Wison Engineering Services : CORPORATE SOCIAL RESPONSIBILITY REPORT 2016

2 Corporate Social Responsibility Report 2016 WISON ENGINEERING SERVICES CO. LTD.

1. Management Statement

   In 2016, facing a challenging and complex market environment, Wison Engineering overcame the difficulties, encouraged innovation and pursued breakthroughs by adhering to its spirits of "integrity-oriented, customer-oriented, innovation- oriented, achieving mutual success in harmony", and to its objectives of "improving people's livelihood with innovative technology", and achieved satisfactory results. In the past year, we continued to devote to areas with traditional advantages on one hand, and achieved breakthroughs on new businesses like liquefied natural gas ("LNG"), environmental protection, new energy and inorganic chemicals on the other hand. Internationalization development was promoted steadily with fruitful outcome on expansion of overseas business. The development of operations in the Middle East, the Commonwealth of Independent States (CIS), and the Americas achieved milestone progress. The domestic and overseas projects under execution currently advanced smoothly under assured quality and safety. Certain research and development, engineering and marketing of innovative technologies, which are of great importance to saving energy and clean energy, achieved good results. Cooperation in respect of technology innovation will continue to expand. In order to cater to the development objective of being an international engineering company, we have modified our management structure, built up an international management team and promote reforms with the principles of being customer- centered and market-oriented.

   While expanding our businesses, Wison Engineering is committed to being a corporate citizen who respects life, focuses on health, cherishes the environment and bears social responsibility. Looking back to 2016, we actively implemented and improved the management of social responsibility in various areas, and achieved satisfactory results, including the release of the first social responsibility report of Wison Engineering this year.

   In respect of green technology innovation, Wison Engineering achieved fruitful results from internal research and external cooperation. Wison Engineering introduced energy saving technology to the energy optimization of cracking furnace project, thus improving the quality and energy efficiency of products. We worked with our partners to develop clean fuel technology and Hydrogen Peroxide to Propylene Oxide (HPPO) green technology into the pilot phase. Meanwhile, we continued to perfect and improve the management of usage of energy and water, further minimizing the impact of our operation on the environment. Apart from business expansion, we are also committed to caring for employees by creating a healthy, delightful and safe workplace, providing sufficient training resources to staff and pursuing mutual growth with employees. Externally, we actively participated in the society and showed our love to the people in need, shouldering more social responsibility. Besides, we have communicated with the stakeholders to have a better understanding on the impacts of our operation on the stakeholders and their long- term values, and to identify the key sustainability issues to Wison Engineering.

   2017 is the 20th anniversary of Wison Engineering. Under no circumstance shall we forget our goal of putting environmental protection, life safety and health, and corporate social responsibility in the first place when devoting effort to engineering service sector. Along with the further implementation of domestic supply-side structural reform and "13th Five-Year Plan", we will capture the opportunities arising from national strategies such as the ""One Belt, One Road" economic belt development, reinforcement of environmental laws and regulations , and chemical industrial park developments. The Group will reinforce the guidance under its core strategies of "market-orientation, internationalization and leadership through differentiation", and continue to strengthen the ability of being sensitive to respond to the market and customer service-providing concepts. We will stick to and strengthen our market-oriented operating mechanism, and persist in internationalization by creating the value chain of the Group's international business, encouraging technology innovation and building up our competitive edge of differentiation. Based on these core strategies and initiatives, we will become an excellent engineering enterprise with the ability of creating financial values and social values for our stakeholders.

   Last but not least, we cordially invite stakeholders to provide valuable advices on the work of Wison Engineering, and go toward to a sustainable future with us.

   Liu Haijun

   Executive Director and President

   Corporate Social Responsibility Report 2016 WISON ENGINEERING SERVICES CO. LTD. 3

2. About Wison

2.1 BACKGROUND AND PROFILE

Wison Engineering Services Co. Ltd. ("Wison Engineering" or the "Company", together with its subsidiaries, the "Group"), listed in Hong Kong in 2012 (Hong Kong Stock Exchange Stock Code: 2236), stands as one of leading chemical engineering, procurement and construction management (EPC) service providers in China. With headquarters in the Zhangjiang High-tech Park in Shanghai, Wison Engineering has expanded its presence into the international market including Southeast Asia, Middle East, CIS, as well as in North America and South America.

Wison's goal is to become a global leader in the commercialization of science and technology by promoting economic growth and improving people's livelihood.

Wison Engineering's specialties are in the provision of construction and technical services for engineering installations in the petrochemical, coal-to-chemical and refining industries. From project preliminary planning, consultation, design, raw material and equipment procurement, construction management and trial operation of equipment to the after-sales maintenance and after-sales technical support, Wison Engineering provides diversified and comprehensive solutions to our clients. Wison Engineering is also committed to R&D and technological innovation in the areas of ethylene process integration, coal-to-chemical, clean coal utilization and energy saving technologies. Wison has also developed petrochemical packaged technology, and various proprietary technologies, including coal-to-chemical processing of Methanol, Dimethyl Ether and methanol-to-olefin (MTO) light olefins separation. Wison Engineering has also further developed other coal-to-chemical processing such as large-scale coal gasification, SNG, and coal-to-ethylene glycol in cooperation with other well-reputed organizations and universities.

Over the years, Wison Engineering adhered to the development strategy of "achieving sound and continuous growth, internationalization, and leadership through differentiation". Measures were centered around the themes of "internationalization", "technological innovation", "healthy operations", "enhancement of overall and technological innovating capabilities" and "nurture of new business". The Group will continue to demonstrate its excellent abilities in respect of project management and execution.