StockCode:200771 StockID:HangqilunB AnnouncementNo.2019-14 HangzhouSteamTurbineCo.,Ltd. AnnouncementontheListingTransferofPartialHoldingEquityofthe Subsidiary ThemembersoftheBoardandtheCompanyacknowledgebeingresponsibleforthetruthfulness,accuracy,andcompletenessoftheannouncement.Notanyfalserecord,misleadingstatementorsignificantomissioncarriedinthisannouncement. ReminderforImportantContent: 1.BriefContentoftheTransaction:HangzhouSteamTurbineCo.,Ltd.intendstotransfertheequityofHangzhouSteamTurbineCastingCo.,Ltd.withthelistingpricenotlowerthantheevaluationresultapprovedbythestate-ownedassetsmanagementdepartmentandthefinaltransactionpricesubjectingtotheactualsettlementprice. 2.Riskwarning:Theequitytransferstillneedstofulfillthefiling-recordforevaluationandtocompletethecorrespondingapprovalprocedures.Thereisuncertaintyinthistransfer.Investorsareadvisedtopayattentiontoinvestmentrisks. I.Overviewofthetransaction: (1)Basicinformation InDecember2018,theCastingCompanythroughcapitalincreaseandshareexpansionintroducednewstrategicinvestors,forincreasingproductioncapacityandenhancingitscomprehensive competitiveness.DetailspleaserefertocompanyannouncementNo.2018-05,2018-56and 2019-07releasedbySecuritiesTimes,ShanghaiSecuritiesDaily,HongKongCommercialDailyandhttp//www.cninfo.com.cndatedJanuary27,2018,July26,2018andJanuary11,2019. InordertoactivelyenhanceitsmarketcompetitivenesswhilerevitalizingtheCompany'scurrentassets,afterdiscussionthroughthecompanyboardmeeting,intendstotransferpartoftheequityoftheCastingCompanyheldbythecompanyandlowersitsshareholdingratioto19.9%.Theafore-saidequitytransfershallbeconductedinaccordancewiththetransactionprocessforthemarkettransactionofstate-ownedpropertyrightsandbereportedtoHangzhouState-ownedAssetsSupervisionandAdministrationCommissionforapprovalandfiling. (II)Thevotingresultinthemeeting OnMarch14,2019,theCompanyheldthe30thmeetingofthe7thBoardofDirectorsbymeans oftelecommunicationvoting.AftervotingbytheCompany'sdirectors,with10votesofconsent,0 votesagainst,and0abstentions,theProposalontheListingTransferofPartialHoldingEquityof CastingCompanywasapprovedinthemeeting.Thetransactionwillnotconstituteamajorasset restructuringasstipulatedintheMeasuresfortheAdministrationofMajorAssetRestructuringof ListedCompanies. II.Therelationshipbetweenthetransactionparties Afterdeterminingthecounterparty,thecompanywilljudgetherelationshipbetweenthe counterpartyandtheCompany.. III.Thebasicinformationofthetransactionsubjectmatter (I)Thesubjectmatterofthetransaction 1.Thenameofthetransactionsubject ThesubjectofthistransactionisthepartialequityoftheCastingCompany 2.Basicinformationofthetransactionsubject CompanyName:HangzhouSteamCastingCo.,Ltd. Unifiedsocialcreditcode：91330110759502452P TypeofEnterprise:Limitedliabilitycompany(Foreign-investedenterprisesanddomesticjoint ventures) Placeofregistration:No.2Road,TangqiIndustryArea,YuhangDistrict,Hangzhou. Legalrepresentative：YuJunming Registeredcapital:29.50millionyuan Dateofestablishment：March1,2004 Businessscope:Resinsandcaststeel,resinsandcastiron,organicfatglassofwaterglass castings,forgings;Installation,maintenance:castingequipment;sales:Theproducts,mechanical andelectricalproducts,machineryandequipmentproducedbythecompany;importandexportof goods(exceptforitemsprohibitedbylawsandadministrativeregulations,anditemsrestrictedby lawsandadministrativeregulationscanbeoperatedonlyafterobtainingthepermission).(Items subjectingtoapprovalaccordingtolawmaybeoperatedaftergainingtheapprovalbyrelevant departments) ShareholdersandShareholdingratio NameofShareholder Capital-contribution Contribution Amount( Ratio Tenthousands yuan） HangzhouSteamTurbineCo.,Ltd. 38.0339% 1122 YangLianrong 3.7214% 109.78 HangzhouSteamTurbineCo-CreationEnterpriseManagementConsulting 663.72 Partnership(LimitedPartnership) 22.4991% HangzhouSteamTurbineCo-castingEnterpriseManagementConsulting 106.5 Partnership(LimitedPartnership 3.6103% YuJunming 2.2373% 66 TongZiqian 1.4915% 44 YuYifeng 1.4915% 44 XuWei 1.4915% 44 LiuLei 5.0847% 150 YuYuxin 5.0847% 150 ShenDerong 5.0847% 150 ShenMingfang 5.0847% 150 LvJianqing 5.0847% 150 Total 100% 2950 3.MainFinancialInformationofCastingCompany InRMB Periods Totalassets Netassets TotalLiabilities Revenue Totalprofit Netprofit 2018 613,474,956.73 244,452,732.22 369,022,224.51 446,900,632.40 12,774,779.82 12,800,550.85 2017 489,452,244.02 173,136,786.15 316,315,457.87 357,558,102.11 31,586,127.41 27,727,923.66 2016 406,270,109.45 165,559,715.66 240,710,393.79 286,947,144.79 19,565,254.81 17,095,623.20 (II)Evaluationofthesubjectmatterofthetransaction TheCastingCompanywillperformtheassessmentfilingandthecorrespondingapproval proceduresinaccordancewiththerelevantstatelawsandregulations. III.Themaincontentofthetransactionagreement Afterdeterminingthespecifictransactioncontentincludingthecounterpartyandthe transactionpriceandfulfillingtherelevantapprovalprocedures,theCompanywillsignthe relevanttransferagreementwiththecounterparty. IV.Otherarrangementsforthistransaction Yettherearenodecidedotherarrangements. V.PurposeofthetransactionanditsimpactontheCompany (I)Purposeofthetransaction ThecompanyhascomprehensivelyconsideredtheproposedtransferofthepartialequityoftheCastingCompanyandcanfurtheractivelyimplementthepubliclistingprocessoftheCastingCompanyaswellasenhanceitsmarketcompetitiveness. (II)Theimpactofthetransactiononthelistedcompany Wherethetransferthepartialequityiscompleted,theCompany’sstakeintheCastingCompanywillbeloweredto19.9%from38.03%,whichresultinchangesinthescopeoftheCompany'sconsolidatedstatements.Theequitytransferpriceshallbebasedontheevaluationreportissuedbytheassetappraisalagency,andthefinaltransactionpriceshallbesubjectedtothemarkettransactionprice,whichwillhaveacertainimpactontheCompany'sfinancialindicatorsfor2019. VI.RiskReminder Theequitytransferstillneedstofulfillthefilingrecordforevaluationandtocompletethecorrespondingapprovalprocedures.Thereisuncertaintyaboutwhetherthetransferwilltakeeffect.Investorsareadvisedtopayattentiontoinvestmentrisks. Thisannouncementisherebymade. TheBoardofDirectorsofHangzhouSteamTurbineCo.,Ltd. March15,2019