From August 3 to 4, 2020, China Orient held the 2020 Mid-Year Work and Discipline Inspection & Supervision Meeting in Beijing. At the meeting, leaders of the Company conveyed and organized the participants to learn the guiding principles of the 2020 Mid-Year Work and Discipline Inspection & Supervision (Video and Telephone) Meeting held by the China Banking and Insurance Regulatory Commission (CBIRC) , reviewed the work for the first half of 2020, made an in-depth analysis of the opportunities and challenges faced by the Company under the shock of the pandemic, discussed and deployed the key tasks for the second half of the year. Wu Yue, Secretary of the Corporation Committee of CPC and Chairman of China Orient delivered a remark titled Uphold a Firm Direction, Make a Calm Response: Striving to Complete All Tasks Among Difficulties and Challenges. Deng Zhiyi, Deputy Secretary of the Corporation Committee of CPC and President of China Orient, made a speech titled Unswervingly Follow the Path of Transformation and Development, Strive to Complete All Business Plans and Targets in the Entire Year. Gao Yuze, Deputy Secretary of the Corporation Committee of CPC and Chief Supervisor of China Orient, concluded the meeting. Qiu Baolin, Secretary of Discipline Inspection Committee of China Orient, Vice President Liang Qiang, Assistants President Zhang Xiangdong and Ding Jianping attended the meeting and delivered speeches.

In the first half of 2020, China Orient coordinated the pandemic prevention and control task with its reform and development in a scientific way, unswervingly focus on its main responsibilities and business, and follow the path of transformation and development. The Group has witnessed a stable increase in total assets, gradual improvement in its business performance, and sustained stability of its main business of NPA. The main regulation indicators had remained up to standard and the overall business performance of the Company was better that expected at the beginning of the outbreak of COVID-19.

At the meeting, the achievements made by all operation units under the impact of the pandemic were affirmed. All of them courageously shouldered their responsibilities, took the initiative and tried all efforts to develop business. However, it was also pointed that the Group would still face a severe business situation and multiple difficulties and challenges in its transformation and development. In the second half of the year, all members should confirm their confidence, have the courage to take responsibilities, take a positive and active attitude, rise to challenges so as to drive the successful accomplishment of the tasks in the whole year.

It is emphasized at the meeting that we should confirm our confidence in our development and take a comprehensive and objective attitude towards the impact of the pandemic; strengthen business innovation and promote the stable development of our main business, intensify resources integration, push the Group towards coordinated development; comprehensively and strictly govern the Party and inspire all employees to take responsibility. The following points are made explicit at the meeting. First, we should explore a sustainable profit-making model in relation to the main business with the determination of 'The Last Stand'. Second, we should develop our business with a wider horizon by focusing on major non-performing assets. Third, we should resolutely curb the rise in endogenous NPAs. Fourth, we should unswervingly advance various transformations and reforms.

Arrangements and deployments were made at the meeting on the discipline inspection and supervision work of China Orient in the second half of the year. First, implement the main responsibilities, strengthen political supervision. Second, correct four undesirable work styles in a fast and restless way, strictly regulate the 'local specialties’ in relation to finance. Third, be practical and meticulous in daily regulation, promote the Company perfection and development. Fourth, maintain a high-handed posture towards case investigation, expand and deepen the anti-corruption work in the finance field. Fifth, build a clean culture brand of China Orient and enhance the endogenous power of the financial system towards corruption. Sixth, continuously enhance political inspections, perfect the overall patterns of inspections; seventh, maintain a strict and caring attitude and train a team with strict discipline.

At the meeting, all cadre members of China Orient were called on to practically improve their political stance, uphold main responsibilities and business, try all efforts to overcome difficulties, strive to prevent and resolve risks, facilitate transformation and development, work hard to complete the targets and tasks for the whole year and make new greater contributions to the high-quality development of China Orient.

Representatives from the People's Bank of China, CBIRC and shareholder units were invited to attend the meeting. Directors, supervisors and CIO of China Orient, responsible persons of each department of the headquarters, directly affiliated business divisions, branches, Yunnan Operational Unit, controlling companies and audit divisions were present at the main venue. Other personnel of China Orient attended the meeting through videos.