In 2023, the capital and financial services sector exerted all efforts to enhance services, ignited reform momentum, and mitigated business risks.

Funding Platform

The funding platform fully leveraged its robust capabilities, providing enhanced financial support for the Company's major strategies, key sectors, and weak areas. This comprehensive support assisted subsidiaries in restructuring their debts, optimizing fund operations, and reducing financing costs, resulting in cumulative cost reductions exceeding 2.63 billion yuan. The average daily scale of domestic and overseas credit assets reached 108.5 billion yuan and 7.5 billion U.S. dollars respectively, up by 10.5 billion yuan and 1.5 billion U.S. dollars, with lending rates were reduced by 34 BP and 15 BP, while the internal loan scale grew by 17.6%. Profitability of capital operations outperformed industry peers.

Industrial Capital

We fully leveraged the role of industrial capital in fostering synergy, strategically investing in sectors such as hydrogen energy, power batteries, energy storage, new chemical materials, charging or battery swap infrastructure, and wet chemicals. Throughout the year, investments amounted to 30.7 billion yuan, including an 8.5 billion yuan investment in the Ruihong project, aiding the Company's accelerated development of bottleneck technologies. The equity stake in Yeloworld was successfully transferred to the chemical sales company, marking the realization of a path characterized by "capital first and core business empowered". We hosted the inaugural symposium on the high-quality development of hydrogen energy joint ventures, signaling the establishment of a positive interaction between industry and capital.

Industrial Finance

Industrial finance fully leveraged its role in providing robust support, offering tailored financial service solutions to the core industries and deploying multiple strategies to facilitate their development. The futures brokerage business was upgraded to BBB in industry classification ratings. The insurance services effectively reduced premium expenses for subsidiaries in the core industries. The factoring business witnessed a significant increase in financing support for small and medium-sized suppliers along the industrial chain. The Company's annual yields ranked third among large annual plans exceeding 500 billion yuan. The leasing services' contribution to the petrochemical industry continued to grow, while the group purchasing network contributed over 20 million yuan to rural revitalization efforts.