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20748697_38.pdf	en	<table><tr><td>“Listing Rules”</td><td>the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended, sulppemented or otherwise modified from time to time</td></tr><tr><td>“Lvxin Enterprise”</td><td>Wenzhou Lvxin Enterprise Management Co., Ltd. (溫州綠欣企業管理有限公司), a company established on December 3, 2019 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr><tr><td>“Lvxin Haihe”</td><td>Hangzhou Lvxin Haihe Construction Project Management Co., Ltd. (杭州綠欣海河工程項目管理有限公司), a company established on December 12, 2019 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr><tr><td>“Lvxin Investment”</td><td>Shaoxing Lvxin Investment Management Co., Ltd. (紹興綠欣投資管理有限公司), a company established on April 22, 2015 under the laws of the PRC with limited liability and an indirect non-wholly owned subsidiary of our Company</td></tr><tr><td>“Lvxing Asset Service”</td><td>Lvxing Asset Service and Real Estate Construction Management Hangzhou Co., Ltd. (綠星資服房地產建設管理(杭州)有限公司), a company established on December 25, 2018 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr><tr><td>“Lvxing Construction”</td><td>Wenzhou Lvxing Construction Project Management Co., Ltd. (溫州綠興工程項目管理有限公司), a company established on December 3, 2019 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr><tr><td>“Lvxing Construction Design”</td><td> Lvxing Construction Design Hangzhou Co., Ltd. (綠星建築設計(杭州)有限公司), a company established on December 25, 2018 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr><tr><td>“Lvxing Real Estate Consulting”</td><td> Lvxing Real Estate Consulting Hangzhou Co., Ltd. (綠星房產諮詢(杭州)有限公司), a company established on December 25, 2018 under the laws of the PRC with limited liability and an indirect wholly-owned subsidiary of our Company</td></tr></table>
20748697_39.pdf	en	<table><tr><td>“Main Board”</td><td>the stock exchange (excluding the option market) operated by the Stock Exchange which is independent from and operates in parallel with the Growth Enterprise Market of the Stock Exchange</td></tr><tr><td>“Mainwide HK”</td><td>Mainwide (H.K.) Limited, a company incorporated on April 1, 2016 under the laws of Hong Kong with limited liability and a wholly-owned subsidiary of our Company</td></tr><tr><td>“Memorandum” or “Memorandum of Association”</td><td>the memorandum of association of our Company conditionally adopted by our Company on June 23, 2020 which shall become effective upon listing of the Shares on the Stock Exchange, as amended or sulpemented pfrom time to time, a summary of which is set out in Appendix III to this prospectus</td></tr><tr><td>“MOFCOM”</td><td>Ministry of Commerce of the PRC (中華人民共和國商務部)</td></tr><tr><td>“NDRC”</td><td>the National Development and Reform Commission of the PRC (中華人民共和國國家發展和改革委員會)</td></tr><tr><td>“Non-QualifiGyng reentown Shareholders”</td><td>the Greentown Shareholders on the Record Date with reistered addgresses in, or who are otherwise known by Greentown China to be residents of any of the Specified Territories</td></tr><tr><td>“Offer Price”</td><td>the final HK dollar price per Offer Share (exclusive of brokerage of 1%, the SFC transaction levy of 0.0027% and the Stock Exchange trading fee of 0.005%) at which the Hong Kong Offer Shares are to be subscribed for under the Hong Kong Public Offering and the International Offer Shares are to be offered under the International Offering, to be determined in the manner as further described in “Structure of the Global Offering – Pricing and Allocation”</td></tr><tr><td>“Offer Shares”</td><td>the Hong Kong Offer Shares and the International Offer Shares together, where relevant, with any additional Shares to be issued by our Company pursuant to the exercise of the Over-allotment Option</td></tr></table>
20754268_37.pdf	en	# Our customers may reduce their demand for aluminum extrusion products in favor of alternative materials. Our aluminum extrusion products compete with products made from other materials, such as plastic, wood or other metal composites, for various applications. The willingness of customers to accept substitutions for aluminum or the ability of major customers to exert leverage in the marketplace to reduce the pricing for aluminum extrusion products could adversely affect the demand for our products and thus adversely affect our business, financial condition and results of operations. # We derive a substantial portion of our sales from China. A substantial portion of our sales are generated from China. During the Track Record Period, we generated approximately 92.8%, 94.7% and 96.7% of our total revenue, respectively, from sales to customers in China. To boost our sales revenue, we seek to increase our market share in overseas markets; however, we anticipate that sales of our products in China will continue to represent a substantial proportion of our total sales in the near future. Any significant decline in the condition of the PRC economy could, among other things, reduce consumption of our products which in turn would have a material adverse effect on our business, financial condition and results of operations. # We had net current liabilities as of December 31, 2006 and 2007. As of December 31, 2006 and 2007, we had net current liabilities of approximately RMB260.9 million and RMB207.0 million, respectively. We had net current liabilities as of each of these balance sheet dates mainly due to (i) our large amounts of borrowings, comprising mainly short-term borrowings from commercial banks in China which are the primary source of financing for our Company and offer interest rates that are generally lower than those of long-term loans, and (ii) our issuance of short-term debentures. The amount of payment obligations of our bank borrowings and short-term debentures in the 12-month period following the Listing is estimated to be approximately RMB4.8 billion. Our net current liabilities position exposes us to liquidity risk, and we may have net current liabilities in the future. Our future liquidity, the payment of trade and other payables and the repayment of our outstanding bank borrowings as and when they become due will primarily depend on our ability to maintain adequate cash inflows from operating activities, cash and cash equivalents, and our access to further financial resources to fulfill our short-term payment obligations, which will be affected by our future operating performance, prevailing economic conditions, and financial, business and other factors, many of which are beyond our control. # Our business, reputation and brand may be materially and adversely affected by actions taken by our distributors. During the Track Record Period, our sales to distributors accounted for approximately 39.9%, 31.9% and 12.9% of our total revenue, respectively. As of December 31, 2008, we had 17 distributors responsible for domestic sales in China and four distributors responsible for our overseas markets. Save as disclosed in the section headed “Relationships with Our Controlling Shareholder and Continuing Connected Transactions,” our Directors have confirmed that during the Track Record Period, all of our distributors were Independent Third Parties. It has been our policy that our distributors may not take any improper or illegal actions, commit bribery or use any payments or other means prohibited under the relevant anti-corruption laws in the PRC and thej urisdictions where they operate or prohibited under the agreed terms
20754268_38.pdf	en	between us and the distributors to promote or sell our products, and that we will terminate our relationship with them if they engage in such activities. However, our distributors could take one or more of the following actions, any of which could have a material adverse effect on our business, reputation and brand: • breach our agreements with them, including by selling products that compete with our products that they have contracted to sell for us or by selling our products outside their designated territory, possibly in violation of the exclusive distribution rights of other distributors; • unauthorized use or misuse of our brand name; • fail to adequately promote our products; • fail to provide proper training and service to the end-users of our products; or • violate the anti-corruption laws of China, the United States or other countries. Non-compliance by our distributors with our agreements or any improper or illegal actions taken by our distributors could harm our corporate image and disrupt our sales. We ultimately have limited control over the actions of our distributors who are Independent Third Parties, and cannot assure you that they will not breach their agreements with us or violate relevant laws. We are not aware of any breach of agreement, or improper or illegal actions taken by our distributors during the Track Record Period. If our distributors violate PRC laws or otherwise engage in illegal practices with respect to their sales or marketing of our products, our brand and reputation, our sales activities or the price of our Shares could be adversely affected if we become the target of any negative publicity as a result of actions taken by our distributors. # The global financial markets have experienced significant deterioration and volatility recently, which have had negative repercussions on the global economy and, as a result, may adversely affect our business operations. Certain recent adverse financial developments have impacted the global financial markets. These developments include a general slowing of economic growth both in the U.S. and globally, substantial volatility in equity securities markets, and volatility and tightening of liquidity in credit markets. While it is difficult to predict how long these conditions will exist and which markets and businesses of our Company may be affected, these developments could continue to present risks for an extended period of time for our Company, including a potential slowdown in our sales to customers, increase in interest expenses on our bank borrowings, or reduction of the amount of banking facilities currently available to us. If this economic downturn continues, our business, financial condition and results of operations may be adversely affected.
20733991_223.pdf	en	# 39. CAPITAL AND OTHER COMMITMENTS <table><tr><td rowspan="3"></td><td colspan="2">Group</td></tr><tr><td>2016</td><td>2015</td></tr><tr><td>RM’000</td><td>RM’000</td></tr><tr><td>(a) Capital expenditure commitments</td><td></td><td></td></tr><tr><td>Property, plant and equipment and investment properties</td><td></td><td></td></tr><tr><td>- Authorised and contracted for</td><td>1,147,134</td><td>2,159,183</td></tr><tr><td>- Authorised but not contracted for</td><td>2,349,600</td><td>1,407,287</td></tr><tr><td></td><td>3,496,734</td><td>3,566,470</td></tr><tr><td>(b) Joint venture</td><td></td><td></td></tr><tr><td>Share of capital commitment of joint venture</td><td>145,648</td><td>150,404</td></tr><tr><td>(c) Banker guarantees</td><td></td><td></td></tr><tr><td>Amount of banker guarantees obtained</td><td>28,767</td><td>27,914</td></tr></table> # 40. RELATED PARTIES For the purpose of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subjected to common control or common significant influence. Related parties may be individuals or other entities. Related parties also include key management personnel defined in Note 31. # Related party transactions Other than disclosed elsewhere in the financial statements, transactions carried out on terms agreed with the related parties are as follows: <table><tr><td rowspan="3"></td><td colspan="2">Group</td></tr><tr><td>2016</td><td>2015</td></tr><tr><td>RM’000</td><td>RM’000</td></tr><tr><td>With substantial shareholders and their related parties</td><td></td><td></td></tr><tr><td>Sales and provision of services</td><td>343,672</td><td>257,547</td></tr><tr><td>Purchases and consumption of services</td><td>(45,840)</td><td>(45,880)</td></tr><tr><td>With key management personnel and their related parties</td><td></td><td></td></tr><tr><td>Sales and provision of services</td><td>17,594</td><td>27,250</td></tr><tr><td>Purchases and consumption of services</td><td>(74,243)</td><td>(63,382)</td></tr><tr><td>With associates</td><td></td><td></td></tr><tr><td>Rental income</td><td>405</td><td>282</td></tr><tr><td>With director of a subsidiary</td><td></td><td></td></tr><tr><td>Consultancy fees paid</td><td>(294)</td><td>(254)</td></tr></table>
20733991_224.pdf	en	# 40. RELATED PARTIES (CONTINUED) # Related party transactions (continued) <table><tr><td rowspan="3"></td><td colspan="2">Company</td></tr><tr><td>2016</td><td>2015</td></tr><tr><td>RM’000</td><td>RM’000</td></tr><tr><td>With subsidiaries</td><td></td><td></td></tr><tr><td>Dividend income</td><td>41,971</td><td>106,800</td></tr><tr><td>Share-based payment transactions</td><td>43,378</td><td>32,959</td></tr></table> Significant related party balances related to the above transactions are as follows: <table><tr><td rowspan="3"></td><td colspan="2">Group</td></tr><tr><td>2016</td><td>2015</td></tr><tr><td>RM’000</td><td>RM’000</td></tr><tr><td>Trade and other receivables</td><td></td><td></td></tr><tr><td>Substantial shareholders and their related parties</td><td>50,109</td><td>36,606</td></tr><tr><td>Key management personnel and their related parties</td><td>8,276</td><td>5,958</td></tr><tr><td></td><td>58,385</td><td>42,564</td></tr><tr><td>Trade and other payables</td><td></td><td></td></tr><tr><td>Substantial shareholders and their related parties</td><td>(4,108)</td><td>(3,599)</td></tr><tr><td>Key management personnel and their related parties</td><td>(15,918)</td><td>(6,696)</td></tr><tr><td></td><td>(20,026)</td><td>(10,295)</td></tr></table> These transactions have been entered into in the normal course of business and have been established under negotiated terms. From time to time, directors and key management personnel of the Group, or their related parties, may receive services and purchase goods from the Group. These services and purchases are on negotiated basis.
20751986_390.pdf	en	In accordance with the Articles, the Company is entitled to sell any of the shares of a member who is untraceable if: (i) all cheques or warrants, being not less than three in total number, for any sum payable in cash to the holder of such shares have remained uncashed for a period of 12 years; (ii) upon the expiry of the 12 years and 3 months period (being the 3 months notice period referred to in sub-paragraph (iii)), the Company has not during that time received any indication of the existence of the member; and (iii) the Company has caused an advertisement to be published in accordance with the rules of the stock exchange of the Relevant Territory (as defined in the Articles) giving notice of its intention to sell such shares and a period of three months has elapsed since such advertisement and the stock exchange of the Relevant Territory (as defined in the Articles) has been notified of such intention. The net proceeds of any such sale shall belong to the Company and upon receipt by the Company of such net proceeds, it shall become indebted to the former member of the Company for an amount equal to such net proceeds. # (v) Subscription rights reserve Pursuant to the Articles, provided that it is not prohibited by and is otherwise in compliance with the Companies Law, if warrants to subscribe for shares have been issued by the Company and the Company does any act or engages in any transaction which would result in the subscription price of such warrants being reduced below the par value of the shares to be issued on the exercise of such warrants, a subscription rights reserve shall be established and applied in paying up the difference between the subscription price and the par value of such shares. # 3. CAYMAN ISLANDS COMPANY LAW The Company was incorporated in the Cayman Islands as an exempted company on 5 August 2013 subject to the Companies Law. Certain provisions of Cayman Islands company law are set out below but this section does not purport to contain all applicable qualifications and exceptions or to be a complete review of all matters of the Companies Law and taxation, which may differ from equivalent provisions inj urisdictions with which interested parties may be more familiar. # (a) Company operations As an exempted company, the Company must conduct its operations mainly outside the Cayman Islands. Moreover, the Company is required to file an annual return each year with the Registrar of Companies of the Cayman Islands and pay a fee which is based on the amount of its authorized share capital. # (b) Share capital In accordance with the Companies Law, a Cayman Islands company may issue ordinary, preference or redeemable shares or any combination thereof. The Companies Law provides that where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to an account, to be called the ‘‘share premium account’’. At the option of a company, these provisions may not
20751986_391.pdf	en	apply to premiums on shares of that company allotted pursuant to any arrangements in consideration of the acquisition or cancellation of shares in any other company and issued at a premium. The Companies Law provides that the share premium account may be applied by the company subject to the provisions, if any, of its memorandum and articles of association, in such manner as the company may from time to time determine including, but without limitation, the following: (i) paying distributions or dividends to members; (ii) paying up unissued shares of the company to be issued to members as fully paid bonus shares; (iii) any manner provided in section 37 of the Companies Law; (iv) writing-off the preliminary expenses of the company; and (v) writing-off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company. Notwithstanding the foregoing, the Companies Law provides that no distribution or dividend may be paid to members out of the share premium account unless, immediately following the date on which the distribution or dividend is proposed to be paid, the company will be able to pay its debts as they fall due in the ordinary course of business. It is further provided by the Companies Law that, subject to confirmation by the court, a company limited by shares or a company limited by guarantee and having a share capital may, if authorized to do so by its articles of association, by special resolution reduce its share capital in any way. The Articles include certain protections for holders of special classes of shares, requiring their consent to be obtained before their rights may be varied. The consent of the specified proportions of the holders of the issued shares of that class or the sanction of a resolution passed at a separate meeting of the holders of those shares is required. # (c) Financial assistance to purchase shares of a company or its holding company There are no statutory prohibitions in the Cayman Islands on the granting of financial assistance by a company to another person for the purchase of, or subscription for, its own, its holding company’s or a subsidiary’s shares. Therefore, a company may provide financial assistance provided the directors of the company when proposing to grant such financial assistance discharge their duties of care and acting in good faith, for a proper purpose and in the interests of the company. Such assistance should be on an arm’s-length basis.
20794987_206.pdf	en	<table><tr><td rowspan="3"></td><td colspan="8">截至12月31日止年度</td></tr><tr><td colspan="2">2018年</td><td colspan="2">2019年</td><td colspan="2">2020年</td><td colspan="2">2021年</td></tr><tr><td colspan="8">（人民幣千元，百分比除外）</td></tr><tr><td>為醫聯體提供的診斷檢測服務</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>－感染病診斷檢測</td><td>13,061</td><td>2.2</td><td>28,501</td><td>4.2</td><td>104,709</td><td>8.7</td><td>388,874</td><td>22.9</td></tr><tr><td> －COVID-19檢測</td><td>–</td><td>–</td><td>–</td><td>–</td><td>64,467</td><td>5.4</td><td>327,623</td><td>19.3</td></tr><tr><td>－病理檢測</td><td>25,628</td><td>4.3</td><td>47,379</td><td>7.0</td><td>75,941</td><td>6.3</td><td>101,827</td><td>6.0</td></tr><tr><td>－遺傳病診斷檢測</td><td>48,047</td><td>8.1</td><td>65,339</td><td>9.6</td><td>62,392</td><td>5.2</td><td>83,789</td><td>4.9</td></tr><tr><td>－常規診斷檢測</td><td>14,075</td><td>2.3</td><td>24,845</td><td>3.7</td><td>32,726</td><td>2.7</td><td>44,866</td><td>2.7</td></tr><tr><td>小計</td><td>100,811</td><td>16.9</td><td>166,064</td><td>24.5</td><td>275,768</td><td>22.9</td><td>619,356</td><td>36.5</td></tr><tr><td>為非醫療機構提供的診斷檢測服務</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>－非COVID-19檢測</td><td>4621,9</td><td>7.8</td><td>48,657</td><td>7.2</td><td>45,664</td><td>3.8</td><td>33,018</td><td>1.9</td></tr><tr><td>－COVID-19檢測</td><td>–</td><td>–</td><td>–</td><td>–</td><td>21,155</td><td>1.8</td><td>20,092</td><td>1.2</td></tr><tr><td>小計</td><td>46,219</td><td>7.8</td><td>48,657</td><td>7.2</td><td>66,819</td><td>5.6</td><td>53,110</td><td>3.1</td></tr><tr><td>總計</td><td>596,308</td><td>100.0%</td><td>677,826</td><td>100.0%</td><td>1,200,320</td><td>100.0%</td><td>1,696,740</td><td>100.0%</td></tr></table> 下表概述於往績記錄期間就各檢測類型進行的診斷檢測數目。 <table><tr><td rowspan="3"></td><td colspan="4">截至12月31日止年度</td></tr><tr><td>2018年</td><td>2019年</td><td>2020年</td><td>2021年</td></tr><tr><td colspan="4">千次</td></tr><tr><td>診斷外包服務</td><td></td><td></td><td></td><td></td></tr><tr><td>－感染病診斷檢測</td><td>1,363.5</td><td>1,411.4</td><td>7,659.1</td><td>32,987.9</td></tr><tr><td> －COVID-19檢測</td><td>–</td><td>–</td><td>6,202.0</td><td>31,466.3</td></tr><tr><td>－病理檢測</td><td>1,353.5</td><td>1,267.1</td><td>1,135.5</td><td>1,166.8</td></tr><tr><td>－遺傳病診斷檢測</td><td>1,090.1</td><td>1,031.1</td><td>903.8</td><td>847.7</td></tr><tr><td>－常規診斷檢測</td><td>3,984.0</td><td>3,101.2</td><td>2,563.8</td><td>2,480.2</td></tr><tr><td>小計</td><td>7,791.0</td><td>6,810.8</td><td>12,262.2</td><td>37,482.5</td></tr></table>
20794987_207.pdf	en	<table><tr><td rowspan="3"></td><td colspan="4">截至12月31日止年度</td></tr><tr><td>2018年</td><td>2019年</td><td>2020年</td><td>2021年</td></tr><tr><td colspan="4">千次</td></tr><tr><td>為醫聯體提供的診斷檢測服務</td><td></td><td></td><td></td><td></td></tr><tr><td>－感染病診斷檢測</td><td>136.7</td><td>238.9</td><td>1,437.0</td><td>13,082.2</td></tr><tr><td> －COVID-19檢測</td><td>–</td><td>–</td><td>1,092.3</td><td>12,544.8</td></tr><tr><td>－病理檢測</td><td>213.7</td><td>322.9</td><td>500.2</td><td>708.1</td></tr><tr><td>－遺傳病診斷檢測</td><td>216.0</td><td>327.5</td><td>359.2</td><td>472.5</td></tr><tr><td>－常規診斷檢測</td><td>210.6</td><td>384.6</td><td>542.3</td><td>870.1</td></tr><tr><td>小計</td><td>777.0</td><td>1,273.9</td><td>2,838.7</td><td>15,132.9</td></tr><tr><td>為非醫療機構提供的診斷檢測服務</td><td></td><td></td><td></td><td></td></tr><tr><td>－非COVID-19檢測</td><td>242.9</td><td>166.7</td><td>160.4</td><td>119.0</td></tr><tr><td>－COVID-19檢測</td><td>–</td><td>–</td><td>158.2</td><td>461.0</td></tr><tr><td>小計</td><td>242.9</td><td>166.7</td><td>318.5</td><td>580.0</td></tr><tr><td>總計</td><td>8,810.9</td><td>8,251.4</td><td>15,419.4</td><td>53,195.4</td></tr></table> 自2020年開始，COVID-19檢測佔我們收益的很大一部分。下表概述於往績記錄期間COVID-19檢測及非COVID-19檢測所產生的收益、毛利及毛利率。 <table><tr><td rowspan="4"></td><td colspan="12">截至12月31日止年度</td></tr><tr><td colspan="3">2018年</td><td colspan="3">2019年</td><td colspan="3">2020年</td><td colspan="3">2021年</td></tr><tr><td>收益</td><td>毛利</td><td>毛利率</td><td>收益</td><td>毛利</td><td>毛利率</td><td>收益</td><td>毛利</td><td>毛利率</td><td>收益</td><td>毛利</td><td>毛利率</td></tr><tr><td colspan="12">人民幣千元，百分比除外</td></tr><tr><td>COVID-19檢測</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>547,051</td><td>347,713</td><td>63.6%</td><td>985,674</td><td>559,969</td><td>56.8%</td></tr><tr><td>非COVID-19檢測</td><td>596,308</td><td>240,385</td><td>40.3%</td><td>677,826</td><td>2991,94</td><td>44.1%</td><td>6532,69</td><td>3081,82</td><td>47.2%</td><td>711,066</td><td>3391,68</td><td>47.7%</td></tr><tr><td>總計╱整體</td><td>596,308</td><td>240,385</td><td>40.3%</td><td>677,826</td><td>2991,94</td><td>44.1%</td><td>12,002,30</td><td>655,895</td><td>54.6%</td><td>1,696,740</td><td>8991,37</td><td>53.0%</td></tr></table>
9274943_229.pdf	en	<table><tr><td>按单项计提减值准备</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>按组合计提减值准备</td><td>1,906,837. 35</td><td>100.00</td><td> 92,752. 38</td><td>4.86</td><td> 1,814,084. 97</td><td>1,910,521. 67</td><td>100.00</td><td> 102,598. 95</td><td>5.37</td><td> 1,807,922. 72</td></tr><tr><td>其中：</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>信用风险组合</td><td>1,906,837. 35</td><td>100.00</td><td> 92,752. 38</td><td>4.86</td><td> 1,814,084. 97</td><td>1,910,521. 67</td><td>100.00</td><td> 102,598. 95</td><td>5.37</td><td> 1,807,922. 72</td></tr><tr><td>合计</td><td>1,906,837. 35</td><td>100.00</td><td> 92,752. 38</td><td></td><td>1,814,084. 97</td><td>1,910,521. 67</td><td>100.00</td><td> 102,598. 95</td><td></td><td>1,807,922. 72</td></tr></table> 按组合计提减值准备：单位：元 <table><tr><td>名称</td><td colspan="3">期末余额</td></tr><tr><td></td><td>合同资产</td><td>减值准备</td><td>计提比例（%）</td></tr><tr><td>智能建设项目</td><td>1,906,837.35</td><td>92,752.38</td><td>4.86</td></tr><tr><td>合计</td><td>1,906,837.35</td><td>92,752.38</td><td>4.86</td></tr></table> # （2）本期合同资产计提减值准备情况单位：元 <table><tr><td>项目</td><td>本期计提</td><td>本期转回</td><td>本期转销/核销</td><td>原因</td></tr><tr><td>智能项目</td><td></td><td>9,846.57</td><td></td><td></td></tr><tr><td>合计</td><td></td><td>9,846.57</td><td></td><td>--</td></tr></table> # 9、一年内到期的非流动资产单位：元 <table><tr><td>项目</td><td>期末余额</td><td>期初余额</td></tr><tr><td>一年内到期的长期应收款</td><td>196,410,819.65</td><td></td></tr><tr><td>一年内到期的贷款及利息</td><td>299,999,515.56</td><td></td></tr><tr><td>合计</td><td>496,410,335.21</td><td></td></tr></table> 其他说明：一年内到期的长期应收款已计提坏账36,087,696.95元，一年内到期的贷款已计提坏账11,599,485.02元。 # 10、其他流动资产单位：元 <table><tr><td>项目</td><td>期末余额</td><td>期初余额</td></tr><tr><td>待抵扣税金</td><td>738,521,722.95</td><td>563,255,944.46</td></tr></table>
9274943_230.pdf	en	<table><tr><td>预交税金</td><td>6,346,418.83</td><td>18,277,911.27</td></tr><tr><td>待处理流动资产损益</td><td>18,017.82</td><td>18,088.51</td></tr><tr><td>其他</td><td>9,594,007.94</td><td></td></tr><tr><td>合计</td><td>754,480,167.54</td><td>581,551,944.24</td></tr></table> # 11、发放贷款和垫款 # 按类别列示如下：单位：元 <table><tr><td>项目</td><td>期末余额</td><td>上年年末余额</td></tr><tr><td>贷款及垫款本金</td><td>2,955,000.00</td><td>503,781,789.01</td></tr><tr><td>贷款及垫款利息</td><td></td><td>1,433,595.55</td></tr><tr><td>合计</td><td>2,955,000.00</td><td>505,215,384.56</td></tr></table> # 贷款按类别列示如下：单位：元 <table><tr><td rowspan="2">借款类别</td><td colspan="4">期末余额</td></tr><tr><td>金额</td><td>比例(%)</td><td>贷款损失准备</td><td>净额</td></tr><tr><td>正常</td><td>3,000,000.00</td><td>1.50</td><td>45,000.00</td><td>2,955,000.00</td></tr><tr><td>关注</td><td></td><td>3.00</td><td></td><td></td></tr><tr><td>次级</td><td></td><td>30.00</td><td></td><td></td></tr><tr><td>可疑</td><td></td><td>60.00</td><td></td><td></td></tr><tr><td>损失</td><td>271,670,600.00</td><td>100.00</td><td>271,670,600.00</td><td></td></tr><tr><td>合计</td><td>274,670,600.00</td><td></td><td>271,715,600.00</td><td>2,955,000.00</td></tr></table> 续上表单位：元 <table><tr><td rowspan="2">借款类别</td><td colspan="4">上年年末余额</td></tr><tr><td>金额</td><td>比例(%)</td><td>贷款损失准备</td><td>净额</td></tr><tr><td>正常</td><td>511,453,592.90</td><td>1.50</td><td>7,671,803.89</td><td>503,781,789.01</td></tr><tr><td>关注</td><td></td><td>3.00</td><td></td><td></td></tr><tr><td>次级</td><td></td><td>30.00</td><td></td><td></td></tr><tr><td>可疑</td><td></td><td>60.00</td><td></td><td></td></tr><tr><td>损失</td><td>272,670,600.00</td><td>100.00</td><td>272,670,600.00</td><td></td></tr><tr><td>合计</td><td>784,124,192.90</td><td></td><td>280,342,403.89</td><td>503,781,789.01</td></tr></table> # 贷款按账龄分析列示如下：单位：元
11704959_6.pdf	en	<table><tr><td>Items</td><td>Amount for the current period</td><td> Description</td></tr><tr><td>Impairment provision of assets for force majeure such as natural calamities</td><td></td><td></td></tr><tr><td>Gains or losses from debt restructuring</td><td></td><td></td></tr><tr><td>Restructure expenses, such as the compensation for emlpoyee relocation and integration cost</td><td></td><td></td></tr><tr><td>Gains or losses from transactions with obvious unfair transaction price in excess of fair values</td><td></td><td></td></tr><tr><td>Current net gains or losses of the subsidiaries from enterprise merger under the common control from the beinning of the period to the merger dgate</td><td></td><td></td></tr><tr><td>Profit or loss arising from contingencies not related to the Compan’s normal byusiness</td><td></td><td></td></tr><tr><td>Except for effective hedihgng business related to te normal business of the Company, profits or losses from fair value changes in held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and investment income from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments</td><td></td><td></td></tr><tr><td>Reversal of the impairment provision for receivables and contract assets subject to individual impairment test</td><td></td><td></td></tr></table>
11704959_7.pdf	en	<table><tr><td>Items</td><td>Amount for the current period</td><td> Description</td></tr><tr><td>Profit or loss from entrusted loans</td><td></td><td></td></tr><tr><td>Profit or loss from fair value changes in investment property subsequently calculated with the fair value mode</td><td></td><td></td></tr><tr><td>Impacts of one-off adjustment of the current profit or loss in accordance with requirements of tax and accounting laws and regulations on the current profit and loss</td><td></td><td></td></tr><tr><td>Custodian income from entrusted management</td><td></td><td></td></tr><tr><td>Other non-operating income and expenses other than the aforesaid items</td><td>504,094.48</td><td></td></tr><tr><td>Other items of gains or losses subject to the definition of non- recurring gains or losses</td><td></td><td></td></tr><tr><td>Amount of effect on non-controlling interests (after tax)</td><td>-22,337.22</td><td></td></tr><tr><td>Amount of effect on income tax</td><td>-622,109.07</td><td></td></tr><tr><td>Total</td><td>-1,199,268.75</td><td></td></tr></table>
9220448_88.pdf	en	<table><tr><td>3．盈余公积弥补亏损</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>4．设定受益计划变动额结转留存收益</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>5．其他综合收益结转留存收益</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>6．其他</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>（五）专项储备</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>1．本期提取</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>2．本期使用</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>（六）其他</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>四、本期期末余额</td><td>1,126,430,898.00</td><td></td><td></td><td></td><td>1,796,017,234.05</td><td></td><td>5,232,266.52</td><td></td><td>117,149,878.81</td><td></td><td>-163,107,683.83</td><td></td><td>2,881,722,593.55</td><td>10,060,358.38</td><td>2,891,782,951.93</td></tr></table> 上期金额 <table><tr><td rowspan="4">项目</td><td colspan="15">2020 年年度</td></tr><tr><td colspan="13">归属于母公司所有者权益</td><td rowspan="3">少数股东权益</td><td rowspan="3">所有者权益合计</td></tr><tr><td rowspan="2">股本</td><td colspan="3">其他权益工具</td><td rowspan="2">资本公积</td><td rowspan="2">减：库存股</td><td rowspan="2">其他综合收益</td><td rowspan="2">专项储备</td><td rowspan="2">盈余公积</td><td rowspan="2">一般风险准备</td><td rowspan="2">未分配利润</td><td rowspan="2">其他</td><td rowspan="2">小计</td></tr><tr><td>优先股</td><td>永续债</td><td>其他</td></tr><tr><td>一、上年期末余额</td><td>1,126,430,898.00</td><td></td><td></td><td></td><td>1,870,208,433.72</td><td>238,242,934.62</td><td>5,232,266.52</td><td></td><td>110,887,582.01</td><td></td><td>-341,403,215.40</td><td></td><td>2,533,113,030.23</td><td>7,800,746.34</td><td>2,540,913,776.57</td></tr></table>
9220448_89.pdf	en	<table><tr><td> 加：会计政策变更</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> 前期差错更正</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> 同一控制下企业合并</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> 其他</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>二、本年期初余额</td><td>1,126,430,898.00</td><td></td><td></td><td></td><td>1,870,208,433.72</td><td>238,242,934.62</td><td>5,232,266.52</td><td></td><td>110,887,582.01</td><td></td><td>-341,403,215.40</td><td></td><td>2,533,113,030.23</td><td>7,800,746.34</td><td>2,540,913,776.57</td></tr><tr><td>三、本期增减变动金额（减少以 “－”号填列）</td><td></td><td></td><td></td><td></td><td>-132,229,526.13</td><td>-238,242,934.62</td><td></td><td></td><td>6,262,296.80</td><td></td><td>163,942,025.56</td><td></td><td>276,217,730.85</td><td>2,234,031.48</td><td>278,451,762.33</td></tr><tr><td>（一）综合收益总额</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>170,204,322.36</td><td></td><td>170,204,322.36</td><td>14,031.48</td><td>170,218,353.84</td></tr><tr><td>（二）所有者投入和减少资本</td><td></td><td></td><td></td><td></td><td>16,738,959.24</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>16,738,959.24</td><td>2,220,000.00</td><td>18,958,959.24</td></tr><tr><td>1．所有者投入的普通股</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>2,220,000.00</td><td>2,220,000.00</td></tr><tr><td>2．其他权益工具持有者投入资本</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>3．股份支付计入所有者权益的金额</td><td></td><td></td><td></td><td></td><td>16,738,959.24</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>16,738,959.24</td><td></td><td>16,738,959.24</td></tr><tr><td>4．其他</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>（三）利润分配</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>6,262,296.80</td><td></td><td>-6,262,296.80</td><td></td><td></td><td></td><td></td></tr><tr><td>1．提取盈余公积</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>6,262,296.80</td><td></td><td>-6,262,296.80</td><td></td><td></td><td></td><td></td></tr></table>
8405455_56.pdf	en	China, such as the H5N1 avian flu or the human swine flu, also known as Influenza A (H1N1), especially in the cities where we have operations, may result in material disruptions to our property development and our sales and marketing, which in turn may materially and adversely affect our business, financial condition, results of operations and prospects. # You may experience difficulties in effecting service of process, enforcing foreign judgments or bringing original actions in China against us or our Directors or officers We are a company incorporated under the laws of the Cayman Islands, but substantially all of our operations and assets are located in China. As a result, it may be difficult or impossible for you to effect service of process upon us. Moreover, China does not have treaties with most other jurisdictions, including Hong Kong, that provide for the reciprocal recognition and enforcement of judicial rulings and awards. As a result, recognition and enforcement in China of thej udgment of a non-PRC court, such as Hong Kong, in relation to any matter not subject to a binding arbitration provision may be difficult or impossible. Furthermore, an original action may be brought in China against us or our Directors or officers only if the actions are not required to be arbitrated by PRC law and upon satisfaction of the conditions for institution of a cause of action pursuant to the PRC Civil Procedure Law. As a result of the conditions set forth in the PRC Civil Procedure Law and the discretion of the PRC courts to determine whether the conditions are satisfied and whether to accept the action for adjudication, there remains uncertainty on whether an investor like you will be able to bring an original action in China in this fashion. # RISKS RELATING TO THE GLOBAL OFFERING # There has been no prior public market for our Shares. The market prices and liquidity of our Shares following the Global Offering may be volatile Prior to the Global Offering, there has been no public market for our Shares. Following the completion of the Global Offering, the Hong Kong Stock Exchange will be the only market on which our Shares are listed. We cannot assure you that an active, liquid public trading market for our Shares will develop upon the present listing on the Hong Kong Stock Exchange. In addition, following the Global Offering our Shares may trade in the public market below the Offer Price. The Offer Price will be determined by agreement among us and the Joint Bookrunners, on behalf of the Underwriters, and the Offer Price may differ significantly from the market price of our Shares following the completion of the Global Offering. If an active trading market for our Shares does not develop or is not sustained after the Global Offering, the market price and liquidity of our Shares could be materially and adversely affected. # The trading price of our Shares may be volatile, which could result in substantial losses to you The trading price of our Shares may be volatile and could fluctuate widely in response to factors beyond our control, including general market conditions of the securities markets in Hong Kong, China, the United States and elsewhere in the world. In particular, the performance and fluctuation of the market prices of other companies with business operations
8405455_57.pdf	en	located mainly in China that have listed their securities in Hong Kong, and in particular other property companies, may affect the volatility in the price of and trading volumes for our Shares. Recently, a number of PRC companies have listed their securities, or are in the process of preparing to list their securities, in Hong Kong. Some of the listed companies have experienced significant share price volatility, including significant declines, after their initial public offerings. The trading performances of the securities of these companies at the time of or after their offerings may affect the overall investor sentiment towards companies listed in Hong Kong whose operations are primarily in China, and, consequently, may impact the trading performance of our Shares. These broad market and industry factors may significantly affect the market price and volatility of our Shares, regardless of our actual operating performance. In addition to market and industry factors, the share price and trading volume for our Shares may be highly volatile for specific business reasons. In particular, factors such as variations in our turnover, earnings and cash flow, or the occurrence or speculation of any of the risks described elsewhere in this “Risk Factors” section, could cause the market price of our Shares to change substantially. Any of these factors may result in large and sudden changes in the price and trading volume of our Shares. # Future sale of our securities in the public market (or perception or speculation that such sales may occur) could have a material and adverse impact on the prevailing market price of our Shares The market price of the Offer Shares could decline as a result of future sale of substantial amount of Shares or other securities relating to the Shares in the public market or the issuance of new Shares or other securities, or the perception or speculation that such sales or issuances may occur. Future sale of substantial amounts of our securities, including any future offerings, or the perception that such sales are likely to occur, may also materially and adversely affect our ability to raise capital in the future at a time and at a price we deem to be appropriate. In addition, the Shares held by our Controlling Shareholders are subject to a lock-up period, details of which are set out in the section headed “Underwriting — The Hong Kong Public Offering — Undertakings under the Hong Kong Underwriting Agreement” of this prospectus. While we are not aware of any intentions of these shareholders to dispose of significant amounts of their Shares after the completion of the lock-up periods, we are not in a position to give any assurances that they will not dispose of any Shares they may own. Future sales of our Shares by our Controlling Shareholders following the completion of the relevant lock-up periods could materially and adversely affect the prevailing market price of our Shares. # Purchasers of our Shares in the Global Offering may experience dilution if we issue additional Shares in the future In order to expand our business, we may consider issuing additional Shares in the future. Purchasers of our Shares may experience dilution in the net tangible asset book value per Share of their Shares if we issue additional Shares in the future at a price which is lower than the net tangible asset book value per Share.
