Stock Code: 200771    Stock ID: Hangqilun B   Announcement No.: 2021-55




                         Hangzhou Steam Turbine Co., Ltd.
      Measures for the Evaluation and Manage ment of the Implementation of
                     the 2021 Restricted Stock Incentive Plan


  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.


     These measures are formulated in accordance with the relevant laws, regulations and
normative documents, to ensure the smooth progress of Hangzhou Steam Turbine Co., Ltd.’s 2021
restricted stock incentive plan (hereinafter referred to as the “Incentive plan”), and further improve
the corporate governance structure of the company, perfect the medium and long-term incentive
and restraint mechanism, as well as to fully mobilize the enthusiasm and creativity of high-level
management personnel and technical personnel, the business backbone personnel, thereby
promoting the smooth realization of the company's development plan.
     I. The purpose of the assessment
     For the sake of improving the corporate governance structure of the company, establishing
and improving the company's incentive and restraint mechanism, promoting the honest and
diligent work of the incentive objects, thus to ensure the realization of the company's development
strategy and business objectives, thereby promoting the company's sustainable development and
ensuring the smooth implementation of the company's equity incentive plan.
     II. Assessment Principles
     Evaluation must adhere to the principles of impartiality, openness, and fairness, and evaluate
strictly in accordance with these Measures and the performance of the evaluation object, thus to
realize the close integration of the equity incentive plan with the work performance and the
contribution of the incentive object, thereby improving the management performance and realizing
the maximum interests of the company and all shareholders.
     III. The Scope of Assessment
     These measures apply to all incentive objects participating in the company's incentive plan,
including the company's directors, middle and senior managers, and core backbones.
     IV. The assessment agency
     (1) The Remuneration and Evaluation Committee of the Board of Directors is responsible for
leading and reviewing the evaluation work of incentive objects.

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     (2) The company's human resources department is responsible for the specific
implementation of the assessment work. The Human Resources Department is responsible to the
Remuneration and Evaluation Committee of the Board of Directors and for responsible of
reporting.
     (3) The company's human resources department, financial department and other relevant
departments are responsible for the collection and provision of relevant assessment data, and are
responsible for the authenticity and reliability of the data.
     (4) The board of directors of the company is responsible for the review of the assessment
results.
     V. Performance appraisal and evaluation indicators and standards
     The performance evaluation indicators and standards are detailed in the "Draft of Restricted
Stock Equity Incentive Plan". If the performance evaluation indicators and standards are revised
by the general meeting of shareholders, the revised ones shall prevail.
      VI. Individual level assessment of incentive objects
      The individual assessment of the incentive objects is carried out on a yearly basis, and the
performance evaluation results (S) are classified into 4 levels. The percentage of share sales
restriction lifted in the year is determined according to the results of individual performance
evaluation in the year. The actual lifting quota of the individual in the year = the lifting restriction
coefficient × the lifting sales restriction quota in the plan for the personal in the year. Special
circumstances in the performance evaluation shall be determined by the board of directors. See the
table below for details:
Evaluation result
                            Excellent             Good              Qualified            Unqualified
           (S)
       Lifting
  sales-restriction                       1                            0.8                     0
     coefficient
      Restricted stocks that cannot be lifted in the current period due to the results of individual
performance appraisal shall not be deferred to the next period to be lifted, and the company shall
repurchase those at the granted price.
     VII. Assessment period and frequency
     1. The assessment period
     The fiscal year prior to the grant or lifting of restricted stock to the incentive object..
     2. Number of frequency of assessment
     The assessment years of this incentive plan are three fiscal years from 2021-2023, and the
assessment is conducted once a year.
     VIII. Assessment procedures


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     1. The company and its subordinate units determine the annual performance goals of each
department and each subject in accordance with the management authority of each unit and the
decomposition of the annual business objective, and each department and each subject to be
assessed use this as the basis for the annual performance assessment.
     2. At the beginning of the next year, the company organizes relevant departments to evaluate
the incentive objects. The assessment mainly adopts self-evaluation, departmental evaluation, and
company appraisal to finalize.
     3. The Human Resources Department is responsible for the unified summary, verification and
analysis of the assessment data, and thus formulates an assessment report to be submitted to the
Remuneration and Assessment Committee of the Board of Directors for approval.
     IX. Management of assessment results
     The assessed subject has the right to know their own assessment results, and the Human
Resources Department shall notify the assessed subject of the assessment results within 10
working days after the completion of the assessment.
     If the subject has any disagreements with their own assessment results, they can
communicate with the Human Resources Department to resolve it. If it cannot be resolved through
communication, the assessed object can appeal to the Remuneration and Assessment Committee
through the Human Resources Department, and the Remuneration and Assessment shall review
within 10 working days and determine the final appraisal result or grade.
     X. Supplementary Provisions
     1. The board of directors is responsible for the formulation, revision and interpretation of
these measures. If there is a conflict between these Measures and the laws, administrative
regulations, and departmental rules that will be issued and implemented in the future, the laws,
administrative regulations, and departmental rules and regulations that will be issued and
implemented in the future shall prevail.
     2. The board of directors authorizes the management to formulate detailed rules for the
implementation of incentive assessment related to incentive objects based on the needs of
assessment work.
     3. These measures have been reviewed and approved by the company's general meeting of
shareholders and will be implemented after the equity incentive plan takes effect.

                                     The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
                                                                 July 12 ,2021




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