Against the backdrop of the global digital economy wave, corporate financial management is undergoing a profound transformation from traditional accounting to strategic value creation. Guangdong Yuehai Holdings Group Co., Ltd. (Yuehai Group) has proactively embraced this change, aiming to establish a world-class financial management system by driving high-quality development through financial digital transformation.

In this process, Yuehai Group has prioritized the construction of a treasury system as a breakthrough point. Through top-level design, organizational restructuring, system integration, and technological innovation, the company has built an intelligent treasury platform characterized by "transparency and reliability." This platform fulfills three core functions: resource integration, decision-making empowerment, and risk management.

As a wholly-owned enterprise of the Guangdong provincial government and a benchmark for regional state-owned enterprise reform, Yuehai Group has actively aligned with industry trends. Leveraging financial digital transformation, the company is advancing the development of a world-class financial management system and a modern treasury framework, charting a high-quality growth path with strategic depth, technological sophistication, and practical breadth.

**Strategic Leadership: Financial Digitalization in Sync with Group Development** Yuehai Group has evolved into a diversified business conglomerate with a "3+1" core structure encompassing water and environmental services, food and biotechnology, urban construction and operations, and industrial investments. The group owns three Hong Kong-listed companies, one A-share listed firm, and one New Third Board enterprise.

Driven by its high-quality development goals, Yuehai Group has articulated a vision of "water as the foundation, manufacturing as the backbone, Greater Bay Area as the responsibility, and world-class as the standard." Financial management is positioned as the central hub for value creation.

In response to policy directives from the State-owned Assets Supervision and Administration Commission (SASAC) and Guangdong SASAC, Yuehai Group launched a headquarters financial organizational reform in December 2024, engaging professional consultants to optimize financial functions and governance models.

"We recognize that financial management must transition from traditional accounting and reporting to value creation, strategic support, business integration, and decision-making empowerment," said Qiang Wei, Deputy General Manager of Yuehai Group.

The company has established four functional pillars—strategic finance, business finance, treasury finance, and shared finance—positioning headquarters finance as the "integrated hub for value creation and core engine for sustainable growth."

Financial digitalization is no longer merely a technical upgrade but a critical component of the group’s strategic transformation. The goal is to reshape financial management capabilities through digital and intelligent tools, serving as a "strategic assistant, business partner, governance enabler, change catalyst, and industry leader."

To achieve these objectives, Yuehai Group has implemented a series of systematic and phased measures: 1. **Strengthening Digital Foundations**: Unified financial systems across all levels, including consolidation reporting, accounting, and shared services, ensuring standardized and centralized data processing. 2. **Phased Transformation**: Currently in the "core攻坚, system重塑" phase, focusing on treasury and comprehensive budgeting systems while building a unified data foundation for future intelligent applications. 3. **Project-Driven Refinement**: Launching specialized systems for comprehensive budgeting and electronic invoices to enhance precision and compliance. 4. **Organizational Support**: Partnering with consultants to redefine financial structures and responsibilities, ensuring smooth implementation.

**System Restructuring: Treasury as the Catalyst for Financial Transformation** Facing urgent needs for financial management modernization, Yuehai Group selected treasury system construction as the entry point for digital transformation. The intelligent treasury platform, launched in January 2025, integrates account management, fund settlement, and budget financing under a "single network, single database, single pool" framework.

The treasury system plays three pivotal roles: 1. **Resource Integration Hub**: Deep integration of business, finance, and capital flows through centralized accounts, settlements, and pooling, improving efficiency and transparency. 2. **Decision-Making Engine**: Automated multi-dimensional reports (e.g., budget execution, liquidity risk alerts) powered by a data middle office, enabling real-time strategic insights. 3. **Risk Control Mechanism**: A "three-comprehensive" (all-levels, all-elements, all-chains) risk management system using AI algorithms to detect fraud, compliance breaches, and liquidity risks, ensuring 100% payment compliance.

**Technology-Driven Leap: From Bank Connectivity to AI Applications** Yuehai Group’s treasury architecture combines foundational and cutting-edge technologies: - **Foundational Tech**: Over 95% coverage in domestic/overseas account visibility via bank-enterprise direct connections, plus a unified payment platform for efficiency and security. - **Advanced Tech**: Cautious adoption of generative AI and large models in four initial scenarios: 1. **AI Business Reports**: Automating standardized financial analyses. 2. **AI Risk Reports**: Proactive monitoring and alerts. 3. **AI Profiling**: Dynamic credit assessments for internal/external counterparts. 4. **AI Q&A**: 24/7 knowledge-base chatbots for policy and process queries.

**Value Creation: From Cost Savings to Strategic Enablement** Yuehai Group’s treasury system delivers value through: 1. **Resource Centralization**: Enhanced fund visibility and internal allocation, reducing external financing reliance. 2. **Cost Optimization**: Group-wide financing strategies achieving industry-leading rates. 3. **Risk Resilience**: Real-time monitoring of leverage and liquidity metrics via AI-driven "three-comprehensive" controls.

**Future Outlook: Advancing Toward World-Class Financial Management** Yuehai Group plans to: 1. Build a unified data middle office integrating finance, operations, HR, and supply chain. 2. Deepen system integration (e.g., e-invoicing, tax management). 3. Expand AI use cases (e.g., predictive analytics, dynamic budgeting). 4. Strengthen ecosystem collaboration with banks, fintech firms, and regulators.

By pioneering this digital treasury model, Yuehai Group has not only optimized resources and risks but also established a replicable blueprint for state-owned enterprises. The group remains committed to transforming finance from a "back-office function" to a "strategic frontrunner," propelling high-quality growth in the new era of SOE reform.