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2014 Interim Report of Wuhan Boiler Company Limited

1 Wuhan Boiler Company Limited

2014 Interim Report 2014-075 August

2014 2014 Interim Report of Wuhan Boiler Company Limited

2 Section I Important Notes, Contents &

Definition The Board of Directors, the Board of Supervisors as well as all Board Directors, Supervisors and Senior Management of Wuhan Boiler Company Limited (hereinafter referred to as the Company ) hereby warrant that this Interim Report is authentic, accurate and complete without any misstatement, misleading statement or material omission and will take individual and joint and several liabilities for that.

All Board Directors attended the Board Meeting for reviewing this Report. The Company didn'

t plan not to distribute cash dividends, or grant bonus shares, or transfer capital reserves into share capital. Mr. Yeung Kwok Wei Richard, Company Principal, Mr. Chin Wee Hua, the Accounting Principal, and Mr. Li Yihao, the Accounting Division'

s Principal (Accounting Manager), hereby ensure that the Financial Report enclosed in this Interim Report is true, accurate and complete. 1. Because the audited net profits and closing net assets for three consecutive accounting years of 2011,

2012 and

2013 are negative, Shenzhen Stock Exchange has decided to suspend the listing of the Company'

s stock starting from May 16,

2014 according to Article 14.1.1 and 14.1.2 of the Stock Listing Rules of Shenzhen Stock Exchange. 2. The Second Extraordinary Shareholders'

Meeting

2014 was held on May 23, 2014. The Debt-to-equity Conversion Plan was vetoed by the meeting. It is difficult for the Company to find other solutions to turn its net asset value from negative to positive by the end of 2014. Meantime, the Company has reminded the risks in the Debt-to-equity Conversion Plan as follows: if the Plan cannot be completed before the first half year of 2014, financial costs arising from the relevant debts would create a significant burden on the financial result of the Company in the year of 2014, and it will be fairly difficult for the Company to have a positive net profit, whether before or after deducting non-recurring profits/loss, and the Company'

s stock will also be facing the risk of delisting. 3. In order to satisfy the criteria for resuming the listing of the Company'

s stocks, pursuant to the Stocks Listing Rules of Shenzhen Stock Exchange (revised version 2012), the Company'

s financial data in the year of

2014 shall satisfy, at least both of the below criteria: (i) net asset value as of the end of fiscal period shall be positive;

and (ii) net profit shall be positive before and after deducting non-recurring profit and loss. In the report period, the net profit attributable to shareholders of the Company was 8,214,639.10, and the net assets attributable to shareholders of the Company were -1,355,276,203.03. If the Company fails to meet the requirements for listing resumption, the stock of the Company will be delisted. The Board of Directors hereby reminds investors of investment risks. 4. Currently, following the action plan formulated by the Board of Directors for listing resumption, the Company enhances internal management, strictly controls costs and focuses on production for overseas orders and tendering of domestic orders. 5. Securities Times, Ta Kung Pao and www.cninfo.com.cn are designated by the Company as information disclosure media. All information of the Company shall be subject to the disclosure of the Company on the said

2014 Interim Report of Wuhan Boiler Company Limited