Jiangxi Mingzheng Transformation Equipment Co., Ltd. (hereinafter referred to as the Company), a subsidiary of the Mingzheng Group, is a leading backbone enterprise in the manufacturing base for transformers in Jiangxi Province. Formerly a state-run transformer manufacturer in Jiangxi Province, the Company has accumulated mature technology and comprehensive techniques in manufacturing transformation equipment over the past 45 years, not only appointed by the Ministry of Energy Industry and the Ministry of Machinery Industry as one of the designated transformer manufacturing enterprises, but also recommended by the State Economic and Trade Commission as the successful enterprise under the [Projects to Upgrade Urban and Rural Power Grids". Located in the Chongren County Industrial Park of Jiangxi Province with registered capital of RMB 111.6 million, the Company is an independent legal entity with limited liability, owned by shareholders and represented by its legal person SUN Jianhui. The Company is mainly engaged in the research, development, manufacture, and sales of the transformation equipment such as air-immersed transformers, oil-immersed transformers, prefabricated substations (European box-type substation, American box-type substation), high- and low-voltage switchgears, etc. The Company also owns Jiangxi Technical Center (currently a provincial level technology research and development center yet been applied to qualify as state level) and public technology services platform. The company currently employs more than 700 people, including high-quality management personnel with college education more than 210 people, accounting for 30% of the total number of employees. With properly managed organizational structure, the Company consists of the Board of Shareholders, the Board of Directors (composed of six directors), and the Board of Supervisors (composed of three members, i.e. a representative of the shareholders, and two representatives of the employees) operating all in strict accordance with the articles of corporation. Under the implementation of the general manager-oriented responsibility system, the general manager is appointed under whom also hired are the vice presidents, one each respectively, in technology, quality, production, procurement/supply, and sales. Currently, the Company has founded its own technical research and development center where the research institutes of numerous colleges and universities like Nanchang University are in ally with us while two Ph.D. from Germany are in long term cooperation with us in offering their expertise, as well as five senior engineers and fifteen engineers are posted there for long term research. On the annual basis, two or more technical engineers are sent out of this research and development center to receive external trainings from the industry. Besides, internal technical and quality trainings are regularly deployed in accordance with the provisions on performance excellence. Overall, a team of talents ranging from the junior to the senior experts has vitally shaped up. The provincial-level technology R&D center is so well recognized that it has been submitted to apply for recognition as a state-level one. On the yearly basis, there are six to eight new products from the Company passing the inspection and identification by the relevant state quality supervision departments, and more than ten old products optimized by design. Thus far, 10 new products have been approved at the Jiangxi provincial level and eight at the municipal level. Among the achievements, metal-carved assembled box-type substation is the first invention ever in the industry while the buried-type box-type substation makes the Company one of the only six enterprises capable of producing such product from the beginning, the design, all the way to the end, the manufacture. In the last two years, the Company has obtained patents on 19 new practical technologies among which four particular technologies have been applied widely on our products, namely the intelligent monitoring and controlling device of high-voltage switchgear, a new type of open structure of amorphous alloy oil-immersed transformer, intelligent reactive power compensation capacitance cabinet, and a new type of plate structure of air-immersed transformer. In addition, specific offices have been set up for the general manager and vice president in sales, technology, quality, production, and supply. Other diversified offices within the Company have also been fully established for departments, such as in administration, marketing, quotation, bid document preparation, legal counsel, technology R&D, quality control, testing, systemization, post-sale service, production, procurement & supply, equipment power. Meanwhile, functioning workshops have further been fully equipped for the assembly workshops for transformer, box-type substation, and complete set of equipment, and workshops for iron core, wiring, casting, welding, and electromechanical, etc. Spanning over the total area of 200,000 square meters, the Company sees an array of buildings standing in order, namely two office buildings of 8,500 square meters, one comprehensive building of 6,000 square meters, three staff building of 21,000 square meters, and eight modernized standard production workshop buildings of 52,000 square meters. Overall, the Company has met the requirement of RMB 1.5 billion annual production value based on such settings and infrastructures. Apart from building the fundamental infrastructures, the Company also devotes to enhancing the production capacity, technical development, and product quality management, so as to ensure that our capabilities meet the demands for market development. In meeting market