11783095_14.pdf	en	\[ \begin{array} { r l } { ( 1 1 ) } & { \displaystyle \int _ { M } \left[ \sum _ { k = 1 } ^ { n } \| I I ( e _ { k } , \omega ^ { \sharp } ) \| ^ { 2 } + \sum _ { k = 1 } ^ { n } \| I I ( e _ { k } , N ) \| ^ { 2 } \| \omega \| ^ { 2 } \right] d M } \\ & { \displaystyle - \int _ { M } \left[ \sum _ { k = 1 } ^ { n } R m ^ { N } ( e _ { k } , \omega ^ { \sharp } , e _ { k } , \omega ^ { \sharp } ) + R i c ^ { N } ( N , N ) \| \omega \| ^ { 2 } \right] d M < \eta \int _ { M } \| \omega \| ^ { 2 } d M . } \end{array} \] Then \[ \# \{ e i g e n v a l u e s ~ o f ~ t h e ~ J a c o b i ~ o p e r a t o r ~ o f ~ M ^ { n } ~ t h a t ~ a r e < \eta \} \geq \frac { 2 } { d ( d - 1 ) } q . \] Proof. (Compare [29] Theorem 16 and [30] Theorem 1.1). Let k be the number of eigenvalues of the Jacobi operator (5) of $ M ^ { n } $ that are below $ \eta $. Denote by $ \phi _ { 1 } , \ldots , \phi _ { k } $ the eigenfunctions associated to the k eigenvalues $ \lambda _ { 1 } \le \lambda _ { 2 } \le \lambda _ { 3 } \ldots \leq \lambda _ { k } $ of the Jacobi operator of $ M ^ { n } $ that are strictly smaller than $ \eta $. Fix some global orthonormal basis $ \{ \theta _ { i j } \} _ { i < j } $ of $ \Lambda ^ { 2 } \mathbb { R } ^ { d } $ and let $ u _ { i j } \, = $$ \langle N \wedge \omega ^ { \sharp } , \theta _ { i j } \rangle $ be the test functions defined in Proposition 2. The map that assigns to each $ \omega \in \mathcal { V } $ the vector \[ \left[ \int _ { M } u _ { i j } \phi _ { p } d M \right] , \] where $ i < j $ range from 1 to d and p ranges from 1 to k, is a linear map from the q dimensional vector space $ \nu $ to a vector space of dimension \[ { \binom { d } { 2 } } k = { \frac { d ( d - 1 ) } { 2 } } k . \] Assume, by contradiction, that $ \begin{array} { r } { q > \frac { d ( d - 1 ) } { 2 } k } \end{array} $. Then there would exist $ \omega $ in $ \mathcal { V } \setminus \{ 0 \} $ such that $ \begin{array} { r } { \int _ { M } u _ { i j } \phi _ { p } d M = 0 } \end{array} $ for all $ i < j $ and all p. Thus, as each $ u _ { i j } $ is $ L ^ { 2 } $-orthogonal to all the first k eigenfunctions $ \phi _ { p } $, from the Courant-Hilbert variational characterization of eigenvalues it follows that \[ \sum _ { i < j } ^ { d } Q ( u _ { i j } , u _ { i j } ) \ge \lambda _ { k + 1 } \sum _ { i < j } ^ { d } \int _ { M } u _ { i j } ^ { 2 } d M = \lambda _ { k + 1 } \int _ { M } \| \omega \| ^ { 2 } d M \ge \eta \int _ { M } \| \omega \| ^ { 2 } d M . \] In view of Proposition 2, this is a contradiction with the assumption that inequality (11) holds for all $ \omega $ in $ \mathcal { V } \setminus \{ 0 \} $. The result follows. q.e.d. Remark 4.1. The same proof of the above proposition also gives more refined information when the two-sided immersion $ M ^ { n } $ arises as the two-sided cover of an one-sided immersed hypersurface in $ N ^ { n + 1 } $ (see sections
11783095_15.pdf	en	2.1 and 2.3). If one moreover assumes that all harmonic one-forms on the subspace $ \nu $ are such that all the corresponding functions $ u _ { i j } $ are odd with respect to the deck transformation of the cover, then one can repeat the argument considering the restriction of the Jacobi operator of $ M ^ { n } $ to the space of odd functions. It then follows that the number of eigenvalues of the one-sided hypersurface covered by $ M ^ { n } $ below the threshold $ \eta $ is bounded from below by 2 $ 2 q / d ( d - 1 ) $. As a corollary, in the case $ \eta $ = 0 we obtain an estimate on the number of negative values of the Jacobi operator, that is, an index estimate: Theorem A. Let $ ( \mathcal { N } ^ { n + 1 } , g ) $ be a Riemannian manifold that is iso-metrically embedded in some Euclidean space $ \mathbb { R } ^ { d } $. Let $ M ^ { n } $ be a closed embedded minimal hypersurface of $ ( \mathcal { N } ^ { n + 1 } , g ) $. Assume that for every non-zero vector field X on $ M ^ { n } $, \[ \begin{array} { l l } { \displaystyle \int _ { M } \left[ \sum _ { k = 1 } ^ { n } R m ^ { N } ( e _ { k } , X , e _ { k } , X ) + R i c ^ { N } ( N , N ) \| X \| ^ { 2 } \right] d M } \\ { \displaystyle } & { \displaystyle \qquad \qquad \> \int _ { M } \left[ \sum _ { k = 1 } ^ { n } \| I I ( e _ { k } , X ) \| ^ { 2 } + \sum _ { k = 1 } ^ { n } \| I I ( e _ { k } , N ) \| ^ { 2 } \| X \| ^ { 2 } \right] d M } \end{array} \] Then \[ ( 1 2 ) \qquad \qquad \qquad \qquad i n d e x ( M ) \geq \frac { 2 } { d ( d - 1 ) } b _ { 1 } ( M ) . \] Proof. Assume $ M ^ { n } $ is two-sided. Under the assumption of the corol-lary, the hypothesis of Proposition 3 is automatically satisfied for $ \eta $= 0 and $ \nu $ the set of all harmonic one-forms on $ M ^ { n } $, whose dimension is $ b _ { 1 } ( M ) $. Inequality (12) follows. When $ M ^ { n } $ is one-sided, let $ \pi \, = \, \hat { M } ^ { n } \, \rightarrow \, M ^ { n } \, \subset \, \mathcal { N } ^ { n + 1 } $ be its two-sided cover and let V be the set of harmonic one-forms on $ \hat { M } ^ { n } $ that are invariant under the deck transformation $ \tau : \hat { M } ^ { n } \rightarrow \hat { M } ^ { n } $. This space has dimension at least $ b _ { 1 } ( M ) $, as it contains all the forms $ \pi ^ { * } \omega $, where $ \omega $ is harmonic on $ M ^ { n } $(in fact, $ \pi ^ { * } : H ^ { 1 } ( M ; \mathbb { R } ) \to H ^ { 1 } ( \hat { M } ; \mathbb { R } ) $ is injective). The result follows as a consequence of Proposition 3 (see Remark 4.1) once one checks that, by construction of $ \hat { M } ^ { n } $, for all $ \hat { \omega } $ in V, each function $ \hat { u } _ { i j } = \langle \hat { N } \wedge \omega ^ { \sharp } , \theta _ { i j } \rangle $ satisfy \[ \hat { u } _ { i j } ( \tau ( x ) ) = \langle \hat { N } ( \tau ( x ) ) \wedge \omega ^ { \sharp } ( \tau ( x ) ) , \theta _ { i j } \rangle = \langle - \hat { N } ( x ) \wedge \omega ^ { \sharp } ( x ) , \theta _ { i j } \rangle = - \hat { u } _ { i j } ( x ) \] for all x in $ \hat { M } ^ { n } $, i.e, all functions $ u _ { i j } $ are odd with respect to the deck transformation $ \tau $. q.e.d.
2129714_20.pdf	en	<table><tr><td rowspan="16"></td><td>600098 .SH</td><td>广州发展</td><td>0.01</td><td>0.21</td><td>5.57</td><td>7.37</td><td>629.91</td><td>1.32</td><td>46.44</td><td>0.36</td><td>-84.67</td></tr><tr><td>600167 .SH</td><td>联美控股</td><td>0.66</td><td>16.68</td><td>3.33</td><td>20.11</td><td>30.29</td><td>6.04</td><td>10.46</td><td>4.65</td><td>41.92</td></tr><tr><td>600396 .SH</td><td>金山股份</td><td>-0.03</td><td>-1.31</td><td>2.42</td><td>3.82</td><td>-119.7 5</td><td>1.58</td><td>17.01</td><td>-0.56</td><td>-136.88</td></tr><tr><td>600483 .SH</td><td>福能股份</td><td>0.13</td><td>1.98</td><td>6.56</td><td>10.28</td><td>79.08</td><td>1.57</td><td>11.19</td><td>1.91</td><td>43.45</td></tr><tr><td>600509 .SH</td><td>天富能源</td><td>0.15</td><td>2.79</td><td>5.40</td><td>7.30</td><td>48.67</td><td>1.35</td><td>10.27</td><td>1.36</td><td>65.94</td></tr><tr><td>600578 .SH</td><td>京能电力</td><td>-0.01</td><td>-0.23</td><td>3.47</td><td>4.32</td><td>-432.0 0</td><td>1.24</td><td>23.58</td><td>-1.64</td><td>-135.99</td></tr><tr><td>600642 .SH</td><td>申能股份</td><td>0.11</td><td>1.97</td><td>5.64</td><td>6.08</td><td>54.77</td><td>1.08</td><td>86.34</td><td>6.47</td><td>-14.17</td></tr><tr><td>600719 .SH</td><td>大连热电</td><td>0.14</td><td>7.59</td><td>1.94</td><td>8.00</td><td>56.34</td><td>4.12</td><td>4.32</td><td>0.57</td><td>-30.81</td></tr><tr><td>600726 .SH</td><td>华电能源</td><td>0.13</td><td>7.41</td><td>1.86</td><td>4.45</td><td>34.23</td><td>2.39</td><td>27.88</td><td>3.22</td><td>-37.21</td></tr><tr><td>600744 .SH</td><td>华银电力</td><td>-0.10</td><td>-4.56</td><td>2.22</td><td>5.21</td><td>-52.10</td><td>2.34</td><td>19.33</td><td>-1.83</td><td>-1220.7 5</td></tr><tr><td>600780 .SH</td><td>通宝能源</td><td>-0.01</td><td>-0.20</td><td>4.10</td><td>5.74</td><td>-700.0 0</td><td>1.40</td><td>11.83</td><td>-0.10</td><td>-122.10</td></tr><tr><td>600795 .SH</td><td>国电电力</td><td>0.05</td><td>1.97</td><td>2.56</td><td>3.60</td><td>72.00</td><td>1.40</td><td>147.1 6</td><td>13.18</td><td>-51.37</td></tr><tr><td>600863 .SH</td><td>内蒙华电</td><td>-0.03</td><td>-1.63</td><td>1.74</td><td>3.01</td><td>-103.7 9</td><td>1.73</td><td>19.55</td><td>-2.27</td><td>-2134.0 9</td></tr><tr><td>600886 .SH</td><td>国投电力</td><td>0.14</td><td>3.17</td><td>4.36</td><td>7.94</td><td>57.96</td><td>1.82</td><td>76.31</td><td>18.53</td><td>-19.72</td></tr><tr><td>600982 .SH</td><td>宁波热电</td><td>0.05</td><td>1.48</td><td>3.29</td><td>4.78</td><td>98.76</td><td>1.45</td><td>4.50</td><td>0.41</td><td>158.86</td></tr><tr><td>601991 .SH</td><td>大唐发电</td><td>0.05</td><td>1.58</td><td>3.03</td><td>4.87</td><td>102.74</td><td>1.61</td><td>153.1 2</td><td>6.06</td><td>24.57</td></tr><tr><td rowspan="7">水电</td><td>000601 .SZ</td><td>韶能股份</td><td>0.11</td><td>2.88</td><td>4.03</td><td>6.88</td><td>60.09</td><td>1.71</td><td>8.34</td><td>1.29</td><td>-25.14</td></tr><tr><td>000722 .SZ</td><td>湖南发展</td><td>0.06</td><td>1.01</td><td>5.92</td><td>12.23</td><td>203.83</td><td>2.07</td><td>0.65</td><td>0.26</td><td>-24.77</td></tr><tr><td>000791 .SZ</td><td>甘肃电投</td><td>-0.14</td><td>-2.79</td><td>5.00</td><td>8.32</td><td>-58.80</td><td>1.66</td><td>2.34</td><td>-1.43</td><td>27.88</td></tr><tr><td>000993 .SZ</td><td>闽东电力</td><td>0.00</td><td>0.12</td><td>4.10</td><td>8.57</td><td>1785.4 2</td><td>2.09</td><td>2.08</td><td>0.01</td><td>-91.30</td></tr><tr><td>002039 .SZ</td><td>黔源电力</td><td>-0.01</td><td>-0.18</td><td>6.95</td><td>14.06</td><td>-1107. 09</td><td>2.02</td><td>3.11</td><td>-0.05</td><td>-103.91</td></tr><tr><td>600236 .SH</td><td>桂冠电力</td><td>0.05</td><td>2.34</td><td>2.22</td><td>5.59</td><td>111.80</td><td>2.51</td><td>18.03</td><td>3.71</td><td>-54.88</td></tr><tr><td>600674</td><td>川投</td><td>0.18</td><td>3.86</td><td>4.85</td><td>9.59</td><td>52.29</td><td>1.98</td><td>2.13</td><td>8.19</td><td>-11.38</td></tr></table>
2129714_21.pdf	en	<table><tr><td rowspan="3"></td><td>.SH</td><td>能源</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>600868 .SH</td><td>梅雁吉祥</td><td>0.00</td><td>0.00</td><td>1.18</td><td>4.68</td><td>995.74</td><td>3.97</td><td>0.46</td><td>0.09</td><td>-62.21</td></tr><tr><td>600900 .SH</td><td>长江电力</td><td>0.12</td><td>2.09</td><td>5.96</td><td>14.78</td><td>120.06</td><td>2.48</td><td>78.55</td><td>27.09</td><td>16.67</td></tr><tr><td rowspan="6">其他发电</td><td>000591 .SZ</td><td>太阳能</td><td>0.05</td><td>0.66</td><td>3.78</td><td>5.55</td><td>101.28</td><td>1.47</td><td>5.68</td><td>0.75</td><td>123.66</td></tr><tr><td>000939 .SZ</td><td>凯迪生态</td><td>0.05</td><td>0.89</td><td>6.09</td><td>10.13</td><td>202.60</td><td>1.66</td><td>9.86</td><td>1.35</td><td>46.74</td></tr><tr><td>002015 .SZ</td><td>霞客环保</td><td>-0.02</td><td>0.00</td><td>0.71</td><td>8.09</td><td>-539.3 3</td><td>11.44</td><td>0.62</td><td>-0.06</td><td>-127.07</td></tr><tr><td>300569 .SZ</td><td>天能重工</td><td>0.39</td><td>2.00</td><td>10.96</td><td>64.35</td><td>165.13</td><td>5.87</td><td>1.69</td><td>0.33</td><td>-10.85</td></tr><tr><td>601016 .SH</td><td>节能风电</td><td>0.05</td><td>1.55</td><td>1.54</td><td>3.89</td><td>81.04</td><td>2.53</td><td>4.32</td><td>1.17</td><td>20.57</td></tr><tr><td>601985 .SH</td><td>中国核电</td><td>0.08</td><td>2.94</td><td>2.69</td><td>7.76</td><td>99.49</td><td>2.88</td><td>79.67</td><td>21.71</td><td>18.69</td></tr><tr><td rowspan="10">电网</td><td>600101 .SH</td><td>明星电力</td><td>0.08</td><td>1.24</td><td>6.18</td><td>9.50</td><td>125.00</td><td>1.54</td><td>3.55</td><td>0.25</td><td>-13.65</td></tr><tr><td>600116 .SH</td><td>三峡水利</td><td>0.05</td><td>1.97</td><td>2.52</td><td>10.42</td><td>212.65</td><td>4.14</td><td>2.48</td><td>0.47</td><td>4.43</td></tr><tr><td>600131 .SH</td><td>岷江水电</td><td>0.01</td><td>0.24</td><td>2.08</td><td>7.31</td><td>1462.0 0</td><td>3.51</td><td>1.56</td><td>0.01</td><td>-98.17</td></tr><tr><td>600310 .SH</td><td>桂东电力</td><td>-0.09</td><td>-2.98</td><td>2.97</td><td>6.58</td><td>-69.70</td><td>2.22</td><td>17.38</td><td>-0.82</td><td>-495.35</td></tr><tr><td>600452 .SH</td><td>涪陵电力</td><td>0.35</td><td>5.96</td><td>6.00</td><td>43.40</td><td>124.00</td><td>7.23</td><td>4.78</td><td>0.55</td><td>130.09</td></tr><tr><td>600505 .SH</td><td>西昌电力</td><td>0.03</td><td>1.00</td><td>2.86</td><td>7.76</td><td>274.20</td><td>2.72</td><td>2.19</td><td>0.15</td><td>141.64</td></tr><tr><td>600644 .SH</td><td>乐山电力</td><td>0.06</td><td>2.39</td><td>2.32</td><td>7.29</td><td>132.55</td><td>3.14</td><td>4.86</td><td>0.33</td><td>-7.26</td></tr><tr><td>600969 .SH</td><td>郴电国际</td><td>0.06</td><td>0.46</td><td>12.32</td><td>13.62</td><td>240.64</td><td>1.11</td><td>5.85</td><td>0.28</td><td>29.35</td></tr><tr><td>600979 .SH</td><td>广安爱众</td><td>0.05</td><td>1.41</td><td>3.50</td><td>5.46</td><td>111.20</td><td>1.56</td><td>4.52</td><td>0.47</td><td>309.19</td></tr><tr><td>600995 .SH</td><td>文山电力</td><td>0.20</td><td>5.78</td><td>3.53</td><td>9.06</td><td>45.30</td><td>2.57</td><td>5.86</td><td>0.95</td><td>11.41</td></tr></table> 资料来源：长城证券研究所整理
11752195_18.pdf	en	\[ \begin{array} { r l r } { ( 4 . 7 ) } & { \displaystyle \int _ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } = \delta } \frac { 1 } { 2 } \| \nabla u \| ^ { 2 } ( \psi \cdot \nu ) \| x _ { n } \| ^ { 1 - 2 s } - \int _ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } = \delta } ( \nabla u \cdot \psi ) ( \nabla u \cdot \nu ) \| x _ { n } \| ^ { 1 - 2 s } } \\ & { \displaystyle } & { \displaystyle + \int _ { B _ { 1 } ^ { \prime } } 2 \chi \operatorname { d i v } \varphi = O ( \delta ) . } \end{array} \] where $ \nu $ is the unit outer normal to $ \left\{ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } } = \delta \right\} $. Next we estimate the first two integrals in the LHS of the above equality. Since u is homogeneous of degree s (and depends only on $ x _ { 1 } $ and $ x _ { n } $), $ \nabla \boldsymbol { u } \cdot \boldsymbol { \nu } = s \boldsymbol { u } $. Thus, \[ \int _ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } = \delta } ( \nabla u \cdot \psi ) ( \nabla u \cdot \nu ) \| x _ { n } \| ^ { 1 - 2 s } = \int _ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } = \delta } ( \nabla u \cdot \psi ) ( s u ) \| x _ { n } \| ^ { 1 - 2 s } = O ( \delta ) , \] where we have used the growth estimate of u around the zero set as well as\\|∇u\\|\\|x−2sn\\|12 ∈ L2loc(Rn). To estimate the first integral we use the polar coordinates in $ ( x _ { 1 } , x _ { n } ) $-plane: $ x _ { 1 } = r \cos ( \theta ) $, $ x _ { n } = r \sin ( \theta ) $. Then on $ \{ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } } = \delta \} $, \[ \begin{array} { l } { \displaystyle \frac { 1 } { 2 } \| \nabla u \| ^ { 2 } ( \psi \cdot \nu ) \| x _ { n } \| ^ { 1 - 2 s } } \\ { \displaystyle \qquad = \frac { s ^ { 2 } \alpha ^ { 2 } } { 2 \delta } ( \cos ( \theta / 2 ) ) ^ { - 1 + 2 s } ( \| \sin ( \theta ) \| ) ^ { 1 - 2 s } \left[ \cos ( \theta ) ( \psi \cdot e _ { 1 } ) + \sin ( \theta ) ( \psi \cdot e _ { n } ) \right] } \end{array} \] Since $ \psi \cdot e _ { n } = 0 $ on $ B _ { 1 } ^ { \prime } $, \[ \begin{array} { l } { \displaystyle \operatorname* { l i m } _ { \delta \to 0 } \int _ { \sqrt { x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } } = \delta } \frac { 1 } { 2 } \| \nabla u \| ^ { 2 } ( \psi \cdot \nu ) \| x _ { n } \| ^ { 1 - 2 s } d x = \displaystyle \operatorname* { l i m } _ { \delta \to 0 } \int _ { B _ { 1 } ^ { \prime \prime } } \frac { s ^ { 2 } \alpha ^ { 2 } } { 2 \delta } \cdot 2 \delta \times } \\ { \displaystyle \quad \times \int _ { 0 } ^ { \pi } ( \cos ( \theta / 2 ) ) ^ { - 1 + 2 s } ( \sin ( \theta ) ) ^ { 1 - 2 s } ( \cos ( \theta ) ) ^ { 2 } \psi _ { 1 } ( \delta \cos ( \theta ) , x ^ { \prime \prime } , \delta \sin ( \theta ) ) \ d \theta d x ^ { \prime \prime } } \\ { \displaystyle \quad = c _ { 0 } ( s ) \alpha ^ { 2 } \int _ { B _ { 1 } ^ { \prime \prime } } \psi _ { 1 } ( 0 , x ^ { \prime \prime } , 0 ) d x ^ { \prime \prime } , } \end{array} \] where \[ \begin{array} { l } { { c _ { 0 } ( s ) = s ^ { 2 } \displaystyle \int _ { 0 } ^ { \pi } ( \cos ( \theta / 2 ) ) ^ { - 1 + 2 s } ( \sin ( \theta ) ) ^ { 1 - 2 s } ( \cos ( \theta ) ) ^ { 2 } d \theta } } \\ { { \displaystyle = s ^ { 2 } 2 ^ { - 1 - 2 s } \frac { \sqrt { \pi } ( 7 + 4 s ( s - 2 ) ) \Gamma ( 1 - s ) } { \Gamma ( \frac { 7 } { 2 } - s ) } . } } \end{array} \] Combining the above estimates and letting $ \delta \rightarrow $ 0, we have for all $ \varphi \in C _ { c } ^ { \infty } ( B _ { 1 } ^ { \prime } ; \mathbb { R } ^ { n - 1 } ) $ \[ c _ { 0 } ( s ) \alpha ^ { 2 } \int _ { B _ { 1 } ^ { \prime \prime } } \psi _ { 1 } ( 0 , x ^ { \prime \prime } , 0 ) d x ^ { \prime \prime } + \int _ { B _ { 1 } ^ { \prime } } 2 \chi \, \mathrm { d i v } \, \varphi = 0 \] Recalling $ \psi _ { 1 } = \varphi _ { 1 } $ on $ B _ { 1 } ^ { \prime } $, we have proved (4.3). Step 2. We now show that $ \begin{array} { r } { \alpha = \sqrt { \frac { 2 M } { c _ { 0 } ( s ) } } } \end{array} $ and $ \chi = M \chi _ { \{ x _ { 1 } > 0 \} } $$ \mathcal { H } ^ { n - 1 } $-a.e. in $ \mathbb { R } ^ { n - 1 } $. (a) $ \chi \equiv M $ in $ \{ x _ { 1 } > 0 \} $. In fact, if $ y \in \{ x _ { 1 } > 0 \} $, then $ u ( y ^ { \prime } , 0 ) = \alpha ( y _ { 1 } ) ^ { s } > 0 $. Hence by the uniform Ho¨lder convergence of $ u _ { \varepsilon _ { j } } $ to u, we have $ u _ { \varepsilon _ { i } } \geq \varepsilon _ { j } $ in a neighborhood of $ ( y ^ { \prime } , 0 ) $
11752195_19.pdf	en	for any $ j \geq j _ { 0 } $ for some $ j _ { 0 } = j _ { 0 } ( \alpha , y _ { 1 } ) $ large enough. Thus for $ j > j _ { 0 } $ and $ ( x ^ { \prime } , 0 ) $ in the neighborhood of $ ( y ^ { \prime } , 0 ) $ we have \[ \mathcal { B } _ { \varepsilon _ { j } } ( u _ { \varepsilon _ { j } } ) ( x ^ { \prime } ) = \int _ { 0 } ^ { u _ { \varepsilon _ { j } } ( x ^ { \prime } ) / \varepsilon _ { j } } \beta ( s ) d s = M . \] Letting $ j \rightarrow \infty $ and since $ y ^ { \prime } $ is arbitrary, we get $ \chi \equiv M $ in $ \{ x _ { 1 } > 0 \} $. (b) $ \chi \equiv $ 0 in $ \{ x _ { 1 } < 0 \} $. In fact, we can take any $ \varphi $ in (4.3) such that $ \mathrm { s u p p } \, \varphi _ { 1 } \subset \mathbb { R } ^ { n - 1 } \cap \lbrace x _ { 1 } < 0 \rbrace $. Then the LHS of (4.3) will vanish. This implies that $ \chi = c o n s t $ in $ \{ x _ { 1 } < 0 \} $. By Lemma 3.2, $ \chi \equiv M $ or $ \chi \equiv $ 0 in $ \{ x _ { 1 } < 0 \} $. If $ \chi \equiv M $ in $ \{ x _ { 1 } < 0 \} $, then $ \chi \equiv M $ in $ \mathbb { R } ^ { n - 1 } $ by (a). Thus from (4.3) $ \begin{array} { r } { \int _ { \mathbb { R } ^ { n - 2 } } \varphi _ { 1 } ( 0 , x ^ { \prime \prime } ) d x ^ { \prime \prime } \, = \, 0 } \end{array} $ for any compactly supported vector field $ \varphi $, which is a contradiction. This then implies the claim that $ \chi = M \chi _ { \{ x _ { 1 } > 0 \} } $. Next, applying an integration by parts to the RHS of (4.3) we have \[ ( 4 . 8 ) \qquad \qquad \, \, c _ { 0 } ( s ) \alpha ^ { 2 } \int _ { B _ { 1 } ^ { \prime \prime } } \varphi _ { 1 } ( 0 , x ^ { \prime \prime } ) d x ^ { \prime \prime } = 2 M \int _ { B _ { 1 } ^ { \prime \prime } } \varphi _ { 1 } ( 0 , x ^ { \prime \prime } ) d x ^ { \prime \prime } . \] This implies \[ \alpha = \sqrt { \frac { 2 M } { c _ { 0 } ( s ) } } . \eqno \square \] We are now ready to prove Theorem 4.1. Proof of Theorem 4.1. Without loss of generality we assume $ x _ { 0 } \, = \, 0 $ and $ \nu = e _ { 1 } $. We also extend u by the even reflection with respect to $ x _ { n } $. Consider the rescalings $ u _ { \lambda } $ and $ \chi _ { \lambda } $ at the origin. By Theorem 2.1 given $ \rho > $ 0,$ u _ { \lambda } $ is uniformly bounded in $ C ^ { 0 , s } ( \overline { { B _ { \rho / \lambda } } } ) $. Therefore, there exists a sequence $ \lambda _ { j } \to 0 $,$ u _ { 0 } \in C ^ { 0 , s } ( \mathbb { R } ^ { n } ) $ and $ \chi _ { 0 } \in L ^ { \infty } ( \mathbb { R } ^ { n } ) $ such that $ u _ { \lambda _ { j } } \to u _ { 0 } $ uniformly on compact subsets of $ \mathbb { R } ^ { n } $ and $ \chi _ { \lambda _ { j } } \rightharpoonup _ { \lambda 0 } ^ { * } $ in $ L ^ { \infty } ( \mathbb { R } ^ { n - 1 } ) $. Now, rescaling (4.1), we see that for every $ R > $ 0, \[ \| \{ u _ { \lambda } ( \cdot , 0 ) > 0 \} \cap \{ x _ { 1 } < 0 \} \cap B _ { R } ^ { \prime } \| \to 0 \quad { \mathrm { a s ~ } } \lambda \to 0 , \] and we deduce that $ u _ { 0 } = 0 $ $ \mathcal { H } ^ { n - 1 } $-a.e. in $ \{ x _ { 1 } < 0 , x _ { n } = 0 \} $. By continuity, $ \boldsymbol { u } _ { 0 } $ vanishes on all of $ \{ x _ { 1 } \, \leq \, 0 , x _ { n } \, = \, 0 \} $. Besides, we readily have that $ u _ { 0 } $ satisfies $ \mathrm { d i v } ( \| x _ { n } \| ^ { 1 - 2 s } \nabla u _ { 0 } ) = 0 $ in $ \{ u _ { 0 } > 0 \} $. Thus, we can apply Corollary A.2 in Appendix to obtain an asymptotic development \[ ( 4 . 9 ) \qquad \qquad \qquad u _ { 0 } ( x ) = \alpha 2 ^ { - s } \left( ( x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } ) ^ { 1 / 2 } + x _ { 1 } \right) ^ { s } + o ( \| x \| ^ { s } ) \] with $ \alpha \geq $ 0. Next, note that by rescaling the nondegeneracy condition (4.2) and passing to the limit, we have \[ { \frac { 1 } { r ^ { n - 1 } } } \int _ { B _ { r } ^ { \prime } } u _ { 0 } d x ^ { \prime } \geq c \, r ^ { s } , \quad { \mathrm { f o r ~ a n y ~ } } r > 0 , \] which implies that $ \alpha > $ 0. On the other hand, by Corollary 3.6(iii), $ u _ { 0 } $ is homo-geneous of degree s and hence \[ u _ { 0 } ( x ) = \alpha 2 ^ { - s } \left( ( x _ { 1 } ^ { 2 } + x _ { n } ^ { 2 } ) ^ { 1 / 2 } + x _ { 1 } \right) ^ { s } . \]
9322810_443.pdf	en	# X. R E L A T E D - P A R T Y R E L A T I O N S H I P S A N D T R A N S A C T I O N S (CONTINUED) # 4. SIGNIFICANT RELATED TRANSACTIONS WITH THE ABOVE RELATED PARTIES DURING THE YEAR (CONTINUED) # (5) Other related party transactions (Continued) # 3) Other related transactions <table><tr><td>Name of related party</td><td>Content of related transactions</td><td>Current year</td><td>Prior year</td></tr><tr><td>Other enterprises controlled by the same controlling shareholder and ultimate controlling party</td><td>——</td><td>93,865,684.00</td><td>–</td></tr><tr><td>China Merchants Investment Development Co., Ltd.</td><td>Income from demolition and relocation compensation</td><td>93,865,684.00</td><td>–</td></tr></table> # (6) Related guarantees # 1) The Group as the guarantor Financing guarantees: <table><tr><td>Guaranteed parties</td><td>Guaranteed balance in the end of the year</td><td>Guaranteed balance at the beginning of the year</td><td>Starting date of the guarantee</td><td>Maturity date of the guarantee</td><td>Whether the guarantee has been fulfilled</td></tr><tr><td>China Merchants Shipping Enterprise Co., Ltd.</td><td>2,345,705,416.00</td><td>2,300,000,000.00</td><td>2018-6-24</td><td>2021-6-24</td><td>No</td></tr><tr><td>SE Logistics Holding B.V.</td><td>1,797,600,000.00</td><td>–</td><td>2020-12-8</td><td>2027-12-7</td><td>No</td></tr><tr><td>China Assess Investment Limited</td><td>1,201,804,800.00</td><td>1,279,148,652.00</td><td>2017-12-22</td><td>2023-12-21</td><td>No</td></tr><tr><td>China Merchants Shipping Enterprise Co., Ltd.</td><td>801,203,200.00</td><td>852,765,768.00</td><td>2017-12-22</td><td>2023-12-21</td><td>No</td></tr><tr><td>China Merchants Great Stone Trade Logistics Co., Ltd.</td><td>395,635,884.63</td><td>443,928,962.84</td><td>2016-5-31</td><td>2031-5-30</td><td>No</td></tr><tr><td>Jiangmen High-tech Port Development Co., Ltd.</td><td>330,729,681.81</td><td>187,652,588.56</td><td>2018-12-18</td><td>2021-12-17</td><td>No</td></tr><tr><td>Sinotrans Logistics Co., Ltd.</td><td>150,000,000.00</td><td>–</td><td>2020-12-22</td><td>2021-10-22</td><td>No</td></tr><tr><td>China Merchants Logistics Shenzhen Co., Ltd.</td><td>100,000,000.00</td><td>–</td><td>2020-6-12</td><td>2021-6-12</td><td>No</td></tr><tr><td>Shenzhen Haixing Harbor Development Co., Ltd.</td><td>98,184,899.10</td><td>98,340,000.00</td><td>2019-7-1</td><td>2037-7-1</td><td>No</td></tr></table>
9322810_444.pdf	en	# X. R E L A T E D - P A R T Y R E L A T I O N S H I P S A N D T R A N S A C T I O N S (CONTINUED) # 4. SIGNIFICANT RELATED TRANSACTIONS WITH THE ABOVE RELATED PARTIES DURING THE YEAR (CONTINUED) # (6) Related guarantees (Continued) # 1) The Group as the guarantor (Continued) <table><tr><td>Guaranteed parties</td><td>Guaranteed balance in the end of the year</td><td>Guaranteed balance at the beginning of the year</td><td>Starting date of the guarantee</td><td>Maturity date of the guarantee</td><td>Whether the guarantee has been fulfilled</td></tr><tr><td>Sinotrans Logistics Co., Ltd.</td><td>50,000,000.00</td><td>–</td><td>2020-10-16</td><td>2021-10-16</td><td>No</td></tr><tr><td>Sinotrans Sarens Logistics Co., Ltd.</td><td>10,882,711.86</td><td>14,937,055.48</td><td>2016-7-1</td><td>2021-6-30</td><td>No</td></tr><tr><td>Dongguan Port Container Terminals Co., Ltd.</td><td>8,109,500.00</td><td>16,383,681.74</td><td>2015-8-27</td><td>2023-1-9</td><td>No</td></tr><tr><td>Sinotrans Shanghai Cold Chain Logistics Co., Ltd.</td><td>–</td><td>155,303,811.32</td><td>2017-3-29</td><td>2032-3-26</td><td>Yes</td></tr></table> Credit guarantees: The Group provides guarantees for its subsidiaries from the credits of Finance Company and China Merchants Bank Co., Ltd.. The validity period of the credit is generally 1 year, and the credit line can be used in cycle within the validity period. As at 31 December 2020, the Group provided credit guarantees of RMB2,270,000,000.00 for its subsidiaries. Operating guarantees: The Group provides operating guarantees for its subsidiaries, associates and joint venture to operate logistics project, loading and unloading operations, tendering operations, maritime booking agents services, warehousing services and other business activities to trade asset. As at 31 December 2020, the outstanding balance of operating guarantees provided to subsidiaries and joint ventures amounted to RMB19,667,279.10.
