On the afternoon of December 29, 2020, the Expert Committee of the China Machinery Industry Federation (hereinafter referred to as the "China Machinery Federation Expert Committee") held the annual economic operation review of the machinery industry and the 2021 economic operation situation forecast meeting. Cai Weici, deputy director of the Expert Committee of the China Machinery Union and special adviser of the China Machinery Union, attended and presided over the meeting. Some 19 people including members of the expert committee, professional associations, China Machinery Industry Development Department, Statistics and Information Department and other relevant departments attended the meeting. The meeting reported the completion of the main economic indicators of the machinery industry from January to November 2020, reviewed and analyzed the economic operation and characteristics of the machinery industry and some sub-sectors, and predicted the economic operation situation for the whole year of 2021. At the

meeting, Guo Zhenyan, Li Jing, Hong Xianguo and Zhu Mingkai, members of the Expert Committee of the China Federation of Machinery, made speeches on the economic operation of electricians, heavy machinery, agricultural machinery and instruments respectively, mao Yufeng, Executive Vice Chairman of China Machine Tool Industry Association, Zhang Zonglie, Vice Chairman of China General Machinery Industry Association, Zhang Guanjun, Secretary-General of China Petroleum and Petrochemical Equipment Industry Association, Chen Shihua, Deputy Secretary-General of China Automobile Industry Association, and Deputy Secretary-General of China Construction Machinery Industry Association Lu Ying, Li Weirong, Deputy Secretary-General of China General Parts Industry Association, and Shen Bin, Project Manager of China Internal Combustion Industry Association, spoke on behalf of relevant industries. Experts at the meeting jointly discuss the current situation of the economic operation of the industry and related countermeasures.

Statistics show that the growth rate of the added value of the machinery industry has steadily rebounded, the production of major products has continued to pick up, the economic benefit indicators have continued to pick up, the export of machinery products has turned from negative to positive, and the recovery of industry investment has been slow. From January to November, the growth rate of the added value of the machinery industry increased by 5.5 year-on-year, and the expected target at the beginning of the year has been completed ahead of schedule. In the 52 industries mainly involved in the machinery industry, 41 added value has achieved year-on-year growth. Among the 120 major products monitored by the machinery industry from January to November, the output of 62 products increased, accounting for 51.7 percent, more than half; the output of 58 products decreased, accounting for 58.3 percent. Indicators of economic efficiency continued to pick up. From January to October, the machinery industry achieved a cumulative operating income of 17.7 trillion billion yuan, an increase of 2.86 percent over the same period last year; a total profit of 1.13 trillion billion yuan, an increase of 10.22 percent over the same period last year; and a profit margin of 6.41 percent on operating income. In 2020, fixed asset investment in the machinery industry continued to decline, although the decline since the third quarter has narrowed significantly, but as of November, the machinery industry involved in the five national economic industry categories, there are still three major categories of double-digit decline.