Looking back at 2020, and looking ahead to the 14th Five-Year Plan.

2020 was an exceptionally extraordinary year in the nation’s transportation development journey and marked the concluding year of the company’s 13th Five-Year Plan. Faced with a severe and complex external environment and the impact of the COVID-19 pandemic, under the strong leadership of the Board of Directors and through the concerted efforts of the management team and all employees, the company withstood downward pressures, maintained its commitment to steady development, and coordinated the effective control of the epidemic with the resumption of production and business operations. Upholding a spirit of hard work, practical action, and rapid execution, the company pushed forward all tasks with great determination, achieving steady progress while continuously improving quality. Overall, key performance indicators showed positive trends: the company secured contracts worth 2.89 billion yuan, generated operating revenue of 2.798 billion yuan, achieved a net profit of 517 million yuan, and collected payments totaling 2.215 billion yuan. The company’s overall strength continued to improve steadily.

I. Key Financial Data (Unit: 100 million yuan)

II. Deeply cultivate our core business, strategically position ourselves in emerging industries, and continuously refine our organizational structure.

In 2020, in order to strengthen and optimize our traditional businesses and develop and cultivate emerging ones, the company carried out organizational restructuring and expansion efforts, focusing on emerging industries such as capital operations, supply-chain finance, smart transportation, ecological environment restoration and governance, and new-energy vehicle charging stations. The former Technology Business Unit and Hongxinda Company were integrated into the Smart Industry Business Unit. Additionally, an Investment and Development Business Unit and a Resources and Environment Business Unit were established. A new Supply-Chain Company was also set up, and Guizhou Jiunengxing Energy Technology Co., Ltd. was increased in capital and brought under holding control.

1. Develop the ecological and environmental sector and build comprehensive service capabilities across the entire value chain of the environmental protection industry.

In 2020, the company acquired a 75% stake in Guizhou Kan She Ecological Environment Technology Co., Ltd. and a 20% stake in Guizhou Gui Shen Environmental Engineering Co., Ltd. On this basis, we established the Resources and Environment Division, which covers four key areas within the environmental protection industry: water pollution control, air pollution control, solid waste management and resource recovery, and environmental monitoring.

Guizhou Kan She Ecological Environment Technology Co., Ltd. Laboratory

2. Increase capital investment to gain controlling interest in Guizhou Jiunengxing Energy Technology Co., Ltd., and explore the development of the new energy industry.

In early 2021, the company increased its capital investment to gain controlling interest in Guizhou Jiunengxing Energy Technology Co., Ltd., exploring new growth opportunities in areas such as charging and battery swapping, mobile charging, and smart parking. Guizhou Jiunengxing Energy Technology Co., Ltd. is a provider of electric vehicle charging (and battery-swapping) equipment and new-energy solutions, as well as an integrated platform for the consolidation of new-energy resources, encompassing research, production, investment, and operations.

    Guiyang Qingyun Road Bus Charging Station                   Guiyang North Station Charging Station

3. The company’s capital market segment has achieved a breakthrough.

As of now, the capital market has achieved a new breakthrough in its recognition of the company’s business segments, expanding from the original two segments—building decoration and Guizhou Province—to the current eight segments.

3. Through equity investment, we will forge strong partnerships to pursue common development.

1. Actively participate in the mixed-ownership reform of state-owned enterprises, leveraging each other’s strengths, complementing weaknesses, and promoting mutual advancement and coordinated development.

In 2020, the company participated in the mixed-ownership reform project jointly undertaken by China Consulting Engineering Management & Consulting Co., Ltd. and the Guizhou Provincial Institute of Water Resources and Hydropower Survey and Design—a state-owned enterprise. The company exhibits strong complementarity and synergy with two leading companies in the industry in terms of strategic and business development. Both sides have ample room for expansion along the upstream and downstream segments of their respective industries, enabling them to integrate the industrial chain and create synergistic effects.

(Ceremony for the Equity Transfer of China Consulting Engineering Management Consulting Co., Ltd.)

2. Invest in Guizhou HanKais Intelligent Technology Co., Ltd. to explore opportunities in smart transportation, vehicle-road collaboration, and autonomous driving.

In 2020, the company took a stake in Guizhou HanKes Intelligent Technology Co., Ltd. HanKes is a technology-leading provider of autonomous driving solutions, dedicated to promoting the development of smart cities and mobile spaces. Through this collaboration, the two parties aim to integrate the company’s expertise in researching intelligent highway systems at the “roadside” with HanKes’ strengths in “vehicle-side” smart manufacturing, information engineering, artificial intelligence, and autonomous vehicles, thereby leveraging synergies to lay the foundation for future exploration of vehicle-road cooperation.

IV. Remarkable business performance; initial success in expanding beyond the province.

Kanshe Shares is actively expanding into various business sectors and has achieved remarkable operational results. Since 2020, the company has successively won several highly representative projects, such as:

1. The survey and design project for the capacity expansion of the Shanghai-Kunming National Expressway, from Guiyang to Anshun (Puding), includes Section GAKRSJ1, which is specifically designated for smart transportation design. This project is one of the landmark initiatives under Guizhou Province’s pilot program for building a transportation powerhouse, and it will help our company accumulate technical expertise in the fields of smart highways and smart transportation.

