Company Held 2017 Board of Directors and Board of Supervisors

to Review and Pass the Annual Work Report and Other Relevant Proposals

News 4# November 20 , Chairman of the Group Company Jiang Xiaomeng presided over the 3 Meeting of the 10th Board of Directors of the Company, deliberated and passed 2017 Board of Directors Work Report, 2017 General Manager Work Report and other 15 proposals and reports.

General Manager's report pointed out that in 2017 , the company focused on the general work policy of "grasping trends, precise development, strengthening standards, improving quality, improving management, and enhancing efficiency", and grasped the optimization of economic structure and industry. Opportunities brought by upgrading, accelerate innovation and development, deepen management integration, continuously improve management level, improve enterprise operation efficiency, and strengthen marketing expansion, we have steadily promoted the growth of product sales, achieved remarkable results in technological innovation and technological transformation, continuously improved the financial structure, and further strengthened the core competitiveness of enterprises. In the whole year, the company realized operating income of 28.27 .8 billion yuan, up 18.81% year on year, and realized net profit attributable to owners of the parent company of 34849.43 yuan, up 22.18% year on year, reaching a new record high. Earnings per share of 1.01 yuan, achieving the best operating performance in the development process of peak 60 years; the total assets at the end of the year were 41.76 billion yuan, up 4.53 year on year; The net assets attributable to the owner of the parent company at the end of the year were 26.27 .4 billion yuan, up 10.13 year on year.

In 2017 , with the in-depth implementation of the national "the belt and road initiative" initiative, the off-peak production of cement has been promoted in an all-round way, the environmental protection supervision of the industry has been further improved, the supervision of energy conservation and consumption reduction has been tightened, the merger and reorganization has been deepened, the awareness of industry self-discipline has been continuously enhanced, and the supply-side structural reform of the cement industry has achieved initial results. The national cement production remained basically stable, but the price of cement products increased significantly year-on-year, and the profitability of the industry increased significantly. The company's cement business segment seizes regional development opportunities, in-depth implementation of cost leadership strategy, through technological transformation, organizational optimization and information management, cement production costs have been effectively controlled. Daye Jianfeng organized production through reasonable arrangements, actively explored key engineering projects, seized the civilian market, timely adjusted the credit mechanism, and effectively encouraged the sales team, and achieved good business performance; Yunnan Jianfeng seized strategic opportunities and developed through multiple channels Key projects continue to expand regional market sales share, while actively responding to the self-discipline of the cement industry in southwest Yunnan, continue to promote brand building, and further enhance corporate influence, achieved the best performance since the production.

In 2017 , the pharmaceutical industry achieved double-digit growth in revenue and profits. With the further improvement of living standards, the improvement of medical insurance and medical reform policies, the increase of the aging population and the liberalization of the two-child policy, the development prospects of the pharmaceutical industry for a long period of time in the future are still optimistic. During the reporting period, Jianfeng Pharmaceutical actively implemented the strategic layout according to the company's overall development plan, and made new breakthroughs in project cooperation. Peak Pharmaceuticals completed the first phase of its investment in Beihui Bio, holding a stake of 20% . The introduction of Shanghai Yien's anti-tumor compound patent technology, joint venture to form a peak Yien, focusing on the research and development of new anti-tumor drugs. 2018 1 , peak pharmaceutical investment in Shanghai North Carolina, will further strengthen the research and development of intermediates, API and base construction. These measures have further improved the company's pharmaceutical business industry chain, further improved its new drug research and development capabilities, and further enhanced the core competitiveness of the pharmaceutical sector. Peak Pharmaceuticals also responded to changes in the pharmaceutical market by strengthening market segment management, adjusting marketing models in a timely manner, enhancing the vitality of the marketing team, and strengthening marketing efforts, resulting in faster growth in industrial sales. In addition, the new anti-tumor drug DPT (deoxypodophyllotoxin) has completed the preparation of phase I clinical trial plan and obtained the ethical approval from the clinical team leader unit, making preparations for the entry of phase I clinical trial cases.

In addition, Tianjin Jianfeng actively explored the international market to ensure stable growth in sales revenue. Jianfeng Health has made great efforts to develop the market of Chinese herbal pieces by strengthening investment promotion, innovating the network sales mode, creating regional store terminal models, and achieving a large increase in business income. While stabilizing the existing market, Jianfeng Cable Company has successfully developed central plastic tube large logarithmic cable products through the transformation of existing equipment according to customer needs.; Jianfeng International Trade seized the opportunity of logistics industry development, reached a long-term cooperation agreement with Shanghai Anneng Logistics, and invested in a new logistics warehouse (e-commerce logistics park), which will become the new profit growth point of Jianfeng International Trade

. During the reporting period, the company deeply implemented management integration, comprehensively carried out "three reductions and three improvements" activities, continuously promoted organizational optimization, improved enterprise operation efficiency, enhanced enterprise internal vitality, and ensured further healthy and ensured the company's further stable development. On the day of

, the company also held the 72nd meeting of the 9th board of supervisors, deliberating and passing proposals and reports such as the company's 2017 annual board of supervisors work report and 2017 annual financial final accounts report. (Zhou Hengbin)