Shenzhou High Speed Rail's main business components are rail transportation and hotel services.

Shenzhou High Speed Rail core theme

Essentials 1: belongs to the plate HS300 _ Beijing plate equity incentives share transfer transportation equipment Shenzhen into 500 Shenzhen Stock Connect Shenzhen Special Zone Railway Infrastructure

Essentials 2: business scope of rail transportation, computer networks, technology development, technical consulting, technology transfer, technical services; sales of products after development; computer system services ; import and export of goods; technology import and export; agent import and export; project investment; property management; urban rail transit, passenger service. (Enterprises in accordance with the law to independently choose the business project, to carry out business activities; projects subject to approval by law, approved by the relevant departments to carry out business activities in accordance with the approved content; shall not be engaged in the city's industrial policy prohibits and restricts the type of project business activities). (subject to the approval of the industrial and commercial registration authorities)

Points 3: rail transportation operation and maintenance in 2015, the company acquired the major asset reorganization of Xinlian Railway completed, the successful transformation of the rail transportation operation and maintenance industry, has become a high-speed rail as the representative of the rail transportation operation and maintenance of the industry's core suppliers, specializing in the safe operation of rail transportation to provide monitoring, testing, repair, maintenance equipment and services and overall solutions, the business is committed to the safe operation of rail transportation. It specializes in providing monitoring, testing, repair and maintenance equipment and services and overall solutions for the safe operation of rail transit, covering five major fields of locomotives, vehicles, power supply, signals and lines, and is a listed company covering the whole industry chain in the field of rail transit operation and maintenance. The company's core products include rolling stock, signaling, power supply, line, station section vehicle dispatching operations five series, of which the hollow core axle ultrasonic flaw detector, bogie dynamic load test rig, bogie static load test rig, rolling stock into the depot trackside integrated detection system, running fault image detection system and other core equipment technology to reach the world's leading level, in the domestic segment of the market share is relatively high, with international competitiveness.

The core equipment technology has reached the world's leading level.

Essentials 4: rail transportation industry rail transportation industry is capital and technology-intensive industries, by the national infrastructure construction policy has a greater impact on the return on investment cycle is longer, higher technical barriers. 2015 is a comprehensive planning, to enhance the national infrastructure construction of the key period, the country to high-speed rail, urban rail transit as the representative of the infrastructure construction investment to strengthen. At the same time, as a traditional industry, rail transportation operational efficiency is also imminent, to promote the application of industrial Internet in the traditional industry is to improve the industry's operational efficiency of the catalyst. The introduction of "Made in China 2025", the combination of the Internet and manufacturing as an important direction for the future development of manufacturing.

Point 5: platform-based service strategy and core product technology advantage of the company through the endogenous development and extension of mergers and acquisitions, the formation of a "safety inspection, operation and maintenance of the systematic platform + core equipment technology leading" competitive advantage. The company's safety inspection, operation and maintenance systematic platform has been used in locomotives, vehicles, power supply, signals, lines and other professional fields, involving rail transit rolling stock new construction, the line, the section of the mouth, the section of the full cycle of testing and monitoring, industry depth and breadth of penetration of the domestic leading; hollow shaft ultrasonic flaw detector for locomotives, bogie dynamic load test bench, bogie static load test bench, rolling stock into the depot trackside comprehensive testing equipment, mainline operation image inspection products and so on. The core equipment technology such as image inspection products for mainline operation has reached the world's leading level and has international competitiveness. Relying on the advantages of the systematic platform that has been formed, the company's self-developed products and technologies and the diversified resources acquired through mergers and acquisitions can provide customers with more comprehensive services and guarantees, which significantly enhances customer stickiness and industry competitiveness.

Point 6: the data platform of the pioneering advantage of the company to "interconnection" as the core, to enhance the ability to guarantee service and quality as the goal, innovative construction of rail transit operation and maintenance data platform. By virtue of the data collection ability of the core products in locomotive, vehicle, power supply, line and signal system, the company has gradually formed the design and service capability of data mining, data collection, data integration, data analysis, data modeling and other big data and cloud processing. Through the construction of data platform, the company has the ability to provide customers with real-time early warning, automatic diagnosis and expert online services, high-speed rail and other rail transit operation and maintenance services to ensure the ability to have a new enhancement, with a composite data platform to become a first-mover advantage of the enterprise.

