Foreword Ⅰ

First of all, on behalf of CASVI and the Board of Editors for this annual report, I would like to congratulate all the companies listed in the 2018 China SV 99 Ranking, and extend my respect and appreciation to all institutional and individual investors for having supported these companies with “capital votes”.

As reiterated by Chinese President Xi Jinping at the grand gathering celebrating the 40^th anniversary of the country’s reform and opening-up, China has stood up, grown rich, and is becoming strong. But how can China successfully move from “rich” to “strong”, and help put the world on a sustainable development path? We are constantly looking for straightforward and clear-cut answers to these epochal questions.

In October 2016, CASVI launched a research project called Discovering “SV 99” in China: A-share Listed Company SV Assessment Project 2018 via a trans-sectoral and multi-disciplinary collaboration. “Discovering” refers to the systematic process of quantitative assessment; “China” points to the underlying rationale derived from the Chinese cultural values; “SV” means the comprehensive economic, social and environmental value created by listed companies; and “99” stands for the 99 top-performing A-share listed companies selected from the CSI 300 constituent stocks. To “Discover ‘SV 99’ in China”, then, is to explore the economic forces driving China’s transformation from “rich” to “strong”, and to unveil the growing path that China continues to participate, promote and even lead the global sustainable development.

Despite a lack of resources, the CASVI project team, in close collaboration with over 100 pro-bono experts from across China and beyond, managed to accomplish, within only two years, the tasks of model building, database development, data analysis, market back-testing and index validation needed to launch this project. As a result, a growing line of products has been developed, including quantitative measurement tools, the annual SV 99 Ranking, SV Ratings, and the SV 99 Index. Together with China’s top mutual fund management companies, CASVI works on product design on actively managed funds and exchange-traded funds (ETFs) on current stage. Discovering “SV 99” in China, initiated from vision of SDGs, has rapidly evolved into a mission of developing financial services and products essential to bring mainstream players to big picture.

More than a science-based attempt to incorporate economic, social and environmental dimensions into value measurement, Discovering “SV 99” in China is an innovative experiment aiming to build a better future with improved quality, efficiency, justice and sustainability. It has adopted the product thinking in an attempt to solve the challenges of the modern era.

The SV 99 Ranking List, as a scorecard or dashboard, records and displays a listed company’s comprehensive performance in economic social and environmental concerns so as to navigate them to create financial and beyond value. From the perspective of the product value chain, the SV 99 Measurement Tool, in concert with United Nations Sustainable Development Goals (UN SDGs), China’s Five-Pronged Development Vision (CDV) as well as the DW & DG spirit, help channel key factors to productivity such as capital, information and human resources to entities driving all-around growth rather than mere profit-seeking.

Discovering SV 99 is a social innovation experiment and as such, even though we have already made some achievements, there is still a long way to go. As chairman of CASVI and chief editor of this report, I would like to extend my gratitude to the pro-bono experts for their help and to the project team members for their perseverance. I will continue to look forward to both strong support and candid comments from all quarters.

As noted by Bill Ford, former executive chairman of Ford Motor Company, “A good company delivers excellent products and services, and a great company does all that and strives to make the world a better place.” I sincerely hope that the SV 99 companies and institutional investors adhere to the DW & DG principles and take the lead in carrying China and beyond forward into a better future.

Weihua MA

Chairman, CASVI

Chair of the Board, CGPI

Former President, China Merchants Bank