On February 27th, only one month after winning the bid, Mr. Cheng Junlin, manager of the European industrial city municipal road project in China Mcc5 Group Corp. Ltd, and his colleagues went to the project site, discussing the soft soil foundation treatment scheme to make preparation for the construction. “This is a major industrial new city project seizing the business opportunity of the ‘Belt and Road Initiative’, so we must speed up for an early start." Cheng said.

　　Sichuan's construction industry, including the state-owned enterprise China Mcc5 Group Corp. Ltd located here had handed over an "excellent" report card in 2017. The 2017 construction industry development report released by the provincial Department of Housing and Urban Rural Development recently shows that the annual output value of construction in our province has exceeded one trillion for the first time in 2017, up to 1.1899 trillion yuan, reaching a year-on-year growth of 19.5%. The output value ranked 1st in western region and 5th in China. Our province is gradually moving from a large province in construction industry to a strong one.

　　Structure Optimization

　　Highly-qualified enterprises continue to increase and backbone enterprises expand their advantages

　　On February 26th, just after the New Year’s Day, Jiang Yongfeng, deputy director of the Financial Management Center of Chengdu Huachuan Highway Construction Group Co., Ltd., hurried to contact Dalian Bank. Over a month ago, staff members from the head office of Dalian Bank visited the company and conducted field research in its project site in Deyang. He said: "Project financing is waiting for the head bank to arrange the loan audit meeting, so there will be results in the near future."

　　HuachuanGroup undertook one of the upgrading projects of Deyang municipal transformation --the standard section of Yangtze River Road. Providing door-to-door financing service, Dalian Bank saw not only the smooth progress of the project, but Huachuan Group's strength. In 2017, Huachuan Group made successful bid of Deyang’s Jialing River Road, another ten road upgrading projects, and major projects including 03 contractual section of highway from Yushu to Songyuan in Jilin Province in the main business sector of road and bridge.

　　Rapid development comes from qualification upgrading. In 2017, Huachuan Group became the industry's first private enterprise which upgraded its qualification to a special grade of general contracting of national highway engineering construction. In the past two years of applying it, Sichuan Provincial Department of Housing and Urban Rural Development dedicated to provide policy advice, application counseling, on-site guidance and other services for Huachuan Group.

　　"Upgrading qualification is an important way to cultivate backbone enterprises in construction industry, and we will do our best to support and guide them." said an official from the Provincial Department of Housing and Urban Rural Development. In 2017, five special-grade qualified construction contracting enterprises and 138 new first-grade construction contracting enterprise were added in our province, bringing the total number to 21 and 686 respectively.

　　Sichuan Province made clear that special-grade qualified construction contracting enterprises can directly apply for the secondary qualification in related industries. High-grade qualified construction enterprises are playing the role of the "absolute main force" in the growth of construction output value in our province. In 2017, Chengdu Construction Engineering Group, a construction enterprise with many high-grade construction qualifications has been listed in thetop 80 Chinese contractors for 12 consecutive years with its four major economic indicator, namely newly signed contracts, output value, operating revenue and profit being in the best in 15 years since its establishment.

　　High-grade qualified enterprises are also leading the overall construction industry. In February this year, the fifth company of Chengdu Construction Group won the bid of three projects, including the water source and green belt chain project of South Park in High-tech Zone—Langanyan (from Tianfu Second Street to Tianfu Third Street) Project and the general contracting of Chengdu’s seventh sewage treatment plant sludge treatment transformation pilot project with survey - design – construction, whose total bid amount has exceeded 2.2 billion yuan.

　　According to the report released by the Provincial Department of Housing and Urban-Rural Development, 1,966 construction enterprises reached the output value of more than 100 million yuan in 2017 in our province, an increase of 290 over the previous year. The total output value of the construction industry was 1.11573 trillion yuan, accounting for 93.7% of the whole province. In terms the value of signed contract and completed construction, backbone construction enterprises account for more than 90% of the province's share.

