. In the future, the company will complete the improvement of the whole process management software of processing and manufacturing, improve the existing management efficiency, realize the whole process visual target management of the project, ensure the traceability of the whole processing and manufacturing process, and better guarantee the quality control of equipment.