9229878_177.pdf	en	<table><tr><td>对联营、合营企业投资</td><td>192,365,706.52</td><td>1,875,000.00</td><td>190,490,706.52</td><td>184,118,929.97</td><td>1,875,000.00</td><td>182,243,929.97</td></tr><tr><td>合计</td><td>1,057,245,610.62</td><td>1,875,000.00</td><td>1,055,370,610.62</td><td>718,534,630.80</td><td>1,875,000.00</td><td>716,659,630.80</td></tr></table> # （1）对子公司投资单位：元 <table><tr><td rowspan="2">被投资单位</td><td rowspan="2">期初余额(账面价值)</td><td colspan="4">本期增减变动</td><td rowspan="2">期末余额(账面价值)</td><td rowspan="2">减值准备期末余额</td></tr><tr><td>追加投资</td><td>减少投资</td><td>计提减值准备</td><td>其他</td></tr><tr><td>仙药销售公司</td><td>34,128,000.00</td><td></td><td></td><td></td><td></td><td>34,128,000.00</td><td></td></tr><tr><td>台州仙琚公司</td><td>29,504,640.82</td><td></td><td></td><td></td><td></td><td>29,504,640.82</td><td></td></tr><tr><td>海盛制药公司</td><td>1,500,000.00</td><td></td><td></td><td></td><td></td><td>1,500,000.00</td><td></td></tr><tr><td>仙药技术公司</td><td>4,500,000.00</td><td></td><td></td><td></td><td></td><td>4,500,000.00</td><td></td></tr><tr><td>北京科创公司</td><td>30,500,000.00</td><td>3,200,000.00</td><td></td><td></td><td></td><td>33,700,000.00</td><td></td></tr><tr><td>仙曜贸易公司</td><td>5,000,000.00</td><td></td><td></td><td></td><td></td><td>5,000,000.00</td><td></td></tr><tr><td>英德瑞公司</td><td>12,452,252.78</td><td></td><td></td><td></td><td></td><td>12,452,252.78</td><td></td></tr><tr><td>百安医疗公司</td><td>9,600,000.00</td><td></td><td></td><td></td><td></td><td>9,600,000.00</td><td></td></tr><tr><td>梓铭基因公司</td><td>9,862,000.00</td><td>400,000.00</td><td></td><td></td><td></td><td>10,262,000.00</td><td></td></tr><tr><td>卢森堡公司</td><td>272,658,856.50</td><td>292,365,054.00</td><td></td><td></td><td></td><td>565,023,910.50</td><td></td></tr><tr><td>仙琚医药公司</td><td>1,400,000.00</td><td></td><td></td><td></td><td></td><td>1,400,000.00</td><td></td></tr><tr><td>能可爱心公司</td><td>120,359,100.00</td><td>30,450,000.00</td><td></td><td></td><td></td><td>150,809,100.00</td><td></td></tr><tr><td>仙琚香港公司</td><td>850,850.73</td><td></td><td>850,850.73</td><td></td><td></td><td></td><td></td></tr><tr><td>仙琚萃泽公司</td><td>1,400,000.00</td><td>2,100,000.00</td><td></td><td></td><td></td><td>3,500,000.00</td><td></td></tr><tr><td>嘉兴医药公司</td><td>700,000.00</td><td>1,750,000.00</td><td></td><td></td><td></td><td>2,450,000.00</td><td></td></tr><tr><td>科技创新公司</td><td></td><td>1,050,000.00</td><td></td><td></td><td></td><td>1,050,000.00</td><td></td></tr><tr><td>合计</td><td>534,415,700.83</td><td>331,315,054.00</td><td>850,850.73</td><td></td><td></td><td>864,879,904.10</td><td></td></tr></table> # （2）对联营、合营企业投资单位：元 <table><tr><td rowspan="2">投资单位</td><td rowspan="2">期初余额 (账面价值)</td><td colspan="8">本期增减变动</td><td rowspan="2">期末余额 (账面价值)</td><td rowspan="2">减值准备期末余额</td></tr><tr><td>追加投资</td><td>减少投资</td><td>权益法下确认的投资损益</td><td>其他综合收益调整</td><td>其他权益变动</td><td>宣告发放现金股利或利润</td><td>计提减值准备</td><td>其他</td></tr><tr><td colspan="12">一、合营企业</td></tr><tr><td colspan="12">二、联营企业</td></tr></table>
9229878_178.pdf	en	<table><tr><td>天台药业公司</td><td>60,603,54 6.52</td><td></td><td></td><td>5,781,186 .85</td><td></td><td></td><td></td><td></td><td></td><td>66,384,73 3.37</td><td></td></tr><tr><td>阳光生物公司</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>上海三合公司</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>1,875,000 .00</td></tr><tr><td>弘琚贷款公司</td><td>51,211,19 7.96</td><td></td><td></td><td>3,104,401 .07</td><td></td><td></td><td>2,700,000 .00</td><td></td><td></td><td>51,615,59 9.03</td><td></td></tr><tr><td>君康工贸公司</td><td>3,688,554 .02</td><td></td><td>3,688,554 .02</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>智腾医药公司</td><td>4,446,315 .01</td><td></td><td></td><td>1,230,025 .35</td><td></td><td></td><td></td><td></td><td></td><td>5,676,340 .36</td><td></td></tr><tr><td>斯瑞药业公司</td><td>45,019,85 3.28</td><td></td><td></td><td>983,633.9 1</td><td></td><td></td><td></td><td></td><td></td><td>46,003,48 7.19</td><td></td></tr><tr><td>江西成琚公司</td><td>6,574,797 .84</td><td></td><td>6,574,797 .84</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>聚合金融公司</td><td>10,699,66 5.34</td><td></td><td></td><td>1,108,167 .71</td><td></td><td></td><td>1,100,000 .00</td><td></td><td></td><td>10,707,83 3.05</td><td></td></tr><tr><td>梓晶生物公司</td><td></td><td>19,607,30 0.00</td><td>6,002,234 .69</td><td>-3,502,35 1.79</td><td></td><td></td><td></td><td></td><td></td><td>10,102,71 3.52</td><td></td></tr><tr><td>小计</td><td>182,243,9 29.97</td><td>19,607,30 0.00</td><td>16,265,58 6.55</td><td>8,705,063 .10</td><td></td><td></td><td>3,800,000 .00</td><td></td><td></td><td>190,490,7 06.52</td><td>1,875,000 .00</td></tr><tr><td>合计</td><td>182,243,9 29.97</td><td>19,607,30 0.00</td><td>16,265,58 6.55</td><td>8,705,063 .10</td><td></td><td></td><td>3,800,000 .00</td><td></td><td></td><td>190,490,7 06.52</td><td>1,875,000 .00</td></tr></table> # 4、营业收入和营业成本单位：元 <table><tr><td rowspan="2">项目</td><td colspan="2">本期发生额</td><td colspan="2">上期发生额</td></tr><tr><td>收入</td><td>成本</td><td>收入</td><td>成本</td></tr><tr><td>主营业务</td><td>2,167,463,174.73</td><td>1,133,599,114.12</td><td>1,863,576,892.17</td><td>952,456,126.81</td></tr><tr><td>其他业务</td><td>16,594,108.36</td><td>7,271,008.20</td><td>9,089,620.55</td><td>7,198,200.43</td></tr><tr><td>合计</td><td>2,184,057,283.09</td><td>1,140,870,122.32</td><td>1,872,666,512.72</td><td>959,654,327.24</td></tr></table> 收入相关信息：单位：元 <table><tr><td>合同分类</td><td>分部 1</td><td>分部 2</td><td></td><td>合计</td></tr><tr><td>商品类型</td><td>2,167,463,174.73</td><td></td><td></td><td>2,167,463,174.73</td></tr><tr><td>其中：</td><td></td><td></td><td></td><td></td></tr></table>
20793526_30.pdf	en	This glossary of technical terms contains explanations of certain technical terms used in this prospectus in connection with our Group and our business. As such, these terms and their meanings may not correspond to standard industry meanings or usage of these terms. <table><tr><td>“elementary schools” or “primary schools”</td><td>schools that provide education for students in hgrade one throu ggrade six</td></tr><tr><td>“first-tier universities”</td><td> the first batch of universities that enroll students after the National Hihger Education Entrance Exam. Except for students with specialties in arts and sports, among other things, the basic admission requirement for the relevant hihg school graduates is that they achieved certain level of hihg scores in the National HihEdger ucation Entrance Exam as designated by the relevant PRC provincial education authorities, and they choose such universities for their college entrance alippcation. Generally, these universities have stronger comprehensive strengths, such as school facilities, academic resources and scientific research capabilities, among other things, and frequently gain special support from the PRC central and local government</td></tr><tr><td>“hihhlg scoos”</td><td> schools that provide education for students in grade 10 throuh ggrade 12</td></tr><tr><td>“Integrated Area”</td><td> also known as the Beijing, Tianjin and Hebei Province Integrated Area. The concept of this area was created pursuant to a national strateic inigtiative to ’promote the reiigons economc development</td></tr><tr><td>“junior college education”</td><td> a three-year ldpost-hihg schoo egree-igrantng education upon comlifpeton o which, a junior college degree will be granted. Junior college students may continue their education by enrolling in a two-year program and transferring some or all of the credit earned at thej unior college toward the degree requirements of the formal undergraduate degree</td></tr><tr><td>“middle schools”</td><td> schools that provide education for students in grade seven throuh ggrade nine</td></tr><tr><td>“National HihEdger ucation Entrance Exam” or “Gaokao”</td><td>a national academic examination held annually in the PRC, which is a prerequisite for entrance into almost all hihger educational institutions at the undergraduate level in the PRC</td></tr><tr><td>“National HihEdger ucation Entrance Exam for Adults”</td><td>a national academic examination for adults held annually in the PRC. Upon achieving required grades in this examination and comlpetion of required courses within specified period after the examination, an adult may alppy for a junior college or undergraduate dilpoma</td></tr></table>
20793526_31.pdf	en	<table><tr><td>“one-child policy”</td><td> China’s population control policy imlemented by the Populatipon and Family Planning Law of the PRC, according to which a family can have only one child, with certain exceptions. The one-child policy was relaced by the two-child policy imlemented in 2016pp</td></tr><tr><td>“preschools”</td><td> educational establishments offering early childhood education to children prior to the commencement of compulsory education</td></tr><tr><td>“private schools”</td><td> schools which are not administered by local, provincial or national governments</td></tr><tr><td>“public schools”</td><td> schools administered by local, provincial or national education authorities</td></tr><tr><td>“school sponsor”</td><td> the individual(s) or entity(ies) that funds or holds interests in an educational institution</td></tr><tr><td>“school year”</td><td> the school year for all of our schools, which generally starts on September 1 of each calendar year and ends on June 30 of the next calendar year</td></tr><tr><td>“secondary education”</td><td> normallldy takes fpace ater lprimary eucation and may be folowed by hihger education, vocational training or emlpoyment</td></tr><tr><td>“Tutoring Hour”</td><td> the unit for measuring tutorinig time delivered to students, tcallypy represents 60 minutes in lengths for secondary school students and 40 minutes in lengths for primary school students</td></tr><tr><td>“two-child policy”</td><td> China’s population control policy imlpemented in 2016 by the Decision of the Central Committee of the Communist Party of China and the State Council on Imlpementing the Universal Two-Child Policy and Reforming and Improving the Management of Family Planning Services 《中共中央、國務院關於實施全面兩孩政策改革完善計劃生育服務管理的決定》, according to which a family is allowed to have up to two children</td></tr><tr><td>“Zhonkgao”</td><td> also known as the Senior HihSg chool Entrance Examination, the academic examination held annually in the PRC to distinguish junior hihg school students</td></tr></table>
3038660_129.pdf	en	# 15. INVESTMENT PROPERTIES — Continued # Information about fair value measurements using significant unobservable inputs — Continued <table><tr><td>Description</td><td>Fair value as at December 31, 2017 RMB’000</td><td>Valuation techniques</td><td>Unobservable inputs</td><td>Range (weihdgte average)</td><td>Relationship of unobservable inputs to fair value</td></tr><tr><td colspan="6">(2) Investment properties under construction — fair values determined by Colliers — continued</td></tr><tr><td colspan="5">Chonidigqng Concor Cty — continued</td><td></td></tr><tr><td>Office</td><td>1,561,222</td><td>Residual approach</td><td>(i) Selling price, taking into account the differences in building age and frontage between the comparables and the property</td><td>RMB29,162 per square meter</td><td>The hihger the selling price, the hihhger te fair value.</td></tr><tr><td></td><td></td><td></td><td>(ii) Expected developer profit</td><td>30%</td><td>The hihger the exdpecte developer profit, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(iii) Construction cost</td><td>RMB9,000 per square meter</td><td>The hihger the cost, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(iv) Discount rate</td><td>5%</td><td>The hihdiger the scount rate, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(v) Rate of finance cost</td><td>5%</td><td>The hihger the rate of finance cost, the lower the fair value.</td></tr></table>
3038660_130.pdf	en	# 15. INVESTMENT PROPERTIES — Continued # Information about fair value measurements using significant unobservable inputs — Continued <table><tr><td>Description</td><td>Fair value as at December 31, 2017</td><td>Valuation techniques</td><td>Unobservable inputs</td><td>Range (weihdgte average)</td><td>Relationship of unobservable inputs to fair value</td></tr><tr><td></td><td>RMB’000</td><td></td><td></td><td></td><td></td></tr><tr><td colspan="6">(2) Investment properties under construction — fair values determined by Colliers — continued</td></tr><tr><td colspan="5">Chonigqng International Commerce Centre</td><td></td></tr><tr><td>Retail</td><td>3,834,165</td><td>Residual approach</td><td>(i) Gross caiiptalsation rate, taking into account the caiptalisation of rental income potential, nature of the property and prevailing market conditions</td><td>7%</td><td>The hihger the gross cailiptasation rate, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(ii) Market rent, taking into account the differences in location, and individual factors, such as frontage and building age, between the comparables and the property</td><td>RMB461 per square meter per month</td><td>The hihger the market rent, the hihhger te fair value.</td></tr><tr><td></td><td></td><td></td><td>(iii) Expected occupancy rate</td><td>60%–85%</td><td>The hihger the exdpecte occupancy rates, the hihhger te fair value.</td></tr><tr><td></td><td></td><td></td><td>(iv) Expected developer profit</td><td>30%</td><td>The hihger the exdpecte developer profit, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(v) Discount rate</td><td>10%</td><td>The hihdiger the scount rate, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(vi) Construction cost</td><td>RMB5,614 per square meter</td><td>The hihger the cost, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(vii) Rate of finance cost</td><td>5%</td><td>The hihger the rate of finance cost, the lower the fair value.</td></tr><tr><td></td><td></td><td></td><td>(viii) Rental growth rate</td><td>6%</td><td>The hihger the rental growth rate, the hihger the fair value.</td></tr></table>
2896015_134.pdf	en	Colocation Business, of the \$91 million increase in depreciation expense on these real estate assets, \$44 million is not expected to recur in future periods. Amortization expense increased by \$1 million, or less than 1%, for the year ended December 31, 2017 as compared to the year ended December 31, 2016 and decreased by \$128 million, or 9%, for the year ended December 31, 2016 as compared to the year ended December 31, 2015. The increase in amortization expense for the year ended December 31, 2017 was primarily attributable to the inclusion of \$139 million in post-acquisition Legacy Level 3 amortization expense in our consolidated amortization expense. Legacy CenturyLink’s amortization expense was lower for both periods primarily due to the use of accelerated amortization for a portion of our customer relationship assets and our entry into an agreement to sell our data centers and colocation business. The effect of using an accelerated amortization method results in an incremental decline in expense each period as the intangible assets amortize. We ceased amortizing the intangible assets of our colocation business when we entered into the agreement to sell that business. Absent the sale, we estimate that we would have recorded additional amortization expense of \$13 million from January 1, 2017 through May 1, 2017, related to the conveyed intangible assets. In addition, amortization of capitalized software was lower in both periods due to software becoming fully amortized faster than new software was acquired or developed. # Other Consolidated Results The following tables summarize our total other expense, net and income tax (benefit) expense: <table><tr><td rowspan="3"></td><td colspan="2">Years Ended December 31,</td><td rowspan="2">Increase/ (Decrease)</td><td rowspan="2">% Change</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td colspan="4">(Dollars in millions)</td></tr><tr><td>Interest expense ..............................................</td><td>$(1,481)</td><td>(1,318)</td><td>163</td><td> 12 %</td></tr><tr><td>Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>12</td><td>5</td><td>7</td><td> 140 %</td></tr><tr><td>Total other expense, net ........................................</td><td>$(1,469)</td><td>(1,313)</td><td>156</td><td> 12 %</td></tr><tr><td>Income tax (benefit) expense ....................................</td><td> $ (849)</td><td>394</td><td>(1,243)</td><td> nm</td></tr></table> <table><tr><td rowspan="3"></td><td colspan="2">Years Ended December 31,</td><td rowspan="2">Increase/ (Decrease)</td><td rowspan="2">% Change</td></tr><tr><td>2016</td><td>2015</td></tr><tr><td colspan="4">(Dollars in millions)</td></tr><tr><td>Interest expense ..............................................</td><td>$(1,318)</td><td>(1,312)</td><td>6</td><td> — %</td></tr><tr><td>Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>5</td><td>49</td><td>(44)</td><td>(90)%</td></tr><tr><td>Total other expense, net ........................................</td><td>$(1,313)</td><td>(1,263)</td><td>50</td><td> 4 %</td></tr><tr><td>Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td> $ 394</td><td>438</td><td>(44)</td><td>(10)%</td></tr></table> nm - Percentages greater than 200% and comparisons between positive and negative values or to/from zero values are considered not meaningful. # Interest Expense Interest expense increased by \$163 million, or 12%, for the year ended December 31, 2017 as compared to the year ended December 31, 2016. The increase in interest expense was primarily due to (i) the issuance of\$7.945 billion of term loans in 2017 for the purpose of providing funding for the Level 3 acquisition, (ii) the assumption of Level 3’s debt upon the consummation of the acquisition of Level 3, which accounted for\$80 million in post-acquisition interest expense and (iii) the recognition of imputed interest expense resulting from the failed-sale-leaseback as further described in Note 3—Sale of Data Centers and Colocation Business. Interest expense increased by \$6 million, or less than 1%, for the year ended December 31, 2016 as compared to the year ended December 31, 2015. The increase in interest expense was substantially due to a reduction in the
2896015_135.pdf	en	amount of net premium amortization recorded at acquisition due to the early retirement of several issuances of debt during the period, which has the effect of increasing interest expense, and an increase in interest expense on unsecured notes related to the issuance of \$1.0 billion of new debt in April, 2016 in advance of a debt maturity in June, 2016. # Other Income, Net Other income, net reflects certain items not directly related to our core operations, including our share of income from partnerships we do not control, interest income, gains and losses from non-operating asset dispositions, foreign currency gains and losses and components of net periodic pension and postretirement benefit costs. Other income (expense), net increased by \$7 million, or 140%, for the year ended December 31, 2017 as compared to the year ended December 31, 2016. This increase in other income, net was primarily due to a reduction in the loss on early retirement of debt, an increase in interest income from the \$6 billion Term Loan B funds held in escrow and income generated from our services agreements with Cyxtera, which was substantially offset by a lower expected return on assets in 2017 for our pension and post-retirement plans. The expected return on assets for our pension and post-retirement plans was lower in 2017 as compared to 2016, which resulted in us recording pension and post-retirement expense in 2017 as compared to recording pension and post-retirement income in 2016. Other income, net decreased by \$44 million, or 90%, for the year ended December 31, 2016 as compared to the year ended December 31, 2015. This decrease in other income, net was primarily due to losses on early retirement of debt, which was partially offset by the impact of nonrecurring funding from a state economic development program. # Income Tax (Benefits) Expense The enactment of the Tax Cuts and Jobs Act legislation in December 2017 resulted in a re-measurement of our deferred tax assets and liabilities at the new federal corporate tax rate of 21%. The re-measurement resulted in a tax benefit of approximately \$1.1 billion recorded in the fourth quarter of 2017, which was the predominant factor contributing to our recognition of an \$849 million income tax benefit for 2017, versus income tax expense of \$394 million in the prior year. Income tax expense decreased by \$44 million for the year ended December 31, 2016 as compared to the year ended December 31, 2015. For the years ended December 31, 2017, 2016 and 2015, our effective income tax rate was (157.2)%, 38.6% and 33.3%, respectively. The effective tax rate for the year ended December 31, 2017 reflects the benefit from the re-measurement of deferred taxes as noted above, a\$27 million tax expense related to the sale of our data centers and colocation business and a \$32 million tax impact of non-deductible transaction costs related to the Level 3 acquisition. The effective tax rate for the year ended December 31, 2016 reflects a tax impact of \$18 million from an intercompany dividend payment from one of our foreign subsidiaries to its domestic parent company that was made as part of our corporate restructuring in preparation for the sale of our colocation business. The effective tax rate for the year ended December 31, 2015 reflects a tax benefit of approximately \$34 million related to affiliate debt rationalization, research and development tax credits of \$28 million for 2011 through 2015, and a \$16 million tax decrease due to changes in state taxes caused by apportionment changes, state tax rate changes and the changes in the expected utilization of net operating loss carryforwards (“NOLs”). See Note 13—Income Taxes to our consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2017 and “Critical Accounting Policies and Estimates—Income Taxes” below for additional information.
20756527_62.pdf	en	<table><tr><td>“Substantial Shareholder(s)”</td><td> has the meaning ascribed to it under the Listing Rules</td></tr><tr><td>“Tongwen Education”</td><td> Guangzhou Tongwen Education Investment Group Co., Ltd. (廣州同文教育投資集團有限公司), a limited liability company established under the laws of the PRC on July 7, 2015 which is owned as to 44.5% by Ms. He Huifen, 12.75% by Mr. Han Liing, 24% by Ms. Zhou Lanid8qqng an 1.75% by Ms. He Huifang</td></tr><tr><td>“Tongwen Investment”</td><td> Guangzhou Lingnan Tongwen Education Investment Management Co., Ltd. (廣州嶺南同文教育投資管理有限公司), a limited liability company established under the laws of the PRC on January 21, 2014 which is owned as to 80.0% by Tongwen Education and 20.0% by Zhuhai Yixing Equity Investment Partnership (Limited Partnership)* (珠海易興股權投資合夥企業(有限合夥))</td></tr><tr><td>“Track Record Period”</td><td> the three years ended December 31, 2018, 2019, and 2020</td></tr><tr><td>“Underwriters”</td><td> the Hong Kong Underwriters and the International Underwriters</td></tr><tr><td>“Underwriting Agreements”</td><td> the Hong Kong Underwriting Agreement and the International Underwriting Agreement</td></tr><tr><td>“U.S.” or “United States”</td><td> the United States of America, its territories, its possessions and all areas subject to itsj urisdiction</td></tr><tr><td>“U.S. dollar(s)” or “US$” or “USD”</td><td>United States dollars, the lawful currency for the time being of the United States</td></tr><tr><td>“U.S. Securities Act”</td><td> the U.S. Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder</td></tr><tr><td>“VAT”</td><td> value-added tax</td></tr><tr><td>“WHITE Aliippcaton Form(s)”</td><td> the alifppcation orm(s) for use by the public who require(s) such Hong Kong Offer Shares to be issued in the alippcants’ own names</td></tr><tr><td>“YELLOW Aliippcaton Form(s)”</td><td> the form of aliippcaton for the HonKg ong Offer Shares for use by the public who require such Hong Kong Offer Shares to be deposited directly into CCASS</td></tr></table>
20756527_63.pdf	en	<table><tr><td>“Zhihui Guang”</td><td>Zhihui Guang Limited, a limited liability company incorporated under the laws of the BVI on August 9, 2018 and is owned by Mr. He Huishan as to 51% and by Ms. Zhou Laning as to 49%, and is one of our Controlliqng Shareholders</td></tr><tr><td>“%”</td><td>per cent</td></tr></table> Certain amounts and percentage figures included in this prospectus have been subject lo rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them. In this prospectus, unless otherwise stated, certain amounts denominated in Renminbi have been translated into Hong Kong dollars or U.S. dollars at an exchange rate of RMB0.8315 =HK\$1.00 or RMB6.4546 = US\$1.00, respectively, for illustration purpose only. Such conversions shall not be construed as representations that amounts in Renminbi were or could have been or could be converted into Hong Kong dollars or U.S. dollars at such rates or any other exchange rates on such date or any other date. If there is any inconsistency between the Chinese names of entities or enterprises established in the PRC and their English translations, the Chinese names shall prevail. The English translation of company or entity names in Chinese or another language which are marked with “\” and the Chinese translation of company or entity names in English which are marked with “\” is for identification purpose only. Unless otherwise specified, all relevant information in this prospectus assumes no exercise of the Over-allotment Option.
7468298_221.pdf	en	# 37 SUBSIDIARIES AND CONTROLLED STRUCTURED ENTITY (continued) <table><tr><td rowspan="2">Name of entity</td><td rowspan="2">Place and date of incorporation and kind of legal entity</td><td rowspan="2">Principal activities and place of operation</td><td rowspan="2">Particulars of issued share capital</td><td colspan="2">Effective interest held as at 31 December</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Xinjiang Jinchuan Jiahua Automobile Service Co., Ltd.</td><td>The PRC, 20 March 2019, limited liabilit*y company</td><td>Transaction services, the PRC</td><td>RMB5,000,000</td><td>100%</td><td>100%</td></tr><tr><td>Shanghai Zengxin Information Technology Co., Ltd.</td><td>The PRC, 25 April 2019, limited liabilit#y company</td><td>Technology development, the PRC</td><td>RMB500,000,000</td><td>100%</td><td>100%</td></tr><tr><td>Guangdong Haihan Technology Development Co., Ltd</td><td>The PRC, 8 November 2019, limited liabilit#y company</td><td>Information technology, the PRC</td><td>RMB102,200,000</td><td>100%</td><td>100%</td></tr><tr><td>Guangzhou Shengda Financing Guarantee Company Limited</td><td>The PRC, 12 November, 2019, limited liability company</td><td>Financial services, the PRC</td><td>RMB100,170,000</td><td>100%</td><td>100%</td></tr><tr><td>Hainan Xinye Information Technology Co., Ltd.</td><td>The PRC, 21 April, 2020, limited liabilit#y company</td><td>Information technology, the PRC</td><td>RMB10,000,000</td><td>100%</td><td>–</td></tr><tr><td>Yunnan Juliying enterprise management Co., Ltd.</td><td>The PRC, 10 October 2020, limited liabilit#y company</td><td>Financial services, the PRC</td><td>RMB20,000,000</td><td>100%</td><td>–</td></tr><tr><td>Xinjiang Wanhong Information Technology Co., Ltd.</td><td>The PRC, 15 September 2020, limited liabilit#y company</td><td>Information technology, the PRC</td><td>RMB20,000,000</td><td>100%</td><td>–</td></tr><tr><td>Xinjiang Wanyi Information Technology Co., Ltd.</td><td>The PRC, 15 September 2020, limited liabilit#y company</td><td>Information technology, the PRC</td><td>RMB20,000,000</td><td>100%</td><td>–</td></tr><tr><td>Tianjin Duoxin Financing Guarantee Company Limited</td><td>The PRC, 18 September 2020, limited liabilit#y company</td><td>Financial services, the PRC</td><td>RMB300,000,000</td><td>100%</td><td>–</td></tr><tr><td>Beijing Xinshu Information Technology Co., Ltd.</td><td>The PRC, 22 September 2020 limited liabilit#y company</td><td>Information technology, the PRC</td><td>RMB3,000,000</td><td>100%</td><td>–</td></tr></table>
7468298_222.pdf	en	# 37 SUBSIDIARIES AND CONTROLLED STRUCTURED ENTITY (continued) <table><tr><td rowspan="2">Name of entity</td><td rowspan="2">Place and date of incorporation and kind of legal entity</td><td rowspan="2">Principal activities and place of operation</td><td rowspan="2">Particulars of issued share capital</td><td colspan="2">Effective interest held as at 31 December</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Yixin Hong Kong Investment limited</td><td>Hong Kong, 25 November 2020, limited liability company</td><td>Investment holding, Hong Kong</td><td>HK$1</td><td>100%</td><td>–</td></tr><tr><td>Ruige Capital Management Co., Ltd.</td><td>The PRC, 23 December 2020, limited liabilit#y company</td><td>Investment holding, the PRC</td><td>US$100,000,000</td><td>100%</td><td>–</td></tr><tr><td>Beijing Yixin Information Technology Co., Ltd.</td><td>The PRC, 9 January 2015, limited liabili^ty company</td><td>Advertising and subscription services, the PRC</td><td>RMB50,000,000</td><td>100%</td><td>100%</td></tr></table> Remarks: \# Registered as wholly foreign owned enterprises under PRC law \* Registered as sino- foreign equity joint venture under PRC law ^ Controlled by New Contractual Arrangements
20748374_336.pdf	en	all purposes. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation,” “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. Section 6.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Section 6.4 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement. Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts (including facsimile or .pdf copies) with the same effect as if all Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. Section 6.6 Applicable Law; Forum, Venue and Jurisdiction. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas, without regard to the principles of conflicts of law. Each of the Parties (a) irrevocably agrees that any claims, suits, actions or proceedings arising out of or relating in any way to this Agreement shall be exclusively brought in any federal court of competent jurisdiction situated in the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas, in each case regardless of whether such claims, suits, actions or proceedings sound in contract, tort, fraud or otherwise, are based on common law, statutory, equitable, legal or other grounds, or are derivative or direct claims, (b) irrevocably submits to the exclusive jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, of the district court of Bexar County, Texas in connection with any such claim, suit, action or proceeding, (c) agrees not to, and waives any right to, assert in any such claim, suit, action or proceeding that (i) it is not personally subject to the jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or the district court of Bexar County, Texas, or of any other court to which proceedings in such courts may be appealed, (ii) such claim, suit, action or proceeding is brought in an inconvenient forum, or (iii) the venue of such claim, suit, action or proceeding is improper, (d) expressly waives any requirement for the posting of a bond by a party bringing such claim, suit, action or proceeding and (e) consents to process being served in any such claim, suit, action or proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address in effect for notices hereunder or by personal service within or without the State of Texas, and agrees that service in such forms shall constitute
20748374_337.pdf	en	good and sufficient service of process and notice thereof; provided, however, that nothing in clause (e) hereof shall affect or limit any right to serve process in any other manner permitted by law. Section 6.7 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. Section 6.8 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. Notwithstanding anything in the foregoing to the contrary, any amendment executed by the Partnership or any of its subsidiaries shall not be effective unless and until the execution of such amendment has been approved by the Conflicts Committee. Section 6.9 Integration. This Agreement, together with the Schedules and Exhibits referenced herein, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection therewith. Section 6.10 Specific Performance. The Parties agree that money damages may not be a sufficient remedy for any breach of this Agreement and that in addition to any other remedy available at law or equity, the Parties shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy for any Party’s breach of this Agreement. The Parties agree that no bond shall be required for any injunctive relief in connection with a breach of this Agreement. Section 6.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the Assets and interests referenced herein. For the avoidance of doubt, the conveyance of the Assets from TRMC, the General Partner or the Partnership to the General Partner, the Partnership or the Operating Company, all as applicable, is not intended to be treated as a sale for tax or any other purposes.