　　Multi-point Development

　　Construction industry in Luzhou and Nanchong is rapidly “rising” and the growth pattern of cities and prefectures gradually tends to balance.

　　7800 metric tons and 31.5 meters. Recently, in the construction of Nanchong Museum Project, with China's leading hydraulic integral lifting technology, China Mcc5 Group created a record in Southwest China—lifting the nearly 10,000-tons steel roof structure up to dozens of meters above the ground.

　　To expand regional markets is a strategic choice made by China Mcc5 Group which whose HQ is in Chengdu when it broke a new record of newly signed orders in the whole year. Taking Nanchong as an example, China Mcc5 Group has successively undertook some major projects like its "four museums and one center" project, Huanghua Avenue, urban trunk roads and upgrading of urban squares in Shunqing District , renovation of Xihua Road , Nanchong Museum, supporting infrastructure of high-speed railway business district and other major projects.

　　This report also shows that in 2017, the performance of the regional construction industry stood out. The total output value of the construction industry in Luzhou reached 102.18 billion yuan, with a year-on-year increase of 34.5 percent, making Luzhou the first city except Chengdu breaking through the output value of 100 billion yuan. With 75.34 billion yuan of output value, Nanchong ranked third in our province and that of Mianyang, Guang’an and Bazhong also exceeded 50 billion yuan.

　　"We have set up special fund for the development of construction industry, which will be used for the upgrading and items adding, legal aid, establishing industrial bases outside the province, and training and education of construction enterprises." said Wang Xiaoqian, deputy director of Luzhou Housing and Urban-Rural Development Department.

　　To encourage the development of construction industry, for those enterprises which made their merger and reorganization and is registered in Luzhou with annual taxes of more than 5 million yuan with an increase of more than 10% over the previous year, Luzhou will grant it a reward by 0.5% of its acquisition assets, 1 million yuan the maximum; a 3-million-yuan reward will be given to those enterprises which made their level up to special-grade construction general contracting ; in addition, the large-scale construction enterprises will also be given a highest of 1-million-yuan reward according to their annual output value .

　　"The expansion of the regional market can accelerate the transformation of the    organization and construction methods and promote the transformation and upgrading of this industry.” said an official from the Provincial Department of Housing and Urban-Rural Development. This year, in addition to Chengdu, our province will promote the general contracting mode in Mianyang and Luzhou, vigorously advancing the assembled building, improving enterprises’ core competitiveness, optimizing the market environment, and pushing its development of high quality.

　　At present, there are 69 counties (cities, districts) whose output value of construction industry has exceeded 5 billion yuan, among which 35 counties (cities and districts) have exceeded 10 billion yuan. The annual output value of construction industry in Jinniu District, High-tech Zone and Qingyang District in Chengdu all has exceeded 50 billion yuan.

　　External Development

　　Output growth of “going out” Sichuan enterprises is strong; construction industry actively expand the foreign market.

　　In January this year, the Provincial Department of Housing and Urban-Rural Development announced a new batch of qualification lists of enterprises. The Seventh Construction Engineering Group obtained the approval for the qualification of special-grade municipal public project construction contracting and the first-grade municipal engineering design profession, becoming the third in the country and the first in our province private construction enterprise with "double special-grades, double first-grades” qualification.

　　Founded in 2004, the Group has become a large private comprehensive construction enterprise with an annual output value of nearly 10 billion yuan and an annual profit and tax of more than 200 million yuan. In addition to contracted business within our province, it also has completed a number of high-quality projects in Tibet, Hainan, Guizhou and other regions.　

　　Its successful market expanding outside our province was largely owing to the “going out” strategy of Sichuan. We upgrade our cooperation with other regions, signing an agreement of Framework of Communication and Cooperation in Construction with the Provincial Department of Housing and Urban-Rural Development of Yunnan and Guizhou Province, holding a site observation meeting for Sichuan enterprises to standardize the construction safety and civilization in Chongqing with Chongqing Construction Commission, promoting inter-provincial cooperation in construction industry in various forms.

