Company Profile

Chongqing MAS SCI.&TECH. Co., Ltd. provides security technology equipment and information securityservices in China. The company offers mining safety solutions, including personnel tracking, miningsafety monitoring, gas mining monitoring, and wireless and broadcast communication solutions. It alsoprovides municipal management solutions, such as manhole covers management, slope and retainingwall, bridge health, road and tunnel, underground pipe network, septic tank hazard, storm waterlogging,and street lamp solutions. In addition, the company offers flammable gas monitoring solutions; andenvironmental protection solutions comprising dust and noise, surface water, ambient air quality, VOCS,regional environment, and remote water operation solutions. Further, it provides urban pipeline safetysolutions consisting of cloud data center, information management platform, emergency command, andgas hazard monitoring solutions, as well as software products.

Principally engaged in coal mine safety product manufacture: coal mine safety products and public safetyproducts contribute 55% and 45% of total revenue. Revenue of Chongqing MAS Sd. & Tech. was CNY 140million in 2015 and CNY ‐70——‐65 million （earnings forecast） in 2016.

Intelligent husbandry and city safety

（1） Increased fixed Asset investment will probably boost coal price and the demand for coal mine safetyproduct. Market share of the Company amounts to 10%. （2） Obtained a CNY 170 million order.

Chongqing MAS was employed by Heilongjiang Heng Yang Group to construct an intelligent husbandryproject which will start contributing profits in Q117 （Earnings are expected to reach CNY 15——20 million inthe quarter.）。

Rural Sewage Treatment: （1） Only 11% sewage is treated in 2015, 23% CAGR in 13th Five Year PlanPeriod. Government invested CNY 6.38 billion in the field in 2014. Jiangxi JDL Environmental Protection,an environmental protection equipment supplier focusing on the business, made CNY 360 million inrevenue in 2015 while it was only CNY 13 million in 2012. （2） A CNY 180 million PPP order coveringsewage treatment in 277 villages. The project lasts 33 years （construction period 3 years, operationperiod 33 years）。

Investment Recommendations: Net profit registers CNY ‐66 million in 2016, CNY 83 million in 2017 andCNY 174 million in 2018. Market cap is only CNY 4.3 billion.

Potential Risks: slower‐than‐expected progress of new business.