The strategic cooperation framework agreement signed between Siemens and Yongchuan District, Chongqing is an important cooperation initiative aimed at promoting deep cooperation and common development between the two sides in multiple fields. The following is a detailed interpretation of the content of the agreement:

1. Background of Cooperation

Siemens Strength: As a globally renowned industrial technology enterprise, Siemens has been providing comprehensive support for China's development with innovative technology, outstanding solutions, and products since entering China in 1872. As of the 2023 fiscal year, Siemens has over 30000 employees, 21 research and development centers, 12300 valid patents and patent applications, and has established more than 60 operating companies in China.

Advantages of Yongchuan District: As a sub center city supported by Chongqing for cultivation and construction, Yongchuan District has significant geographical advantages, a good industrial foundation, and abundant talent resources. Yongchuan Comprehensive Bonded Zone was approved for establishment in July 2021. It is the 152nd comprehensive bonded zone in China and the 6th in Chongqing, with a planned area of 1.11 square kilometers. It will officially close and operate in June 2023.

2.Cooperation content

Both parties will engage in in-depth cooperation in the following areas:

Industrial digitalization:

Promote the establishment of Siemens Digital Industries Group Yuxi Office in Yongchuan District, providing business support and services in industrial automation, driving, green and low-carbon for the Yuxi area, including Yongchuan District.

We plan to collaborate on the construction of a digital empowerment exhibition center, combined with ongoing projects such as Liebherr in Yongchuan Comprehensive Bonded Zone. We will concentrate on using the latest technology and products from Siemens Digital Industry Group to create a digital demonstration factory within the comprehensive bonded zone, and set up a centralized exhibition area outside the zone to provide customers in the western Chongqing area with a "front store, back warehouse" style display and industrial digitalization design consulting services.

Green and low-carbon:

Through Siemens' advanced technology and solutions in the field of green and low-carbon, we aim to assist Yongchuan District in achieving green and low-carbon development, promoting energy conservation, emission reduction, and resource recycling for the park and enterprises.

Vocational education:

We plan to cooperate in the construction of the Industrial Digitalization Western Training Center and the "Dual System" Teaching and Training Center. The Industrial Digitalization Western Training Center will serve CNC industry enterprises in the western region, providing regular training on basic knowledge, latest achievements, research and development directions, and an expected annual training scale of 2200 people. The Dual System Teaching and Training Center will be based on the resources of the Yongchuan Western Vocational Education Base and the growing training needs of the entire industry. It will concentrate on Siemens' latest hardware and software in CNC machine tool systems and its deep foundation in dual system teaching. It will cooperate with various vocational colleges, intelligent manufacturing, and new quality productivity enterprises in the Sichuan Chongqing region in an open manner to carry out one-stop dual system apprenticeship training, with an expected training scale of 240 people per day.

3.Significance of cooperation

Promoting industrial upgrading: By leveraging Siemens' digital and low-carbon technologies, we aim to assist in the upgrading and transformation of industries in Yongchuan District, and promote high-quality development of the manufacturing industry.

Strengthen talent cultivation: Through vocational education cooperation, cultivate more high-quality technical talents for Yongchuan District and even the western region to meet the needs of industrial development.

Promote regional development: Through cooperation between both parties, further enhance the regional competitiveness and influence of Yongchuan District, and contribute to the economic development of Chongqing and even the whole country.

4、Outlook for Cooperation

With the signing of the agreement and the gradual progress of the project, the cooperation between Siemens and Yongchuan District in Chongqing will continue to deepen and expand. Both sides will work together to explore new paths for digital and low-carbon development, injecting new vitality and momentum into the prosperity and development of the regional economy.