9237321_23.pdf	en	<table><tr><td>“BLT Burger”</td><td> BLT BURGER (HK) LIMITED, a company incorporated in Hong Kong with limited liability on 27 July 2009 and a direct wholly- owned subsidiary of Dining Concepts (Western)</td></tr><tr><td>“BLT Burger (Harbour City)”</td><td> BLT Burger, a Western style restaurant operating under BLT Burger which is situated at Shop OT 301– OT 301A, Level 3, Ocean Terminal, Harbour City</td></tr><tr><td>“BLT Burger (Times Square)”</td><td> BLT Burger, a Western style restaurant operating under Wealthy Home which is situated at Shop B224A, Basement 2, Times Square, Causeway Bay, Hong Kong</td></tr><tr><td>“BLT Restaurants”</td><td> BLT RESTAURANTS (HK) LIMITED, a company incorporated in Hong Kong with limited liability on 10 September 2008 and a direct wholly-owned subsidiary of Dining Concepts (Western)</td></tr><tr><td>“BLT Steak”</td><td> BLT Steak, a Western style restaurant operating under BLT Restaurants which is situated at Shop OT G62, Ground Floor, Ocean Terminal, Harbour City</td></tr><tr><td>“Board” or “Board of Directors”</td><td> the board of Directors</td></tr><tr><td>“Bombay Dreams”</td><td> Bombay Dreams, an Asian style restaurant operating under Bombay Dreams (HK) which is situated at Flats A and B, 4th Floor, Carfield Commercial Building, 75 and 77 Wyndham Street, Central, Hong Kong</td></tr><tr><td>“Bombay Dreams (HK)”</td><td> BOMBAY DREAMS (HK) LIMITED (formerly known as “WAITERS ON WHEELS LIMITED” and “CUISINE COURIER LIMITED”, respectively), a company incorporated in Hong Kong with limited liability on 26 July 2002 and a direct wholly-owned subsidiary of Dining Concepts (Asian)</td></tr><tr><td>“Bombay Dreams To Go” or “takeaway outlet”</td><td>the takeaway outlet with supporting kitchen for takeaway food orders and outdoor catering services for Bombay Dreams, operating under Bombay Dreams (HK) which is situated at Shop 1, Ground Floor and store, Mezzanine Floor, Po Thai Building, 9 Possession Street, Hong Kong</td></tr><tr><td>“Bouchon”</td><td> Bouchon Bistro Francais (formerly known as “Bizou Bistro” and “Ocean Grill”), a Western style restaurant operating under Excel Team which is situated at Flat D, Ground Floor, 49, 49A, 49B and 49C Elgin Street, Central, Hong Kong</td></tr><tr><td>“Braza”</td><td> Braza Churrascaria Brazilian Steakhouse (formerly known as “Mayta Peruvian Kitchen & Pisco Bar”), a Western style restaurant operating under BBQ Restaurants which is situated at Units A, B and C, 3rd Floor, Grand Progress Building, 58, 60 and 62 D’Aguilar Street, 15 and 16 Lan Kwai Fong, Central, Hong Kong</td></tr></table>
9237321_24.pdf	en	<table><tr><td>“Bread Street Kitchen”</td><td> Bread Street Kitchen, a Western style restaurant operating under Pine Best which is situated at Mezzanine Floor, LKF Tower, 33 Wyndham Street and 55 D’Aguilar Street, Central, Hong Kong</td></tr><tr><td>“breakeven point”</td><td> accounting breakeven, which refers to the number of month(s) since the commencement of business of the restaurant at which the monthly revenue is at least equal to the monthly expenses, taking into account the non-cash items such as depreciation and amortisation expenses</td></tr><tr><td>“BRU Beer & Bite”</td><td> BRU Beer & Bite, a Western style restaurant expected to be opened in the year ending 31 March 2018, expected to be operated under New Era which will be situated at Shop 06-G03, Ground Floor, Block C Dormitory, Central Police Station, 10 Hollywood Road, Central, Hong Kong</td></tr><tr><td>“Buildings Department”</td><td> Buildings Department of the Hong Kong Government</td></tr><tr><td>“business day(s)”</td><td> a day which is not a Saturday, Sunday or public holiday in Hong Kong and on which banks in Hong Kong are generally open for normal banking business to the public</td></tr><tr><td>“Business Registration Ordinance”</td><td>Business Registration Ordinance (Chapter 310 of the Laws of Hong Kong), as amended, supplemented or otherwise modified from time to time</td></tr><tr><td>“BVI”</td><td> the British Virgin Islands</td></tr><tr><td>“CAGR”</td><td> compound annual growth rate</td></tr><tr><td>“California Vintage”</td><td> California Vintage, a Western style restaurant operated under California Vintage (HK) which was situated at Shop B, Ground Floor, Carfield Commercial Building, 75 and 77 Wyndham Street, Central, Hong Kong. California Vintage was closed on 6 March 2016</td></tr><tr><td>“California Vintage (HK)”</td><td> CALIFORNIA VINTAGE LIMITED, a company incorporated in Hong Kong with limited liability on 28 June 2010 and a direct wholly-owned subsidiary of Dining Concepts (Western)</td></tr><tr><td>“Capitalisation Issue”</td><td> the issue of 658,900,165 Shares to be made upon capitalisation of part of the amount standing to the credit of the share premium account of our Company as referred to in the section headed “Further information about our Company— Written resolutions of our Shareholders passed on 14 July 2016” in Appendix IV to this prospectus</td></tr><tr><td>“Cayman Islands Share Registrar”</td><td>Estera Trust (Cayman) Limited, the Cayman Islands share registrar of our Company</td></tr></table>
11784888_5.pdf	en	with both gauge and reducibility parameters displayed in (6), (8), and (11), together with their corresponding antifields (denoted by star variables) \[ \Phi ^ { \alpha _ { 0 } } \equiv \bigl \{ \varphi , A _ { \mu } , H ^ { \mu } , B ^ { \mu \nu } , \phi ^ { A } \bigr \} , \quad \Phi _ { \alpha _ { 0 } } ^ { * } \equiv \bigl \{ \varphi ^ { * } , A ^ { * \mu } , H _ { \mu } ^ { * } , B _ { \mu \nu } ^ { * } , \phi _ { A } ^ { * } \bigr \} , \quad ( 1 4 ) \] \[ \Omega ^ { \alpha _ { 1 } } \to \eta ^ { \alpha _ { 1 } } \equiv \{ \eta , C ^ { \mu \nu } , \eta ^ { \mu \nu \rho } \} , \qquad \qquad \eta _ { \alpha _ { 1 } } ^ { \ast } \equiv \{ \eta ^ { \ast } , C _ { \mu \nu } ^ { \ast } , \eta _ { \mu \nu \rho } ^ { \ast } \} , \qquad \qquad ( 1 5 ) \] \[ \Omega ^ { \alpha _ { 2 } } \rightarrow \eta ^ { \alpha _ { 2 } } \equiv \{ C ^ { \mu \nu \rho } , \eta ^ { \lambda \mu \nu \rho } \} , \qquad \qquad \eta _ { \alpha _ { 2 } } ^ { * } \equiv \{ C _ { \mu \nu \rho } ^ { * } , \eta _ { \lambda \mu \nu \rho } ^ { * } \} , \qquad \qquad ( 1 6 ) \] \[ \Omega ^ { \alpha _ { 3 } } \rightarrow \eta ^ { \alpha _ { 3 } } \equiv \{ C ^ { \lambda \mu \nu \rho } \} , \eqno ( 1 7 ) \] For notational ease, it is convenient to organize the fields/ghosts and respectively antifields into \[ \chi ^ { \Delta } \equiv \{ \Phi ^ { \alpha _ { 0 } } , \eta ^ { \alpha _ { 1 } } , \eta ^ { \alpha _ { 2 } } , \eta ^ { \alpha _ { 3 } } \} , \qquad \chi _ { \Delta } ^ { * } \equiv \{ \Phi _ { \alpha _ { 0 } } ^ { * } , \eta _ { \alpha _ { 1 } } ^ { * } , \eta _ { \alpha _ { 2 } } ^ { * } , \eta _ { \alpha _ { 3 } } ^ { * } \} . \qquad \qquad ( 1 8 ) \] The $ \mathbb { Z } _ { 2 } $ grading of the BRST algebra in terms of the Grassmann parity ($ \succ $) is inferred from the observation that all the original fields together with the accompanying gauge and reducibility parameters are bosonic, so, according to the general rules of the antifield formalism, we take \[ \varepsilon ( \eta ^ { \alpha _ { k } } ) = k \bmod 2 , \quad k = 1 , 2 , 3 , \quad \quad \varepsilon ( \chi _ { \Delta } ^ { * } ) = ( \varepsilon ( \chi ^ { \Delta } ) + 1 ) \bmod 2 . \quad \quad ( 1 9 ) \] The Grassmann parity is then lifted to the BRST algebra by means of its additive action modulo 2 against multiplication. In agreement with the usual prescriptions of the BRST method, the BRST algebra is endowed with three more gradings (correlated with the main derivatives/differentials acting on this algebra): two N-gradings along the antifield number agh and respectively the pure ghost number pgh and a total Z-grading in terms of the ghost number gh. These are instated by setting the values of the corresponding degrees at the level of the BRST generators \[ \mathrm { a g h } ( \chi ^ { \Delta } ) = 0 , \ \ \ \ \mathrm { a g h } ( \Phi _ { \alpha _ { 0 } } ^ { * } ) = 1 , \ \ \ \ \mathrm { a g h } ( \eta _ { \alpha _ { k } } ^ { * } ) = k + 1 , \ \ \ \ k = 1 , 2 , 3 , \ \ \ \ ( 2 0 ) \] \[ \mathrm { p g h } ( \chi _ { \Delta } ^ { * } ) = 0 , \; \; \; \; \mathrm { p g h } ( \Phi ^ { \alpha _ { 0 } } ) = 0 , \; \; \; \; \mathrm { p g h } ( \eta ^ { \alpha _ { k } } ) = k , \; \; \; \; \; \; \; \; \; \; k = 1 , 2 , 3 , \; \; \; \; ( 2 1 ) \] and by further using their additive behaviour with respect to multiplica-tion. Finally, the (total) ghost number of any object with definite pure ghost and antifield numbers is defined like $ \mathrm { g h } ( a ) = \mathrm { p g h } ( a ) - \mathrm { a g h } ( a ) $. Due to the fact that the right-hand sides of both gauge transformations (3)–(5) and relations (7) and (10) do not depend on the fields $ \Phi ^ { \alpha _ { 0 } } $ (or, in other words, all gauge generators and reducibility functions — of order one
11784888_6.pdf	en	and respectively two — are field independent), it follows that the BRST differential s reduces to a sum of two fermionic derivations \[ s = \delta + \gamma , \eqno ( 2 2 ) \] with $ \delta $ the Koszul–Tate differential, graded in terms of agh $ ( \mathrm { a g h } ( \delta ) = - 1 $),and $ \gamma $ the longitudinal exterior derivative (in this case a true differential), graded by pgh $ ( \mathrm { p g h } ( \gamma ) $ = 1). These two degrees do not interfere $ ( \mathrm { a g h } ( \gamma ) $ = 0,$ \mathrm { p g h } ( \delta ) $ = 0), such that the total degree of the BRST differential (and of each of its components), namely gh, becomes equal to 1:$ \operatorname { g h } ( s ) = \operatorname { g h } ( \delta ) = \operatorname { g h } ( \gamma ) = $ 1. One of the major requirements of the BRST setting, namely the second-order nilpotency of s, becomes equivalent to three separate equations \[ s ^ { 2 } = 0 \Leftrightarrow ( \delta ^ { 2 } = 0 , \, \delta \gamma + \gamma \delta = 0 , \, \gamma ^ { 2 } = 0 ) , \eqno ( 2 3 ) \] which confirms that $ \gamma $ can indeed be constructed as a true differential in the case of the free model under study. The actions of $ \delta $ and $ \gamma $ on the BRST generators that enforce (23) as well as the fundamental cohomological requirements of the antifield BRST theory [27, 28, 29, 30, 31, 32] are given by \[ \delta \chi ^ { \Delta } = 0 , \qquad \qquad \qquad \delta \varphi ^ { * } = \partial _ { \lambda } H ^ { \lambda } , \qquad \qquad \delta A ^ { * \mu } = \partial _ { \lambda } B ^ { \lambda \mu } , \qquad \qquad ( 2 4 ) \] \[ \begin{array} { r } { \delta H _ { \mu } ^ { * } = - \partial _ { \mu } \varphi , \qquad \qquad \delta B _ { \mu \nu } ^ { * } = - \frac 1 2 \partial _ { [ \mu } A _ { \nu ] } , \qquad \quad \delta \phi _ { A } ^ { * } = k _ { A B } \sqcap \phi ^ { B } , \qquad ( 2 5 ) } \end{array} \] \[ \delta \eta ^ { * } = - \partial _ { \lambda } A ^ { * \lambda } , \qquad \quad \delta C _ { \mu \nu } ^ { * } = \partial _ { [ \mu } H _ { \nu ] } ^ { * } , \qquad \qquad \delta \eta _ { \mu \nu \rho } ^ { * } = \partial _ { [ \mu } B _ { \nu \rho ] } ^ { * } , \qquad ( 2 6 ) \] \[ \delta C _ { \mu \nu \rho } ^ { * } = - \partial _ { [ \mu } C _ { \nu \rho ] } ^ { * } , \qquad \delta \eta _ { \lambda \mu \nu \rho } ^ { * } = - \partial _ { [ \lambda } \eta _ { \mu \nu \rho ] } ^ { * } , \qquad \delta C _ { \lambda \mu \nu \rho } ^ { * } = \partial _ { [ \lambda } C _ { \mu \nu \rho ] } ^ { * } , \qquad ( 2 7 ) \] \[ \gamma \chi _ { \Delta } ^ { * } = 0 , \qquad \qquad \qquad \gamma \varphi = 0 , \qquad \qquad \qquad \gamma A _ { \mu } = \partial _ { \mu } \eta , \qquad \qquad ( 2 8 ) \] \[ \gamma H ^ { \mu } = - 2 \partial _ { \lambda } C ^ { \lambda \mu } , \qquad \gamma B ^ { \mu \nu } = - 3 \partial _ { \lambda } \eta ^ { \lambda \mu \nu } , \qquad \gamma \phi ^ { A } = 0 , \qquad \qquad ( 2 9 ) \] \[ \gamma \eta = 0 , \qquad \qquad \qquad \gamma C ^ { \mu \nu } = - 3 \partial _ { \lambda } C ^ { \lambda \mu \nu } , \: \: \: \: \: \gamma \eta ^ { \mu \nu \rho } = - 4 \partial _ { \lambda } \eta ^ { \lambda \mu \nu \rho } , \: \: \: \: ( 3 0 ) \] \[ \gamma C ^ { \mu \nu \rho } = - 4 \partial _ { \lambda } C ^ { \lambda \mu \nu \rho } , \quad \gamma \eta ^ { \lambda \mu \nu \rho } = 0 , \qquad \qquad \gamma C ^ { \lambda \mu \nu \rho } = 0 , \qquad \qquad ( 3 1 ) \] where both operators are assumed to act like right derivations and $ \sqsupset \equiv $$ \partial _ { \mu } \partial ^ { \mu } $ symbolizes the d’Alembertian. We notice that the actions of $ \gamma $ on all fields/ghosts can be obtained in this particular situation simply by replacing all gauge or reducibility parameters from the right-hand sides of relations (3)–(5), (7), (10), and (13) with the corresponding ghosts introduced in (15)–(17). A striking feature of the antifield approach, in spite of its essentially La-grangian origins, resides in the (anti)canonical action of the BRST differen-tial [23, 24, 25, 26, 27, 28, 29, 30, 31, 32], $ s \cdot = ( \cdot , S ) $, where its (anti)canonical
20796868_197.pdf	en	# ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Item 10 will be incorporated by reference pursuant to Regulation 14A under the Exchange Act. The Registrant expects to file an amended Form 10-K with the SEC within 120 days after the close of the year ended December 31, 2016. # ITEM 11. EXECUTIVE COMPENSATION Item 11 will be incorporated by reference pursuant to Regulation 14A under the Exchange Act. The Registrant expects to file an amended Form 10-K with the SEC within 120 days after the close of the year ended December 31, 2016. # ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Item 12 will be incorporated by reference pursuant to Regulation 14A under the Exchange Act. The Registrant expects to file an amended Form 10-K with the SEC within 120 days after the close of the year ended December 31, 2016. # ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Item 13 will be incorporated by reference pursuant to Regulation 14A under the Exchange Act. The Registrant expects to file an amended Form 10-K with the SEC within 120 days after the close of the year ended December 31, 2016. # ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES Item 14 will be incorporated by reference pursuant to Regulation 14A under the Exchange Act. The Registrant expects to file an amended Form 10-K with the SEC within 120 days after the close of the year ended December 31, 2016. # PART IV # ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES # (a) The following documents are filed as a part of this report: # Financial statements The following consolidated financial statements are included in “Part II—Item 8. Financial Statements and Supplementary Data” of this Annual Report: <table><tr><td></td><td>Page</td></tr><tr><td>Report of Independent ReiPbligstered uc Accountinig Frm</td><td>97</td></tr><tr><td>Consolidated Statements of Operations</td><td>98</td></tr><tr><td>Consolidated Balance Sheets</td><td>99</td></tr></table>
20796868_198.pdf	en	<table><tr><td>Consolidated Statements of Members’ Equity (Deficit)</td><td>100</td></tr><tr><td>Consolidated Statements of Cash Flows</td><td>101</td></tr><tr><td>Notes to Consolidated Financial Statements</td><td>103</td></tr><tr><td>Sulppemental Financial Information</td><td></td></tr><tr><td>Sulppemental Selected QuarterlFy inancial Information (Unaudited)</td><td>133</td></tr><tr><td>Sulppemental Oil and Natural Gas Information</td><td>134</td></tr></table> 141 # (b) Exhibits The following exhibits are incorporated by reference into the filing indicated or are filed herewith. <table><tr><td>Exhibit No.</td><td>Exhibit Title</td><td>Incorporated by Reference to the Following</td></tr><tr><td>2.1</td><td>Purchase Agreement and Plan of Merger, dated as of April 20, 2015, by and among Vanguard Natural Resources, LLC, Lihgthouse Merger Sub, LLC, Lime Rock Management LP, Lime Rock Resources A, L.P., Lime Rock Resources B, L.P., Lime Rock Resources C, L.P., Lime Rock Resources II-A, L.P., Lime Rock Resources II-C, L.P., LRR Energy, L.P. and LRE GP, LLC</td><td>Exhibit 2.1 to Form 8-K, filed April 22, 2015 by LRR Energy, L.P. (File No. 001-33016)</td></tr><tr><td>2.2</td><td>Agreement and Plan of Merger, dated as of May 21, 2015, by and among Vanguard Natural Resources, LLC, Talon Merger Sub, LLC, Eale Rgock Energy Partners, L.P. and Ealge Rock Energy GP, L.P.</td><td>Exhibit 2.1 to Form 8-K, filed May 22, 2015 by Ealge Rock Energy Partners, L.P. (File No. 001- 35344)</td></tr><tr><td>2.3</td><td>Purchase and Sale Agreement, dated March 29, 2016, among Vanguard Operating, LLC, NonOp Solutions III, L.P. and NonOp Solutions IV LP.</td><td>Exhibit 2.1 to Form 8-K, filed March 30, 2016 (File No. 001-33756)</td></tr><tr><td>3.1</td><td>Fifth Amended and Restated Limited Liability Company Agreement of Vanguard Natural Resources, LLC</td><td>Exhibit 3.1 to Form 8-K, filed September 15, 2014 (File No. 001-33756)</td></tr><tr><td>4.1</td><td>Indenture, dated as of April 4, 2012, among Vanguard Natural Resources, LLC and VNR Finance Corp., as issuers, the Subsidiary Guarantors named therein, as guarantors, and U.S. Bank National Association, as trustee</td><td>Exhibit 4.1 to Form 8-K, filed April 4, 2012 (File No. 001-33756)</td></tr><tr><td>4.2</td><td>First SulIdppemental nenture, dated as of Ail4pr , 2012, among Vanguard Natural Resources, LLC and VNR Finance Corp., as issuers, the Subsidiary Guarantors named therein, as guarantors, and U.S. Bank National Association, as trustee</td><td>Exhibit 4.2 to Form 8-K, filed April 4, 2012 (File No. 001-33756)</td></tr><tr><td>4.3</td><td>Second SulIdppemental nenture, dated as of December 9, 2015, among Vanguard Natural</td><td>Exhibit 4.3 to Form 10-K, filed March 7, 2016 (File No. 001-33756)</td></tr></table>
20748697_221.pdf	en	# AWARDS AND RECOGNITIONS We have received numerous awards recognizing our achievements in various aspects of our business and service offerings. The following table sets forth some of the awards and accolades we have received: <table><tr><td>Year</td><td>Awarded Entit/Idiynvidual</td><td> Award/Accreditation</td><td>Awarding Organization</td></tr><tr><td>2017- 2019. . .</td><td>Greentown Management</td><td>China’s Leading Enterprise in Real Estate Project Management Operation (2017- 2019年中國房地產代建運營優秀企業)</td><td>China Real Estate Top 10 Research Team (中國房地產To 10 p研究組)</td></tr><tr><td>2018- 2019. . .</td><td>Greentown Management</td><td>Annual Influential Business Model Award (年度影響力商業模式大獎)</td><td>Guandian Real Estate New Media Co., Ltd. (觀點地產新媒體)</td></tr><tr><td>2017- 2019. . .</td><td>Greentown Management</td><td>Annual CSR Contribution Award (年度CSR貢獻獎)</td><td>Economic Observer Newspaper (經濟觀察報)</td></tr><tr><td>2018 . . . .</td><td> Yiwu and Hejuyuan Projects (義烏和聚園項目)</td><td>Civil EniZgneerinhg an TianGyou old Award for Outstanding Residential Community in China (中國土木工程詹天佑獎優秀住宅小區金獎)</td><td>China Civil Eniigneerng Society (中國土木工程學會)</td></tr><tr><td rowspan="3">2017 ....</td><td>Greentown Management</td><td>Business Model Award in the PRC Real Estate Industry (中國房地產商業模式年度大獎)</td><td>Guandian Real Estate New Media Co., Ltd. (觀點地產新媒體)</td></tr><tr><td>Greentown Management</td><td>China’s Value-Growth Leading Real Estate Company (中國房地產成長價值領軍企業)</td><td>Guandian Real Estate New Media Co., Ltd. (觀點地產新媒體)</td></tr><tr><td>Yiwu Anhu Home Project (義烏安福家園項目)</td><td>Energy-saving and environmentally friendly residential property showcase project (節能環保型住宅國家康居示範工程)</td><td>Ministry of Housing and Urban-Rural Housing Industrialization Center (國家住建部住宅產業化中心)</td></tr></table>
20748697_222.pdf	en	<table><tr><td>Year</td><td>Awarded Entit/Idiynvidual</td><td> Award/Accreditation</td><td>Awarding Organization</td></tr><tr><td></td><td>Yiwu Beiyuan and Juyuan Project (義烏北苑和聚園項目)</td><td>Energy-saving and environmentally friendly residential property showcase project (節能環保型住宅國家康居示範工程)</td><td>Ministry of Housing and Urban-Rural Housing Industrialization Center (國家住建部住宅產業化中心)</td></tr><tr><td>2013- 2014. . .</td><td>Nanjing public housing (南京岱山保障房項目)</td><td>Guangsha Award (廣廈獎)</td><td>The PRC government at national level (中國房地產業協會/住房和城鄉建設部住宅產業化促進中心)</td></tr><tr><td>2013 ....</td><td>Qiandaohu Pearl Plaza (千島湖珍珠廣場)</td><td>4th China Artistic Environment Gold Award (第四屆中國環境藝術金獎)</td><td>Architectural Society of China (中國建設文化藝術協會/環境藝術專業委員會)</td></tr></table> # PROPERTIES # Owned Properties As of the Latest Practicable Date, we owned a total of 31 properties in Hangzhou, the PRC, with an aggregated floor area of approximately 5,035 sq.m., which we use as our office. As of the same date, we also owned 25 properties located in Hangzhou, Shengzhou, Huzhou and Ningbo, the PRC, with an aggregated floor area of approximately 2,481 sq.m., for which we held as investment properties. Our PRC Legal Advisors have confirmed that we have obtained the real estate ownership certificates for these properties. The following table sets forth details of our owned properties: <table><tr><td>No.</td><td>Description/Location</td><td>Gross Site Area</td></tr><tr><td></td><td></td><td>(sq.m.)</td></tr><tr><td>1. . .</td><td> Room 701, Block 3, Xixi International Business Center, Xihu district, Hangzhou</td><td>294.87</td></tr><tr><td>2. . .</td><td> Room 702, Block 3, Xixi International Business Center, Xihu district, Hangzhou</td><td>147.91</td></tr><tr><td>3. . .</td><td> Room 703, Block 3, Xixi International Business Center, Xihu district, Hangzhou</td><td>242.42</td></tr><tr><td>4. . .</td><td> Room 704, Block 3, Xixi International Business Center, Xihu district, Hangzhou</td><td>248.45</td></tr><tr><td>5. . .</td><td> Room 705, Block 3, Xixi International Business Center, Xihu district, Hangzhou</td><td>60.78</td></tr></table>
20788707_180.pdf	en	# EXECUTIVE SESSIONS OF NON-MANAGEMENT DIRECTORS Valley’s Corporate Governance Guidelines require the Board to hold separate executive sessions for both independent and non-management directors. The Board holds an executive session at least twice a year with only independent directors and regularly holds an executive session with only non-management directors. In each instance the Lead Director is the presiding director for the session. # SHAREHOLDER AND INTERESTED PARTIES COMMUNICATIONS WITH DIRECTORS The Board of Directors has established the following procedures for shareholder or interested party communications with the Board of Directors or with the Lead Director of the Board: • Shareholders or interested parties wishing to communicate with the Board of Directors, the non-management or independent directors, or with the Lead Director should send any communication to Valley National Bancorp, c/o Alan D. Eskow, Corporate Secretary, at 1455 Valley Road, Wayne, NJ 07470. Any such communication should state the number of shares owned by the shareholder. • The Corporate Secretary will forward such communication to the Board of Directors or, as appropriate, to the particular committee chairman or to the Lead Director, unless the communication is a personal or similar grievance, a shareholder proposal or related communication, an abusive or inappropriate communication, or a communication not related to the duties or responsibilities of the Board of Directors in which case the Corporate Secretary has the authority to determine the appropriate disposition of the communication. All such communications will be kept confidential to the extent possible. • The Corporate Secretary will maintain a log and copies of all such communications for inspection and review by any Board member or by the Lead Director, and will regularly review all such communications with the Board or the appropriate committee chairman or with the Lead Director at the next meeting. # COMMITTEES OF THE BOARD OF DIRECTORS;BOARD OF DIRECTORS MEETINGS In 2017, the Board of Directors maintained an Audit Committee, a Nominating and Corporate Governance Committee, and a Compensation and Human Resources Committee. Only independent directors serve on these committees. In addition to these committees, the Company and the Bank also maintain a number of committees to oversee other areas of Valley’s operations. These include an Executive Committee, Community Reinvestment Act ("CRA") Committee, Investment Committee, Pension/Savings & Investment Trustees Committee, Risk Committee, Strategic Planning Committee and a Trust Committee, all of which have both independent and non-independent directors, as permitted by the SEC and the NYSE. Each director attended at least 76% or more of the meetings of the Board of Directors and of each committee on which he or she served for the year ended December 31, 2017. Our Board met 10 times during 2017 and the Bank’s Board met 10 times during 2017. The following table presents 2017 membership information for each of our Audit, Nominating and Corporate Governance, and Compensation and Human Resources Committees. <table><tr><td>Name</td><td>Audit</td><td>Nominating and Corporate Governance</td><td>Compensation and Human Resources</td></tr><tr><td>Andrew B. Abramson</td><td>X</td><td>X</td><td>X</td></tr><tr><td>Peter J. Baum</td><td>X</td><td>X</td><td></td></tr><tr><td>Pamela R. Bronander</td><td></td><td></td><td>X</td></tr><tr><td>Eric P. Edelstein</td><td>(Chair)</td><td>X</td><td>X</td></tr><tr><td>Gerald Korde</td><td>X</td><td>X</td><td>(Chair)</td></tr><tr><td>Michael L. LaRusso</td><td>X</td><td></td><td>X</td></tr><tr><td>Marc J. Lenner</td><td></td><td>(Chair)</td><td>X</td></tr><tr><td>Suresh L. Sani</td><td>X</td><td>X</td><td>X</td></tr><tr><td>Jeffrey S. Wilks</td><td>X</td><td>X</td><td></td></tr><tr><td>2017 Number of Meetings</td><td>5</td><td>7</td><td>6</td></tr></table> \ Includes telephonic meetings. AUDIT COMMITTEE. The Audit Committee formally met 5 times during 2017. In addition, the Committee Chairman and Risk Committee Chairman met with the Chief Audit Executive and Chief Risk Officer of Valley monthly for the purpose of communicating closely with those officers and receiving updates on significant developments. The Board of Directors has determined that each member of the Audit Committee is financially literate and that more than one member of the Audit Committee has the accounting or related financial management expertise required by the NYSE. The Board of Directors has also determined that Mr. Edelstein, Mr. LaRusso and Mr. Wilks meet the SEC criteria of an “Audit Committee Financial Expert.” The charter for the Audit Committee can be viewed at our website www.valleynationalbank.com/charters. The charter gives the Audit Committee the authority and responsibility for the appointment, retention, compensation and oversight of our independent registered public accounting firm, including pre-approval of all audit and non-audit services to be performed by our independent registered public accounting firm. Each
20788707_181.pdf	en	member of the Audit Committee is independent under the NYSE listing rules. Other responsibilities of the Audit Committee pursuant to the charter include: • Reviewing the scope and results of the audit with Valley’s independent registered public accounting firm; • Reviewing with management and Valley’s independent registered public accounting firm Valley’s interim and year-end operating results including SEC periodic reports and press releases; • Considering the appropriateness of the internal accounting and auditing procedures of Valley; • Considering the independence of Valley’s independent registered public accounting firm; • Overseeing the internal audit function; • Reviewing the significant findings and recommended action plans prepared by the internal audit function, together with management’s response and follow-up; and • Reporting to the full Board on significant matters coming to the attention of the Audit Committee. NOMINATING AND CORPORATE GOVERNANCE COMMITTEE. The Nominating and Corporate Governance Committee met 7 times during 2017. This Committee reviews qualifications of and recommends to the Board candidates for election as director of Valley, considers the composition of the Board, and recommends committee assignments. The Nominating and Corporate Governance Committee also reviews and as appropriate approves all related party transactions in accordance with our Related Party Policy. The Nominating and Corporate Governance Committee is responsible for approving and recommending to the Board our corporate governance guidelines which include: • Director qualifications and standards; • Director responsibilities; • Director orientation and continuing education; • Limitations on Board members serving on other boards of directors; • Director access to management and records; • Criteria for the annual self-assessment of the Board, and its effectiveness; and • Responsibilities of the Lead Director. The Nominating and Corporate Governance Committee reviews recommendations from shareholders regarding corporate governance and director candidates. The procedure for submitting recommendations of director candidates is set forth below under the caption “Nomination of Directors.” Each member of the Nominating and Corporate Governance Committee is independent under NYSE listing rules. The charter for the Nominating and Corporate Governance Committee can be viewed at our website www.valleynationalbank.com/charters. COMPENSATION AND HUMAN RESOURCES COMMITTEE. The Compensation and Human Resources Committee formally met 6 times during 2017. This Committee determines CEO compensation, sets compensation levels for directors and sets compensation for named executive officers ("NEOs") and other executive officers. It also administers our Executive Incentive Plan and the 2016 Long-Term Stock Incentive Plan, and makes awards pursuant to those plans. The charter for the Committee can be viewed on our website at www.valleynationalbank.com/charters. Each member of the Compensation and Human Resources Committee is independent under NYSE listing rules. The Board has delegated the responsibility for executive compensation matters to the Compensation and Human Resources Committee. The minutes of the Committee meetings are provided at Board meetings and the chairman of the Committee reports to the Board significant issues dealt with by the Committee. In January 2018, in undertaking its responsibilities, the Committee received from the CEO recommendations (except those that relate to his compensation) for salary, non-equity incentive awards, restricted stock and restricted stock unit awards for NEOs and other executive officers. After considering the possible payments and discussing the recommendations with the CEO, the Committee met in executive session to make the final decisions on these elements of compensation. Under authority delegated by the Committee, all other employee salaries and non-equity compensation are determined by executive management. For stock awards, based on operational considerations, prior awards and staff numbers, a block of shares is allocated by the Committee. The individual restricted stock and restricted stock unit awards are then allocated by the CEO and his executive staff to these non-executive officers and employees. Under authority delegated by the Committee, during the year, the CEO is authorized, within certain numerical limits, to make stock awards in specific circumstances: special incentive awards for non-officers, retention awards, awards to new employees and grants on completion of advanced degrees. All awards not specifically approved in advance by the Committee, but awarded under the authority delegated, are