　　Take the cooperation with Guizhou as an example,according to the agreement between the two sides, Sichuan and Guizhou will support each other to carry out the dynamic supervision of the other's enterprises, and establish and improve the linkage supervision mechanism of the construction market; Site meetings of construction are held periodically in Sichuan and Guizhou; we also organized departments of reconnaissance, design, construction and supervision to study and observe in construction sites of the other that have high-level management and take the lead in the use of new technology, materials and equipment; the system of mutual recognition with qualification certificates and equal access for practitioners in key positions will be gradually implemented.

　　Driven by cooperation, Guizhou, Chongqing, Yunnan, Guangdong and Tibet have become the main external market for enterprises in our province. The construction industry’s output value has exceeded 10 billion yuan with remarkable increase in Tianjin, Jilin, Anhui, Shandong and Xinjiang and other places and an annual output growth of over 50 %. “The next step is to improve their service in project promotion, dispute coordination, legal aid and personnel training.” said an official of the provincial housing department.

　　We will expand the market not only to other provinces but also overseas. The construction enterprises in our province have strengthened their cooperation with well-known contractors at home and abroad and expand the overseas market through various channels, such as "relying on the big and strong alliances" and "going out with others’ help," and making use of the AIIB, the Silk Road Fund and Central and Eastern European funds to take part in major infrastructure construction in countries along the route.

　　With the early promotion of the Provincial Department of Housing and Urban-Rural Development, 30 state-owned enterprises have signed cooperation agreements and established the cooperative linkage mechanism with 92 private construction enterprises in our province. The overseas output value of the construction industry in 2017 approached 4 billion yuan, and the new contract amount signed overseas was 7.92 billion US dollars with a year-on-year growth of 13.1%.

　　The Output Value of Sichuan Province’s Construction Industry Exceeding One Trillion for the First Time

　　On February 27th, only one month after winning the bid, Mr. Cheng Junlin, manager of the European industrial city municipal road project in China Mcc5 Group Corp. Ltd, and his colleagues went to the project site, discussing the soft soil foundation treatment scheme to make preparation for the construction. “This is a major industrial new city project seizing the business opportunity of the ‘Belt and Road Initiative’, so we must speed up for an early start." Cheng said.

　　Sichuan's construction industry, including the state-owned enterprise China Mcc5 Group Corp. Ltd located here had handed over an "excellent" report card in 2017. The 2017 construction industry development report released by the provincial Department of Housing and Urban Rural Development recently shows that the annual output value of construction in our province has exceeded one trillion for the first time in 2017, up to 1.1899 trillion yuan, reaching a year-on-year growth of 19.5%. The output value ranked 1st in western region and 5th in China. Our province is gradually moving from a large province in construction industry to a strong one.

　　Structure Optimization

　　Highly-qualified enterprises continue to increase and backbone enterprises expand their advantages

　　On February 26th, just after the New Year’s Day, Jiang Yongfeng, deputy director of the Financial Management Center of Chengdu Huachuan Highway Construction Group Co., Ltd., hurried to contact Dalian Bank. Over a month ago, staff members from the head office of Dalian Bank visited the company and conducted field research in its project site in Deyang. He said: "Project financing is waiting for the head bank to arrange the loan audit meeting, so there will be results in the near future."

　　HuachuanGroup undertook one of the upgrading projects of Deyang municipal transformation --the standard section of Yangtze River Road. Providing door-to-door financing service, Dalian Bank saw not only the smooth progress of the project, but Huachuan Group's strength. In 2017, Huachuan Group made successful bid of Deyang’s Jialing River Road, another ten road upgrading projects, and major projects including 03 contractual section of highway from Yushu to Songyuan in Jilin Province in the main business sector of road and bridge.

