About CHANHIGH Company

We are one of the leading providers of municipal gardens and municipal engineering construction services in Zhejiang Province. Our business covers 12 provinces, 3 municipalities directly under the Central Government and 2 autonomous regions in China, including Zhejiang, Jiangsu, Shandong, Anhui, Hubei and Chongqing. According to Frost & Sullivan, as of June 2016, we are one of the few construction service providers in China with five first-class qualifications for garden and municipal engineering construction. Through over 10 years of dedicated efforts to continuously deliver high-quality construction projects, we have established a reputation and successfully strengthened our market position. We have won highly respected awards, such as the 2013 to 2014 China's Top 100 Comprehensive Competitiveness Enterprises and the 2013 to 2015 National Top 50 Urban Landscaping Enterprises, which affirm our position in the industry. Details are described in the “Awards and Recognitions” section of this section. According to Frost & Sullivan data, in 2015, we were one of the top five municipal garden construction companies based on the proceeds of municipal garden projects in the Yangtze River Delta. Our main scope of services includes garden and municipal engineering construction. In each project we undertake, we guarantee the completion of the work we have obtained, arrange the required labor to work on the construction site, rent the main equipment and machinery, procure raw materials, coordinate with all parties, and monitor the project progress from construction to maintenance after completion. We started the garden construction business in 2001. Our scope of garden construction services includes undertaking all kinds of municipal and private garden projects, including planting trees, shrubs and flowers, lawns, adjusting the land layout, constructing landscape buildings, laying garden paths, and carrying out related foundation works. Garden construction has always been one of our core businesses. For the year ended December 31, 2013, 2014 and 2015, the revenue from the landscape construction business accounted for 42.0%, 58.5% and 40.8% of our total revenue, respectively. As our business continues to grow, we expanded our scope of services and launched the municipal engineering construction business in 2005. Our municipal engineering business scope includes municipal highway and bridge construction, lighting engineering and water engineering, such as improving waterways and constructing urban drainage, sewage systems and pipelines. State-owned enterprises and local governments are our main customers in this division. During the track record period, revenue from this segment increased steadily, accounting for 41.1%, 34.0% and 52.5% of our total revenue for the years ended December 31, 2013, 2014 and 2015, respectively. To complement our main services, in addition to garden and municipal works, we also undertake (i) construction projects, such as the construction of gas stations, auto repair shops, office buildings and temporary warehouses; and (ii) other works, such as providing maintenance services, cultural relics restoration and decoration projects. Thanks to our professional qualifications, we are able to undertake a variety of projects that set us apart from our competitors. Among our eight professional qualifications, we currently hold the Urban Landscaping Enterprise Qualification Certificate Level 1, which enables us to undertake garden projects of any size and form across China. We also hold Level 1 General Contracting for Municipal Public Works Construction, Level 1 Professional Contracting for Urban and Road Lighting Projects, Level 1 Professional Contracting for Building Decoration Projects, and Level 1 Professional Contracting for Ancient Garden Construction Projects. For further details, please refer to the “Key Qualifications and Certifications” section of this section. We believe that our professional qualifications and strong service capabilities place us in an advantageous position to seize business opportunities for small to large-scale garden and municipal projects in China. We are proud to have over 10 years of experience in handling nationally funded projects. For the year ended December 31, 2013, 2014 and 2015, we had 107, 142 and 177 customers, mostly state-owned enterprises or local governments. Since garden and municipal projects in China are generally awarded through a tender process, we believe that our active participation in relevant projects allows us to have a deep understanding of the project requirements implemented by our clients and strengthen their confidence in our services. Furthermore, benefiting from the accelerated pace of urbanization and increased environmental awareness in China, we have expanded our business coverage to all parts of China, with Zhejiang and Jiangsu provinces in the Yangtze River Delta as strategic priorities. These provinces are affluent regions, and government spending on urban planning and environmental protection continues to grow. Our business development depends on the support of a strong and dedicated workforce. For each project, we set up a project team led by a project manager who must be a qualified builder. On December 31, 2015, our project team was supported by a professional workforce of 151 employees who are qualified as civil engineers and/or builders and have less than 1 to 23 years of construction experience. In terms of construction technology, we will provide employees with on-the-job training and seminars on work safety to improve their ability to perform, and provide support for employees to learn and apply for professional qualifications related to our operations. Furthermore, to ensure that we have a stable and sufficient supply of labor, we outsource human work to qualified labor service providers to undertake the projects we arrange, and the relevant providers are supervised by our project manager. We have quality inspectors in each project team, who are mainly responsible for supervising and monitoring the procurement of raw materials and the quality of the project. Our project management was awarded ISO 9001:2008 (for municipal engineering construction and landscaping construction) and ISO 14001:2004 (for municipal engineering construction and landscaping construction and corresponding management activities), as well as national standards such as GB/T28001-2001 (for municipal engineering construction and landscaping construction and corresponding management activities), with the aim of establishing a complete management system for each construction team and continuously improving a performance-based culture. We believe that our strong and professional workforce and systematic project management have strengthened our ability to undertake diverse and detailed garden and municipal engineering projects, and that the rich experience and technical knowledge of the workforce has always contributed to maintaining our excellent performance during project implementation.