20751986_194.pdf	en	<table><tr><td>Name of State-owned Tobacco Companies Customer</td><td>Particulars of contract(s) for sale of paper cigarette packages between our Group and each of the State-owned Tobacco Companies Customers (collectively, the ‘‘Agreements’’)</td><td>Estimated maximum transaction amount for the year ending 31 December 2014</td></tr><tr><td rowspan="5">5. China Tobacco Yunnan</td><td> (1) An agreement between Hubei Golden Three Gorges, China Tobacco Yunnan and Yunnan Tobacco Materials (Group) Company Limited (雲南中煙物資(集團)有限責任公司), a wholly-owned subsidiary of China Tobacco Yunnan, dated 11 March 2014 for the period from 11 March 2014 to 31 December 2014</td><td rowspan="5">RMB37,643,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, China Tobacco Yunnan and Yunnan Tobacco Materials (Group) Company Limited (雲南中煙物資(集團)有限責任公司), a wholly-owned subsidiary of China Tobacco Yunnan, dated 11 March 2014 for the period from 11 March 2014 to 31 December 2014</td></tr><tr><td>(3) An agreement between Hubei Golden Three Gorges, China Tobacco Yunnan and Yunnan Tobacco Materials (Group) Company Limited (雲南中煙物資(集團)有限責任公司), a wholly-owned subsidiary of China Tobacco Yunnan, dated 11 March 2014 for the period from 11 March 2014 to 31 December 2014</td></tr><tr><td>(4) An agreement between Hubei Golden Three Gorges, China Tobacco Yunnan and Yunnan Tobacco Materials (Group) Company Limited (雲南中煙物資(集團)有限責任公司), a wholly-owned subsidiary of China Tobacco Yunnan, dated 14 March 2014 for the period from 14 March 2014 to 31 December 2014</td></tr><tr><td>(5) An agreement between Hubei Golden Three Gorges, China Tobacco Yunnan and Yunnan Tobacco Materials (Group) Company Limited (雲南中煙物資(集團)有限責任公司), a wholly-owned subsidiary of China Tobacco Yunnan, dated 14 March 2014 for the period from 14 March 2014 to 31 December 2014</td></tr><tr><td rowspan="2">6. China Tobacco Shandong</td><td> (1) An agreement between Hubei Golden Three Gorges and China Tobacco Shandong dated 27 January 2014 for the period from 27 January 2014 to 31 December 2014</td><td rowspan="2">RMB13,497,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges and China Tobacco Shandong dated 27 January 2014 for the period from 27 January 2014 to 31 December 2014</td></tr><tr><td rowspan="2">7. China Tobacco Henan</td><td> (1) An agreement between Hubei Golden Three Gorges and China Tobacco Henan dated 14 March 2014 for the period from 1 January 2014 to 30 June 2014</td><td rowspan="2">RMB63,252,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges and China Tobacco Henan dated 14 March 2014 for the period from 1 January 2014 to 30 June 2014</td></tr><tr><td rowspan="2">8. Hainan Hongta Cigarette</td><td> (1) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Hainan Hongta Cigarette dated 8 May 2014 for the year ending 31 December 2014</td><td rowspan="2">RMB18,810,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Hainan Hongta Cigarette dated 8 May 2014 for the year ending 31 December 2014</td></tr></table>
20751986_195.pdf	en	<table><tr><td>Name of State-owned Tobacco Companies Customer</td><td>Particulars of contract(s) for sale of paper cigarette packages between our Group and each of the State-owned Tobacco Companies Customers (collectively, the ‘‘Agreements’’)</td><td>Estimated maximum transaction amount for the year ending 31 December 2014</td></tr><tr><td rowspan="4">9. China Tobacco Fujian</td><td> (1) An agreement between Hubei Golden Three Gorges, China Tobacco Fujian and Xiamen Tobacco Industrial Co., Ltd., a wholly-owned subsidiary of China Tobacco Fujian, dated 21 March 2014 for the period from 1 July 2013 to 30 June 2014</td><td rowspan="4">RMB21,019,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, China Tobacco Fujian and Xiamen Tobacco Industrial Co., Ltd., a wholly-owned subsidiary of China Tobacco Fujian, dated 21 March 2014 for the period from 1 July 2013 to 30 June 2014</td></tr><tr><td>(3) An agreement between Hubei Golden Three Gorges, China Tobacco Fujian and Xiamen Tobacco Industrial Co., Ltd., a wholly-owned subsidiary of China Tobacco Fujian, dated 17 March 2014 for the period from 1 July 2013 to 30 June 2014</td></tr><tr><td>(4) An agreement between Hubei Golden Three Gorges, China Tobacco Fujian and Xiamen Tobacco Industrial Co., Ltd., a wholly-owned subsidiary of China Tobacco Fujian, dated 17 March 2014 for the period from 1 July 2013 to 30 June 2014</td></tr><tr><td>10. China Tobacco Guizhou</td><td> An agreement between Hubei Golden Three Gorges and China Tobacco Guizhou dated 17 April 2013 for the period from 1 April 2013 to 31 March 2015</td><td>RMB16,581,000</td></tr><tr><td rowspan="2">11. Shanxi Kunming Tobacco</td><td> (1) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Shanxi Kunming Tobacco dated 21 April 2014 for the period from 21 April 2014 to 31 December 2014</td><td rowspan="2">RMB33,578,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Shanxi Kunming Tobacco dated 21 April 2014 for the period from 21 April 2014 to 31 December 2014</td></tr><tr><td rowspan="2">12. Shenzhen Tobacco Industrial</td><td> (1) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Shenzhen Tobacco Industrial dated 8 May 2014 for the period from 8 May 2014 to 31 December 2014</td><td rowspan="2">RMB16,721,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, China Tobacco Industry Development Centre and Shenzhen Tobacco Industrial dated 8 May 2014 for the period from 8 May 2014 to 31 December 2014</td></tr><tr><td rowspan="4">13. Inner Mongolia Kunming Cigarettes</td><td>(1) An agreement between Hubei Golden Three Gorges, Inner Mongolia Kunming Cigarettes and China Tobacco Industry Development Center dated 3 March 2014 for the period from 3 March 2014 to 31 December 2014</td><td rowspan="4">RMB8,683,000</td></tr><tr><td>(2) An agreement between Hubei Golden Three Gorges, Inner Mongolia Kunming Cigarettes and China Tobacco Industry Development Center dated 3 March 2014 for the period from 3 March 2014 to 31 December 2014</td></tr><tr><td>(3) An agreement between Hubei Golden Three Gorges, Inner Mongolia Kunming Cigarettes and China Tobacco Industry Development Center dated 10 March 2014 for the period from 10 March 2014 to 31 December 2014</td></tr><tr><td>(4) An agreement between Hubei Golden Three Gorges, Inner Mongolia Kunming Cigarettes and China Tobacco Industry Development Center dated 13 March 2014 for the period from 13 March 2014 to 31 December 2014</td></tr></table>
11781282_7.pdf	en	FIG. 4. Probabilities $ P ( m _ { 1 } , m _ { 2 } \| \psi ) $ for the outcomes of the sequential measurement of $ m _ { 1 } $ (PM-polarization) and $ m _ { 2 } $ (HV-polarization) on an input state polarized at $ 6 7 . 5 ^ { \circ } $, halfway between P and V . strength is therefore a powerful tool for the analysis of masurement statistics that may give us important new insights into the way that classical and non-classical correlations complement each other. FIG. 5. Conditional averages $ A _ { \mathrm { o p t . } } ( m _ { 1 } , m _ { 2 } ) $ as a function of measurement strength $ \theta $. The solid curve represents the theoretical prediction for a measurement without experimental imperfections, the broken line was calculated for an interferomter visibility of $ V _ { P M } = 0 . 9 3 $. The conditional average $ A _ { \mathrm { o p t . } } ( m _ { 1 } , m _ { 2 } ) $ is obtained from the correlations between $ \hat { S } _ { P M } $ and the two measurement results $ m _ { 1 } $ and $ m _ { 2 } $ that originate from the statistics of the initial state $ \psi $. Specifically, the estimate is obtained by updating the initial statistics of $ \psi $ based on the outcomes $ m _ { 1 } $ and $ m _ { 2 } $, where the measurement strength controls the relative statistical weights of the information obtained from $ m _ { 1 } $ and $ m _ { 2 } $. At a maximal measurement strength of $ \theta \: = \: 2 2 . 5 ^ { \circ } $, the PM-measurement completely randomizes the HV-polarization, so that the conditional average $ A _ { \mathrm { o p t . } } ( m _ { 1 } , m _ { 2 } ) $ is independent of $ m _ { 2 } $ and the estimation procedure is based on the classical correlations between $ m _ { 1 } $ and $ \hat { S } _ { P M } $. As the measurement strength is weakend, a small contribution of non-classical correlations emerges as the conditional averages for $ m _ { 2 } = + 1 $ and for $ m _ { 2 } = - 1 $ split, with the estimates for the more likely $ m _ { 2 } $-outcomes dropping towards zero and the estimates for the less likely $ m _ { 2 } $-outcomes diverging to values greater than +1 for $ m _ { 1 } = + 1 $ and more negative than −1 for $ m _ { 1 } = - 1 $. Even small contributions of non-classical correlations therefore result in estimates that cannot be reproduced by classical statistics. Due to experimental imperfections, the anomalous values of $ A _ { \mathrm { o p t . } } ( + 1 , + 1 ) > 1 $ are easier to observe than the anomalous values of $ A _ { \mathrm { o p t . } } ( - 1 , + 1 ) < - 1 $. Specifically, the
11781282_8.pdf	en	small probabilities of the result (−1, +1) are significantly enlarged by the noise background associated with limited visibilities. As the measurement strength drops, the initial bias in favor of P-polarization in the input state $ \psi $ begins to outweigh the effect of the measurement result of $ m _ { 1 } \, = \, - 1 $ that would indicate M-polarization. Of particular interest is the crossing point around $ \theta = 1 2 . 3 ^ { \circ } $, where the initial information provided by $ \psi $ and the measurement information $ m _ { 1 } $ become equivalent and the estimate is $ A _ { \mathrm { o p t . } } ( - 1 , m _ { 2 } ) \, = \, 0 $ for both $ m _ { 2 } \, = \, + 1 $ and $ m _ { 2 } \, = \, - 1 $. For measurement strengths below this crossing point, the initial bias provided by the initial state towards P-polarization clearly dominates the estimate, resulting in positive values of $ A _ { \mathrm { o p t . } } ( - 1 , m _ { 2 } ) $. Significantly, the increase of the estimate with reduction in measurement strength is much faster for $ m _ { 2 } = + 1 $ than for $ m _ { 2 } = - 1 $, since the lower probability of the outcome $ m _ { 2 } = + 1 $ effectively enhances the statistical weight of the information. For $ \theta \approx 1 1 ^ { \circ } $, this enhancement of the estimate even results in a crossing between $ A _ { \mathrm { o p t . } } ( - 1 , + 1 ) $ and $ A _ { \mathrm { o p t . } } ( + 1 , + 1 ) $, so that the value estimated for an outcome of $ m _ { 1 } = - 1 $ actually exceeds the value estimated for an outcome of $ m _ { 1 } = + 1 $ at measurement strengths of $ \theta < 1 1 ^ { \circ } $. This counter-intuitive difference between the outcome of the PM-measurement and the estimated value of PM-polarization appears due to the effects of the measurement outcome $ m _ { 1 } $ on the quantum correlations between $ m _ { 2 } $ and the target observable $ \hat { S } _ { H V } $ in the initial state. Specifically, low probability outcomes always enhance the correlations between measurement results and target observable. Therefore, the low probability outcome $ m _ { 1 } = - 1 $ enhances the correlation between $ m _ { 2 } \, = \, + 1 $ and $ \bar { S } _ { H V } $, which favours the P-polarization. On the other hand, the much higher probability of $ m _ { 1 } = + 1 $ does not result in a comparative enhancement of this correlation, so that the estimated value $ A _ { \mathrm { o p t . } } ( + 1 , + 1 ) $ for an outcome of $ m _ { 1 } = + 1 $ 1 is actually lower than the estimated value $ A _ { \mathrm { o p t . } } ( - 1 , + 1 ) $ for an outcome of $ m _ { 1 } \, = \, - 1 $. These non-classical aspects of correlations between measurement results and target observable highlight the importance of the relation between the two measurement outcomes: it is impossible to isolate the measurement result $ m _ { 1 } $ from the context established by both $ \psi $ and $ m _ { 2 } $. Since the estimated values $ A _ { \mathrm { o p t . } } ( m _ { 1 } , m _ { 2 } ) $ correspond to weak values, this observation may also provide a practical example of the relation between weak values and contextuality [20]. In the limit of zero measurement strength ($ \theta $= 0), the estimated values depend only on $ m _ { 2 } $, with the unlikely measurement outcome of $ m _ { 2 } = + 1 $ resulting in an anomalous weak value of $ A _ { \mathrm { o p t . } } ( m _ { 1 } , + 1 ) = \sqrt { 2 } + 1 $ and the likely outcome of $ m _ { 2 } = - 1 $ resulting in a weak value estimate of $ A _ { \mathrm { o p t . } } ( m _ { 1 } , - 1 ) = \sqrt { 2 } \! - \! 1 $. Since these estimates are based only on the outcomes of precise measurements of HV-polarization, they provide a direct illustration of the non-classical correlation between $ \hat { S } _ { P M } $ and $ \hat { S } _ { H V } $ in $ \psi $. Due to the specific choice of initial state, $ A _ { \mathrm { o p t . } } ( m _ { 1 } , + 1 ) $ is larger than $ A _ { \mathrm { o p t . } } ( m _ { 1 } , - 1 ) $, which means that the detection of H-polarization makes P-polarization more likely, while the detection of V-polarization increases the likelihood of M-polarization. If we disregard for a moment that the estimated values for $ m _ { 2 } = + 1 $ lie outside the range of possible eigenvalues, we can give a fairly intuitive characterization of this non-classical correlation. Clearly, the lowest likelihood is assigned to the combination of H-polarization and M-polarization, which are the least likely polarization results obtained in separate measurements of HV-polarization and PM-polarization for the input state $ \psi $. We can therefore summarize the result by observing that quantum correlations between Bloch vector components strongly suppress thej oint contributions of the least likely results, to the point where the correlation can exceed positive probability boundaries, corresponding to an implicit assignment of negative values to the combination of the two least likely outcomes [18]. The results presented in this section clearly show that the final HV-measurement provides additional information about the target observable $ \hat { A } = \hat { S } _ { P M } . $. We can therefore expect that the measurement error will be reduced signifi-cantly if we use $ A _ { m _ { 1 } , m _ { 2 } } = A _ { \mathrm { o p t . } } ( m _ { 1 } , m _ { 2 } ) $ as measurement result assigned to thej oint outcome $ ( m _ { 1 } , m _ { 2 } ) $. In the final section of our discussion, we will therefore take a look at the measurement errors obtained at different measurement strengths $ \theta $ and identify the amount of PM-information obtained from the measurement of HV-polarization. # VI. EVALUATION OF MEASUREMENT ERRORS According to Eq. (6), the measurement errors for optimized measurement outcomes $ A _ { m } = A _ { \mathrm { o p t . } } ( m ) $ can be evaluated directly by subtracting the statistical fluctuations of $ A _ { m } $ from the initial fluctuations of the target observable $ \hat { A } $ in the initial state $ \psi $. We can therefore use the results of the previous sections to obtain the measurement errors $ \varepsilon ^ { 2 } ( A ) $ for the measurement outcomes $ m _ { 1 } $ and for the combined measurement outcomes $ ( m _ { 1 } , m _ { 2 } ) $. The results are shown in Fig. 6, together with the measurement error given by Eq. (11), which is obtained by assigning values of $ A _ { m _ { 1 } } = \pm 1 $ to the measurement outcomes $ m _ { 1 } $. Not surprisingly, the sub-optimal assignment of eigenvalues to the measurement outcomes results in much avoidable extra noise. In fact, the error for this assignment exceeds the uncertainty of $ \Delta A ^ { 2 } \, = \, 0 . 5 $ for the initial state $ \psi $ at measurement strengths of $ \theta < 1 3 . 5 ^ { \circ } $, indicating that one can obtain a better estimate of PM-polarization from the expectation value of the input state. This never happens in the case of the errors $ \varepsilon _ { \mathrm { o p t . } } $ associated with the optimal estimates of the target observable, since the optimized estimates based on the conditional averages for the different
9286580_175.pdf	en	<table><tr><td>Key Audit Matter</td><td>How our audit addressed the Key Audit Matter</td></tr><tr><td colspan="2">Measurement of expected credit losses for loans and advances to customers and financial investments</td></tr><tr><td>Refer to Note 4 (c), Note 5 (i), Note 22 and Note 23 to the consolidated financial statements. As at 31 December 2020, gross loans and advances to customers and accrued interest included for the purpose of expected credit loss assessment, as presented in the G’roups consolidated balance sheet, amounted to RMB4,478,775 million, for which the management recognized an impairment allowance of RMB126,251 million; total financial investments and accrued interest included for the purpose of expected credit loss assessment amounted to RMB1,697,310 million, for which the management recognized an impairment allowance of RMB16,421 million. The balances of loss allowances for the loans and advances to customers and financial investments represent the management’s best estimates at the balance sheet date of expected credit losses (“ECL”) under International Financial Reporting Standard 9: Financial Instruments expected credit losses models.</td><td>We obtained an understanding of the management’s internal control and assessment process of ECL for loans and advances to customers, and financial investments, and assessed the inherent risk of material misstatement by considering the degree of estimation uncertainty and level of other inherent risk factors. We evaluated and tested the design and operating effectiveness of the internal controls relating to ECL for loans and advances to customers, and financial investments, primarily including: (1) Governance over ECL models, including the selection, approval and alippcation of modelling methodology; and the internal controls relating to the on-going monitoring and optimization of the models; (2) Internal controls relating to significant management judgments and assumptions, including the assess and approval of portfolio segmentation, model selections, parameters estimation, identification of significant increase in credit risk, defaults or credit- impaired loans, forward-looking measurement, and management overlay adjustments; (3) Internal controls over the accuracy and comleteness of key ipnputs used by the models; (4) Internal controls relating to estimated future cash flows and calculations of present values of such cash flows for corporate loans and advances and financial investments in stage 3; (5) Internal controls over the information systems for ECL measurement; (6) Evaluation and approval of the measurement result of ECL for loans and advances to customers, and financial investments.</td></tr></table>
9286580_176.pdf	en	<table><tr><td>Key Audit Matter</td><td>How our audit addressed the Key Audit Matter</td></tr><tr><td colspan="2">Measurement of expected credit losses for loans and advances to customers and financial investments (continued)</td></tr><tr><td>The management assesses whether the credit risk of loans and advances to customers and financial investments have increased significantly since their initial recognition, and alippes a three-stage impairment model to calculate their ECL. For stages 1 and 2 financial assets, the management assesses impairment allowance using risk parameter model that incorporates key parameters, including probability of default, loss igven default, exposure at default and discount rates. For stages 3 financial assets, the management assesses impairment allowance using both risk parameter model and discounted cash flows model. The models of ECL involves significant management judgments and assumptions, primarily including: (1) Segmentation of business operations sharing similar credit risk characteristics, selection of appropriate models and determination of relevant key measurement parameters; (2) Criteria for determining whether or not there was a significant increase in credit risk, or a default or credit-impaired; (3) Economic indicators for forward-looking measurement, and the alippcation of economic scenarios and weihgtings;</td><td>The substantive procedures we preformed primarily included: According to the risk characteristics of assets, we evaluated the segmentation of business operations. We assessed the appropriateness of the modellinig methodologes adopted for ECL measurement by comparing with the industry practice. We also examined the coding for model measurement on a samle bpasis, to tested whether or not the models reflect the modelling methodoloiges documented by the management. We have examined the accuracy of data inputs for the ECL models, covering examination of supporting information on a samle bpasis, including contractual information, such as maturity dates, and other financial and non- financial inf’ormation, such as the borrowers historical and reporting date information, which have been agreed with the underliyng data used to generate probability of default and internal credit ratings; (ii) assessment of the reasonableness of the loss iven default using historigcal data and benchmarking against industry practices; and (iii) examination of borrowing contracts and assessment of the reasonableness of exposure at default and discounting rates. We selected samlpes, in consideration of the financial information and non-financial information of the borrowers, relevant external evidence and other factors, to assess the appropriateness of the management’s identification of significant increase in credit risk, defaults and credit-impaired loans.</td></tr></table>
9285198_217.pdf	en	entities and/or citizens, would nonetheless be treated as a PRC domestic entity for investment in the Catalog of Restrictions, subject to the examination of the relevant authority in charge of foreign investment. For these purposes, “control” is defined in the Draft Foreign Investment Law to cover any of the following summarized categories: (i) directly or indirectly holding 50% or more of the equity interest, assets, voting rights or similar equity interest of the subject entity; (ii) directly or indirectly holding less than 50% of the equity interest, assets, voting rights or similar equity interest of the subject entity but: (a) having the power to directly or indirectly appoint or otherwise secure at least 50% of the seats on the board or other equivalent decision-making bodies, (b) having the power to secure its nominated person to acquire at least 50% of the seats on the board or other equivalent decision-making bodies, or (c) having the voting power to exert material influence over decision-making bodies, such as the shareholders’ meeting or the board; or (iii) having the power to exert decisive influence, via contractual or trust arrangements, over the subject entity’s operations, financial, staffing and technology matters. In respect of “actual control”, the Draft Foreign Investment Law looks at the identity of the ultimate natural person or enterprise that controls the FIE. “Actual control” refers to the power or position to control an enterprise through investment arrangements, contractual arrangements or other rights, and decision-making arrangements. Article 19 of the Draft Foreign Investment Law defines “actual controllers” as the natural persons or enterprises that directly or indirectly control foreign investors or FIEs. If an entity is determined to be a FIE and its investment amount exceeds certain threshold or its business operation falls within the “catalog of special administrative measures” to be issued by the State Council in the future, market entry clearance by the authority in charge of foreign investment would be required. # Impact of the Draft Foreign Investment Law on VIE The “variable interest entity” structure, or VIE structure, has been adopted by many PRC-based companies. Under the Draft Foreign Investment Law, variable interest entities that are controlled via contractual arrangements would also be deemed as FIEs, if they are ultimately “controlled” by foreign investors. As far as the new VIE structures operating in industry sectors that are in the Catalog of Restrictions are concerned, if the ultimate controlling person(s) of a domestic enterprise under the VIE structure is/are of PRC nationality (either PRC state-owned enterprises or agencies, or PRC citizens), such domestic enterprise may be treated as a Chinese investor and therefore the VIE structures may
9285198_218.pdf	en	be considered as legitimate. Conversely, if ultimate controlling person(s) is/are of foreign nationalities, such domestic enterprise may be treated as a foreign investor or FIE, and therefore the operation of such domestic enterprise through VIE structures without obtaining necessary permission may be considered as illegal. Neither the Draft Foreign Investment Law nor its accompanying explanatory notes (the “Explanatory Notes”) provides a clear direction in dealing with VIE structures existing before the Draft Foreign Investment Law becoming effective. However, the Explanatory Notes contemplate three possible approaches in dealing with FIEs with existing VIE structures and conducting business in an industry falling within the “catalog of special administrative measures”: (i) requiring them to make a filing (申報) to the competent authority that the actual control is vested with Chinese investors, after which the VIE structures may be retained; (ii) requiring them to apply to the competent authority for certification that their actual control is vested with Chinese investors and, upon verification (認定) by the competent authority, the VIE structures may be retained; and (iii) requiring them to apply to the competent authority for permission (准入許可) to continue to use the VIE structure. The competent authority together with the relevant departments will then make a decision after taking into account the actual control of the FIE and other factors. To further clarify, under the first possible approach, “making a filing” is simply an information disclosure obligation, which means the enterprise does not have to receive any confirmation or permission from the competent authorities, whilst for the second and third approaches, the enterprise has to receive either the confirmation or the access permission from the competent authorities. For the latter two approaches, the second approach focuses on the nationality of the controller, whereas the third approach may take factors in addition to the nationality of the controller (which are not clearly defined in the Draft Foreign Investment Law or the Explanatory Notes) into consideration. The three possible approaches above are set out in the Explanatory Notes to solicit public opinion on the treatment of existing contractual arrangements, have not been formally adopted and may be subject to revisions and amendments taking into account the results of the public consultation. Where foreign investors and FIEs circumvent the provisions of the Draft Foreign Investment Law by entrusted holding, trust, multi-level re-investment, leasing, contracting, financing arrangements, protocol control, overseas transaction or otherwise, make investments in sectors specified in the Catalog of Prohibitions, or make investments in sectors specified in the Catalog of Restrictions without permission or violate the information reporting obligations specified therein, penalty shall be imposed in accordance with Article 144 (Investments in Sectors Specified in the Catalog of Prohibitions), Article 145 (Violation of Provisions on Access Permission), Article 147 (Administrative Legal Liability for Violating the Information Reporting Obligation) or Article 148 (Criminal Legal Liability for Violating the Information Reporting Obligation) of the Draft Foreign Investment Law, as the case may be.
20780328_46.pdf	en	# Key Performance Indicators Related to Suppliers in 2021 <table><tr><td>Indicators</td><td>2021</td></tr><tr><td>Total number of suli1ppers</td><td>1732</td></tr><tr><td>East China</td><td>390</td></tr><tr><td>Central China</td><td>81</td></tr><tr><td>North China</td><td>906</td></tr><tr><td>South China</td><td>262</td></tr><tr><td>Northwest China</td><td>14</td></tr><tr><td>Northeast China</td><td>31</td></tr><tr><td>Southwest China</td><td>84</td></tr></table> Note: The supplier statistic only includes those suppliers in the Chinese mainland. # Protecting Intellectual Property Pursuant to the Anti-Unfair Competition Law of the People's Republic of China, the Patent Law of the People's Republic of China, the Advertisement Law of the People's Republic of China and other relevant laws and regulations, the Bank has formulated the Administrative Measures on Intellectual Property and the Administrative Measures on Brand Management. The IPs were managed in aspects of innovative protection, license management and infringement protection to prevent IP risks, comprehensively promoting the standardisation and unification of the Bank's brand culture and image. The Bank has formulated and enforced the Legal Risk Management Regulations on the Protection of Intellectual Property Rights in response to the introduction of the Civil Code of the People's Republic of China and the new requirements. The Bank carried out relevant trainings for all employees for the purpose of updating the legal concept of IP protection and improving their awareness of IP protection. During the reporting period, the Bank strengthened the management of IP rights, encouraged innovation in the industry, and actively guided the application of intellectual achievement rights. Throughout the year, the Bank
20780328_47.pdf	en	launched 9 patent applications, 9 trademark registration applications, and 18 copyright applications, completed 3 patent authorisations, 7 copyright registrations, and 3 trademark registrations. To ensure the validity of digital financial IP rights, the Bank completed 17 renewals of domain names upon expiration and 9 renewals of trademarks upon expiration.
