The Beijing-Hebei-Caofeidian Collaborative Development Demonstration Zone ("Demonstration Zone") is the only cross-regional provincial platform co-built by the Party committees and governments of Beijing and Hebei Province in 2014 to thoroughly implement the Beijing-Tianjin-Hebei Collaborative Development Strategy personally planned and promoted by General Secretary. As the emerging coastal growth pole built by Hebei Province during the 13th and 14th Five-year Plan periods, and the core bearing area of Tangshan's strategic layout of "One Port and Two Urban Areas", the Demonstration Zone is highly integrated with Caofeidian in Tangshan and has unique advantages in transport location, port resources and overlapping free trade zone policies.

On July 31st, 2014, Beijing and Hebei signed the Framework Agreement on Jointly Building the Caofeidian Collaborative Development Demonstration Zone, which clearly stated, "Shougang and related parties shall jointly set up the Beijing (Caofeidian) Modern Industrial Development Pilot Zone Development and Construction Investment Company and Eco-city Development and Construction Investment Company to coordinate the related development and construction".

On January 29th, 2015, Shougang Group Co., Ltd. held 67% of shares on behalf of Beijing enterprises, and Tangshan Caofeidian Development Investment Group Co., Ltd. held 33% of shares on behalf of Hebei enterprises, to jointly fund the establishment of Beijing-Hebei-Caofeidian Collaborative Development Demonstration Zone Construction Investment Co., Ltd. ("Caofeidian Construction Investment Company")[A1] . The Caofeidian Construction Investment Company serves as the designated development and construction subject of the Demonstration Zone by the two provinces, and undertakes the important mission of pilot zone construction.

On August 20th, 2015, in order to quickly implement the Beijing-Tianjin-Hebei collaborative development strategy, the Caofeidian Construction Investment Company, Tangshan Municipal People's Government and Caofeidian District Government jointly signed the Framework Agreement on the Cooperative Development of the Caofeidian Pioneering Zone and Pilot Zone and the Supplementary Agreement, marking the construction progress of the Demonstration Zone from top-level design to concrete implementation.

After sustained development, the Development Zone has achieved initial results. According to the actual needs, the Caofeidian Construction Investment Company has completed the solidification of 1,891,400 m2 of land in the industrial pioneering zone and the construction of 10.67 km of municipal road engineering, meeting the construction needs of enterprises and reaching the conditions of “nine available and one accessible” (water, electricity, heat, gas, sewage, post, telecommunications, cable TV and municipal roads are available, and leveled ground is accessible). The pioneering zone of city-industry integration has completed site leveling of 4.6 km2, built roads and regulated rivers, which served as the basis for the full launch of the Demonstration Zone.

Promoting city-industry integration and cooperating with the government to attract investment. The Caofeidian Construction Investment Company established the operation mode of "Demonstration Zone Management Committee + Construction Investment Company", smoothed the information sharing and feedback mechanism, actively participated in various special activities such as coordinated development industry overcapacity matchmaking meeting, industry promotion meeting of demonstration zones between Beijing and Hebei, and medical education cooperation, and cooperated with the government on organizing site visits and investigations by Beijing automobile, medicine, aviation, energy-saving building materials and other industries. The Company cooperated with the Demonstration Zone Management Committee and local government to focus on attracting investment in upstream-downstream industrial chains such as steel, intelligent equipment manufacturing, new energy and new materials, and completed the signing of 129 industrial projects with a contracted investment of RMB 48.5 billion, which vigorously promoted the coordinated development of the Beijing-Tianjin-Hebei region. In addition to realizing the transfer of over ten enterprises under Shougang to Caofeidian for Beijing-Hebei coordinated development, the Company also successfully led more than ten municipal enterprises to be put into operation, including BBMG Tiantan Furniture Co., Ltd., Beijing BBMG International Supply Chain Service Co., Ltd., Xinhuayuan Caofeidian Intelligent Parking Equipment Manufacturing Co., Ltd., Beijing Municipal Steel Structure Engineering Co., Ltd., Urban Construction Heavy Industry (Tangshan Caofeidian) New Energy Automobile Technology Co., Ltd., Foton LOXA New Pro-energy Compatible Power Exchange Heavy Truck, Jingcheng Electromechanical BAVI Boiler, etc., as well as more than ten large central enterprises including China Resources Power Holdings Co., Ltd., SDIC Caofeidian Port Co., Ltd., China Railway 16th Bureau Shield Construction Co., Ltd., CCCC First Harbor Engineering Company Co., Ltd., Minmetals/MCC Ramu New Energy Technology Co., Ltd., Ouyeel Lianjin Renewable Resources Co., Ltd., China Huadian Corporation, CNPC LNG, Sinopec Crude Oil Reserve Co., Ltd., Tianjin Port Zhongmeihuanengmei Dock Co., Ltd., etc., and more than 20 listed and well-known private enterprises including the Xiamen Sunrise Group, Hefei Changqing Machinery Company Limited, Beijing Dongbang Lüjian Technology Co., Ltd., Sany Heavy Industry Co., Ltd., etc.