2. The Chongqing Dianjiang-Fengdu-Wulong Expressway Project—the second contract section, which has been awarded to our company—has a total length of 56.8 kilometers. Among its key projects is the Fengdu Xingyi Yangtze River Super Bridge, which spans 2,300 meters in total length and features a double-deck suspension bridge with a main span of 1,120 meters. This bridge currently boasts the longest span among double-deck suspension bridges crossing major rivers. This marks the first time our company has undertaken the survey and design of a super-large bridge spanning the Yangtze River, as well as the first time we have taken on the survey and design of a double-deck bridge, filling a significant gap in our portfolio of projects involving bridges across the Yangtze River.

Rendering of the Fengdu Xingyi Yangtze River Bridge

3. The Yunnan Shuangjiang-Lancang Expressway Project has a total route length of approximately 170 kilometers. It features four lanes in each direction, with a roadbed width of 25.5 meters and a design driving speed of 80 kilometers per hour. The total investment for the project is about 28.9 billion yuan. Our company has been awarded the general contract for the preliminary services of this project.

Rendering of the Xiaohetie Bridge on the Shuanglan Expressway

4. The first lot of the Guizhou Province Transportation and Logistics Safety Production Supervision and Inspection, and Engineering Quality Supervision Information System Project (including Application Software and Standard System Development) includes the construction of nine application systems such as transportation safety production supervision and inspection, the enhancement of the data resource system for transportation safety production supervision and inspection, the refinement of the business standard and specification system, and the overall integration of the Guizhou Province Transportation and Logistics Safety Production Supervision and Inspection, and Engineering Quality Supervision Information System Project.

5. The supporting project for the Phase III expansion of Guiyang Airport—the Guiyang Airport Passenger Overnight Accommodation and Parking Complex Project—includes the passenger overnight accommodation (Phase II), the design of which is undertaken by our company.

V. The qualification system continues to improve, and the advantage of comprehensive service capabilities throughout the entire process becomes increasingly prominent.

VI. Awards and Honors—A Wealth of Achievements

In 2020, thanks to the joint efforts of all employees, the company received recognition from multiple parties. Since 2017, it has been listed among the top 50 national engineering survey and design firms in terms of survey and design revenue for three consecutive years.

After winning the Be Innovation Award at the London Infrastructure Summit in 2016, the Pingtang Bridge was honored with the Gustav Lindenthal International Bridge Award in April 2021.

7. Actively fulfill social responsibilities and jointly share the fruits of corporate development.

Kanshe Co., Ltd. bravely assumes and actively fulfills its social responsibilities, continuously improving its corporate governance structure, deeply engaging in poverty alleviation efforts, actively participating in public welfare initiatives, and promoting the harmonious and stable development of both the company and society.

1. In terms of shareholders’ equity, we have established a sustainable, stable, and scientifically sound plan and mechanism for returning value to investors, enabling us to share the fruits of the company’s development with them jointly.

2. In the area of social welfare, we actively responded to the call of the Party and the state by donating 50,000 yuan in poverty alleviation funds to Maojing Town, Luodian County. We have contributed our corporate strength to building a “Safe Guizhou,” a “Harmonious Guizhou,” and a “Happy Guizhou,” and donated 300,000 yuan to the Guizhou Province Foundation for Courageous Acts.

3. In the fight against the epidemic, Kan She Co., Ltd. has actively fulfilled its corporate social responsibility by supporting Hubei’s anti-epidemic efforts. The company donated 80,000 yuan to the Red Cross Society of Yiling District, Yichang, Hubei Province, and donated 10,000 masks to a sister organization in Wuhan, Hubei Province. Additionally, the company actively contributed to Guizhou’s epidemic response by donating 5,000 yuan to the Epidemic Prevention and Control Center of the Guizhou Provincial Charity Federation. Party members took the lead in making donations totaling 69,168 yuan to support the fight against the epidemic. Furthermore, the company donated 3,750 masks and 1,995 pairs of examination gloves to the Embassy of Botswana in China.

VIII. Future Outlook

2021 marks the 100th anniversary of the founding of the Party, as well as the inaugural year for the nation to achieve the goals set forth in the 14th Five-Year Plan and the long-term vision for 2035. The national economy has shifted from a phase of high-speed growth to one of high-quality development. The traditional model of the engineering surveying and design industry—relying heavily on investment-driven growth—has essentially come to an end, and the external environment is characterized by increasing instability and uncertainty. Faced with these profound changes in the external environment and the new realities of economic and social development, the company’s Board of Directors has initiated the preparation of the company’s “14th Five-Year” strategic plan, aiming to lay a solid foundation and set a strong start for the next stage of driving the company’s transformation, innovation, and sustainable development. All employees at every level should remain confident, stay true to our original aspirations, uphold the fine tradition of Kanshe Shares—“unity and concerted efforts”—and closely align themselves with the Board of Directors and senior management. By pooling our strengths and working together, we can make steady and sustained contributions to the company’s long-term success. At the same time, we encourage all employees to actively participate in the formulation of the company’s strategic plan and offer constructive suggestions to ensure its scientific rigor, systematic approach, and guiding effectiveness.