Points 7: industrial integration capabilities subsidiary Xinlian iron as one of the earliest to enter the field of rail transportation operations and maintenance of one of the enterprises, in line with changes in the industry and customer demand, and continue to integrate the industry's high-quality resources, has merged with the top control of the information, a star technology, Huaxing Zhiyuan three with unique competitive advantages in the industry company, through the successful integration of their respective products, technology, personnel, customer resources, through Safety testing and monitoring technology, data acquisition and analysis technology, maintenance system integration platform technology of the complete data industry chain. 2015 the company also implemented the Wuhan Lide and Jiaoda micro-union of the major asset reorganization project, the initial realization of the industry cluster coordination capacity, business covers locomotives, rolling stock, power supply, lines, signals and other mainstream rail transit sub-industry. The company started as an equipment system manufacturer, and has gradually developed into a systematic solution and comprehensive data service provider in the field of rail transportation operation safety and maintenance. In the future, the company will take advantage of the capital market platform in the payment tools, financing ability and other key elements of the comprehensive advantage, and constantly improve the ability and efficiency of industrial integration, maximize the existing systematic platform to give full play to the strong product introduction ability, and further enhance the company's competitive advantage in the industry.

Highlights 8: the actual controller intends to transfer the 490 million shares held resumption of October 21, 2016 announcement, the company's actual control of human Bingrong and his concerted action intends to agree to transfer the shares held by the company *** counting 490 million shares, accounting for 17.77% of the company's total share capital. After the completion of the transfer, Beijing Haidian District State-owned Assets Investment Management Co., Ltd. will be the company's largest shareholder, the company will have no controlling shareholder, the actual controller. The company's shares will resume trading on October 24th. After the completion of the above equity transfer, the company has no controlling shareholder, the actual controller. Among them, Haidian National Investment Company holds 350 million shares of the company, accounting for 12.69% of the company's total share capital, as the company's largest shareholder; Beijing Jinguang holds 140 million shares of the company, accounting for 5.08% of the company's total share capital; and Wen Bingrong and his concerted action hold 164 million shares of the company, accounting for 5.96% of the company's total share capital.

Points 9: unmanned project cooperation March 9, 2016 evening announcement that the company's wholly-owned subsidiary of the new road Zhitie recently signed a "project cooperation agreement" with the Sheng Yun Electronics (Shanghai) Co. Sheng Yun Electronics is a wholly-owned subsidiary of Laird PLC ("Laird (UK)") established in Shanghai, China. Laird (UK) is a UK listed company specializing in the design and manufacture of wireless antenna products, electromagnetic shielding materials, and thermally conductive interface materials, which are widely used in the fields of telecommunication, data communication, cell phones and computers. Its electromagnetic shielding technology is second to none in the world, all kinds of infrastructure antennas, wireless automatic remote control system, signal clear transmission solutions for transportation equipment to realize wireless remote control to provide system solutions. The system in the user site in accordance with the China Railway Corporation shunting locomotive shunting operation specification process for the test, the test results fully meet the design and user requirements, has been loaded with the promotion conditions. The project is expected to form an industrial scale of about 4.5 billion yuan after the popularization and application of the project, which can generate significant economic benefits for the company in the future.

Highlights 10: proposed increase to expand the high-speed rail industry chain In February 2016, the company announced that the company completed a 2.2 billion capital raising to expand the high-speed rail industry chain. The SFC approved the company to pay Jiaxing Jiuding 90% equity held by Jiaoda Micro Union in cash, the transaction price of 1.37 billion yuan; to issue shares and pay cash to buy Wang Chunzheng and other 31 counterparties in the aggregate of Wuhan Lide 100% equity, the transaction price of 835 million yuan. In addition, the company intends to issue no more than 13,959,900,000 shares to no more than 10 specific investors at a price of 19.35 yuan/share to raise matching funds of no more than 2,205,000,000 yuan, which is not more than 100% of the total transaction price of the purchase of assets. Among them, 1.709 billion yuan is used to pay the cash consideration of this transaction, and 496 million yuan is used to pay the intermediary fees of this transaction and supplement the liquidity of the listed company. The counterparty promises that the net profit of Jiaoda Micro Union from 2015 to 2017 will be 120 million yuan, 150 million yuan and 180 million yuan respectively. Wang Chunzheng and 26 other shareholders promised Wuhan Lide net profits of 65 million yuan, 84.5 million yuan and 110 million yuan from 2015 to 2017, respectively.