demand, the Company especially boasts its high production capacity based on a list of equipment, including 412 pieces/ per set of equipment for manufacturing transformers and 30 pieces/ per set of equipment for inspecting equipment, among which particularly there are 1 set of the vacuum casting equipment imported from Germany, 4 sets of the vacuum drying and vacuum casting equipment made domestically, 2 sets of the equipment for making bridge grid line from iron core, and band 0.001 high-precision inspection instrument imported from Switzerland. With the help of the proper equipment, all raw materials for parts are properly controlled quality-wise as they enter the factory. By controlling the raw material quality right at the beginning, it makes the manufacturing of components and parts much better quality as well since all components and parts are all made of the raw materials procured from external sources. Instead of being purchased from outsources, all components and parts are all made within the Company, according to ISO9001 quality system on documentation control to ensure that quality is under control and tracked during the production. Thus, the quality of the final products made of the components and parts can also be ensured. The Company has always advocated [Make our products high-quality and compete in the market with our high-quality products". We are proud to announce that our countless products have passed model inspection by the state supervision and inspection center for quality of equipment for power transmission and distribution, received the state compulsory product certifications, and satisfied the identification and acceptance by other relevant state departments; and our products on the honor list include: oil-immersed transformers (of 63 specifications in 3 categories), air-immersed transformers (of 76 specifications in 4 categories where 3 categories as European air-immersed transformers and one as American air-immersed transformer), assembled box-type substations (of 160 specifications in 10 categories where 5 categories as European box-type substations and 5 as American box-type substations), 10KV high-voltage switchgears (of 15 specifications in 5 categories), and low-voltage switchgears (of 42 specifications in 7 categories). In specific, the honors and satisfactory feedbacks we received include: 29 inspection reports and 16 identification and acceptance certifications for new products and new technologies. Among these reports and certifications, we stand out for some of our products and technologies – namely, the S11-, S13-, and SH15-series oil-immersed transformers, SCB11-, SCB12-, and SG (H) B10-series air-immersed transformers, and assembled box-type substation products - being identified as of low energy consumption and of pollution free, echoing the present policy of energy saving and emission curbing. Our dominant products are classified into 356 specifications in 29 categories, mainly applied in the power grids for power transmission and distribution. Our company is a qualified power supplier for STATE GRID Corporation of China and China Southern Power Grid Company, and the national foreign aid projects. Overall, 60% of our products go to the two major clients mentioned above while the rest goes to other power plants and some individual clients. Our clients are spread all over the place, hence our operation branches, covering 17 provinces and municipalities, such as Anhui, Jiangxi, Hunan, Hubei, Sichuan, Chongqing, Shanghai, Jiangsu, Beijing, Liaoning, Ningxia, Gansu, Yunnan, Guangxi, Guangdong, Fujian, Guizhou, etc. where there are totally 112 branches in the 17 provinces and municipalities, including 11 branches in Anhui, 10 in Jiangxi, 7 in Hunan, 6 in Hubei, 5 in Sichuan, 4 in Chongqing, and numerous among other cities and provinces. As the Company continues to develop and grow, our Chairman SUN Jianhui leads us with his adherence to the principle [A good corporation shall carry social responsibility"; therefore, we strive to run our Company, well and big, to accommodate more job opportunities for more people, to pay various taxes as per provisions, and to partake in the public charitable undertaking in the society. To live up to this guiding principle, the Company has created more than 800 jobs accommodating more than 700 people. Nearly RMB 43 million is filed annually for business tax, and we have never in tax arrears, making us one of the biggest tax contributors among all corporations in the city and the county. In addition, the Company has set up Party Branch Committee, Youth League Committee, Trade Union, Women Workers Committee, Militia Company, etc. who in turn lead our employees to actively participate in the donation activities for earthquake and flood reliefs. Furthermore, the Company has opened some positions to those with physical challenges once they complete training for employment. On a yearly basis, the Company organizes partial employees to go support, in person and via fund, the public performance demonstrated by disabled people. It is our passion to help our employees and the society better understand that disabled people, as members of the society, have also positively contributed to the social construction, art creation, sports and gymnastics, and even in daily life. In summary, the Company has contributed nearly RMB one million in the public welfare. While we are focusing on producing more benefits for the society, the Company has also received encouragement and appreciation from high level leaders of various levels; for example, the Company was visited by WU Guanzheng – while in his term as the Secretary of Jiangxi Province, also formerly a member of the Standing Committee of the Political Bureau of the CPC Central