Management Reform of SDIC Xinji Energy Co., Ltd.

Since the restructuring of 1998 in August, the company has accelerated the comprehensive reform and innovation of management system, management mode and management concept, and formed a scientific management system and operation mechanism. The company takes its mine assets as the legal person's property and operates independently according to law. Through the "three meetings and one layer" organizational form of shareholders' meeting, board of directors, board of supervisors and managers, a corporate governance structure and enterprise leadership system with clear rights and responsibilities, scientific management and effective incentives and constraints have been established, which provides a system and institutional guarantee for the company's development.