　　Rapid development comes from qualification upgrading. In 2017, Huachuan Group became the industry's first private enterprise which upgraded its qualification to a special grade of general contracting of national highway engineering construction. In the past two years of applying it, Sichuan Provincial Department of Housing and Urban Rural Development dedicated to provide policy advice, application counseling, on-site guidance and other services for Huachuan Group.

　　"Upgrading qualification is an important way to cultivate backbone enterprises in construction industry, and we will do our best to support and guide them." said an official from the Provincial Department of Housing and Urban Rural Development. In 2017, five special-grade qualified construction contracting enterprises and 138 new first-grade construction contracting enterprise were added in our province, bringing the total number to 21 and 686 respectively.

　　Sichuan Province made clear that special-grade qualified construction contracting enterprises can directly apply for the secondary qualification in related industries. High-grade qualified construction enterprises are playing the role of the "absolute main force" in the growth of construction output value in our province. In 2017, Chengdu Construction Engineering Group, a construction enterprise with many high-grade construction qualifications has been listed in thetop 80 Chinese contractors for 12 consecutive years with its four major economic indicator, namely newly signed contracts, output value, operating revenue and profit being in the best in 15 years since its establishment.

　　High-grade qualified enterprises are also leading the overall construction industry. In February this year, the fifth company of Chengdu Construction Group won the bid of three projects, including the water source and green belt chain project of South Park in High-tech Zone—Langanyan (from Tianfu Second Street to Tianfu Third Street) Project and the general contracting of Chengdu’s seventh sewage treatment plant sludge treatment transformation pilot project with survey - design – construction, whose total bid amount has exceeded 2.2 billion yuan.

　　According to the report released by the Provincial Department of Housing and Urban-Rural Development, 1,966 construction enterprises reached the output value of more than 100 million yuan in 2017 in our province, an increase of 290 over the previous year. The total output value of the construction industry was 1.11573 trillion yuan, accounting for 93.7% of the whole province. In terms the value of signed contract and completed construction, backbone construction enterprises account for more than 90% of the province's share.

　　Multi-point Development

　　Construction industry in Luzhou and Nanchong is rapidly “rising” and the growth pattern of cities and prefectures gradually tends to balance.

　　7800 metric tons and 31.5 meters. Recently, in the construction of Nanchong Museum Project, with China's leading hydraulic integral lifting technology, China Mcc5 Group created a record in Southwest China—lifting the nearly 10,000-tons steel roof structure up to dozens of meters above the ground.

　　To expand regional markets is a strategic choice made by China Mcc5 Group which whose HQ is in Chengdu when it broke a new record of newly signed orders in the whole year. Taking Nanchong as an example, China Mcc5 Group has successively undertook some major projects like its "four museums and one center" project, Huanghua Avenue, urban trunk roads and upgrading of urban squares in Shunqing District , renovation of Xihua Road , Nanchong Museum, supporting infrastructure of high-speed railway business district and other major projects.

　　This report also shows that in 2017, the performance of the regional construction industry stood out. The total output value of the construction industry in Luzhou reached 102.18 billion yuan, with a year-on-year increase of 34.5 percent, making Luzhou the first city except Chengdu breaking through the output value of 100 billion yuan. With 75.34 billion yuan of output value, Nanchong ranked third in our province and that of Mianyang, Guang’an and Bazhong also exceeded 50 billion yuan.

　　"We have set up special fund for the development of construction industry, which will be used for the upgrading and items adding, legal aid, establishing industrial bases outside the province, and training and education of construction enterprises." said Wang Xiaoqian, deputy director of Luzhou Housing and Urban-Rural Development Department.

　　To encourage the development of construction industry, for those enterprises which made their merger and reorganization and is registered in Luzhou with annual taxes of more than 5 million yuan with an increase of more than 10% over the previous year, Luzhou will grant it a reward by 0.5% of its acquisition assets, 1 million yuan the maximum; a 3-million-yuan reward will be given to those enterprises which made their level up to special-grade construction general contracting ; in addition, the large-scale construction enterprises will also be given a highest of 1-million-yuan reward according to their annual output value .