Committee - (during the period of the Company`s predecessor), MENG Jianzhu – while in his term as the Secretary of Jiangxi Province, QIANG Wei – while in his term as the Secretary of the Provincial Party committee of Jiangxi Province in 2014, LU Xinshe – while in his term as the Governor of Jiangxi Province from 2013 to 2015, LI Yihuang – while in his term as the Vice Governor of Jiangxi Province in 2014, SHANG Yong – while in his term as the Discipline Inspection Secretary of Jiangxi Province in 2009, and Fuzhou city leaders and county leaders from the past and current offices. During the process of production, operation, and offering services to customer, the Company has also received appreciation and support from majority of our clients, and social and market return as well. The Company has tried to stay, actively and proactively, on the same page as the transformer industry associations whose leaders also instruct and care about us, a member to those associations. By fully understanding the development of this industry through activities held at the industry associations, the Company has grasped the market direction as guidance for our enterprise development direction. Most importantly, our motto has always been [integrity in dealing people and upright in handling matters", aiming at the common development and mutual prosperity with our cooperation partners in business. Therefore, the Company is able to grow more solid and strong throughout the cooperation process. In particular, the Company has passed the ISO9001: 2008 certifications regarding quality system, environmental management system, and occupational health and safety management system. Also, our products have passed relevant national mandatory [3C" certification and environmental protection certification. Firstly, at the municipal level, listed as City Top 50 Enterprises, the Company has remained as outstanding enterprises for consecutive years. In 2007, the Company was recognized as the [China excellent enterprise" and the Jiangxi AAA business entity in fulfilling contract and keeping promise by the China Quality Long March, standing as the recommended enterprise, model- or factory-wise, for the required products for national power grid construction and remodeling. Besides, based on a marketing survey conducted by China Quality Long March, our products are selected as [National famous brand of stable quality and customer satisfaction" during an exhibit event. Secondly, at the provincial level, among all products, our products in 7 categories receive honors for Jiangxi new product award, and are titled as Jiangxi brand-name products, rising up as prominent trademark in Jiangxi Province. Thirdly, at the national level, the Company is China Top 500 Mechanical Enterprises. Our [Mingzheng trademark" was honored as [China renowned trademarks" in 2013. Finally, the Company falls into the national advanced high technologies where our project [Research Center for the Innovatively-synergetic Science and Technology Projects, and Intelligently-featured Equipment Engineering" was successfully approved in 2015. Our Chairman SUN Jianhui has also personally received numerous honors since 2007 throughout the growth of the Company, including: the [China outstanding entrepreneur", the [May 1st labor medal" and the [Youth career expert" in Jiangxi Province, the [Top ten outstanding youth", [Top ten outstanding builder", and [Top ten young entrepreneurial pioneer" in Fuzhou City, and the [Top talent" and the 2nd- and the 3rd-session [Entrepreneurial talent" in Chongren County, among many other honorary titles. The honors have just kept coming, flooding our Chairman, namely: In June 2009, the [Safety-, ethics- and reputation-oriented model for the nation" award by the All-China Federation of Trade Union, and the [Outstanding entrepreneur for activities" award by the State Administration of Work Safety; In January 2010, the [Advanced individual business owner in hometown" award by the Jiangxi provincial party committee and the provincial government; In March 2010, the [Outstanding entrepreneur" award by the Fuzhou municipal party committee and the municipal government; In May 2010, the [May 4th medal for the Jiangxi Youth" award by the Communist Youth League of the Jiangxi provincial party committee; In December 2010, the [Provincial model worker" honorary title by the Jiangxi provincial party committee and the provincial government; In January, 2011, the [Talent of the Chongren fourteenth batch" by the Chongren county government; In March 2011, the [Outstanding factory director and manager in Fuzhou" title by the Fuzhou entrepreneurs association; In July 2011, the [Outstanding communist party member" title by the Chongren county party committee; In 2011, the [Advanced individual business owner in Jiangxi" award by the Jiangxi provincial people's government; and In 2012, SUN was elected the NPC member for Fuzhou city, the Member of the NPC Standing Committee for Chongren County, and the communist party representative for Jiangxi Province. In conclusion, the development and growth of the Company from the past to the present has relied on the support from leaders above, the trust from our massive clients, as well as the endorsement from the general public. While we strive to further our business and better our services to the society, we sincerely appreciate for all the support, trust and endorsement yet to come for the years to come. It is our mandate to uphold our operation philosophy [to develop by technology, to survive by quality, to market by integrity, and to profit by management", so as to sustain the common development and mutual prosperity with our cooperation partners, together struggle to realize the China Dream as a whole.