# Substantial shareholders’ and other persons’ interests and short positions in shares and underlying shares

As at 31 December 2018, so far as is known to the Directors, the following persons (other than a Director or chief executive of the Company) had or were deemed or taken to have an interest or short position in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO:

<table><tr><td>Name of shareholder</td><td>Nature of interest</td><td>Number of 
ordinary 
shares of 
the Company 
interested</td><td>Percentage of 
th’e Companys 
issued share 
(3)capital </td></tr><tr><td>Hong Kong (Rong An) Investment Limited 
(“Hong Kong Rong An”)</td><td>Beneficial owner</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>CECEP Chongqing Industry Co., Ltd. 
(“CECEP Chongqing”) (1)</td><td>Interest in controlled 
corporation</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>China Energy Conservation and 
Environmental Protection Group 
(“CECEP”) (2)</td><td>Interest in controlled 
corporation</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>Kingom Power Limited 
(“Kingom Power”)</td><td>Beneficial owner</td><td>643,720,000</td><td>30.29%</td></tr><tr><td>Winwett Investments Limited</td><td>Beneficial owner</td><td>136,820,000</td><td>6.44%</td></tr><tr><td>Mr. Huang Shao Rong</td><td>Beneficial owner</td><td>19,587,000</td><td>0.92%</td></tr><tr><td></td><td>Nominee for another person 
(other than a bare trustee)</td><td>208,532,000</td><td>9.81%</td></tr><tr><td>Ever Luxuriant Global Trading Limited</td><td>Beneficial owner</td><td>208,532,000</td><td>9.81%</td></tr><tr><td>Mr. Lin Haibin</td><td>Beneficial owner</td><td>27,723,000</td><td>1.30%</td></tr><tr><td></td><td>Nominee for another person 
(other than a bare trustee)</td><td>172,538,000</td><td>8.12%</td></tr><tr><td>Haibin International Investments Limited</td><td>Beneficial owner</td><td>172,538,000</td><td>8.12%</td></tr><tr><td>Export – Import Bank of China</td><td>Person having a security 
interest in shares</td><td>300,000,000</td><td>14.12%</td></tr></table>

Notes:

(1) CECEP Chongqing owned 100% of the issued share capital of Hong Kong Rong An, and was thus deemed to be interested in all shares of the Company that Hong Kong Rong An was interested in under the SFO.

(2) CECEP Chongqing was a non-wholly-owned subsidiary of CECEP. CECEP was therefore deemed to be interested in all shares of the Company CECEP Chongqing was interested in under the SFO.

(3) Based on a total of 2,125,308,000 issued shares of the Company as at 31 December 2018.

Save as disclosed above, as at 31 December 2018, the Directors were not aware of any other person who had interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO.

# Emolument policies

The Group’s emolument policies are formulated on the performance of individual employees and on the basis of the salary trends in Hong Kong and the PRC, and will be reviewed regularly. Subject to the Group’s profitability, the Group may also distribute discretionary bonus to its employees as an incentive for their contribution to the Group. The Group has adopted a share option scheme for its employees as described in the paragraph below.

# Permitted Indemnity

Pursuant to the Articles of Association of the Company, the applicable laws and regulations, every Director shall be indemnified and secured harmless out of the assets and profits of the Company against all actions, costs, charges, losses, damages and expenses which they or any of them may incur or sustain in the execution of their duties in their offices. Such permitted indemnity provision has been in force throughout the year under review. The Company has arranged appropriate Directors’ and officers’ liability insurance coverage for the Directors and officers of the Group.

# Share option scheme

The Company has a share option scheme which was adopted on 31 March 2011 whereby the Directors are authorised, at their discretion, to invite employees of the Group, including directors of any company in the Group, to take up options to subscribe for shares of the Company. The purpose of the scheme is to provide an opportunity for employees of the Group to acquire an equity participation in the Company and to encourage them to work towards enhancing the value of the Company and its shares for the benefit of the Company and its shareholders as a whole.