The New Years Address

On the arrival of 2016, we will also have a fresh start. At this moment, on behalf of the Party and government leadership, we would like to express our heartfelt gratitude to our friends from all walks of life nationwide and worldwide who are concerned about and support Norinco's development! We would also like to send our sincere greetings to all our employees working hard at home and abroad!

In 2015, the economic development of our country entered a new normal, international politics and regional security stayed instable, the global economy was stumbling, international trade kept gloomy, the financial market underwent substantial turbulence, and the prices of oil and mineral products dropped sharply. However, faced with such severe situations, we, under the powerful leadership of the Corporation, realized sustainable and steady development both in quality and benefits, and accomplished the major business objectives set forth in the 12th Five-Year Plan by accurately implementing policies, overcoming difficulties and blazing new trials. In 2015, Norinco achieved 100% of its annual profit objective and 107% of its annual sales revenue objective.

In 2015, we focused on six big deals. First, we did a good job in the current period operation and strove to develop our growth potentials, control negative factors and accomplish major tasks, which guaranteed the realization of our annual operational objectives. Second, by means of reform and innovation, we solved development difficulties, built new development engines, released new mechanism vitality and forged new advantages in competition. We founded Military Trade Technology Institute, which greatly supported the transformation and upgrading of our military trade, an important step forward in the transformation into a modern multinational enterprise. We kept innovating in marketing modes and successfully held the Artillery and Smart Ammunition Day experimental theme marketing campaign, which vigorously increased our market influence. We enhanced capital operation and improved the securitization level of capital. Third, we comprehensively embraced Chinas Belt and Road Strategy and achieved new progress by consolidating and expanding our first-mover advantages. The leaders of China and Pakistan witnessed the successful conclusion of the contract for the Orange Line Project of Lahore Rail Transit in Pakistan, with a total value of US$ 1.626 billion; the Belt and Road Strategy theme achievements exhibition resulted in positive results. Fourth, we continued to improve our comprehensive risk management ability, and effectively controlled the oversea security risk and operational risk, which guaranteed Norinco's safe and steady operation as well as personnel and capital safety. Fifth, we comprehensively summarized the conditions of implementing the 12th Five-Year Plan and exerted ourselves in the compilation of the 13th Five-Year Plan to further define Norinco's future development objectives and major measures. Sixth, we continued to enhance the ideological and political work of Party building, combat corruption and build a clean government, fully coordinated in the inspection by higher authorities and profoundly carried out the theme education of Three Stricts and Three Honests.

The new year has come. Dont think you are the only one working at the frontier. The 13th Five-Year Plan is about to be implemented. In 2016, we will deeply study and implement the development philosophy of Innovation, Coordination, Green, Openness and Sharing, continue to advance reform and innovation, ability improvement, as well as transformation and upgrading, work unswervingly to become a world-class multinational enterprise, strive to realize sustained and steady development both in quality and benefit, and make more contributions to the construction of an advanced arms industry system with Chinese characteristics.

Finally, wed like to wish everyone a career progress, a happy life and all the best!

Mr. Zhi Yulin, president of China North Industries Corporation

Mr. Zhang Guanjie, secretary of Norinco's Party Committee