StockCode:200771StockID:HangqilunBAnnouncementNo.2017-71 HangzhouSteamTurbineCo.,Ltd. AnnouncementonApplyingforCreditlineandRelated TransactionstoBankofHangzhou ThemembersoftheBoardandtheCompanyacknowledgebeingresponsibleforthe truthfulness,accuracy,andcompletenessoftheannouncement.Notanyfalserecord,misleading statementorsignificantomissioncarriedinthisannouncement. I.Summaryofrelatedtransaction 1.TheProposalaboutHangzhouSteamTurbineCo.,LtdplannedtomakeanapplicationtoBank ofHangzhouforapplyingforRMB300millioncredit line. 2.Accordingtothe"StockListingRules"ofShenzhenStockExchange,asthecompany's chairmanMr.ZhengBinconcurrentlyholdsthepostofdirectorofBankofHangzhou,andthe companyisashareholderholdingmorethan5%stakeoftheBankofHangzhou,thistransaction constitutesarelatedpartytransaction. 3．The15thmeetingofthe7thtermofBoardwasheldonOctober25,2017.DirectorZhengBin waivedfromthevoting.Astheresolution,theproposalwaspassedwithall9votesinfavor,0 objectionand0waive.ThemeetingexaminedtheProposalonApplyingforCreditlineand RelatedTransactionstoBankofHangzhouofthecompanywiththecontrollingshareholderof relatedtransaction.Theindependentdirectorsofthecompanymadethepriorapprovaland expressedtheindependentopinionsinconnectiontosuchrelatedtransaction.Theproposaldoes notneedtobesubmittedtothecompany'sshareholders'generalmeetingfordeliberation. 4.Thetransactionneitherconstitutesamajorassetrestructuringnorconstitutesabackdoorlisting accordingtoMeasuresfortheAdministrationofMajorAssetRestructuringofListedCompanies. II.Introductionofrelatedpartiesandrelationship (I)BasicInformation 1.Name:BankofHangzhouCo.,Ltd. 2.Registeredaddress:No.46,QingchunRoad,XiachengDistrict,Hangzhou 3.Legalrepresentative:ChenZhenshan 4.Registeredcapital:RMB3664.42888million 5.Businessscope:：ThebusinessapprovedbytheChinaBankingRegulatoryCommission undertherelevantlaws,administrativeregulationsandotherprovisions,andthebusinessscope shallbesubjecttotheapprovaldocument. 6.RecentfinancialinformationofBankofHangzhou InRMB’000 Turnover NetProfit Grossassets Netassets Period 2016 13,732,844 4,020,927 720,424,176 38,561,695 2015 12,403,939 3,704,479 545,314,565 31,835,281（II）RelationshipThecompany's chairmanMr. ZhengBin concurrentlyholdsthepostofdirectorofBank ofHangzhou,and thecompany is ashareholderholding more than 5%stakeof theBank ofHangzhou,thereforethetransactionconstitutesarelatedtransaction. III.Pricingpolicyandpricingbasisofthetransaction TheCompanymadeanapplicationtoBankofHangzhouforapplyingforRMB300millioncreditlineinordertocarryoutthebusiness,adheredtoprincipalsofimpartial,reasonable,fair,win-winand market-oriented,withthemarket priceasthepricing basisandestimating thetransactionamount. IV.PurposeandimpactofthetransactionThecompanymakinganapplicationtoBankofHangzhouforapplyingforcreditlineisformeetingthecompany'scapitalturnoverneedsandensuringthenormaloperationofthecompany'sproductionandbusinessactivities,whichisconducivetothecompanyoptimizingthefinancialstructure andimproving the capitalutilization. In the transaction,there is nocircumstancejeopardizingtheinterestsofthecompanyandsmallandmediumshareholders. V.Thereviewprocedurethattherelatedtransactionshouldbeperformed 1.OnOctober25,2017,thecompanyheldthe15thmeetingofthe7thboardofdirectors,inwhichthe"ProposalaboutHangzhouSteamTurbineCo.,LtdmakinganapplicationtoBankofHangzhouforapplyingforRMB300millioncreditlinewasexaminedandapproved.Thisrelatedtransactionhasgottentheexanteapprovalofthecompany'sindependentdirectors,andtheindependentdirectorsagreedtosubmittheproposaltotheBoardmeetingfordeliberation. 2.Independentdirectors'opinion:TheCompanymakinganapplicationtoBankofHangzhouforapplyingforcreditlineisformeetingthecompany'scapitalturnoverneedsandimprovingthecapitalutilization.Duringthetimetheboardofdirectorsdeliberatedtherelatedtransaction,the relateddirectorsabstainedfromthevoting,andthevotingprocedureoftherelatedtransactionwas inlinewithlawsandregulations,showedtheprincipleofopenness,fairnessandimpartiality,and therewasnocircumstancejeopardizingtheinterestsofthecompanyandthesmallandmedium shareholders. 3.Thetransactionamountoftherelatedtransactiondoesnotexceedthe5%ofthecompany'slatestauditednetassets,sothetransactionisnotrequiredtobesubmittedtotheshareholders'meetingfordeliberation. VI.Documentsforreference 1.Resolutionsofthe15thmeetingofthe7thTermofBoard; 2.Thepriorapprovaloftheindependentdirectors Thisannouncementisherebymade. TheBoardofDirectorsofHangzhouSteamTurbineCo.,Ltd. October25,2017