2583956_21.pdf	en	In addition, Arconic has participated in, and may continue to participate in, joint ventures, strategic alliances and other similar arrangements from time to time. Although the Company has, in connection with past and existing joint ventures, sought to protect its interests, joint ventures and strategic alliances inherently involve special risks. Whether or not Arconic holds majority interests or maintains operational control in such arrangements, its partners may: • have economic or business interests or goals that are inconsistent with or opposed to those of the Company; • exercise veto rights to block actions that Arconic believes to be in its or the joint venture’s or strategic alliance’s best interests; • take action contrary to Arconic’s policies or objectives with respect to investments; or • as a result of financial or other difficulties, be unable or unwilling to fulfill their obligations under the joint venture, strategic alliance or other agreements, such as contributing capital to expansion or maintenance projects. There can be no assurance that acquisitions, growth investments, divestitures, closures, joint ventures, strategic alliances or similar arrangements will be undertaken or completed in their entirety as planned or that they will be beneficial to Arconic, whether due to the abovedescribed risks, unfavorable global economic conditions, increases in construction costs, currency fluctuations, political risks, or other factors. # Arconic may be unable to realize future targets or goals established for its business segments, at the levels or by the dates targeted. From time to time, Arconic may announce future targets or goals for its business, which are based on the Company’s then current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Arconic operates. Future targets and goals reflect the Company’s beliefs and assumptions and its perception of historical trends, then current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. As such, targets and goals are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events, including the risks discussed in this report. The actual outcome may be materially different. There can be no assurance that any targets or goals established by the Company will be accomplished at the levels or by the dates targeted, if at all. Failure to achieve the targets or goals by the Company may have a material adverse effect on its business, financial condition, results of operations or the market price of its securities. # Cyber attacks and security breaches may threaten the integrity of Arconic’s intellectual property and other sensitive information, disrupt its business operations, and result in reputational harm and other negative consequences that could have a material adverse effect on its financial condition and results of operations. Arconic faces global cybersecurity threats, which may range from uncoordinated individual attempts to sophisticated and targeted measures, known as advanced persistent threats, directed at the Company. Cyber attacks and security breaches may include, but are not limited to, attempts to access information, computer viruses, denial of service and other electronic security breaches. The Company believes that it faces a heightened threat of cyber attacks due to the industries it serves, the locations of its operations and its technological innovations. The Company has experienced cybersecurity attacks in the past, including breaches of its information technology systems in which information was taken, and may experience them in the future, potentially with more frequency or sophistication. Based on information known to date, past attacks have not had a material impact on Arconic’s financial condition or results of operations. However, due to the evolving nature of cybersecurity threats, the scope and impact of any future incident cannot be predicted. While the Company continually works to safeguard its systems and mitigate potential risks, there is no assurance that such actions will be sufficient to prevent cyber attacks or security breaches that manipulate or improperly use its systems or networks, compromise confidential or otherwise protected information, destroy or corrupt data, or otherwise disrupt its operations. The occurrence of such events could negatively impact Arconic’s reputation and its competitive position and could result in litigation with third parties, regulatory action, loss of business, potential liability and increased remediation costs, any of which could have a material adverse effect on its financial condition and results of operations. In addition, such attacks or breaches could require significant management attention and resources, and result in the diminution of the value of the Company’s investment in research and development. # A decline in Arconic’s financial performance or outlook could negatively impact the Company’s access to the global capital markets, reduce the Company’s liquidity and increase its borrowing costs. Arconic has significant capital requirements and depends, in part, upon the issuance of debt to fund its operations and contractual commitments and pursue strategic acquisitions. A decline in the Company’s financial performance or outlook
2583956_22.pdf	en	due to internal or external factors could affect the Company’s access to, and the availability or cost of, financing on acceptable terms and conditions. There can be no assurance that Arconic will have access to the global capital market on terms the Company finds acceptable. Limitations on Arconic’s ability to access the global capital markets, a reduction in the Company’s liquidity or an increase in borrowing costs could materially and adversely affect Arconic’s ability to maintain or grow its business, which in turn may adversely affect its financial condition and results of operations. # A downgrade of Arconic’s credit ratings could limit Arconic’s ability to obtain future financing, increase its borrowing costs, increase the pricing of its credit facilities, adversely affect the market price of its securities, trigger letter of credit or other collateral postings, or otherwise impair its business, financial condition, and results of operations. Arconic’s credit ratings are important to the Company’s cost of capital. The major rating agencies routinely evaluate Arconic’s credit profile and assign debt ratings to the Company. This evaluation is based on a number of factors, which include financial strength, business and financial risk, as well as transparency with rating agencies and timeliness of financial reporting. On May 1, 2017, Standard and Poor’s Ratings Services affirmed Arconic’s longterm debt at BBB, an investment grade rating, with a stable outlook, and its short-term debt at A3. On November 1, 2016, Moody’s Investor Service (Moody’s) downgraded Arconic’s longterm debt rating from Ba1, a noninvestment grade, to Ba2 and its shortterm debt rating from Speculative Grade Liquidity1 to Speculative Grade Liquidity2. Additionally, Moody’s changed the outlook from negative to stable (ratings and outlook were affirmed on November 2, 2017). On April 21, 2016, Fitch affirmed Arconic’s longterm debt rating at BB+, a noninvestment grade, and shortterm debt at B. Additionally, Fitch changed the current outlook from positive to evolving. On July 7, 2016, Fitch changed the current outlook from evolving to stable (ratings and outlook were affirmed on July 3, 2017). There can be no assurance that one or more of these or other rating agencies will not take negative actions with respect to Arconic’s ratings. Increased debt levels, macroeconomic conditions, a deterioration in the Company’s debt protection metrics, a contraction in the Company’s liquidity, or other factors could potentially trigger such actions. A rating agency may lower, suspend or withdraw entirely a rating or place it on negative outlook or watch if, in that rating agency’s judgment, circumstances so warrant. A downgrade of Arconic’s credit ratings by one or more rating agencies could adversely impact the market price of Arconic’s securities;adversely affect existing financing (for example, a downgrade by Standard and Poor’s or a further downgrade by Moody’s would subject Arconic to higher costs under Arconic’s FiveYear Revolving Credit Agreement and certain of its other revolving credit facilities); limit access to the capital (including commercial paper) or credit markets or otherwise adversely affect the availability of other new financing on favorable terms, if at all; result in more restrictive covenants in agreements governing the terms of any future indebtedness that the Company incurs; increase the cost of borrowing or fees on undrawn credit facilities; result in vendors or counterparties seeking collateral or letters of credit from Arconic; or otherwise impair Arconic’s business, financial condition and results of operations. # Arconic’s business and growth prospects may be negatively impacted by limits in its capital expenditures. Arconic requires substantial capital to invest in growth opportunities and to maintain and prolong the life and capacity of its existing facilities. Insufficient cash generation or capital project overruns may negatively impact Arconic’s ability to fund as planned its sustaining and returnseeking capital projects. Over the long term, Arconic’s ability to take advantage of improved market conditions or growth opportunities in its businesses may be constrained by earlier capital expenditure restrictions, which could adversely affect the longterm value of its business and the Company’s position in relation to its competitors. # An adverse decline in the liability discount rate, lowerthanexpected investment return on pension assets and other factors could affect Arconic’s results of operations or amount of pension funding contributions in future periods. Arconic’s results of operations may be negatively affected by the amount of expense Arconic records for its pension and other postretirement benefit plans, reductions in the fair value of plan assets and other factors. Arconic calculates income or expense for its plans using actuarial valuations in accordance with accounting principles generally accepted in the United States of America (GAAP). These valuations reflect assumptions about financial market and other economic conditions, which may change based on changes in key economic indicators. The most significant yearend assumptions used by Arconic to estimate pension or other postretirement benefit income or expense for the following year are the discount rate applied to plan liabilities and the expected longterm rate of return on plan assets. In addition, Arconic is required to make an annual measurement of plan assets and liabilities, which may result in a significant charge to shareholders’ equity. For a discussion regarding how Arconic’s financial statements can be affected by pension and other postretirement benefits accounting policies, see “Critical Accounting Policies and EstimatesPension and Other Postretirement Benefits” in Part II, Item 7. (Management’s Discussion
2589479_25.pdf	en	Nominees Limited 发行了 1 股股份。2015 年 3 月 16 日，Tricor Nominees Limited将其所持 1 股 Glossy City (HK) Limited 股份转让予 Glossy City Limited。Glossy City (HK) Limited 业务性质为投资控股，主要从事投资管理业务，除投资分众传媒外，无其他投资。 # （4）Giovanna Investment Hong Kong Limited Giovanna Investment Hong Kong Limited 于 2015 年 3 月 3 日在香港皇后大道东 183 号合和中心 54 楼注册成立，商业登记证号码为 64455982，并向其唯一股东 Tricor Nominees Limited 行了 1 股股份。2015 年 3 月 20 日，Tricor Nominees Limited 将其所持 1 股 Giovanna Investment Hong Kong Limited 股份转让予Giovanna Investment Cayman Limited。Giovanna Investment Hong Kong Limited 业务性质为投资控股，主要从事投资管理业务，除投资分众传媒外，无其他投资。根据 Giovanna Investment 提供的相关材料说明，CAP III General Partner,L.P.为 Carlyle Asia Partners III, L.P.、CAP III Co-Investment, L.P.和 Carlyle Giovanna Partners, L.P.的普通合伙人，CAP III General Partner S3, L.P.为 Carlyle-Eight Finance Asia Co-Investment Partners, L.P.的普通合伙人，而凯雷投资集团（The Carlyle Group L.P.）间接控制 CAP III General Partner,L.P.及 CAP III General Partner S3, L.P.，因此凯雷投资集团为 Giovanna Investment 的实际控制人。凯雷投资集团为美国纳斯达克上市企业（NASDAQ GS：CG），无实际控制人。 # （5）Gio2 Hong Kong Holdings Limited Gio2 Hong Kong Holdings Limited 于 2015 年 3 月 5 日在香港湾仔港湾道 18号中环广场 55 楼 5501 室注册成立，商业登记证号码为 64462602，并向其唯一股东 Taroona Limited 行了 1 股股份。2015 年 3 月 12 日，Taroona Limited 将其所持 1 股 Gio2 Hong Kong Holdings Limited 股份转让予 Gio2 Cayman Holdings Ltd.。Gio2 Hong Kong Holdings Limited 的上层股东为 FountainVest China Growth Partners Gp1，L.P.（Cayman Islands）、FountainVest Gio2 Partners GP Ltd.(Cayman Islands)、FountainVest China Growth Partners GP2 Ltd.(Cayman Islands)，其均受四名自然人唐葵、胡勇敏、庄建与赵辰宁控制。Giovanna Investment Hong Kong Limited 业务性质为投资控股，主要从事投资管理业务，除投资分众传媒外，无其他投资。 # 2. 发行人实际控制人基本情况发行人的实际控制人江南春先生控股子公司的股权无对外质押情况。对外投资方面，实际控制人江南春先生还投资控制了以下公司：Focus Media（China）Holding Limited、TOP MEDIA HOLDINGS LIMITED、Appreciate Capital Limited、Cgen Media Technology Company Limited、Cgen Digital Media Company Limited、JJ Media Investment Holding Limited、JAS Investment Group Limited、JJ Capital
2589479_26.pdf	en	Investment Limited、Media Global Group Limited、Top New Development Limited、Media Global Management Limited、Target Sales International Limited、Top Notch Investments Holdings Ltd、Target Management Group Limited、Media Management Holding Limited 、Giovanna Group Holdings Limited 、Giovanna Intermediate Limited、Giovanna Parent Limited、Focus Media Holding Limited、Giovanna Newco1 Limited、Giovanna Newco2 Limited、Target Media Holding Limited。图表5-3：截至 2016 年 9 月末江南春先生对外投资基本情况 <table><tr><td>公司名称</td><td>注册地</td><td>注册资本</td><td>持股比例</td><td>主营业务</td></tr><tr><td>Focus Media（China）Holding Limited</td><td>中国香港</td><td>HK$10,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>TOP MEDIA HOLDINGS LIMITED</td><td>BVI</td><td>$50,000.00</td><td>70%</td><td>投资管理</td></tr><tr><td>Appreciate CaiLiptal mited</td><td>BVI</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Cgen Media Technology Company Limited</td><td>中国香港</td><td>HK$10,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Cgen DiilCgta Media ompaniy Lmited</td><td>开曼</td><td>$930.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>JJ Media Investment Holding Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>JAS Investment Group Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>JJ Caiptal Investment Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Media Global Group Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Top New Development Limited</td><td>中国香港</td><td>HK$10,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Media Global Management Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Target Sales International Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Top Notch Investments Holdings Ltd</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Target Management Group Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Media Management Holding Limited</td><td>BVI</td><td>$50,000.00</td><td>100%</td><td>投资管理</td></tr><tr><td>Giovanna Group Holdings Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Giovanna Intermediate Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Giovanna Parent Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Focus Media Holding Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Giovanna Newco1 Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Giovanna Newco2 Limited</td><td>开曼</td><td>$50,000.00</td><td>26.74%</td><td>投资管理</td></tr><tr><td>Target Media Holding Limited</td><td>开曼</td><td>$27,600.00</td><td>26.74%</td><td>投资管理</td></tr></table> # 四、发行人独立性情况发行人在业务、人员、资产、机构、财务等方面与控股股东相互独立，公司具有独立完整的业务及自主经营能力。 # 1、业务方面
8405348_44.pdf	en	# PARTIES INVOLVED IN THE PLACING <table><tr><td rowspan="2">Sole Sponsor</td><td> Amlpe CailLipta mited</td></tr><tr><td>Unit A, 14th Floor Two Chinachem Plaza 135 Des Voeux Road Central Central Hong Kong</td></tr><tr><td rowspan="2">Sole Global Coordinator and Sole Bookrunner</td><td>AmlOipe rent CaiLiiptal mted</td></tr><tr><td>Unit 902, Far East Consortium Building 121 Des Voeux Road Central Hong Kong</td></tr><tr><td rowspan="4">Joint Lead Managers</td><td> Amlipe Orent CaiLptal imited</td></tr><tr><td>Unit 902, Far East Consortium Building 121 Des Voeux Road Central Hong Kong</td></tr><tr><td>Convoy Investment Services Limited</td></tr><tr><td>21/F, Tesbury Centre 24–32 Queen’s Road East Wanchai Hong Kong</td></tr><tr><td rowspan="8">Co-Lead Managers</td><td> Head & Shoulders Securities Limited</td></tr><tr><td>Room 2511, 25/F, Cosco Tower 183 Queen’s Road Central Hong Kong</td></tr><tr><td>Opus Caildpta Limite</td></tr><tr><td>18/F, Fung House 19–20 Connauhgt Road Central Central Hong Kong</td></tr><tr><td>Pacific Foundation Securities Limited</td></tr><tr><td>11/F, New World Tower II 16–18 Queen’s Road Central Hong Kong</td></tr><tr><td>Quam Securities Company Limited</td></tr><tr><td>18/F–19/F, China Building 29 Queen’s Road Central Hong Kong</td></tr></table>
8405348_45.pdf	en	<table><tr><td rowspan="2">Legal advisers to our Company as to Hong Kong law</td><td>Cheung Tong & Rosa Solicitors</td></tr><tr><td>Room 501, 5/F, Sun Hung Kai Centre, 30 Harbour Road, Hong Kong</td></tr><tr><td rowspan="2">Legal advisers to our Company as to Cayman Islands law</td><td>Conyers Dill & Pearman</td></tr><tr><td>Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands</td></tr><tr><td rowspan="2">Legal advisers to the Sole Sponsor and the Underwriters as to Hong Kong law</td><td>Francis & Co. in association with Addleshaw Goddard (Hong Kong) LLP</td></tr><tr><td>802–804 ChamiTpon ower 3 Garden Road Central Hong Kong</td></tr><tr><td rowspan="2">Auditors and Reporting accountants</td><td> Crowe Horwath (HK) CPA Limited</td></tr><tr><td>9/F Leihgton Centre, 77 Leihgton Road, Causeway BaHKy, ong ong</td></tr></table>
20788721_22.pdf	en	Federal Reserve) and to a limit of 25% of tier 1 capital for credit exposures to any other unaffiliated counterparty. In September 2017, the Federal Reserve issued a final rule that imposes contractual requirements on certain “qualified financial contracts” to which U.S. G-SIBs, including us, and their subsidiaries are parties. Under the final rule, certain qualified financial contracts generally must expressly provide that transfer restrictions and default rights against a U.S. G-SIB, or subsidiary of a U.S. G-SIB, are limited to the same extent as they would be under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Act and their implementing regulations. In addition, certain qualified financial contracts may not, among other things, permit the exercise of any cross-default right against a U.S. G-SIB or subsidiary of a U.S. G-SIB based on an affiliate’s entry into insolvency, resolution or similar proceedings, subject to certain creditor protections. There is a phased-in compliance schedule based on counterparty type, with a first compliance date of January 1, 2019. In addition, the final rules create an early-remediation regime to address financial distress or material management weaknesses determined with reference to four levels of early remediation, including heightened supervisory review, initial remediation, recovery, and resolution assessment, with specific limitations and requirements tied to each level. The systemic-risk regime also provides that, for institutions deemed to pose a grave threat to U.S. financial stability, the Federal Reserve, upon an FSOC vote, must limit that institution’s ability to merge, restrict its ability to offer financial products, require it to terminate activities, impose conditions on activities or, as a last resort, require it to dispose of assets. Upon a grave-threat determination by the FSOC, the Federal Reserve must issue rules that require financial institutions subject to the systemic-risk regime to maintain a debt-to-equity ratio of no more than 15 to 1 if the FSOC considers it necessary to mitigate the risk of the grave threat. The Federal Reserve also has the ability to establish further standards, including those regarding contingent capital, enhanced public disclosures, and limits on short-term debt, including off-balance sheet exposures. # Resolution Planning State Street, like other bank holding companies with total consolidated assets of \$50 billion or more, periodically submits a plan for rapid and orderly resolution in the event of material financial distress or failure — commonly referred to as a resolution plan or a living will — to the Federal Reserve and the FDIC under Section 165(d) of the Dodd-Frank Act. Through resolution planning, we seek, in the event of the insolvency of State Street, to maintain State Street Bank’s role as a key infrastructure provider within the financial system, while minimizing risk to the financial system and maximizing value for the benefit of our stakeholders. We have and will continue to focus management attention and resources to meet regulatory expectations with respect to resolution planning. We submitted our 2017 resolution plan describing our preferred resolution strategy to the Federal Reserve and FDIC on June 30, 2017. On December 19, 2017, the Federal Reserve and FDIC announced that they had completed their review and had not identified deficiencies or specific shortcomings. Nonetheless, the agencies identified four common areas in which more work may need to be done by all firms, including State Street, to continue to improve resolvability: intra-group liquidity;internal loss-absorbing capacity; derivatives; and payment, clearing and settlement activities. State Street’s next resolution plan is due July 1, 2019. In the event of material financial distress or failure, our preferred resolution strategy is the SPOE Strategy. The SPOE Strategy provides that prior to the bankruptcy of the Parent Company and pursuant to a support agreement among the Parent Company, SSIF (a direct subsidiary of the Parent Company), State Street’s Beneficiary Entities (as defined below) and certain other State Street entities, SSIF is obligated, up to its available resources, to recapitalize and/or provide liquidity to State Street Bank and the other State Street entities benefiting from such capital and/or liquidity support (collectively with State Street Bank, “Beneficiary Entities”), in amounts designed to prevent the Beneficiary Entities from themselves entering into resolution proceedings. Following the recapitalization of, or provision of liquidity to the Beneficiary Entities, the Parent Company would enter into a bankruptcy proceeding under the U.S. Bankruptcy Code. The Beneficiary Entities and other State Street subsidiaries would be transferred to a newly organized holding company held by a reorganization trust for the benefit of the Parent Company’s claimants. Under the support agreement, the Parent Company has pre-funded SSIF by contributing certain of its assets (primarily its liquid assets, cash deposits, investments in intercompany debt, investments in marketable securities and other cash and non-cash equivalent investments) to SSIF contemporaneous with entering into the support agreement and will continue to contribute such assets, to the extent available, on an on-going basis. In consideration for these contributions, SSIF has agreed in the support agreement to provide capital and liquidity support to the Parent Company and all of the Beneficiary Entities in accordance with the Parent Company’s capital and liquidity policies. Under the support agreement, the Parent Company is only permitted to
20788721_23.pdf	en	retain cash needed to meet its upcoming obligations and to fund expected expenses during a potential bankruptcy proceeding. SSIF has provided the Parent Company with a committed credit line and issued (and may issue) one or more promissory notes to the Parent Company (the "Parent Company Funding Notes") that together are intended to allow the Parent Company to continue to meet its obligations throughout the period prior to the occurrence of a "Recapitalization Event" (as defined below). The support agreement does not contemplate that SSIF is obligated to maintain any specific level of resources and SSIF may not have sufficient resources to implement the SPOE Strategy. In the event a Recapitalization Event occurs, the obligations outstanding under the Parent Company Funding Notes would automatically convert into or be exchanged for capital contributed to SSIF. The obligations of the Parent Company and SSIF under the support agreement are secured through a security agreement that grants a lien on the assets that the Parent Company and SSIF would use to fulfill their obligations under the support agreement to the Beneficiary Entities. SSIF is a distinct legal entity separate from the Parent Company and the Parent Company’s other affiliates. In accordance with its policies, State Street is required to monitor, on an ongoing basis, the capital and liquidity needs of State Street Bank and the other Beneficiary Entities. To support this process, State Street has established a trigger framework that identifies key actions that would need to be taken or decisions that would need to be made if certain events tied to State Street’s financial condition occur. In the event that State Street experiences material financial distress, the support agreement requires State Street to model and calculate certain capital and liquidity triggers on a regular basis to determine whether or not the Parent Company should commence preparations for a bankruptcy filing and whether or not a Recapitalization Event has occurred. Upon the occurrence of a Recapitalization Event: (1) SSIF would not be authorized to provide any further liquidity to the Parent Company; (2) the Parent Company would be required to contribute to SSIF any remaining assets it is required to contribute to SSIF under the support agreement (which specifically exclude amounts designated to fund expected expenses during a potential bankruptcy proceeding); (3) SSIF would be required to provide capital and liquidity support to the Beneficiary Entities to support such entities’ continued operation to the extent of its available resources and consistent with the support agreement; and (4) the Parent Company would be expected to commence Chapter 11 proceedings under the U.S. Bankruptcy Code. No person or entity, other than a party to the support agreement, should rely, including in evaluating any State Street entity from a creditor's perspective or determining whether to enter into a contractual relationship with any State Street entity, on any State Street affiliate being or remaining a Beneficiary Entity or receiving capital or liquidity support pursuant to the support agreement. A “Recapitalization Event” is defined under the support agreement as the earlier occurrence of one or more capital and liquidity thresholds being breached or the authorization by the Parent Company's Board of Directors for the Parent Company to commence bankruptcy proceedings. These thresholds are set at levels intended to provide for the availability of sufficient capital and liquidity to enable an orderly resolution without extraordinary government support. The SPOE Strategy and the obligations under the support agreement may result in the recapitalization of State Street Bank and the commencement of bankruptcy proceedings by the Parent Company at an earlier stage of financial stress than might otherwise occur without such mechanisms in place. An expected effect of the SPOE Strategy and applicable TLAC regulatory requirements is that State Street’s losses will be imposed on the Parent Company shareholders and the holders of long-term debt and other forms of TLAC securities currently outstanding or issued in the future by the Parent Company, as well as on any other Parent Company creditors, before any of its losses are imposed on the holders of the debt securities of the Parent Company's operating subsidiaries or any of their depositors or creditors, or before U.S. taxpayers are put at risk. There can be no assurance that credit rating agencies, in response to our resolution plan or the support agreement, will not downgrade, place on negative watch or change their outlook on our debt credit ratings, generally or on specific debt securities. Any such downgrade, placement on negative watch or change in outlook could adversely affect our cost of borrowing, limit our access to the capital markets or result in restrictive covenants in future debt agreements and could also adversely impact the trading prices, or the liquidity, of our outstanding debt securities. State Street Bank is also required to submit periodically to the FDIC a plan for resolution in the event of its failure, referred to as an IDI plan. Under the IDI plan rule, submission of the IDI plan is scheduled for July 1, 2018. # Orderly Liquidation Authority Under the Dodd-Frank Act, certain financial companies, including bank holding companies such as State Street, and certain covered subsidiaries, can be subjected to the orderly liquidation authority. The U.S. Treasury Secretary, in consultation with the U.S. President, must first make certain extraordinary
11759554_4.pdf	en	\[ c _ { i j k l } = \frac { 1 } { 2 v } \sum _ { p , p ^ { \prime } } A _ { i p , k p ^ { \prime } } ^ { ( 2 ) j l } . \eqno ( 1 2 ) \] The technical details of the calculations are as follows. The calculations were done for cubic STO exploiting the Quantum ESPRESSO (QE) [14] ab initio package within the GGA PBE exchange-correlation functional with ultrasoft pseudopotentials [15]. We have used an automatically generated uniform 16x16x16 grid of k-points, the kinetic energy cutoff for wavefunctions was 80 Ry. The calculations of phonon spectrum are done using Density Functional Perturbation Theory (DFPT) [16] as implemented in the PHonon code. The energy threshold for self-consistency was chosen to be equal to $ 1 0 ^ { - 2 0 } $ Ry with the help of convergence tests for gamma point phonons. To find the independent components of tensors $ \chi _ { i j } = \chi \delta _ { i j } $ , $ M _ { i j } = M \delta _ { i j } $ , $ f _ { i j k l } $, and $ c _ { i j k l } $ ($ \chi $, M, $ f _ { 1 1 } $, $ f _ { 1 2 } $, $ f _ { 4 4 } $, $ c _ { 1 1 } $, $ c _ { 1 2 } $, $ c _ { 4 4 } $), we evaluated the wave-vector dependence of the dynamical matrix $ A _ { i p , i ^ { \prime } p ^ { \prime } } ( \vec { q } ) $ for the [100] and [110] directions of the reciprocal space. This provided us with the components of the $ A _ { i p , i ^ { \prime } p ^ { \prime } } ^ { ( 0 ) } $ and $ A _ { i p , i ^ { \prime } p ^ { \prime } } ^ { ( 2 ) j l } $ matrices needed to finalize the calculations using Eqs. (8)-(12). The results of the calculations are presented in Tables I and II. A remarkable observation, which forms the main message of this Letter, is a very strong renormalization of the flex-ocoupling tensor by dynamic flexoelectricity: it is seen that the corresponding components of the tensors $ f _ { i j k l } $ and $ f _ { i j k l } ^ { \mathrm { t o t } } $ can drastically differ. This implies that the traditional neglect of dynamic flexoelectricity in the dynamic electromechanical simulations incorporating flex-oelectricity is inadmissable. Notably, the dynamic flexoelectricity can play an essential role in the frequency dependence of the electromechanical response close to the frequencies of mechanical resonances of the sample. The point is that such response is expected to be sensitive to the dynamic flexoelectricity only above the relevant resonance frequency [6]. The results of our calculations of the dynamical matrix provide us with an alternative way of evaluating some components of the material tensors of STO directly from the phonon dispersion curves. This will provide a cross-check of the above results. In addition, the method presented below will offer a way of evaluating these tensors from the experimental phonon spectra of the material. We suggest fitting the long-wavelength part of the low-energy spectrum of the crystal to that obtained from the continuum theory, incorporating dynamic flexoelectricity. The suggested approach uses the spectra of transverse acoustic (TA) and soft-mode trans-
11759554_5.pdf	en	<table><tr><td>2 VM (×10−8 s2 )m</td><td>6 $ \pm $ 0.5</td></tr><tr><td>f11 (V)</td><td>1.11 $ ^ + $ 0.05</td></tr><tr><td>f12 (V)</td><td>−1.30 ± 0.05</td></tr><tr><td>f44 (V)</td><td>−0.28 ± 0.05</td></tr><tr><td>$ f _ { 1 1 } ^ { \mathrm { t o t } } $(V)</td><td>−2.1 ± 0.1</td></tr><tr><td>$ f _ { 1 2 } ^ { \mathrm { t o t } } $(V)</td><td>−2.5 ± 0.1</td></tr><tr><td>tot $ I A $ (V) 4</td><td>−1.5 ± 0.1</td></tr><tr><td>χ/0</td><td>2400</td></tr></table> TABLE I. Calculated static (f), dynamic (M), and total ($ f ^ { \mathrm { t o t } } $) flexocoupling coefficients for cubic $ \mathrm { S r T i O 3 } $ ($ a $ = 3.886 ˚A) under a pressure of 78 kBar using dynamical matrix. $ \chi / \epsilon _ { 0 } $ is the relative dielectric susceptibility. <table><tr><td>(11N 10 2 )m</td><td>(a) Dyn. mat.</td><td>(b) Ph. dis.p</td><td>(c) Ex.p</td></tr><tr><td>c11</td><td>2.77 ± 0.05</td><td>3.1 $ \pm $ 0.1</td><td>3.16</td></tr><tr><td>c12</td><td>1.06 ± 0.05</td><td>0.9 $ \pm $ 0.1</td><td>1.03</td></tr><tr><td>c44</td><td>0.92 $ + $ 0.05</td><td>1.0 $ \pm $ 0.1</td><td>1.22</td></tr><tr><td>\|M\|c44 (V)ρ</td><td>1.2 $ \pm $ 0.1</td><td>1.1 $ \pm $ 0.4</td><td></td></tr><tr><td>\|ftotV44 \| ()</td><td>1.5 $ + $ 0.1</td><td>1.5 $ \pm $ 0.2</td><td>1.2-2.2</td></tr><tr><td>\|ftottt− V11 fo12 \| ()</td><td>0.2 $ \pm $ 0.1</td><td>$ < $ 0.5</td><td>1.2-1.4</td></tr></table> TABLE II. Material parameters for cubic $ \mathrm { { S r T i O } _ { 3 } } $ ($ a $ = 3.886 ˚A) under a pressure of 78 kBar obtained using the dynamical matrix and from analysis of phonon dispersion curves. c is the stiffness tensor. $ f ^ { \mathrm { t o t } } $ is defined in Eq. (20). $ \rho $ is the density $ ( \rho = 5 1 7 4 \frac { \mathrm { k g } } { \mathrm { m } ^ { 3 } } ) $) calculated by the mass of atoms in the unit cell divided by the cell volume. (a) Calculated from dynamical matrix. (b) Obtained from the simulated phonon dispersion curves. (c) Obtained from the experimental phonon dispersion curves [17–19]. verse optic (TO) branches for the high symmetry [100], [110], and [111] directions of wavevec-tor. In this case, the phonons are not accompanied by any wave of the electric field and the continuum theory equations, Eqs. (1) and (2) with $ E _ { i } = 0 $, yield the following dispersion equation for the frequency $ \omega $ of the transverse modes [6]:
9285198_532.pdf	en	The excess over the par value for the 291,833,279 ordinary shares issued was credited to the share premium account with aggregate amount of approximately RMB4,464,387,000. (c) In February 2016, 33,010,341 ordinary shares of the Company were allotted and issued to an entity controlled by Tencent and a number of independent third parties at a price of US\$3.0294 per share for an aggregated consideration of approximately US\$100,000,000 (equivalent to approximately RMB652,445,000). These shares rank pari passu in all respects with the shares in issue. The excess over the par value for the 33,010,341 ordinary shares issued was credited to the share premium account with aggregate amounts of approximately RMB652,423,000. (d) In January 2017, 30,201,818 ordinary shares of the Company were allotted and issued to three existing shareholders of the Company at a price of US\$3.31 per share for an aggregated consideration of approximately US\$100,000,000 (equivalent to approximately RMB 687,765,000). These shares rank pari passu in all respects with the shares in issue. The excess over the par value for the 30,201,818 ordinary shares issued was credited to the share premium account with aggregate amount of approximately RMB687,744,000. # 36 Other reserves # Group <table><tr><td rowspan="2"></td><td>Contribution from holding company</td><td>Currency translation differences</td><td>Put option on non- controlling interests</td><td>Share-based compensation reserve</td><td>Statutory surlpus reserve fund</td><td> Total</td></tr><tr><td>RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td></tr><tr><td>As at January 1, 2014 .....</td><td>1,613</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,613</td></tr><tr><td>Deemed contribution .......</td><td>18,314</td><td>—</td><td>—</td><td>—</td><td>—</td><td>18,314</td></tr><tr><td>Currency translation differences ..................</td><td> —</td><td>(595)</td><td> —</td><td> —</td><td> —</td><td>(595)</td></tr><tr><td>Share-based compensation expenses (Note 37) ......</td><td>3,319</td><td> —</td><td> —</td><td>3,259</td><td> —</td><td>6,578</td></tr><tr><td>Profit appropriations to statutory reserves (Note a) ......................</td><td>—</td><td> —</td><td> —</td><td> —</td><td>517</td><td>517</td></tr><tr><td>Others .............................</td><td>768</td><td>—</td><td> —</td><td> —</td><td> —</td><td>768</td></tr><tr><td>Initial recognition of put option liability ............</td><td> —</td><td> —</td><td>(65,396)</td><td> —</td><td> —</td><td>(65,396)</td></tr><tr><td>As at December 31, 2014</td><td>24,014</td><td>(595)</td><td>(65,396)</td><td>3,259</td><td>517</td><td>(38,201)</td></tr><tr><td>As at January 1, 2015 .....</td><td>24,014</td><td>(595)</td><td>(65,396)</td><td>3,259</td><td>517</td><td>(38,201)</td></tr><tr><td>Currency translation differences ..................</td><td> —</td><td>(9,571)</td><td> —</td><td> —</td><td> —</td><td>(9,571)</td></tr><tr><td>Share-based compensation expenses (Note 37) ......</td><td>1,081</td><td> —</td><td> —</td><td>130,705</td><td> —</td><td>131,786</td></tr><tr><td>Profit appropriations to statutory reserves (Note a) ......................</td><td>—</td><td>—</td><td>—</td><td>—</td><td>8,863</td><td>8,863</td></tr><tr><td>Others .............................</td><td>1,686</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,686</td></tr><tr><td>As at December 31, 2015</td><td>26,781</td><td>(10,166)</td><td>(65,396)</td><td>133,964</td><td>9,380</td><td>94,563</td></tr></table>
9285198_533.pdf	en	<table><tr><td rowspan="2"></td><td>Contribution from holding company</td><td>Currency translation differences</td><td>Put option on non- controling interests</td><td>Share-based compensation reserve</td><td>Statutory surlpus reserve fund</td><td>Cailpta reserve</td><td> Total</td></tr><tr><td>RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td></tr><tr><td>As at January 1, 2016</td><td>26,781</td><td>(10,166)</td><td>(65,396)</td><td>133,964</td><td>9,380</td><td> —</td><td>94,563</td></tr><tr><td>Currency translation differences ..............</td><td> —</td><td>27,229</td><td> —</td><td> —</td><td> —</td><td> —</td><td>27,229</td></tr><tr><td>Share-based compensation expenses (Note 37) .</td><td>585</td><td> —</td><td> —</td><td>77,438</td><td> —</td><td> —</td><td>78,023</td></tr><tr><td>Acquisition of non-controlling interests (Note b) ....</td><td> —</td><td> —</td><td> —</td><td> —</td><td> —</td><td>(7,281)</td><td>(7,281)</td></tr><tr><td>Profit appropriations to statutory reserves (Note a) ..................</td><td> —</td><td> —</td><td> —</td><td> —</td><td>14,686</td><td> —</td><td>14,686</td></tr><tr><td>Others ........................</td><td>3,658</td><td> —</td><td> —</td><td> —</td><td> —</td><td> —</td><td>3,658</td></tr><tr><td>As at December 31, 2016 .......................</td><td>31,024</td><td>17,063</td><td>(65,396)</td><td>211,402</td><td>24,066</td><td>(7,281)</td><td>210,878</td></tr><tr><td>(Unaudited)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>As at January 1, 2016</td><td>26,781</td><td>(10,166)</td><td>(65,396)</td><td>133,964</td><td>9,380</td><td> —</td><td>94,563</td></tr><tr><td>Currency translation differences ..............</td><td> —</td><td>5,545</td><td> —</td><td> —</td><td> —</td><td> —</td><td>5,545</td></tr><tr><td>Share-based compensation expenses (Note 37) .</td><td>151</td><td> —</td><td> —</td><td>39,008</td><td> —</td><td> —</td><td>39,159</td></tr><tr><td>Acquisition of non-controlling interests (Note b) ....</td><td> —</td><td> —</td><td> —</td><td> —</td><td> —</td><td>(7,281)</td><td>(7,281)</td></tr><tr><td>Others ........................</td><td>730</td><td> —</td><td> —</td><td> —</td><td> —</td><td> —</td><td>730</td></tr><tr><td>As at June 30, 2016 ...</td><td>27,662</td><td>(4,621)</td><td>(65,396)</td><td>172,972</td><td>9,380</td><td>(7,281)</td><td>132,716</td></tr><tr><td>As at January 1, 2017</td><td>31,024</td><td>17,063</td><td>(65,396)</td><td>211,402</td><td>24,066</td><td>(7,281)</td><td>210,878</td></tr><tr><td>Currency translation differences ..............</td><td> —</td><td>(21,835)</td><td> —</td><td> —</td><td> —</td><td> —</td><td>(21,835)</td></tr><tr><td>Share-based compensation expenses (Note 37) .</td><td>305</td><td> —</td><td> —</td><td>52,295</td><td> —</td><td> —</td><td>52,600</td></tr><tr><td>Others ........................</td><td>2,295</td><td> —</td><td> —</td><td> —</td><td> —</td><td> —</td><td>2,295</td></tr><tr><td>As at June 30, 2017 ...</td><td>33,624</td><td>(4,772)</td><td>(65,396)</td><td>263,697</td><td>24,066</td><td>(7,281)</td><td>243,938</td></tr></table>
9313601_16.pdf	en	<table><tr><td>No.</td><td>Project Names</td><td>City</td><td>Interest Attributable to the Group</td><td>Primary Intended Use</td><td>Site Area (sq.m.)</td><td>Actual/ Estimated Completion Date</td><td>Land Bank(1) (sq.m.)</td><td>Address</td></tr><tr><td>34.</td><td>Zhumadian Royal Lantai Mansion Phase V</td><td>Zhumadian</td><td>70%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>156,270</td><td>2023/8/1</td><td>388,318</td><td>The southeast side of the intersection of Lizhuang Road and Chunliu Road, and the northwest side of the intersection of Zhangtai Road and Jianshe Avenue, Zhumadian City, Henan Province</td></tr><tr><td>35.</td><td>Jingzhou Leading Lantai House</td><td>Jingzhou</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>54,070</td><td>2021/12/31</td><td>208,275</td><td>Northwest of the intersection of Chutian Road and Dongqiao Road, Jingbei New District, Jingzhou District, Jingzhou City, Hubei Province</td></tr><tr><td>36.</td><td>Jingzhou Leading Fengming Lantai Mansion</td><td>Jingzhou</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>48,399</td><td>2022/8/31</td><td>188,088</td><td>No.66, Fengming Avenue, Jingzhou District, Jingzhou City, Hubei Province</td></tr><tr><td>37.</td><td>Leshan Amazon</td><td>Leshan</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary</td><td>91,900</td><td>2014/10/16</td><td>2,571</td><td>No. 418 and No. 424, North Section of Longyou Road, Shizhong District, Leshan City, Sichuan Province</td></tr><tr><td>38.</td><td>Leshan Haina Mansion</td><td>Leshan</td><td>51%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>36,200</td><td>2016/1/5</td><td>6,904</td><td>No.1589 Muyuan Road, Muchuan County, Leshan City, Sichuan Province</td></tr><tr><td>39.</td><td>Leshan Lantai House</td><td>Leshan</td><td>60%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>88,108</td><td>2021/12/31</td><td>156,422</td><td>East of the intersection of Sansu Road and Ruixiang Road, Qingjiang New District, Shizhong District, Leshan City, Sichuan Province</td></tr><tr><td>40.</td><td>Leshan Tianyu</td><td>Leshan</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary</td><td>29,796</td><td>2020/3/1</td><td>14,033</td><td>Intersection of Hanlin Road and Fenghuang Road, Tongjiang District, Leshan City, Sichuan Province</td></tr></table>
9313601_17.pdf	en	<table><tr><td>No.</td><td>Project Names</td><td>City</td><td>Interest Attributable to the Group</td><td>Primary Intended Use</td><td>Site Area (sq.m.)</td><td>Actual/ Estimated Completion Date</td><td>Land Bank(1) (sq.m.)</td><td>Address</td></tr><tr><td>41.</td><td>Leshan Lanshan</td><td>Leshan</td><td>70%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>89,630</td><td>2021/10/1</td><td>155,006</td><td>No. 881, Section 1, Ruixiang Road, Leshan City, Sichuan Province</td></tr><tr><td>42.</td><td>Leshan International Mansion</td><td>Leshan</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>127,204</td><td>2019/5/17</td><td>3,568</td><td>Taoyuan New Village, Mouzi Town, Shizhong District, Leshan City, Sichuan Province</td></tr><tr><td>43.</td><td>Zunyi Lantai House</td><td>Zunyi</td><td>55%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>39,759</td><td>2022/11/30</td><td>130,977</td><td>Intersection of Shanghai Road and Ningbo Road, Huichuan District, Zunyi City, Guizhou Province</td></tr><tr><td>44.</td><td>Meishan Triumph International Mansion</td><td>Meishan</td><td>100%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>256,303</td><td>2020/11/27</td><td>57,506</td><td>Southwest corner of the intersection of Hubin Road and Meizhou Avenue, Meishan City, Sichuan Province</td></tr><tr><td>45.</td><td>Meishan Triumph Square</td><td>Meishan</td><td>79%</td><td>Residential/ Commercial/ Carpark/Ancillary</td><td>73,976</td><td>2015/5/19</td><td>17,092</td><td>Northeast of the intersection of Suyuan Road and Dongpo Avenue, Dongpo District, Meishan City, Sichuan Province</td></tr><tr><td>46.</td><td>Meishan Huayu Phase II</td><td>Meishan</td><td>60%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>9,102</td><td>2020/6/3</td><td>5,568</td><td>Southeast corner of the intersection of Suyuan Road and Chongguang Street, Meishan City, Sichuan Province</td></tr><tr><td>47.</td><td>Meishan Triumph International Mansion Phase II</td><td>Meishan</td><td>57%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>39,838</td><td>2019/7/30</td><td>8,744</td><td>Northeast of the intersection of Jiangxiang Road and Qingyihang, Dongpo District, Meishan City, Sichuan Province</td></tr><tr><td>48.</td><td>Meishan Lantai House</td><td>Meishan</td><td>55%</td><td>Residential/ Commercial/ Carpark/Ancillary/ Others</td><td>109,814</td><td>2022/12/10</td><td>369,014</td><td>Northwest corner of the intersection of Fucheng Road and Shuangfeng Street, Dongpo District, Meishan City, Sichuan Province</td></tr></table>
7491230_70.pdf	en	<table><tr><td rowspan="2"></td><td rowspan="2">Notes</td><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>ASSETS AND LIABILITIES</td><td></td><td></td><td></td></tr><tr><td>Non-current assets</td><td></td><td></td><td></td></tr><tr><td>Property, plant and equipment</td><td>13</td><td>110,439</td><td>4,229</td></tr><tr><td>Intangible asset</td><td>14</td><td>87</td><td>1,027</td></tr><tr><td>Deposit paid for acquisition for intangible asset</td><td>16</td><td>1,000</td><td>–</td></tr><tr><td></td><td></td><td>111,526</td><td>5,256</td></tr><tr><td>Current assets</td><td></td><td></td><td></td></tr><tr><td>Inventories</td><td>15</td><td>7,360</td><td>7,383</td></tr><tr><td>Trade and other receivables</td><td>16</td><td>3,641</td><td>4,753</td></tr><tr><td>Tax refundable</td><td></td><td>869</td><td>899</td></tr><tr><td>Time deposits</td><td>17</td><td>11,007</td><td>16,000</td></tr><tr><td>Cash and bank balances</td><td></td><td>5,798</td><td>10,172</td></tr><tr><td></td><td></td><td>28,675</td><td>39,207</td></tr><tr><td>Current liabilities</td><td></td><td></td><td></td></tr><tr><td>Trade and other payables</td><td>18</td><td>1,052</td><td>1,486</td></tr><tr><td>Bank borrowings</td><td>19</td><td>12,250</td><td>–</td></tr><tr><td>Lease liabilities</td><td>21</td><td>511</td><td>–</td></tr><tr><td></td><td></td><td>13,813</td><td>1,486</td></tr><tr><td>Net current assets</td><td></td><td>14,862</td><td>37,721</td></tr><tr><td>Total assets less current liabilities</td><td></td><td>126,388</td><td>42,977</td></tr></table>
7491230_71.pdf	en	<table><tr><td rowspan="2"></td><td rowspan="2">Notes</td><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Non-current liabilities</td><td></td><td></td><td></td></tr><tr><td>Provision for long service payment</td><td></td><td>608</td><td>476</td></tr><tr><td>Provision for reinstatement cost</td><td></td><td>854</td><td>1,269</td></tr><tr><td>Bank borrowings</td><td>19</td><td>42,750</td><td>–</td></tr><tr><td>Promissory notes</td><td>20</td><td>44,724</td><td>–</td></tr><tr><td>Lease liabilities</td><td>21</td><td>940</td><td>–</td></tr><tr><td></td><td></td><td>89,876</td><td>1,745</td></tr><tr><td>Net assets</td><td></td><td>36,512</td><td>41,232</td></tr><tr><td>Equity</td><td></td><td></td><td></td></tr><tr><td>Share capital</td><td>22</td><td>41,879</td><td>41,879</td></tr><tr><td>Reserves</td><td></td><td>(5,367)</td><td>(647)</td></tr><tr><td>Total equity</td><td></td><td>36,512</td><td>41,232</td></tr></table> <table><tr><td>Chan Kun Yuen</td><td>Chan Shu Yuen</td></tr><tr><td>Director</td><td>Director</td></tr></table> The notes on pages 74 to 130 are an integral part of these consolidated financial statements.
