Cmec CSR 2015

Contribution to the World
with Responsibility
China Machinery Engineering Corporation

2015 Social Responsibility Report

Social Responsibility Report
Stock Code: 1829.HK
ADD: CMEC Building, No. 178, Guang' anmenwai Street, Xicheng District, Beijing, China
Postcode100055
TEL: +86-10-63312002
FAX: +86-10-63268156
E-mail: csr@mail.cmec.com
http://www.cmec.com
About This Report
Reporting Period
January 1, 2015- December 31, 2015. This Report also includes additional content and information that pre-dates the stated reporting period.
Reporting Cycle
This Report is annually published and it is the third social responsibility report released by China Machinery Engineering Corporation.
Reporting Scope
The whole body of China Machinery Engineering Corporation.
Reference to China Machinery Engineering Corporation

CMEC
In this Report,"CMEC","the Company" and "We" refer to China Machinery Engineering Corporation, and "SINOMACH" refers Makes the World Better
to its controlling shareholder China National Machinery Industry Group.
Reporting Data Sources

All data in this Report is from CMEC's annual report 2015, work report and other official documents, with some historical data
restated in compliance with the accounting standards.
Compilation Conformance
Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social
Responsibilities issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC);
Environmental, Social and Governance Reporting Guide by Stock Exchange of Hong Kong;
Sustainability Reporting Guidelines (G4) from Global Reporting Initiatives (GRI);
ISO 26000: Guidance on Social Responsibility (2010) by International Organization for Standardization;
Guidance on Social Responsibility Reporting (GB/T 36001) by State Administration for Quality Supervision and Inspection,
and Quarantine and Standardization Administration of China;
Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 3.0) by Chinese Academy of
Social Sciences;
Guide on Social Responsibility for Chinese International Contracting Industry released by China International Contractors
Association.
Access to This Report

This Report is prepared and released in Chinese and English versions and is available in paper and electronic formats. For
any ambiguity between Chinese and English versions, the Chinese one shall prevail.
Please contact us if you need a paper version. You may visit our website to download the online version.
Contact
Postcode100055 Contact perso n : WANG Sudan, Social Responsibility Office
T E L : +86-10-63312002 FAX: +86-10-63268156
E-mail: csr@mail.cmec.com http: //www.cmec.com
Scan the QR Code to
Read This Report Online
CONTENTS
Message from Leaders About CMEC Transformation and Upgrading Happy Homeland Harmonious Community
04 12 Company Prole
Promote Sustainable Development Share the Fruits of Development Benefit Local Livelihood
28 Stablize Operation & Development 48 Build Harmonious Working Environment 68 Implement Localized Operation
13 Company Governance
29 Strengthen Basic Management 50 Build the Platform for Employee Development 71 Improve Community Livelihood
14 Corporate Structure
32 Improve Value-creating Capacity 52 Create Happy Life 73 Engage in Public Welfare
15 Development Strategy
16 Business Layout
18 Social Organizations Joined
19 Awards and Honors
Responsibility Management Going Forward Hand-in-hand Safety and Environmental Protection