Highlights 11: Procurement project winning According to the company's announcement on February 2, 2016, the company's wholly-owned subsidiary Xinlian Iron in the Kunming Hub Railway Construction Command's mobile rim spoke flaw detection system procurement project won the bid, the winning number of 1, the winning price of CNY 12.28 million. At present, including Xinlian Iron, there are only two companies in China with the ability to develop and produce this type of rim spoke flaw detection system. This system is the key equipment of the standard configuration of maintenance facilities and equipments for train sets, which is required by all domestic train sections and train stations, and is currently being popularized throughout the whole road, with a broad market space and high market value. The winning of this project is of great significance to the company. It is expected that the system will become a new profit growth point in the next three years, and will have a positive impact on the company's operating results.

Highlights 12: Subsidiary application for listing on the New Third Board According to the company's announcement on February 2, 2016, the company's subsidiary, Zhuzhou OneStar Technology Co. Ltd. reported to the National Small and Medium-sized Enterprises Stock Transfer System on January 29th to obtain acceptance of the listing application. At present, Zhuzhou OneStar's application for listing on the New Third Board is subject to the review and consent of the administrative authorities, and there is uncertainty as to whether it can be successfully completed. Zhuzhou one star in November 10, 2015 to complete the share reform, the main business for rail transit rolling stock repair and maintenance to provide professional testing, monitoring, testing equipment, as well as system solutions and comprehensive data services, January to September 2015 revenue of 18.6528 million yuan, net profit of 2.3182 million yuan.

Points 13: 1.8 billion to buy the new Union Railway cut into the field of rail transportation on September 18, 2014 issued a restructuring proposal, the company intends to acquire 100% of the shares of the new Union Railway through the issuance of shares and the payment of cash, and to raise matching funds. After the completion of the reorganization, the company will increase the rail transit operation safety, maintenance business. According to the plan, 100% of the shares of Xinlian Railway are valued at 1.844 billion yuan, with an appraisal value-added rate of 381.71%, and the transaction price is 1.8 billion yuan. The company issued a total of 180 million shares and 250 million yuan in cash to pay all the transaction price, and intends to issue shares to the stable win 2, etc. to raise matching funds of 600 million yuan. The above issue price are 8.59 yuan / share. According to reports, Xinlian iron is China's rail transit operation safety, maintenance of the field of leading systematic solutions and comprehensive data service providers, is committed to rail transit safety detection and monitoring technology, data acquisition and analysis technology and intelligent maintenance technology research and development and application, its current main provide rolling stock operation and maintenance, power supply operation and maintenance, station section vehicle scheduling operations, engineering operation and maintenance of four series of products. Through this transaction, the company will inject the rail transit operation safety, maintenance business and assets with strong profitability, and realize the transformation of the main business of the listed company.

Essentials 14: involved in hand travel business In May 2014, the company signed a capital increase agreement with Chengdu Palm Entertainment World Technology Co., Ltd. and its shareholders, the company intends to use 90 million yuan to Palm Entertainment World to carry out a capital increase. Upon completion of the capital increase, the Company holds a 10% equity interest in Palm Entertainment World. Palm Entertainment World is a company specializing in the development, operation and distribution of mobile games and web games, and currently has a number of research and development teams in Chengdu and Chongqing, and is in the process of establishing a research and development team in Shenzhen. According to the announcement, Palm Entertainment World was founded in September 2013, and as of April 30, 2014, its total assets were 10,727,500 yuan and net assets were 10,526,900 yuan. It realized operating income of RMB 1,119,900 and RMB 4,462,300 from September to December 2013 and January to April 2014, respectively, with net profit of RMB -1,247,500 and RMB 1,774,400, respectively. In addition, Palm Entertainment World expects to realize net profits of 0.08 billion yuan, 120 million yuan and 180 million yuan for the three years of 2014, 2015 and 2016, respectively. The shareholders of Palm Entertainment World made performance commitments for the above net profits of the Subject Company for 2014 and 2015. The valuation of this capital increase is based on the subject company's 2014 promised net profit, determined in accordance with 10.125 times the price-earnings ratio; based on the subject company's 2015 promised net profit, determined in accordance with 6.75 times the price-earnings ratio. The company said that in recent years, the country introduced a series of new policies, resulting in rapid changes in the hotel market environment, hotel rooms and catering operating income declined rapidly, and the downtrend has not yet been a significant change, the company's operations are facing tremendous pressure. The company intends to enter the game industry by way of participation in the subject company, and strive to accumulate experience in the management and operation of the field, and ultimately realize the successful layout of the game industry.