20781084_204.pdf	en	# 35 Subsequent event On 15 March 2019, a subsidiary of the Group entered into an agreement to fully dispose of its equity interest, representing 50% equity interest, in Shanghai Kaitai, a joint venture of the Group, to the joint venture partner of Shanghai Kaitai at a consideration of RMB1,005 million. Shanghai Kaitai has completed the development of its real estate project and distributed the profit to its respective shareholders before the disposal. The consideration was determined in accordance with the appraised net assets value of Shanghai Kaitai as of 31 January 2019. The transaction is expected to be completed by the end of March 2019. # 36 Balance sheet of the Company <table><tr><td rowspan="3"></td><td colspan="2">As at 31 December</td></tr><tr><td>2018</td><td>2017</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>ASSETS</td><td></td><td></td></tr><tr><td>Non-current assets</td><td></td><td></td></tr><tr><td>Interests in a subsidiary</td><td>2,016,724</td><td>1,993,141</td></tr><tr><td>Financial assets at fair value through profit or loss</td><td>649,860</td><td>—</td></tr><tr><td></td><td>2,666,584</td><td>1,993,141</td></tr><tr><td>Current assets</td><td></td><td></td></tr><tr><td>Prepayments and other receivables</td><td>208</td><td>1,296</td></tr><tr><td>Amounts due from subsidiaries</td><td>7,679,814</td><td>6,654,600</td></tr><tr><td>Amounts due from a related party</td><td>637,433</td><td>—</td></tr><tr><td>Cash and bank balances</td><td>30,610</td><td>49,585</td></tr><tr><td>Total current assets</td><td>8,348,065</td><td>6,705,481</td></tr><tr><td>Total assets</td><td>11,014,649</td><td>8,698,622</td></tr><tr><td>EQUITY</td><td></td><td></td></tr><tr><td>Equity attributable to owners of the Company</td><td></td><td></td></tr><tr><td>Share capital</td><td>14</td><td>13</td></tr><tr><td>Share premium</td><td>4,423,556</td><td>3,506,038</td></tr><tr><td>Other reserves</td><td>(1,363,382)</td><td>(169,894)</td></tr><tr><td>Total equity</td><td>3,060,188</td><td>3,336,157</td></tr></table>
20781084_205.pdf	en	# 36 Balance sheet of the Company (continued) <table><tr><td rowspan="3"></td><td colspan="2">As at 31 December</td></tr><tr><td>2018</td><td>2017</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>LIABILITIES</td><td></td><td></td></tr><tr><td>Non-current liabilities</td><td></td><td></td></tr><tr><td>Borrowings</td><td>5,286,770</td><td>197,013</td></tr><tr><td>Current liabilities</td><td></td><td></td></tr><tr><td>Borrowings</td><td>2,393,994</td><td>5,114,757</td></tr><tr><td>Other payables</td><td>257,259</td><td>50,695</td></tr><tr><td>Amounts due to related parties</td><td>16,438</td><td>—</td></tr><tr><td>Total current liabilities</td><td>2,667,691</td><td>5,165,452</td></tr><tr><td>Total liabilities</td><td>7,954,461</td><td>5,362,465</td></tr><tr><td>Total equity and liabilities</td><td>11,014,649</td><td>8,698,622</td></tr></table> Other reserve of the Company included share-based compensation reserve and accumulated losses. During the year, the change in share-based compensation reserve represents mainly the value of employee services under the share option scheme amounting to RMB23,583,000 (2017: RMB53,868,000), the change in accumulated losses represents mainly the loss of the Company amounting to RMB1,184,691,000 (2017: RMB223,477,000). The balance sheet of the Company was approved by the Board of Directors on 21 March 2019 and was signed on its behalf: <table><tr><td>Ou Zonghong</td><td> Zeng Feiyan</td></tr></table>
11786782_29.pdf	en	# DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS As at 31 December 2019, the interests and short positions of the directors and the chief executive of the Company in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register kept by the Company pursuant to Section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) were as follow: # (1) Long positions in the ordinary share (each a “Share”) of HK\$0.10 each in the Company 董事及最高行政人員之權益及淡倉於二零一九年十二月三十一日，本公司董事及最高行政人員於本公司或其任何相聯法團（定義見證券及期貨條例第XV部）之股份、相關股份或債券中擁有根據證券及期貨條例第352條本公司存置之登記冊所記錄，或已根據香港聯合交易所有限公司（「聯交所」）證劵上市規則（「上市規則」）附錄十所載上市發行人董事進行證券交易的標準守則另行知會本公司及聯交所之權益及淡倉如下： (1) 於本公司每股面值0.10港元普通股（各為一股「股份」）之好倉 <table><tr><td>Name of Director 董事姓名</td><td>Number of Shares 股份數目</td><td>Capacity/Nature of interest 身份╱權益性質</td><td>Approximate percentage of shareholding 股權概約百分比</td></tr><tr><td></td><td></td><td></td><td>(Note 1) （附註1）</td></tr><tr><td rowspan="3">Yeung Yung 仰融</td><td>2,673,071,189 (Note 2) （附註2）</td><td>Interest of controlled corporation 受控法團權益</td><td></td></tr><tr><td>68,140,000</td><td>Beneficial owner 實益擁有人</td><td></td></tr><tr><td>2,741,211,189 (Note 3) （附註3）</td><td></td><td>13.47%</td></tr><tr><td>Huang Chunhua 黃春華</td><td>35,000,000</td><td>Beneficial owner 實益擁有人</td><td>0.17%</td></tr><tr><td>Wang Chuantao 王川濤</td><td>30,000,000</td><td>Beneficial owner 實益擁有人</td><td>0.15%</td></tr><tr><td rowspan="3">Liu Stephen Quan 劉泉</td><td>281,760,000 (Note 4) （附註4）</td><td>Founder of trust Interest of children under 18 信託創始人未滿18歲子女之權益</td><td></td></tr><tr><td>10,000,000</td><td>Beneficial owner 實益擁有人</td><td></td></tr><tr><td>291,760,000</td><td></td><td>1.43%</td></tr></table>
11786782_30.pdf	en	<table><tr><td>Name of Director 董事姓名</td><td>Number of Shares 股份數目</td><td>Capacity/Nature of interest 身份╱權益性質</td><td>Approximate percentage of shareholding 股權概約百分比</td></tr><tr><td></td><td></td><td></td><td>(Note 1) （附註1）</td></tr><tr><td>Zhu Shengliang 朱勝良</td><td>22,043,883</td><td>Beneficial owner 實益擁有人</td><td>0.11%</td></tr><tr><td>Li Zhengshan 李正山</td><td>26,270,000</td><td>Beneficial owner 實益擁有人</td><td>0.13%</td></tr><tr><td>Ting Kwok Kit, Johnny 丁國傑</td><td>3,000,000</td><td>Beneficial owner 實益擁有人</td><td>0.015%</td></tr><tr><td>Chen Xiao 陳曉</td><td>25,000,000</td><td>Beneficial owner 實益擁有人</td><td>0.12%</td></tr><tr><td>Cheng Tat Wa 鄭達華</td><td>1,300,000</td><td>Beneficial owner 實益擁有人</td><td>0.006%</td></tr><tr><td>Chan Sin Hang 陳善衡</td><td>500,000</td><td>Beneficial owner 實益擁有人</td><td>0.002%</td></tr></table> Notes: (1) The percentage of shareholding is calculated on the basis of 20,352,872,747 Shares in issue as at 31 December 2019 and did not take into account any Shares which may fall to be allotted and issued upon exercise of any subscription rights attaching to any share options granted by the Company. (2) These Shares are held by Sun East LLC. Sun East LLC is a limited liability company incorporated in California, the US, which is owned as to (i) 35% by Dr Yeung Yung (shared commonly with his spouse under the laws of California, the US) and (ii) 65% by Mr Ma Manwai (alias Ma Manwai, Philip) and Mr Jimmy Wang (alias Wang Jian) as co-trustees for certain trusts established for the benefit of the children of Dr Yeung Yung on 30 December 2002. Dr Yeung Yung (as well as his spouse) was deemed to be interested in the Shares held by Sun East LLC by virtue of Part XV of the SFO. (3) The spouse of Dr Yeung Yung is deemed to be interested in the Shares beneficially held by Dr Yeung Yung by virtue of Part XV of the SFO. (4) These Shares were indirectly owned by certain trusts of which Mr Liu Stephen Quan were the founder. The children of Mr Liu were eligible beneficiaries of the trusts. Mr Liu was deemed to be interested in these Shares by virtue of Part XV of the SFO. 附註： (1) 持股百分比按於二零一九年十二月三十一日已發行20,352,872,747股股份計算，並無計及可能因本公司已授出之任何購股權所附任何認購權獲行使而須配發及發行之任何股份。 (2) 該等股份由Sun East LLC持有。Sun East LLC乃於美國加州註冊成立之有限公司，由(i)仰融博士擁有35%權益（根據美國加州法例與其配偶共同持有）及(ii)馬文偉先生及王健先生作為若干信託之共同信託人擁有65%權益，而該等信託於二零零二年十二月三十日設立，以仰融博士之子女為受益人。根據證券及期貨條例第XV部，仰融博士（及其配偶）被視為於Sun East LLC所持股份中擁有權益。 (3) 根據證券及期貨條例第XV部，仰融博士之配偶被視為於仰融博士實益持有之股份中擁有權益。 (4) 該等股份由劉泉先生為創始人之若干信託間接擁有。劉先生之子女為有關信託之合資格受益人。根據證券及期貨條例第XV部，劉先生被視為於該等股份中擁有權益。
7466033_18.pdf	en	<table><tr><td>Product name (reference drugs/targets)</td><td>Indications</td><td>Progress as at the Latest Practicable Date</td></tr><tr><td colspan="3">Smooth progress of domestic clinical projects</td></tr><tr><td>HLX10+ HLX07</td><td>head and neck squamous cell carcinoma (HNSCC)</td><td>In July 2020, the first patient dosing was comlpeted in a hipase 2 clincal trial in mainland China</td></tr><tr><td>HLX10+ HLX04</td><td>Solid tumor</td><td>In September 2020, the enrollment of subjects was comlpeted in a hpase 1 clinical trial</td></tr><tr><td>HLX10+ HLX04</td><td>Hepatocellular Carcinoma (HCC)</td><td>In January 2021, the enrollment of subjects was comlpeted in a hpase 2 clinical trial</td></tr><tr><td>HLX10+HLX04</td><td>Metastatic colorectal cancer (mCRC)</td><td>In March 2021, the first patient dosing was comlpeted in a Phase 2/3 clinical trial in mainland China</td></tr><tr><td>HLX55 (innovative anti-c-Met monoclonal antibody)</td><td>Solid tumor</td><td>In March 2020, the first patient dosing was comlpeted in a hilpase 1 clinca trial in Taiwan, China</td></tr><tr><td>HLX07 (modified innovative anti-EGFR monoclonal antibody)</td><td>Solid tumor</td><td>In March 2020, the relevant clinical research report was comlpeted for the h1ilpase clinical tra</td></tr><tr><td>HLX11 (pertuzumab)</td><td>Breast cancer (BC)</td><td>In September 2020, the first patient dosing was comlpeted in a hpase 1 clinical trial in mainland China</td></tr><tr><td>HLX14 (desumumab)</td><td>Osteoporosis (OP)</td><td>In November 2020, the first patient dosinlg was competed in a hpase 1 clinical trial in mainland China</td></tr></table>
7466033_19.pdf	en	<table><tr><td>Product name (reference drugs/targets)</td><td>Indications</td><td>Progress as at the Latest Practicable Date</td></tr><tr><td colspan="3">Efficient advancement on IND aliippcaton for pre-clinical development projects</td></tr><tr><td>HLX13 (iilipmumab)</td><td>Melanoma, Renal Cell Carcinoma (RCC), Metastatic Colorectal Cancer (mCRC)</td><td>In January 2020, the investigational new drug alipcatipon (IND) was accepted by the NMPA In April 2020, the investigational new drug alippcation (IND) was approved by the NMPA</td></tr><tr><td>HLX56 (anti-DR4 monoclonal antibody)</td><td>Solid tumor</td><td>In May 2020, the investigational new drulg aippcation ( IND) was approved by the Ministry of Health and Welfare of Taiwan.</td></tr><tr><td>HLX70 (anti-S1 fully human monoclonal neutralizing antibody)</td><td>COVID-19</td><td>In October 2020, the investigational new druiNDg alppcation (I) was approved by the U.S. Food and Drug Administration (FDA)</td></tr><tr><td>HLX71 (ACE2-Fc receptor fusion protein)</td><td>COVID-19</td><td>In November 2020, the investigational new druiNg alppcation (ID) was approved by the U.S. Food and Drug Administration (FDA)</td></tr><tr><td>HLX15 (daratumumab)</td><td>Multillpe myeoma (MM)</td><td>In November 2020, the investigational new drulg aippcation (IND) was accepted by the NMPA In January 2021, the investigational new drug alippcation (IND) was approved by the NMPA</td></tr><tr><td>HLX26 (Recombinant anti- LAG-3 human monoclonal antibody injection)</td><td>Solid tumor, lymhpoma</td><td>In January 2021, the investigational new drug alippcation (IND) was accepted by the NMPA</td></tr></table>
9292085_49.pdf	en	<table><tr><td>Aspect</td><td>KPI</td><td>Content</td><td>Chapter Reference or Notes</td></tr><tr><td></td><td>B5.4</td><td>Description of practices used to promote environmentally preferable p r o d u c t s a n d s e r v i c e s w h e n selecting suppliers, and how they are implemented and monitored.</td><td>6.2 Responsible Procurement</td></tr><tr><td rowspan="6">B6 Product Responsibility</td><td>General Disclosure</td><td>Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer r e l a t i n g t o h e a l t h a n d s a f e t y, advertising, labelling and privacy matters relating to products and services provided and methods of redress.</td><td>6.1 Quality Guarantee 6.1.2 Customer Service 6.1.3 Information Security and Privacy</td></tr><tr><td>B6.1</td><td>Percentage of total products sold or shipped subject to recalls for safety and health reasons.</td><td>Not applicable to the Grou’ps business</td></tr><tr><td>B6.2</td><td>N u m b e r o f p r o d u c t s a n d service-related complaints received and how they are dealt with.</td><td>6.1.2 Customer Service</td></tr><tr><td>B6.3</td><td>Description of practices relating to observing and protecting intellectual property rights.</td><td>6.1.3 Information Security and Privacy</td></tr><tr><td>B6.4</td><td>Description of quality assurance process and recall procedures.</td><td>6.1.1 Safe Power Supply Recalling procedures are not applicable to the Grou’ps business</td></tr><tr><td>B6.5</td><td>Description of consumer data protection and privacy policies, how they are implemented and monitored.</td><td>6.1 Quality Guarantee 6.1.2 Customer Service 6.1.3 Information Security and Privacy</td></tr></table>
9292085_50.pdf	en	# 10. Content Index of the Environmental, Social and Governance Reporting Guide <table><tr><td>Aspect</td><td>KPI</td><td>Content</td><td>Chapter Reference or Notes</td></tr><tr><td rowspan="4">B7 Anti-corruption</td><td>General Disclosure</td><td>Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundering.</td><td>6.3 Anti-corruption</td></tr><tr><td>B7.1</td><td>Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases.</td><td>6.3 Anti-corruption</td></tr><tr><td>B7.2</td><td>Description of preventive measures and whistle-blowing procedures, how they are implemented and monitored.</td><td>6.3 Anti-corruption</td></tr><tr><td>B7.3</td><td>Description of anti-corruption training provided to directors and staff.</td><td>6.3 Anti-corruption</td></tr><tr><td rowspan="3">B8 Community Investment</td><td>General Disclosure</td><td>Policies on community engagement to understand the needs of the communities where the issuer operates and to ensure its activities t a k e i n t o c o n s i d e r a t i o n t h e communities' interests.</td><td>9. Giving Back to Society 9.1 Fighting Icy Weather and Protecting Electricity Power 9.2 Power Protection for College Entrance Examination 9.3 Caring for the Community</td></tr><tr><td>B8.1</td><td>Focus areas of contribution (e.g. education, environmental concerns, labour needs, health, culture, sport).</td><td>9. Giving Back to Society 9.1 Fighting Icy Weather and Protecting Electricity Power 9.2 Power Protection for College Entrance Examination 9.3 Caring for the Community</td></tr><tr><td>B8.2</td><td>Resources contributed (e.g. money or time) to the focus area.</td><td>9. Giving Back to Society 9.1 Fighting Icy Weather and Protecting Electricity Power 9.2 Power Protection for College Entrance Examination 9.3 Caring for the Community</td></tr></table>
9320782_21.pdf	en	<table><tr><td>“Non-competition Undertaking”</td><td> the non-competition undertaking dated 18 November 2016 igven by each of our Controlling Shareholders in favour of our Company, details of which are set forth in the section headed “Relationship with our Controlling Shareholders” in this prospectus</td></tr><tr><td>“Placing”</td><td> the conditional lhpacinfg bhy te Underwriters o te Placing Shares for cash at the Placing Price lpus brokerage of 1%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005%, details of which are described in the section headed “Structure and conditions of the lacing” in thips prospectus on and subject to the terms and conditions stated herein and in the Underwriting Agreement</td></tr><tr><td>“Placing Price”</td><td> the l0pacini2Plig prce of HK$. hper acnSig are (excludng brokerage, Stock Exchange trading fee and SFC transaction levy)</td></tr><tr><td>“Placing Shares”</td><td> the 250,000,000 new Shares being offered for subscription by our Company at the Placing Price under the Placing</td></tr><tr><td>“PRC Legal Advisers”</td><td> Dentons Law Offices, the Com’panys legal advisers as to the PRC law</td></tr><tr><td>“Reorganisation”</td><td> the corporate reorganisation of our Group in preparation for the Listing as described in the sections headed “History, reorganisation and group structure” in this prospectus</td></tr><tr><td>“RMB”</td><td> Renminbi, the lawful currency of the PRC</td></tr><tr><td>“SFC”</td><td> the Securities and Futures Commission of Hong Kong</td></tr><tr><td>“SFO”</td><td> Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended, sulppemented or otherwise modified from time to time</td></tr><tr><td>“Share(s)”</td><td> ordinary shares with a nominal value of HK$0.01 each in the share caiptal of our Company, which are to be traded in Hong Kong dollars and listed on GEM</td></tr><tr><td>“Shareholder(s)”</td><td> holder(s) of the Shares</td></tr></table>
9320782_22.pdf	en	<table><tr><td>“Sino Emperor”</td><td>Sino Emperor Group Limited, a company incorporated in the BVI with limited liability on 30 November 2015, the equity interest of which is entirely and beneficially owned by Mr. Nelson Lau</td></tr><tr><td>“Sole Lead Manager” or “Sole Bookrunner”</td><td>Head & Shoulders Securities Limited, a licensed corporation to conduct type 1 (dealing in securities) and type 4 (advising on securities) regulated activities under the SFO, being the sole lead manager and sole bookrunner of the Placing</td></tr><tr><td>“Sole Sponsor” or “Prosperity Caiptal”</td><td>ProsHlperitdy Caiiptal onLiigs mted, a licensed corporation to conduct type 6 (advising on corporate finance) regulated activity under the SFO, being the sponsor of the Listing</td></tr><tr><td>“Stock Exchange”</td><td>The Stock Exchange of Hong Kong Limited, a wholly- owned subsidiary of Hong Kong Exchanges and Clearing Limited</td></tr><tr><td>“subsidiary(ies)”</td><td>a company which is for the time being and from time to time a subsidiary (within the meaning of the Companies Ordinance) of our Company</td></tr><tr><td>“substantial shareholder(s)”</td><td> has the same meaning ascribed to it under the GEM Listing Rules</td></tr><tr><td>“Takeovers Code”</td><td>the Codes on Takeovers and Mergers and Share Buy- backs issued by the SFC, as amended, sulppemented or otherwise modified from time to time</td></tr><tr><td>“Track Record Period”</td><td>the period comprising the two years ended 31 December 2015 and the six months ended 30 June 2016</td></tr><tr><td>“Underwriters”</td><td>the underwriters of the Placing set out in the section headed “Underwriting – Underwriters” in this prospectus</td></tr><tr><td>“Underwriting Agreement”</td><td> the conditional underwriting agreement dated 28 November 2016 entered into among our Company, the executive Directors, the Controlling Shareholders, the Sole Sponsor, the Sole Lead Manager and the Underwriters relating to the Placing, particulars of which are summarised in the section headed “Underwriting” in this prospectus</td></tr></table>
20782837_522.pdf	en	# II NOTES TO THE HISTORICAL FINANCIAL INFORMATION # 1. CORPORATE AND GROUP INFORMATION The Company is a limited liability company incorporated in the Cayman Islands on 8 April 2013. The registered address of the Company is PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The Company changed its name from “Kingyee Co., Limited” to “Medlive Technology Co., Ltd.” on 24 February 2021. The Company is an investment holding company. During the Relevant Periods, the Company’s subsidiaries were principally engaged in the provision of precision marketing and corporate solutions, medical knowledge solutions, and intelligent patient management solutions. As at the date of this report, the Company had direct and indirect interests in its subsidiaries, all of which are private limited liability companies, the particulars of which are set out below: <table><tr><td rowspan="2">Name</td><td rowspan="2">Place and date of incorporation/ reigstration and lpace of operations</td><td rowspan="2">Nominal value of issued ordinary/ reigstered share cailpta</td><td colspan="2">Percentage of equity attributable to the Company</td><td rowspan="2">Principal activities</td></tr><tr><td>Direct</td><td> Indirect</td></tr><tr><td>Kingyee (HK) Co., Limited (note (a))...</td><td>Hong Kong 3 May 2013</td><td>US$495,000</td><td>100%</td><td> —</td><td> Investment holding</td></tr><tr><td>Kingyee (Beijing) Co., Ltd. (“Jinye Tiancheng”)* (金葉天成(北京) 科技有限公司) (note (b)) .......</td><td>PeolRpe’s elpubic of China (“PRC”)/ Mainland China 29 August 2013</td><td>RMB9,000,000</td><td> —</td><td>100%</td><td> Provision of precision marketing and corporate solutions, medical knowledge solutions, and intelligent patient management solutions</td></tr><tr><td>Beijing Yimaihutong Technology Co., Ltd. (“Yimaihuton”)*g (北京醫脈互通科技有限公司) (note (c)) ....</td><td>PRC/Mainland China 18 April 2013</td><td>RMB10,000,000</td><td> —</td><td>100%</td><td> Provision of precision marketing and corporate solutions, medical knowledge solutions, and intelligent patient management solutions</td></tr></table>
20782837_523.pdf	en	<table><tr><td rowspan="2">Name</td><td rowspan="2">Place and date of incorporation/ reigstration and lpace of operations</td><td rowspan="2">Nominal value of issued ordinary/ reigstered share cailpta</td><td colspan="2">Percentage of equity attributable to the Company</td><td rowspan="2">Principal activities</td></tr><tr><td>Direct</td><td> Indirect</td></tr><tr><td>Shijiazhuang Maili Technology Co. ,Ltd* .(石家莊邁粒科技有限公司) (note (d)) ....</td><td>PRC/Mainland China 30 October 2019</td><td>RMB2,000,000</td><td> —</td><td>100%</td><td> Research and development</td></tr><tr><td>Yinchuan Yimaitong Internet Hosiptal Co., Ltd. (“Yimaitong”)* (銀川醫脈通互聯網醫院有限公司) (note (d)) .......</td><td>PRC/Mainland China 29 August 2019</td><td>RMB10,000,000</td><td> —</td><td>100%</td><td> Provision of internet hosilpta services</td></tr></table> Notes: (a) No audited financial statements have been prepared for the entity since its date of incorporation as it is an investment holding company with no operation and is exempted from preparing audited financial statements. (b) The entity is registered as a wholly-foreign-owned enterprise under PRC law. The statutory financial statements of Jinye Tiancheng for the year ended 31 December 2018 prepared under PRC Generally Accepted Accounting Principles (“PRC GAAP”) were audited by Beijing Hongtian Zhongdao Certified Public Accountants Co., Ltd. (北京鴻天眾道會計師事務所有限公司), certified public accountants registered in the PRC. The statutory financial statements for the year ended 31 December 2019 prepared under PRC GAAP were audited by Beijing Zhongtian Xinda Certified Public Accountants Co., Ltd. (北京中天信達會計師事務所有限公司), certified public accountants registered in the PRC. (c) The entity is a limited liability enterprise established under PRC law. The statutory financial statements of Yimaihutong for the years ended 31 December 2018 and 2019 prepared under PRC GAAP were audited by Beijing Jingsheng Certified Public Accountants Co., Ltd. (北京京盛會計師事務所有限公司), certified public accountants registered in the PRC. (d) These entities are limited liability enterprises established under PRC law. No audited financial statements have been prepared for these entities, as these entities were incorporated in 2019. \* The English names of these entities registered in the PRC represent the best efforts made by the management of the Company to directly translate their Chinese names as they did not register any official English names.
