Dear shareholders and investors,

Great achievements are the result of sustained efforts. 2020 has been a year like no other. Bearing in mind the two major landscapes and national interests, we, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, took the initiative in promoting the fight against the COVID-19 pandemic and being a pioneer in operations. Against major headwinds, we are a strong champion of high-quality development, contributing to stable economic growth. We won the trust of SASAC, the capital market and staff by announcing our first-ever ranking among the top 50 of the Fortune Global 500, demonstrating our prowess.

This year, we stayed true to our original intention and worked hard with our mission firmly in mind.?In the face of the pandemic, we embraced challenges. We supported the construction of 46 hospitals such as Wuhan Huoshenshan Hospital, Wuhan Leishenshan Hospital. Furthermore, we invested in and constructed the pandemic emergency response project, Camp 1 of the “home of constructors in east Rongcheng County, Xiongan New Area”. Focusing on the “6+6” initiative (i.e. stability in employment, finance, foreign trade, foreign capital, investment and expectation, and supporting employment, people’s livelihoods, being a main market player, achieving food and energy safety, stable industrial chain supply and community-level operation) and “two struggles”, we conducted campaigns featuring “100 days of hard work” and “combating four seasons to achieve goals” to fight the pandemic for growth. As a result and as scheduled, we promoted the resumption of work and production of nearly 5,000 construction projects, creating more than 1 million jobs. The Company’s major economic indicators were on the rise, hitting a record high level. We, committed to the development philosophy with people at the core, engaged in targeted poverty reduction efforts with fruitful results. Both the “the smart terraced fungus-farming project” in Jinmi village, Zhashui County, Shaanxi Province, and the poverty relief efforts in Shazhou village, Rucheng County, Hunan Province were commended by General Secretary Xi Jinping. The Company received honors for “National Advanced Collective in Poverty Relief” and “National Advanced Individual in Fighting the COVID-19”, which fully reflected our responsibilities.

This year, we shouldered the responsibilities as a major national force.?Following significant decisions and deployments made by the central government, we stepped forward to serve the national strategies as a pioneer for the “China Railway for China Construction”. Specifically, we were involved in city cluster construction in the Beijing – Tianjin – Hebei region, the Yangtze River Delta, the Pearl River Delta, Xiongan New Area, Guangdong – Hong Kong – Macao Greater Bay Area and Chengdu – Chongqing double city economic circle. We filled infrastructure gaps, contributing to such strategies as a stronger China through transport, rural revitalization and the Belt and Road Initiative. Furthermore, we have made great progress in major projects at home and abroad such as the Sichuan – Tibet Railway, Beijing – Xiongan Expressway, Chengdu – Kunming Railway, and China – Laos Railway, Jakarta – Bandung High – speed Railway, Budapest – Belgrade Railway, and Bangladesh Padma Bridge, and completed super projects such as the Beijing – Xiongan Intercity Railway, Pingtan Strait Highway Bridge, and Dazhu Mountain Tunnel. The completed Shanghai – Jiangsu Yangtze River Highway Bridge and the avenues currently under construction for the Winter Olympics featuring “three competition zones and one Olympic village” were recognized and hailed by General Secretary Xi Jinping.

This year, we empowered CREC’s development through reform and innovation.?We, committed to the “Party’s Governance over Officials and State-owned Enterprise Reform” initiative, were a strong champion of the important guidance of the “three transformations” mentioned by General Secretary Xi Jinping. To that end, we cemented our foundations and kept working hard with innovative thinking. Specifically, we improved the enterprise legal person system and promoted efforts to modernize the corporate system with Chinese characteristics, including rolling-out mixed-ownership reforms and carrying out comprehensive reforms through the “two hundred” program and an organization reform of the headquarters. We restructured and established China Tiegong Investment and Construction Group Co., Ltd., China Overseas Engineering Co.,Ltd. and China Railway Cloud Network Information Technology Co., Ltd., acquired China Railway Prefabricated Construction Co., Ltd. (“?China Railway Prefabricated Construction?”), China Railway Changjiang Transport Design Group Co., Ltd. (“?China Railway Changjiang Institute?”), China Railway Water Conservancy & Hydropower Planning and Design Group Co., Ltd. (“?China Railway Water Conservancy Institute?”), and made successful spin-off listing of China Railway High-Speed Electrification Equipment Corporation Limited (“?CRHEEC?”) (873023). Making fresh breakthroughs in technological innovation, we won the China Industry Award and the golden prize of the China Excellent Industry Design Award for the first time, with the sales volume of shield tunneling machines ranking first for the fourth year running. Furthermore, we ranked first for the third year in a row among central government-owned architecture enterprises in the number of National Technology Awards. We are on the track to top all past “China records” and “China name cards” represented by Chinese roads, bridges, high-speed railways and shield tunneling machines.

This year, CREC was in full bloom with a focus on future development.?We will review actions by focusing on strategic guidance. Specifically, we analyzed the general picture and are fully aware of the risks and challenges facing us. This helped acquaint us with market rules so that we could better position China Railway and work out a development blueprint during the “14th Five-Year Plan” period. Committed to market orientation, we cast an eye on the long-term resource allocation by having in place modern production models and production relations that thrive amid intense market competition. Meanwhile, we adhered to high-quality development by reshaping the corporate culture system, deepening efforts in corporate work styles, and launching improvements in quality and efficiency. This would help improve construction, operation development, cost management, streamlining, assets management and assets operation, laying a solid foundation for our mission in the “14th?Five-Year Plan” period.

You reap what you sow. 2021 will be a year of unique importance in China’s modernization drive and marks the first year of the “14th Five-Year Plan” period, in which China Railway will embark on a new journey. China Railway, under the leadership of the CPC Central Committee with Xi Jinping at the core, will stay committed to the corporate spirit “Striving for Excellence” and take this fresh development stage into full consideration by following an innovative development philosophy and following new development patterns. We will join each other to make a success of the beginning of the “14th Five-Year Plan” period and serve our country, dedicate ourselves to society and repay our shareholders and staff with high-quality development.

Here, I would like to express my sincere appreciation to the shareholders who have supported the Company’s reform and all walks of life who have shown care to the Company’s development, as well as all the staff who have a shared future with the Company.

Chen Yun

Chairman

Beijing, China

30 March 2021