Stock Code: 200771       Stock ID: Hangqilun B             Announcement No. 2017-54



                       Hangzhou Steam Turbine Co., Ltd.
          Announcement of the controlling shareholder and the Xiacheng
      district government to sign the agreement of the main body relocation
                                   compensation.


The members of the Board and the Company acknowledge being responsible for the truthfulness,

accuracy, and completeness of the announcement. Not any false record, misleading statement or

significant omission carried in this announcement.



I. Overview

    On April 21, 2017, Hangzhou Steam Turbine Co., Ltd. disclosed the Announcement about

Voluntary Information Disclosure of Starting the Relocation Work of Plant Land of Hangzhou

Steam Turbine Co., Ltd (Announcement No. 2017-31). The company received the Hangzhou

Municipal People's Government's minutes about the relocation of Shiqiaoliu Plant Area of

Hangzhou Steam Turbine Co., Ltd. According to the relevant contents of the minutes, the

Hangzhou Municipal People's Government shall list the Shiqiaoliu Plant Area of Hangzhou Steam

Turbine Co., Ltd into the Planning Scope of Land Expropriation and Relocation. Thus for the

compensation matter of relocation of the Shiqiaoliu Plant Area of Hangzhou Steam Turbine Co.,

Ltd, it shall be signed by the relevant land-making subject unit of Xiacheng District Government

of Hangzhou City and Hangzhou Steam Turbine Group Co. Ltd, stating that the Xiacheng District

Government of Hangzhou City shall be responsible for the payment of the compensation to

Hangzhou Steam Turbine Group Co. Ltd, which is took as the compensation for the overall

relocation of Shiqiaoliu Plant of Hangzhou Steam Turbine Co., Ltd.

    The company recently was informed that Hangzhou Steam Turbine Group and the

land-making subject unit-Hangzhou City Xiacheng District Municipal Construction Investment

Group signed the Compensation Agreement on Land Expropriation and Relocation, hereby the

main contents of the agreement are disclosed as follows:
1. The scope of land expropriation and relocation: Shiqiao Plant Area of Hangzhou Steam Turbine

Group (including part of the state-owned assets of living quarters of Hangzhou Steam Turbine

Group at North side of Dongxin Road)-overall relocation compensation. The concrete land area,

building construction area, etc. will be based on the actual measurement.

2. Compensation fees for the land expropriation and relocation: RMB 1.815 billion, with the

contents include compensation fees for land, buildings, aboveground appendages and so on;

relocation and transportation compensation fees; temporary placement subsidy; compensation fees

for losses of business close and shutdown and award fees, etc. Hangzhou Steam Turbine Group

shall be responsible for the personnel placement, and allocate the compensation in conjunction

with its relevant subordinate companies.

3. Relocation and the land delivery: Hangzhou Steam Turbine Group will complete the relocation

on December 31, 2019, and it will deliver the vacated buildings to the land-making subject-unit in

accordance with the relocation time line. The buildings after delivery and their residual value are

owned by the government.

4. The funds appropriation time: the compensation fees of the land expropriation and relocation

will be appropriated according to the relocation progress, and the exact appropriation time shall be

determined through consultation by both parties under the coordination of the relevant municipal

department.

II.The impact of signing the compensation agreement on land expropriation and relocation

on the company

     The domicile of the Company is located in the scope of the Shiqiao plant area of Hangzhou

Steam Turbine Group, and the compensation agreement on land expropriation and relocation

signed by Hangzhou Steam Turbine Group and the land-making subject unit-Hangzhou City

Xiacheng District Municipal Construction Investment Group will have an impact on the

company's future production and operation.

     As of the date of this announcement, the company did not receive the relevant compensation

of the land expropriation and relocation, and the company's production and operation is normal.

The Company will, according to the relevant provisions, carry out the obligation of information

disclosure in a timely manner on the significant progress of the relocation matter of the company.
The Board of Directors of Hangzhou Steam Turbine Co., Ltd.

August 7, 2017