11786815_106.pdf	en	RMB 42,359 in 2019 while per capita consumption expenditure of urban residents reached RMB 28,063 in 2019. Responding to the increased demand and purchasing power, the investment in the real estate market has increased. The table below sets out income and expenditure of urban residents of the PRC for the years indicated: <table><tr><td></td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2014-2019 CAGR</td></tr><tr><td>Per caifpta disbposale income o urban residents (RMB) ...................</td><td>28,844</td><td>31,195</td><td>33,616</td><td>36,396</td><td>39,251</td><td>42,359</td><td>8.0%</td></tr><tr><td>Per caipta consumifpton exdipenture o urban residents (RMB) ..............</td><td>19,968</td><td>21,392</td><td>23,079</td><td>24,445</td><td>26,112</td><td>28,063</td><td>7.0%</td></tr></table> Sources: National Bureau of Statistics of China # Historical Price Trend of Production Factor # Land Cost Land cost generally accounts for a significant proportion of a property developer’s overall costs. According to the Ministry of Natural Resources of the PRC, the average residential land cost of the 105 monitored cities has rose from RMB 5,277 per sq.m. in 2014 to RMB 7,434 per sq.m. in 2019, representing a CAGR of 7.1%. The table below sets out the land cost in the PRC for the years indicated: <table><tr><td></td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2014-2019 CAGR</td></tr><tr><td>Average residential land cost of 105 monitored cities (RMBp er sq.m.) ....................</td><td>5,277</td><td>5,484</td><td>5,918</td><td>6,522</td><td> 7,080</td><td> 7,434</td><td>7.1%</td></tr><tr><td>Average commercial land cost of 105 monitored cities (RMBp er sq.m.) ....................</td><td>6,552</td><td>6,729</td><td>6,937</td><td>7,251</td><td> 7,600</td><td>7,821</td><td>3.6%</td></tr></table> Note: \* Sanya has been included in the national monitoring scope in 2018. A total of 106 cities are therefore monitored. Source: Ministry of Natural Resources of the PRC # Construction Materials The prices of steel and cement decreased in 2014-2015, due to oversupply. The prices of steel and cement generally increased from 2015 to 2019, mainly due to regulations that shut down some small-to-medium sized steel and cement companies for environmental purposes, resulting in the tightening of supply of steel and cement in the market. However, the prices of steel fluctuated as the regulation started to loosen. The table below sets out selected statistics of construction materials of China for the years indicated: <table><tr><td></td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2014-2019 CAGR</td></tr><tr><td>Steel Price Index (Base year 1994 = 100) ........</td><td>83.1</td><td>56.4</td><td>99.5</td><td>121.8</td><td>107.1</td><td>106.1</td><td>5.1%</td></tr><tr><td>Cement Price Index (RMBp er ton) ............</td><td>308.4</td><td>247.4</td><td>318.7</td><td>414.9</td><td>449.0</td><td>471.0</td><td>8.8%</td></tr></table> Source: China Iron and Steel Association and China Cement Association # Labor Costs Labor cost is also an important factor for property developers. According to the National Bureau of Statistics, the average wage of workers in the construction industry and the real estate
11786815_107.pdf	en	industry in 2019 was RMB 65,508 and RMB 80,157 per year, respectively. The average wage of workers in the construction and real estate industries generally increased from 2014 to 2019 and is expected to continue to increase in the near future. The table below sets out labor costs of China for the years indicated: <table><tr><td></td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2014-2019 CAGR</td></tr><tr><td>Average wage of workers in construction industry (RMB) ....................</td><td>45,804</td><td>48,886</td><td>52,082</td><td>55,568</td><td>60,501</td><td>65,508</td><td>7.4%</td></tr><tr><td>Average wage of workers in real estate industry (RMB) ....................</td><td>55,568</td><td>60,244</td><td>65,497</td><td>69,277</td><td>75,281</td><td>80,157</td><td>7.6%</td></tr></table> Source: National Bureau of Statistics # Recent Development of the Residential Property Market in the PRC The PRC government plays a key role in the real estate market and has promulgated various control measures to avoid over-heating the property sector in recent years. The PRC government has formulated a number of measures which include various monetary, fiscal, land, regulatory and financing policies aimed at stabilizing the real estate market. Such legislative measures include but not limited to implementing regulations and policies on down payments of housing loans, restrictive conditions for home buyers, prices of residential properties and land supply. The PRC government emphasized that China will step up its efforts to establish a long-term mechanism for a healthy development of the real estate market and will not use the real estate market as an avenue to provide short-term stimulus for the economy. Under guidance from the central government, various local governments in the PRC also promulgated regulations and measures to stabilize the real estate markets. # REAL ESTATE MARKET OF SELECTED CITIES IN THE PRC # The Western Taiwan Strait Economic Region # Xiamen Xiamen is located along the 21st Century Maritime Silk Road, which is the sea route part of the China’s “Belt and Road Initiative.” Xiamen’s economy grew steadily in recent years. The nominal GDP increased from RMB 334 billion in 2014 to RMB 600 billion in 2019, representing a CAGR of approximately 12.4%. The fixed asset investment witnessed a continuous increase from approximately RMB 156 billion in 2014 to RMB 286 billion in 2019, representing a CAGR of 12.8%. The table below sets out selected economic indicators of Xiamen the years indicated: <table><tr><td></td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2014-2019 CAGR</td></tr><tr><td>Nominal GDP (RMBb illion) . . . . . . . . . . . .</td><td>334</td><td>353</td><td>386</td><td>435</td><td>479</td><td>600</td><td>12.4%</td></tr><tr><td>Real GDP growth rate (%) . . . . . . . . . . . . . .</td><td>9.2</td><td>7.1</td><td>7.9</td><td>7.6</td><td>7.7</td><td>7.9</td><td> N/A</td></tr><tr><td>Fixed asset investment (RMBb illion) . . . . .</td><td>156</td><td>189</td><td>216</td><td>238</td><td>262</td><td> 286</td><td>12.8%</td></tr><tr><td>Population (million) . . . . . . . . . . . . . . . . . . .</td><td>3.8</td><td>3.9</td><td>3.9</td><td>4.0</td><td>4.1</td><td>4.3</td><td>2.4%</td></tr><tr><td>Urbanization rate (%) ..................</td><td>88.8</td><td>88.9</td><td>89.0</td><td>89.1</td><td>89.1</td><td>89.2</td><td> N/A</td></tr><tr><td>Per caifpta disbposale income o urban households (RMB) ..................</td><td>39,625</td><td>42,607</td><td>46,254</td><td>50,019</td><td>54,401</td><td>59,018</td><td>8.3%</td></tr></table> Note: \* estimated by the published data from the Statistics Bulletin of Xiamen in 2018 and 2019, stating that fixed asset investment received a 10.1% and 9.0% year-to-year growth in 2018 and 2019 Source: Xiamen Municipal Bureau of Statistics
20788842_146.pdf	en	<table><tr><td>Name</td><td>Major work experience</td></tr><tr><td rowspan="2">WU Huifeng (吳慧峰)</td><td>Mr. WU has served as our Vice President since November 2018 and our Secretary to the Board since December 2014. Mr. WU served as head of the settlement center of China Nanshan Development (Group) Co., Ltd., deputy manager of the finance department of Shanghai Nanshan Real Estate Development Co., Ltd. (上海南山房地產開發有限公司) (formerly known as Shanghai Chengnan Real EstateDevelopment Company (上海誠南房地產開發公司)), general manager of the finance and audit department, general manager of the human resources department, assistant to the general manager, and deputy general manager of China Merchants Finance Holdings Co., Ltd. He also worked for our Company as Director, Supervisor, co-general manager of the Board office and assistant to president.</td></tr><tr><td>Mr. WU Huifeng obtained a bachelor’s degree in economics majoring in accounting from the Shanghai University of Finance and Economics and a master’s degree in economics majoring in finance from Peking University in June 1996 and January 2012, respectively. Mr. WU was granted the qualification of accountant in May 1998 by the Ministry of Finance of the PRC.</td></tr><tr><td rowspan="2">ZHAO Bin (趙斌)</td><td>Mr. ZHAO has served as our Vice President since November 2018. He has been working as executive director of CMS Investment since January 2019. He acted as our Chief Compliance Officer from January 2016 to December 2018, chief compliance officer of CMS Asset Management from January 2018 to January 2021, chairman of the supervisory committee of China Merchants Fund from September 2017 to April 2020, director of CMS Asset Management from July 2015 to May 2019, and director of China Merchants Futures from July 2008 to May 2019. He took the position of assistant to manager and manager of our Haikou branch, head of Futian branch, assistant to the general manager of our Brokerage Business Department, deputy manager (person- in-charge) of our Shenzhen Longgang securities branch, manager of our Shenzhen Nanshan Nanyou Road securities branch, general manager of our Private Customer Service Department, general manager of our Channel Management Department, general manager of our Department of Retail Brokerage and our employee representative Supervisor.</td></tr><tr><td>Mr. ZHAO Bin obtained a bachelor’s degree in economics majoring in international finance from Shenzhen University and a master’s degree in science majoring in project management from the University of Greenwich in June 1992 and December 2010, respectively.</td></tr></table>
20788842_147.pdf	en	<table><tr><td>Name</td><td>Major work experience</td></tr><tr><td>HU Yu (胡宇)</td><td>Mr. HU has been the chief compliance officer and chief risk officer since December 2018. From August to November 2018, he was the deputy head of capital operation department of China Merchants Group. He served as the member of CPC Committee and the secretary of Disciplinary Committee of Guangdong Bureau of the China Securities Regulatory Commission from November 2016 to July 2018. He was a teacher in Xishan Middle School (西山中學), teacher of the foreign language teaching and research office of Jiangxi Medical College, deputy principal staff member of Department of Policy and Regulations, the principal staff member of Department of Intermediary Supervision, the deputy officer and director of Office of the Party Committee as well as the director of No.1 Inspection Office of Shenzhen Bureau of the CSRC and member of CPC Committee and the secretary of Disciplinary Committee of Hainan Bureau of the China Securities Regulatory Commission. Mr. HU Yu obtained a Bachelor of Arts degree from Jiangxi Normal University (江西師範大學) and a Master’s degree in Finance from Graduate School of People’s Bank of China in July 1989 and July 1996, respectively.</td></tr><tr><td>WU Guangyan (吳光焰)</td><td>Mr. WU has served as our Vice President since February 2019, and chairman of the board of directors of CMS International since December 2018. He served as general manager of our Department of International Business from November 2018 to June 2020, assistant to the President from July 2018 to February 2019, and general manager of CMS Asset Management from April 2015 to August 2019. Mr. WU also used to be engineer of Radio Electronics Research Institute in Wuhan City, technology manager of information technology center of the head office of China Merchants Bank, general manager of Technology Department of the Shenzhen branch of China Guangfa Bank, person-in-charge for the operation department for credit card business department of the headquarter of Ping An Bank, deputy general manager (person-in-charge) of our Operations and Administration Department, general manager of our Private Customer Service Department and general manager of our Assets Management Department. Mr. WU Guangyan obtained a bachelor’s degree in automatic control majoring in testing technology and instrument (自動控制系檢測技術及儀器專業學士學位) and a master’s degree majoring in pattern recognition and intelligent control (模式識別與智能控制專業碩士學位) from Huazhong University of Science and Technology in June 1988 and June 1995, respectively.</td></tr></table>
2592578_16.pdf	en	• we are exposed to geopolitical risk, where unexpected changes in global, regional, or local political or social conditions could adversely affect our foreign operations. Our success as a global business will depend, in part, upon our ability to succeed in differing legal, regulatory, economic, social and political conditions by developing, implementing and maintaining policies and strategies that are effective in each location where we do business. # We are exposed to currency exchange rate changes that impact our profitability. We are exposed to currency exchange rate risk through our U.S. and nonU.S. operations. Changes in currency exchange rates may materially affect our operating results. For example, changes in currency exchange rates may affect the relative prices at which we and our competitors sell products in the same region and the cost of materials used in our operations. A substantial portion of our net sales and assets are denominated in currencies other than the U.S. dollar, particularly the euro. When the U.S. dollar strengthens against other currencies, at a constant level of business, our reported sales, earnings, assets and liabilities are reduced because the nonU.S. currencies translate into fewer U.S. dollars. We incur a currency transaction risk whenever one of our operating subsidiaries enters into either a purchase or a sales transaction using a currency different from the operating subsidiary's functional currency. Given the volatility of exchange rates, we may not be able to manage our currency transaction risks effectively, or volatility in currency exchange rates may expose our financial condition or results of operations to a significant additional risk. Prices for certain raw materials and energy are volatile and can have a significant effect on our manufacturing and supply chain strategies as we seek to maximize our profitability. If we are unable to successfully adjust our strategies in response to volatile raw materials and energy prices, such volatility could have a negative effect on our earnings in future periods. We use petroleumbased materials, metals, natural gas and other materials in the manufacture of our products. We consume substantial amounts of energy in our manufacturing processes. Prices for these materials and energy are volatile and can have a significant effect on our pricing, sales, manufacturing and supply chain strategies as we seek to maximize our profitability. Our ability to successfully adjust strategies in response to volatile raw material and energy prices is a significant factor in maintaining or improving our profitability. If we are unable to successfully adjust our strategies in response to volatile prices, such volatility could have a negative effect on our sales and earnings in future periods. # A substantial portion of our raw materials are commodities whose prices fluctuate as market supply and demand fundamentals change. We attempt to manage exposure to price volatility of major commodities through: • longterm supply contracts; • contracts with customers that permit adjustments for changes in prices of commoditybased materials and energy; • forward buying programs that layer in our expected requirements systematically over time; and • limited use of financial instruments. Although we regularly assess our exposure to raw material price volatility, we cannot always predict the prospects of volatility and we cannot always cover the risk in a cost effective manner. We have a policy of maintaining, when available, multiple sources of supply for raw materials. However, certain of our raw materials may be provided by single sources of supply. We may not be able to obtain sufficient raw materials due to unforeseen developments that would cause an interruption in supply. Even if we have multiple sources of supply for raw materials, these sources may not make up for the loss of a major supplier. # If we are not able to continue our technological innovation and successful introduction of new products, our customers may turn to other suppliers to meet their requirements. The specialty chemicals industry and the enduse markets into which we sell our products experience ongoing technological change and product improvements. A key element of our business strategy is to invest in research and development activities with the goal of introducing new highperformance, technically differentiated
2592578_17.pdf	en	products. We may not be successful in developing new technology and products that effectively compete with products introduced by our competitors, and our customers may not accept, or may have lower demand for, our new products. If we fail to keep pace with evolving technological innovations or fail to improve our products in response to our customers’ needs, then our business, financial condition and results of operations could be adversely affected as a result of reduced sales of our products. # We spend large amounts of money for environmental compliance in connection with our current and former operations. As a manufacturer of specialty chemicals and specialty materials, we are subject to stringent regulations under numerous U.S. federal, state, local and foreign environmental, health and safety laws and regulations relating to the generation, storage, handling, discharge, disposition and stewardship of chemicals and other materials. We have expended substantial funds to comply with such laws and regulations and have established a policy to minimize our emissions to the environment. Nevertheless, legislative, regulatory and economic uncertainties (including existing and potential laws and regulations pertaining to climate change) make it difficult for us to project future spending for these purposes, and if there is an acceleration in new regulatory requirements, we may be required to expend substantial additional funds to remain in compliance. # We are subject to environmental cleanup costs, fines, penalties and damage claims that have been and continue to be costly. In the U.S., we are subject to lawsuits and regulatory actions, in connection with current and former operations (including some divested businesses and offsite disposal facilities), that seek cleanup or other remedies. We are also subject to similar risks outside of the U.S. We operated a vermiculite mine in Libby, Montana, until 1990. Some of the vermiculite ore that was mined at the Libby mine contained naturally occurring asbestos. We are cooperating with the U.S. Environmental Protection Agency and other federal, state and local governmental agencies in a remedial investigation and feasibility study ("RI/FS") of the Libby mine and the surrounding area to determine the location, scope and extent of required remediation. The EPA is also investigating or remediating formerly owned or operated sites that processed Libby vermiculite into finished products. We are cooperating with the EPA on these investigation and remediation activities, and have recorded a liability to the extent that our review has indicated that a probable liability has been incurred and the cost is estimable. We have recorded liabilities for all environmental matters for which a loss is considered to be probable and sufficient information is available to reasonably estimate the loss. These liabilities do not include the cost to remediate the Libby vermiculite mine and surrounding area or costs related to any additional EPA claims, whether resulting from the EPA's investigation of vermiculite facilities or otherwise, which may be material but are not currently estimable. Due to these vermiculiterelated matters, it is probable that our ultimate liability for environmental matters will exceed our current estimates by material amounts. # Our indebtedness may materially affect our business, including our ability to fulfill our obligations, react to changes in our business and incur additional debt to fund future needs. We have a substantial amount of debt. As of December 31, 2017, we had \$1,033.1 million of unsecured indebtedness outstanding and \$510.8 million of secured indebtedness outstanding. Our indebtedness may have material effects on our business, including to: • require us to dedicate a substantial portion of our cash flow to debt payments, thereby reducing funds available for working capital, capital expenditures, acquisitions, research and development, distributions to stockholders, stock repurchase programs and other purposes; • restrict us from making strategic acquisitions or taking advantage of favorable business opportunities; • limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; • increase our vulnerability to adverse economic, credit and industry conditions, including recessions; • make it more difficult for us to satisfy our debt service and other obligations; • place us at a competitive disadvantage compared to our competitors that have relatively less debt; and • limit our ability to borrow additional funds, or to dispose of assets to raise funds, if needed, for working capital, capital expenditures, acquisitions, research and development and other purposes.
3417781_259.pdf	en	# XII. RELATED PARTIES AND TRANSACTIONS (Continued) # 3. Principal joint ventures and associates of the Group (Continued) <table><tr><td>Name of joint ventures and associates</td><td>Relationship with the Group</td></tr><tr><td>Sichuan Guotai High-tech Pipe Network Investment Co., Ltd.</td><td>Joint venture</td></tr><tr><td>Tianjin Zhongji Equipment Manufacturing Co., Ltd.</td><td>Joint venture</td></tr><tr><td>Zhuhai Kaduhaijun Real Estate Development Co., Ltd. (Note)</td><td>Joint venture</td></tr><tr><td>Zhongye Tap Water (Zhumadian) Co., Ltd.</td><td>Joint venture</td></tr><tr><td>SL-GV-MCC PTE LTD.</td><td>Associate</td></tr><tr><td>Wuhan MCC Lutheran Brothers Sun Donglin Engineering Technology Co., Ltd.</td><td>Associate</td></tr><tr><td>Baotou MCC Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Beijing Zhongye HengSheng Real Estate Co., Ltd..</td><td>Associate</td></tr><tr><td>Chengdu Tianfu New District MCC Xinde Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Fuzhou MCC Infrastructure Investment Co., Ltd.</td><td>Associate</td></tr><tr><td>Harbin Shuangqi Environmental Resources Co., Ltd.</td><td>Associate</td></tr><tr><td>Henan Ruzhou Science and Education Park Investment Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Huai’an Huaguang Construction Investment Co., Ltd.</td><td>Associate</td></tr><tr><td>Maanshan Jiahe Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Maanshan MCC High-tech Construction Co., Ltd.</td><td>Associate</td></tr><tr><td>Maanshan MCC Economic Development Company Ltd.</td><td>Associate</td></tr><tr><td>Maanshan Golden Tourism Investment Co., Ltd.</td><td>Associate</td></tr><tr><td>Maanshan MCC Putang Construction Co., Ltd.</td><td>Associate</td></tr><tr><td>Mudanjiang MCC Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Nanjing Zhongkang Construction and Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Inner Mongolia Zhongye DeBang Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Puyang MCC Longhu Construction and Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Renqiu MCC Infrastructure Construction Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai Libo Labor Service Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai United Automobile Road Construction Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai Tongjibao Construction Robot Co., Ltd.</td><td>Associate</td></tr><tr><td>(Original name: Shanghai Tongji Baoye Construction Robot Co., Ltd.)</td><td></td></tr><tr><td>Shanghai Yuepu South Concrete Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai Zhihu Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai MCC Jiahe Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Shanghai MCC Xiangqi Investment Co., Ltd.</td><td>Associate</td></tr><tr><td>CERI Yingkou Equipment Technology Co., Ltd.</td><td>Associate</td></tr><tr><td>Sichuan HangYe Industrial Co., Ltd.</td><td>Associate</td></tr><tr><td>Siping City Integrated Pipe Network Construction and Operation Co., Ltd.</td><td>Associate</td></tr><tr><td>Si County MCC construction Investment Co., Ltd.</td><td>Associate</td></tr><tr><td>Suining Kaihong Construction Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Tangshan Caofeidian 22nd Metallurgical Construction Technique Co., Ltd.</td><td>Associate</td></tr><tr><td>Tangshan Wanzhu 22nd Metallurgical Construction Technique Co., Ltd.</td><td>Associate</td></tr><tr><td>MCC Tangshan Fangzhou Real Estate Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Tianjin SERI Machinery Equipment Corporation Ltd.</td><td>Associate</td></tr><tr><td>Tianjin MCC Heyuan Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Tianjin MCC Jincheng Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Tianjin MCC Jinyu Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Tianjin Tuanbo Urban Development Co., Ltd.</td><td>Associate</td></tr></table>
3417781_260.pdf	en	# XII. RELATED PARTIES AND TRANSACTIONS (Continued) # 3. Principal joint ventures and associates of the Group (Continued) <table><tr><td>Name of joint ventures and associates</td><td>Relationship with the Group</td></tr><tr><td>Tianjin MCC Xinhua Real Estate Co., Ltd.</td><td>Associate</td></tr><tr><td>Wuhan Hanwei Refining Engineering Co., Ltd.</td><td>Associate</td></tr><tr><td>Wuhan Zhonghe Engineering Technique Co., Ltd.</td><td>Associate</td></tr><tr><td>Wuhan MCC Xin’ao Property Management Co., Ltd.</td><td>Associate</td></tr><tr><td>Wuhan Zhong Yi Investment Construction Company Ltd.</td><td>Associate</td></tr><tr><td>MCC Suzhou SUMA Construction Development Co., Ltd.</td><td>Associate</td></tr><tr><td>CERI Yingkou Construction Development Co., Ltd.</td><td>Associate</td></tr><tr><td>Zhanjiang Baofa CISDI Rotary Hearth Furnace Technology Co., Ltd.</td><td>Associate</td></tr><tr><td>Zhejiang MCC Investment Management Co., Ltd.</td><td>Associate</td></tr><tr><td>MCC-Huafa Integrated Pipe Network Co., Ltd.</td><td>Associate</td></tr><tr><td>MCC Capital (Xiangtan) Heavy Industrial Equipment Co., Ltd.</td><td>Associate</td></tr><tr><td>WISDRI (Xinyu) Cold Rolling New Material Technology Co., Ltd.</td><td>Associate</td></tr><tr><td>Chongqing Beimeng Project Management Limited Liability Company</td><td>Associate</td></tr><tr><td>Chongqing MCC 17 Group Construction Engineering Co., Ltd.</td><td>Associate</td></tr><tr><td>Chongqing Wansheng Xihua Road Construction Co., Ltd.</td><td>Associate</td></tr><tr><td>Chongqing Xinlian Steel Equipment Technique Co., Ltd.</td><td>Associate</td></tr></table> Note: Zhuhai Kaduhaijun Real Estate Development Co., Ltd. has been disposed in January 2016. # 4. Other related parties of the Group Other related parties entered into transactions with the Group during the year, or during the prior year with remaining closing balance were as follows, such transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of Listing Rules of the Hong Kong Stock Exchange: <table><tr><td>Name of other related parties</td><td>Relationship with the Group</td></tr><tr><td>MCC Huludao Nonferrous Metals Group Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>MCC Asset Management Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Subsidiaries of MCC Huludao Nonferrous Metals Group Co., Ltd.:</td><td></td></tr><tr><td>Huludao Zinc Industry Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Subsidiaries of MCC Asset Management Co., Ltd.:</td><td></td></tr><tr><td>Beijing Dongxing Metallurgical New-Tech & Development Corp.</td><td>Under common control by CMGC</td></tr><tr><td>Beijing China Metallurgical Construction Taxi Company</td><td>Under common control by CMGC</td></tr><tr><td>Shanghai MCC Hospital</td><td>Under common control by CMGC</td></tr><tr><td>Subsidiaries of Beijing Dongxing Metallurgical New-Tech & Development Corp.:</td><td></td></tr><tr><td>Handan Huaye Property Services Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Handan Huaye New Type Building Material Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Chengdu MCC 5 Rongshen Real Estate Development Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Hainan Luda Real Estate Development Co., Ltd.</td><td>Under common control by CMGC</td></tr><tr><td>Chengdu Hongqiang Property Management Co., Ltd.</td><td>Under common control by CMGC</td></tr></table>
9257278_6.pdf	en	# PRIMARY ALUMINUM MARKET Since 2021, benefiting from extensive vaccination of COVID-19 vaccines and increased fiscal stimulus in the US, Japan and other countries, positive outlook has been seen in global economy, the repressed consumer demand has been released, the manufacturing industry has continued to expand and demand for base metals has rebounded rapidly. Due to the influence of the pandemic, production of and investment in global commodity including base metals have slowed down, causing the growth of supply to fall short of that of demand, resulting in a phased gap in supply and a sharp rise in commodity prices. Prices of base metal products hit multi-year highs, some even record highs. In the international market, the robust recovery in overseas demand once the pandemic being gradually contained has led to a period of tension in aluminum supply, prompting a rise in aluminum price in London. At the same time, China came up with “dual carbon” goals, which stimulated capital market to adopt aluminum as long allocation resources, the domestic and overseas aluminum price formed a trend of resonance rising. In the first half of 2021, the average prices of current month aluminum futures and three-month aluminum futures at LME were USD2,269 per tonne and USD2,258 per tonne, respectively, representing a year-on-year increase of 37.4% and 39.0%, respectively. In the domestic market, in early 2021, despite the elevated commodity prices driven by the unprecedented liquidity easing environment, the domestic aluminum price nosedived in January due to the outstanding problems of contradiction of excess supply occurred in virtue of the impacts of factors such as concerns about the significant growth of aluminum supply, limited production of aluminum fabrication enterprises in Henan and other regions because of environmental issues and combined with massive inflows of imported primary aluminum. In February, on the context of the firm promotion of carbon peak and carbon neutrality of the State, aluminum, as the largest non-ferrous metal in carbon emissions, was frequently under the market spotlight. Moreover, measures such as the dual control of energy consumption and suspension of or limitation on production in Inner Mongolia region and the emergency off-peak use of electricity adopted by enterprises in Yunnan province as a result of the tight situation of electricity supply caused the maximum production reduction of electrolytic aluminum to reach 1.2 million tonnes per year; dual control of energy consumption in Guangxi and Guizhou has also led to delays in construction progress and partial decrease in the output of new projects. In the meantime, the stimulus package worth up to USD1.9 trillion launched by the US poured massive funds into the aluminum market where supply continues to tighten. The domestic price of aluminum increased to RMB20,445 per tonne in early May, hitting a 13-year high. As the adverse impact brought about by the sustained high raw material prices became more and more prominent, the domestic electrolytic aluminum price began to decline gradually in late May under the policy of stabilizing prices such as the joint talks among the five departments under the Chinese government and key manufacturing enterprises of iron ore,
9257278_7.pdf	en	steel products, copper and aluminum industries as well as the output of reserve by State Reserve. In the first half of 2021, the average prices of current month aluminum futures and three-month aluminum futures at SHFE were RMB17,378 per tonne and RMB17,330 per tonne, representing a year-on-year increase of 24.8% and 34.0%, respectively. According to the statistics, the global output and consumption of primary aluminum in the first half of 2021 were approximately 33.95 million tonnes and approximately 34.03 million tonnes, representing a year-on-year increase of 5.7% and 14.8%, respectively. The domestic output and consumption of primary aluminum were approximately 19.58 million tonnes and approximately 19.91 million tonnes, representing a year-on-year increase of 7.9% and 12.7%, respectively. # BUSINESS REVIEW In the first half of 2021, under the development goal of building itself into a world-class aluminum company with global competitiveness, based on the new development stage, the Company implemented new development philosophy and adhered to systematic concept. Taking the promotion of high-quality development as the theme, the enhancement of the capability to create value as the leading driver, and the deepening of all-factor benchmarking as the starting point, the Company strengthened the asset operation and management responsibilities, promoted the implementation, improved efficiency and strived to build first-class company, creating a new situation of reform and development of the Company. 1. Significant increase in product output, comprehensive optimization of operating quality and great growth in economic efficiency. In the first half of the year, the output of major products of the Company including bauxite, alumina, electrolytic aluminum, refined alumina and carbon, increased by 34.9%, 14.3%, 5.5%, 3.2% and 18.7%, respectively, year-on-year. The level of return on assets improved significantly. The operating cash flow reached RMB9.467 billion, the best level as compared with the corresponding periods in history; the operating revenue amounted to RMB120.736 billion, representing a year-on-year increase of 43.55%, and the total profit was RMB6.031 billion, representing a year-on-year increase of RMB5.639 billion. Labor productivity of alumina, electrolytic aluminum and carbon increased by 25%, 16% and 20%, respectively, year-on-year. 2. The benchmarking management being further deepened, the management and control capability being continuously enhanced, the process and technical indicators being fully optimized and the product quality holding the lead. The Company further improved its benchmarking system by adopting “one-to-one (一對一)” supervision of enterprises to refine and implement the all-factor benchmarking plan, conducting monthly profit and cash flow analysis and ranking the enterprises monthly according to the benchmarking and their competitiveness, with effective reduction in management cost. The Company formulated
9324296_381.pdf	en	# (c) Geographic information As the Group solely operates in the PRC, no geographical segment information has been presented. # 11 FIXED ASSETS <table><tr><td rowspan="2"></td><td>Buildings</td><td>Leasehold improvements</td><td>Plant and machinery</td><td>Motor vehicles</td><td>Office equipment and furniture</td><td>Construction in progress</td><td> Sub-total</td><td>Investment properties</td><td> Total</td></tr><tr><td>RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td></tr><tr><td>Cost:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>At 1 January 2007 . . .</td><td>195,706</td><td>2,655</td><td>27,630</td><td>39,219</td><td>21,293</td><td>12,558</td><td>299,061</td><td>16,344</td><td>315,405</td></tr><tr><td>Additions .......</td><td>14,480</td><td>5,938</td><td>4,433</td><td>29,030</td><td>6,723</td><td>10,244</td><td>70,848</td><td> —</td><td>70,848</td></tr><tr><td>Transfer ........</td><td>19,520</td><td> —</td><td>3,085</td><td> —</td><td> —</td><td>(22,605)</td><td> —</td><td> —</td><td> —</td></tr><tr><td>Disposals .......</td><td> —</td><td>(550)</td><td>(10)</td><td>(8,740)</td><td>(63)</td><td> —</td><td>(9,363)</td><td>(3,124)</td><td>(12,487)</td></tr><tr><td>At 31 December 2007 .</td><td>229,706</td><td>8,043</td><td>35,138</td><td>59,509</td><td>27,953</td><td>197</td><td>360,546</td><td>13,220</td><td>373,766</td></tr><tr><td>At 1 January 2008 . . .</td><td>229,706</td><td>8,043</td><td>35,138</td><td>59,509</td><td>27,953</td><td>197</td><td>360,546</td><td>13,220</td><td>373,766</td></tr><tr><td>Additions .......</td><td>2,130</td><td>3,510</td><td>2,649</td><td>21,750</td><td>2,678</td><td>3,247</td><td>35,964</td><td> —</td><td>35,964</td></tr><tr><td>Transfer . . . . . . . .</td><td>184</td><td> —</td><td>952</td><td> —</td><td> —</td><td>(1,136)</td><td> —</td><td> —</td><td> —</td></tr><tr><td>Disposals .......</td><td> —</td><td> —</td><td>(85)</td><td>(14,572)</td><td>(181)</td><td> —</td><td>(14,838)</td><td> —</td><td>(14,838)</td></tr><tr><td>At 31 December 2008 .</td><td>232,020</td><td>11,553</td><td>38,654</td><td>66,687</td><td>30,450</td><td>2,308</td><td>381,672</td><td>13,220</td><td>394,892</td></tr><tr><td>At 1 January 2009 . . .</td><td>232,020</td><td>11,553</td><td>38,654</td><td>66,687</td><td>30,450</td><td>2,308</td><td>381,672</td><td>13,220</td><td>394,892</td></tr><tr><td>Additions . . . . . . .</td><td>2,114</td><td>10,914</td><td>11,504</td><td>21,446</td><td>4,775</td><td>45,245</td><td>95,998</td><td> —</td><td>95,998</td></tr><tr><td>Transfer ........</td><td>1,862</td><td> —</td><td>346</td><td> —</td><td> —</td><td>(2,208)</td><td> —</td><td> —</td><td> —</td></tr><tr><td>Disposals . . . . . . .</td><td> —</td><td> —</td><td>(116)</td><td>(29,364)</td><td>(231)</td><td> —</td><td>(29,711)</td><td> —</td><td>(29,711)</td></tr><tr><td>At 31 December 2009 .</td><td>235,996</td><td>22,467</td><td>50,388</td><td>58,769</td><td>34,994</td><td>45,345</td><td>447,959</td><td>13,220</td><td>461,179</td></tr><tr><td>At 1 January 2010 . . .</td><td>235,996</td><td>22,467</td><td>50,388</td><td>58,769</td><td>34,994</td><td>45,345</td><td>447,959</td><td>13,220</td><td>461,179</td></tr><tr><td>Acquisition of a subsidiarhy throu gbusiness combination (note 25) ......</td><td>6,100</td><td> —</td><td>267</td><td>1,213</td><td>624</td><td> —</td><td>8,204</td><td> —</td><td>8,204</td></tr><tr><td>Additions .......</td><td>11,293</td><td>1,196</td><td>15,855</td><td>23,822</td><td>5,378</td><td>21,493</td><td>79,037</td><td> —</td><td>79,037</td></tr><tr><td>Transfer ........</td><td>45,984</td><td> —</td><td>25</td><td>2,663</td><td> —</td><td>(48,672)</td><td> —</td><td> —</td><td> —</td></tr><tr><td>Disposals .......</td><td> —</td><td> —</td><td>(68)</td><td>(8,869)</td><td>(144)</td><td> —</td><td>(9,081)</td><td> —</td><td>(9,081)</td></tr><tr><td>At 30 June 2010 ....</td><td>299,373</td><td>23,663</td><td>66,467</td><td>77,598</td><td>40,852</td><td>18,166</td><td>526,119</td><td>13,220</td><td>539,339</td></tr></table>
9324296_382.pdf	en	<table><tr><td rowspan="2"></td><td>Buildings</td><td>Leasehold improvements</td><td>Plant and machinery</td><td>Motor vehicles</td><td>Office equipment and furniture</td><td>Construction in progress</td><td> Sub-total</td><td>Investment properties</td><td> Total</td></tr><tr><td>RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td></tr><tr><td>Accumulated depreciation:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>At 1 January 2007 . . .</td><td>12,396</td><td>502</td><td>4,795</td><td>12,611</td><td>7,307</td><td> —</td><td>37,611</td><td>1,640</td><td>39,251</td></tr><tr><td>Charge for the year . .</td><td>6,290</td><td>935</td><td>3,009</td><td>8,706</td><td>4,543</td><td> —</td><td>23,483</td><td>500</td><td>23,983</td></tr><tr><td>Written back on disposals ......</td><td> —</td><td>(550)</td><td>(5)</td><td>(1,778)</td><td>(28)</td><td> —</td><td>(2,361)</td><td>(396)</td><td>(2,757)</td></tr><tr><td>At 31 December 2007 .</td><td>18,686</td><td>887</td><td>7,799</td><td>19,539</td><td>11,822</td><td> —</td><td>58,733</td><td>1,744</td><td>60,477</td></tr><tr><td>At 1 January 2008 . . .</td><td>18,686</td><td>887</td><td>7,799</td><td>19,539</td><td>11,822</td><td> —</td><td>58,733</td><td>1,744</td><td>60,477</td></tr><tr><td>Charge for the year . .</td><td>6,720</td><td>1,964</td><td>3,459</td><td>11,170</td><td>5,259</td><td> —</td><td>28,572</td><td>419</td><td>28,991</td></tr><tr><td>Written back on disposals ......</td><td> —</td><td> —</td><td>(37)</td><td>(3,115)</td><td>(125)</td><td> —</td><td>(3,277)</td><td> —</td><td>(3,277)</td></tr><tr><td>At 31 December 2008 .</td><td>25,406</td><td>2,851</td><td>11,221</td><td>27,594</td><td>16,956</td><td> —</td><td>84,028</td><td>2,163</td><td>86,191</td></tr><tr><td>At 1 January 2009 . . .</td><td>25,406</td><td>2,851</td><td>11,221</td><td>27,594</td><td>16,956</td><td> —</td><td>84,028</td><td>2,163</td><td>86,191</td></tr><tr><td>Charge for the year . .</td><td>7,017</td><td>5,703</td><td>4,298</td><td>11,413</td><td>5,032</td><td> —</td><td>33,463</td><td>418</td><td>33,881</td></tr><tr><td>Written back on disposals ......</td><td> —</td><td> —</td><td>(43)</td><td>(9,933)</td><td>(199)</td><td> —</td><td>(10,175)</td><td> —</td><td>(10,175)</td></tr><tr><td>At 31 December 2009 .</td><td>32,423</td><td>8,554</td><td>15,476</td><td>29,074</td><td>21,789</td><td> —</td><td>107,316</td><td>2,581</td><td>109,897</td></tr><tr><td>At 1 January 2010 . . .</td><td>32,423</td><td>8,554</td><td>15,476</td><td>29,074</td><td>21,789</td><td> —</td><td>107,316</td><td>2,581</td><td>109,897</td></tr><tr><td>Charge for the period .</td><td>5,208</td><td>2,750</td><td>2,692</td><td>4,750</td><td>2,511</td><td> —</td><td>17,911</td><td>210</td><td>18,121</td></tr><tr><td>Written back on disposals ......</td><td> —</td><td> —</td><td>(39)</td><td>(2,996)</td><td>(125)</td><td> —</td><td>(3,160)</td><td> —</td><td>(3,160)</td></tr><tr><td>At 30 June 2010 ....</td><td>37,631</td><td>11,304</td><td>18,129</td><td>30,828</td><td>24,175</td><td> —</td><td>122,067</td><td>2,791</td><td>124,858</td></tr><tr><td>Net book value:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>At 31 December 2007 .</td><td>211,020</td><td>7,156</td><td>27,339</td><td>39,970</td><td>16,131</td><td>197</td><td>301,813</td><td>11,476</td><td>313,289</td></tr><tr><td>At 31 December 2008 .</td><td>206,614</td><td>8,702</td><td>27,433</td><td>39,093</td><td>13,494</td><td>2,308</td><td>297,644</td><td>11,057</td><td>308,701</td></tr><tr><td>At 31 December 2009 .</td><td>203,573</td><td>13,913</td><td>34,912</td><td>29,695</td><td>13,205</td><td>45,345</td><td>340,643</td><td>10,639</td><td>351,282</td></tr><tr><td>At 30 June 2010 ....</td><td>261,742</td><td>12,359</td><td>48,338</td><td>46,770</td><td>16,677</td><td>18,166</td><td>404,052</td><td>10,429</td><td>414,481</td></tr></table> (a) The Group’s investment properties and other property, plant and equipment are located in the PRC. (b) Investment properties with carrying amount of RMB11,476,000, RMB11,057,000, RMB10,639,000 and RMB10,429,000 are pledged against bank loans (see note 20) as at 31 December 2007, 2008 and 2009 and 30 June 2010, respectively. (c) Other property, plant and equipment with carrying amount of RMB4,976,000, RMB4,819,000, RMB4,661,000 and RMB4,582,000 are pledged against bank loans (see note 20) as at 31 December 2007, 2008 and 2009 and 30 June 2010, respectively. (d) Other property, plant and equipment with carrying amount of RMB139,343,000, RMB134,643,000, RMB129,944,000 and RMB127,242,000 are pledged against bank loans granted to related parties (see note 29(d)) as at 31 December 2007, 2008 and 2009 and 30 June 2010, respectively.

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