08 Feature on Responsibility
Development Led by Responsibilities 20 Social Responsibility Management Model Pursue Win-win with Our Partners Ensure Sustainable Operation
40 Create Excellent Projects 58 Emphasize Work Safety
Build the Dream of "the Belt and Road" 21 Social Responsibility Organizational System
42 Build Responsible Value Chains Together 62 Protect Occupational Health
22 Social Responsibility Work Promotion
44 Pursue Win-win Cooperation 63 Implement Green Operation
24 Stakeholders Management
74 Key Performance
76 Outlook
78 Expert Opinion
79 Reporting Index
80 Feedback Form
Message from Leaders
Q The government has proposed "the Belt and Road Initiative". How would CMEC implement
the goal guided by the strategy, and play the pillar role of "rebuilding a new CMEC in overseas
market"?
A To follow the strategy, and effectively play the pillar role of "rebuilding a new CMEC in overseas market", CMEC
should build and improve a hardware platform and a software platform. For the hardware platform, we need
to improve our business structure to achieve transformation and upgrading, effectively improve the functions
of all existing business segments, and build an upgraded new CMEC. This is not only CMEC's own need for
sustainable development, implementation of existing strategies in CMEC and SINOMACH,and a full reflection of
the general trend proposed by the Central Economic Work Conference, but also is consistent with the business
opportunities identified by national strategies.For the software platform, we need to place a higher demand on
our management teams and pay equal attention to both responsibility and capacity building. We need to ensure
that all management teams act by a high sense of responsibility. All executives, business responsible personnel
in particular, need to fulfill the responsibility as the "the primary responsible person". In case of problems, they
should make reasonable analysis and judgment and work out solutions in steps and logical order, with the
aim to fully implement our strategic measures and ensure effective outcomes; all management teams should
constantly acquire new knowledge, change mindsets, improve management levels, and better themselves in
a comprehensive manner including their strategic vision, leadership and decision-making, coordination ability,
transformative abilities and international vision, so that they are able to apply an all-dimensional and in-depth
thinking to market development and future business mode of CMEC, and make accurate and timely predictions
and judgments accordingly.
Q In 2015, CMEC proposed the goal of "building an upgraded CMEC", a crucial corporate strategy.
Sun Bai How do we perceive this strategic concept?
Party Secretary
Chairman
A "Building an upgraded CMEC" is a comprehensive expression to indicate our breakthrough in the reform and
innovation of three basic elements in our corporate structure, namely, the business structure, development
Q Reviewing CMEC's achievements over the past 38 years, what do you mode and corporate culture building. We proposed it for the promotion and implementation of many important
think are the core factors to the success? strategies to be in line with CMEC's historic development needs, including"the Belt and Road", Chairman
Ren Hongbin's strategic thinking of the "second business start-up" and "rebuilding a new CMEC in overseas
market", and many other transformation strategies of CMEC. To be specific, there are several main tasks:In
A The core factors include the following three aspects: first, we adhere to the guidance
terms of business structure, while we improve our engineering contracting and trading services, we will increase
of strategy, and focus on the core markets so that our services are localized and
fully meet the local demands. This has helped us to achieve a bigger scale and investment to boost our business; we will build a new designing and consulting service segment to improve our
sustained growth against the trend; second, we have actively adapted ourselves to competitiveness along the whole industry chain; we will shift the driver from production factors to innovation to
a changing market environment and demand and kept innovating and improving our promote business development. In terms of development modes, while exploring the new mode of "Going Out",
services. Now we have developed a series of effective management systems for we will strive to be more integrated into the local economic and social progress through "Going In" to enter into
our engineering contracting services, financial management, legal risk management, the local market; we will focus on coordinated development, which includes the coordination between different
investment and financing. We are paying increasing attention to an enhanced business segments, between different SINOMACH subsidiaries, with our strategic partners, and with relevant
corporate culture and CSR to constantly increase our core competitiveness; third, "Going In" partners, in order to achieve common progress for all.In terms of corporate culture building, we need
we have developed the professional teams to help us explore overseas markets. to do a better job at correcting our attitude, upholding justice and pursuing interests to actively fulfill our CSR; we
With that, we successfully achieve business transformation, and become a leading need to do a better job at leadership so that the management teams all put down the burdens in mind, have the
international engineering contractor and services provider in China. We've gradually courage to take responsibility and encourage innovation; we need to do a better job at organization building so a
built our branding and achieved the fast and sustainable development. strong talent team can be fostered.
04 05
Q CMEC proposed the goal and task of "consolidating foundation, rebuilding our brand and driving
transformation and shifting back to the mainstream business" in 2015. How do you interpret it?
A The year of 2015 is the key year in the five-year plan of CMEC, and a crucial year to promote the transformation
of development pattern and achieve "breakthrough in transformation". The guiding principle for CMEC is:
striding towards becoming a leading multinational company in the world by adhering to strategic guiding