　　"The expansion of the regional market can accelerate the transformation of the    organization and construction methods and promote the transformation and upgrading of this industry.” said an official from the Provincial Department of Housing and Urban-Rural Development. This year, in addition to Chengdu, our province will promote the general contracting mode in Mianyang and Luzhou, vigorously advancing the assembled building, improving enterprises’ core competitiveness, optimizing the market environment, and pushing its development of high quality.

　　At present, there are 69 counties (cities, districts) whose output value of construction industry has exceeded 5 billion yuan, among which 35 counties (cities and districts) have exceeded 10 billion yuan. The annual output value of construction industry in Jinniu District, High-tech Zone and Qingyang District in Chengdu all has exceeded 50 billion yuan.

　　External Development

　　Output growth of “going out” Sichuan enterprises is strong; construction industry actively expand the foreign market.

　　In January this year, the Provincial Department of Housing and Urban-Rural Development announced a new batch of qualification lists of enterprises. The Seventh Construction Engineering Group obtained the approval for the qualification of special-grade municipal public project construction contracting and the first-grade municipal engineering design profession, becoming the third in the country and the first in our province private construction enterprise with "double special-grades, double first-grades” qualification.

　　Founded in 2004, the Group has become a large private comprehensive construction enterprise with an annual output value of nearly 10 billion yuan and an annual profit and tax of more than 200 million yuan. In addition to contracted business within our province, it also has completed a number of high-quality projects in Tibet, Hainan, Guizhou and other regions.　

　　Its successful market expanding outside our province was largely owing to the “going out” strategy of Sichuan. We upgrade our cooperation with other regions, signing an agreement of Framework of Communication and Cooperation in Construction with the Provincial Department of Housing and Urban-Rural Development of Yunnan and Guizhou Province, holding a site observation meeting for Sichuan enterprises to standardize the construction safety and civilization in Chongqing with Chongqing Construction Commission, promoting inter-provincial cooperation in construction industry in various forms.

　　Take the cooperation with Guizhou as an example,according to the agreement between the two sides, Sichuan and Guizhou will support each other to carry out the dynamic supervision of the other's enterprises, and establish and improve the linkage supervision mechanism of the construction market; Site meetings of construction are held periodically in Sichuan and Guizhou; we also organized departments of reconnaissance, design, construction and supervision to study and observe in construction sites of the other that have high-level management and take the lead in the use of new technology, materials and equipment; the system of mutual recognition with qualification certificates and equal access for practitioners in key positions will be gradually implemented.

　　Driven by cooperation, Guizhou, Chongqing, Yunnan, Guangdong and Tibet have become the main external market for enterprises in our province. The construction industry’s output value has exceeded 10 billion yuan with remarkable increase in Tianjin, Jilin, Anhui, Shandong and Xinjiang and other places and an annual output growth of over 50 %. “The next step is to improve their service in project promotion, dispute coordination, legal aid and personnel training.” said an official of the provincial housing department.

　　We will expand the market not only to other provinces but also overseas. The construction enterprises in our province have strengthened their cooperation with well-known contractors at home and abroad and expand the overseas market through various channels, such as "relying on the big and strong alliances" and "going out with others’ help," and making use of the AIIB, the Silk Road Fund and Central and Eastern European funds to take part in major infrastructure construction in countries along the route.

　　With the early promotion of the Provincial Department of Housing and Urban-Rural Development, 30 state-owned enterprises have signed cooperation agreements and established the cooperative linkage mechanism with 92 private construction enterprises in our province. The overseas output value of the construction industry in 2017 approached 4 billion yuan, and the new contract amount signed overseas was 7.92 billion US dollars with a year-on-year growth of 13.1%.