Accelerating the improvement of public services and promoting the sharing of high-quality educational resources. In December 2016, the Caofeidian Construction Investment Company signed a comprehensive cooperation agreement with Beijing Jingshan School for a total of 60 teaching classes. At present, it has recruited more than 3,000 children of employees of transferred enterprises, enabling them to enjoy the best educational resources in Caofeidian. The Company independently developed the first zero-energy passive kindergarten in China, and introduced the Kindergarten of the Chinese Academy of Sciences into Caofeidian New City, to meet the needs of industrial transfer groups for high-quality early childhood education. The Company built the first entrepreneur project of a 150,000 m2 ultra-low-energy passive residence, which was named a science and technology demonstration project by the Ministry of Housing and Urban-Rural Development in 2017, and won many honors such as "Passive Ultra-low Energy Green Building Demonstration and Promotion Base (Cold Region)" and "Tangshan Garden-style Demonstration Community" in 2018, playing a leading role in the construction of green, ecological and livable cities in the Beijing-Tianjin-Hebei region and even the whole country, and according with the national strategic goals of achieving peak carbon emissions and carbon neutrality.

Focusing on urban development and planning the construction of the Shougang living base. The Shougang Living Base Project is a concrete action of the Caofeidian Construction Investment Company to practice the coordinated development of the Beijing-Tianjin-Hebei region and help the high-quality development of Caofeidian Park. The Company reduced costs through continuous design optimization, provided high-quality living facilities for Shougang employees and relocated enterprises, and promoted the industrial development and population gathering of Caofeidian New City, thereby forming a livable industry-city integration demonstration zone and realizing a demonstration and leading role. The area under current and planned construction covers over 400,000 m2. The commencement ceremony of Shougang Living Base was held on June 29th, 2021. Currently, the main structures of 14 buildings have been basically completed, and Phase I will be completed by the end of 2023.

Exerting the advantages of platform companies and promoting the high-quality development of Caofeidian Park. The Caofeidian Construction Investment Company cooperated with the Caofeidian New City Management Committee and Wangfujing Group to promote the Caofeidian Wangfujing Shopping Center, a large-scale commercial complex project with an investment amount of over RMB 1 billion, to settle in Caofeidian and energize the city; promoted the establishment of Capital Normal University High School (12-year system) in Caofeidian to support high-quality education resources; and promoted the establishment of Beijing Tsinghua Changgung Hospital in Caofeidian New City to improve urban medical services and continuously provide high-quality urban comprehensive facilities for the industrial transfer population.

Practicing the new development concepts and exploring new fields of innovation. The Company exerted Beijing's technological resources, promoted the comprehensive treatment of concentrated brine after seawater desalination and gave full play to the comprehensive benefits; accelerated the industrialization of steel solid waste resources, expanded the extensive promotion and use of steel solid waste-based green concrete in the civil field, and created greater value in low carbon emission reduction; and increased the application of photovoltaic and green electricity, built intelligent green plants and promoted green and low-carbon development.

The Caofeidian Construction Investment Company will adhere to the instructions of Beijing and the Shougang Group, cooperate with the Caofeidian District Government to increase investment attraction, create a first-class business environment, raise the construction of Caofeidian Park to a new level through scientific development planning, complete the basic supporting facilities and efficient government services, and make positive contributions to the coordinated development of the Beijing-Tianjin-Hebei region.