Brief Introduction of UREC

Union Resources & Engineering Co., Ltd.(hereinafter referred to as UREC)was incorporated in 2009 by uniting former Yunnan Machinery and Equipment Import and Export Co., Ltd. (YMEC) and previous Yunnan Machinery Imp. & Exp. Co., Ltd. (YMC). As an international resources integration enterprise, UREC engaged in international engineering contracting, import and export of complete sets of equipment,mechanical and electrical products and all sorts of other products, materials and raw materials together with provision of complex trade services. Besides,investment and the development of real estate is also included in the business scope of the company. In November 2016, Yunnan Province Energy Investment Group Co. ,Ltd (hereinafter referred to as YEIG) successfully completed the shares transfer transaction and become the first majority shareholder of UREC. UREC is fully integrated into the YEIG’s international development strategy, as general contracting vehicle of overseas EPC project of YEIG . .

As Yunnan provincial energy industry leading enterprise, based on the core business of clean energy, YEIG continuous optimizes the industry layout. Four major parts of business, clean energy ,finance , internationalization and comprehensive business achieve coordinated development. YEIG is the first provincial enterprise to obtain the corporate credit rating AAA qualification and the international credit rating BBB investment grade. YEIG has stepped into the China Top 500 enterprises in three consecutive years since 2014, and ranked No.313 in 2016. Up to September 2016, YEIG has total assets of 78.711 billion yuan, net assets of 28.254 billion yuan, and equity installed capacity 13.96 million kilowatts. During the 13th “Five-Year Plan” period, striving through innovation and development, constantly optimizing the allocation of international and domestic resources, YEIG will achieve the goal that the total assets being over 140 billion yuan, annual revenue over 100 billion yuan, the management market value over 100 billion yuan, and step into the World's Top 500 enterprises by the end of 2020, become a competitive advantage multi-national corporation in the energy area.

The main business of UREC includes: international trade, power station and transmission line engineering contracting, shipbuilding and port engineering general contracting, overseas investment and resource development. UREC has established comprehensive economic and technical cooperation and business relations with over 80 countries and regions. Moreover, it has set up branches or offices in different countries such as U.S.A., Myanmar, Vietnam, Laos, Thailand, Bangladesh and Singapore and in different Chinese cities like Beijing, Hong Kong and Shanghai

Having the expertise in sectors of hydropower plant and transmission line, , UREC has involved in construction of 35 hydropower stations in China, Myanmar, Viet Nam, the United States and Chile by 2016, with a total installed capacity of 1900MW. Meanwhile, the company also jointly invested 5 hydropower stations, with equity installed capacity around 130MW, which included Myanmar Shweli Hydropower Station (6x100MW) enjoying the reputation "Three Gorges Project in Myanmar", and the first BOT power project in China. In addition, the company also contracted the Myanmar, Laos power transmission line project and the city network transformation project with the contract amount is over 300 million US dollars.

Over the same period, more than 100 different kinds of ships were exported to Netherlands, Britain, Australia, Singapore, Thailand, Malaysia, Indonesia, India, Bahrain, UAE, Kuwait and other countries, with total amount over 500 million US dollars, meanwhile over a hundred sets of railway locomotives were exported to Vietnam, Myanmar, Thailand and other countries. Over past ten years, UREC has supplied more than 60 complete sets of large-scale hoisting machinery for a dozen of shipyards in Vietnam and successfully contracted the biggest shipyard - DUNG QUAT shipyard with contract value USD 300 million.

Overseas Investment: In 2015, Cambodia CCC cement plant, which was jointly invested by UREC, was put into operation with an annual output1.2 million metric tons cement. Lakeview Golf Course in Vientiane, Laos, has begun trial operation at the beginning of 2016. THAKETA gas power plant project in Myanmar started construction in May, 2016, which was co-invested by YEIG and UREC.

Since the establishment of UREC, the average annual import and export volume has been remaining at around USD 200 million. The total assets has reached 3 billion yuan and the net assets 500 million yuan in 2016.

Focusing on the YIEG core values "harmony pragmatism responsibility and innovation", combined with the strategic planning "strive to go out as vanguard, accelerate international development", UREC will make full use of its resource superiority and market advantages among southeast Asian countries with "contracting spurs investment while investment promotes the contracting" business development model, and give full play to the Group's state-owned capital leadership and its magnified effect, while maintaining a flexible and rapid market reaction mechanism to speed up acquisition of overseas projects and market development, striving to achieve YIEG strategic development target -10 billion RMB overseas investment by 2020 .