principles, consolidating foundation, rebuilding our brand and driving transformation and shifting back to the
mainstream business. For consolidating foundation, we will keep on improving ourselves to lay a solid foundation
for business progress. We will fully leverage our experiences in complete engineering and trade services to
consolidate our core capacities; for rebuilding our brand, we aim to become an industry bellwether. We will
carry on the tradition of "one milestone for one project", and give full play to the reputation of CMEC to enrich
and improve the brand values; for driving transformation, we will give full play to entrepreneurial and innovative
spirits, increase the quality of development, and expedite corporate transformation and upgrading; for shifting
back to the mainstream business, we need to grasp the development trend and act as a key player responding
to national mainstream development strategies.
Zhang Chun
Executive Director Q What do you think are the future trends and opportunities for CMEC in 2016, and what plans have
President been laid out by the Company?
A The year of 2016 is the first year of the Thirteenth Five-year Plan period, and the first year after CMEC made
strategic adjustment for its five-year plan. The world economic prospect is expected to warm up, but there
are still uncertainties and other difficulties. The "New Normal" economic status and"the Belt and Road", among
Q The year of 2015 is the last year of the Twelfth Five-year Plan period. How
many other important strategies, are bringing both pressures and opportunities to companies. Faced with
do you look at the performance of CMEC over the past year?
the new trends and opportunities, only by sticking to our firm belief, making clear goals, adjusting business
structure and cultivating new growth points can we achieve high-quality and sustainable development. The
A In 2015, the world economy has struggled to recover and the Chinese economy also main tasks of CMEC are as follows: promote market development, enhance top design and guidance; lay
witnessed a slowing growth. The country entered into the "New Normal", and CMEC a solid foundation and keep innovating for complete engineering contracting services; push the strategy of
also shouldered a big pressure. Faced with an unprecedented challenge, we were investment and financing services driven by investment to achieve integrated development of investment and
united in one to overcome the challenge, deepened reforms, adhered to innovative financing; transform and upgrade trade and service business to turn CMEC into a comprehensive services
development and a strict discipline, and integrated all resources to push forward our provider and improve its operational and profit-making abilities; build the design and consulting platform to
transformation and upgrading. Our main business indicators all showed increases and achieve coordinated development with CMEC's core business while maintaining its sound development; improve
substantial progresses were generated. Our revenue stood at RMB 20.757 billion in management to lead a scientific and healthy development for the company; ensure smooth implementation of
2015, with a profit of RMB 2.777 billion. infrastructure projects from a strategic perspective.
06 07
Feature on Responsibility
Development Led by Responsibilities
Build the Dream of "the Belt and Road"
FEATURE ON
RESPONSIBILITY
Create Excellent Projects to Strengthen Quality Construction
It is of utmost importance for international engineering contractors to create excellent projects and strengthen
quality construction. CMEC has been devoted to creating and constructing quality engineering projects, as well as
providing customers with excellent services. The Company has established its own quality management system
confirming to ISO 9001. Meanwhile, after taking into account the characteristics of engineering contracting, CMEC
keeps improving the quality management and cultivating related abilities. Details and quality are paid special
attention in the management of the whole process.
Case
CMEC won the award of "Best Energy Infrastructure Project in Mongolia"
Amgalan Heating Plant, with CMEC as the primary contractor, is located at the severely cold area in
Mongolian Plateau where the climate condition is harsh and the project construction and management are quite
difficult. Therefore, the Amgalan Heating Plant 3116MW Project adopted management innovation through
directly subcontracting locally in Mongolia and recruiting local labors familiar with local environment, which not only
conserved funds and human resources, but also took a firm step towards the exploration and promotion of localized
management mode for engineering project. CMEC completed almost 90% civil engineering and installation with
high quality within a ten-and-half-month effective construction period. The Ministry of Energy of Mongolia highly
recognized the speed and quality of the Project and awarded the "Best Energy Infrastructure Project in Mongolia"
to the Amgalan Heating Plant 3116MW Project. On November 27, 2015, the Amgalan Heating Plant Project was
officially put into operation, laying a sound foundation for the shantytowns transformation in the eastern area and
urban development of Ulaanbaatar.

As one of the first "Going Out" international project contractors, CMEC seizes the significant strategic opportunity
of "the Belt and Road" and sticks to responsibility-driven development. Upholding the Silk Road Spirit of "peace and CMEC handed over the"key"to the proprietor at the operation ceremony The Award of Best Energy Infrastructure
for the Amgalan Heating Plant Project in Mongolia
cooperation, openness and inclusiveness, mutual learning and mutual benefit", CMEC conducts extensive cooperation
with countries and regions along "the Belt and Road" with main target at comprehensive engineering contracting plans
and services. Moreover, CMEC adheres to localized operation to drive local development and make contributions to
local communities, expanding its own value while laying a firm foundation for the implementation of national "the Belt and
Road" strategic layout.
08 09
Feature on Responsibility
Implement Localized Operation to Integrate into Community Development
During years of overseas operation, CMEC has always been deepening localized operation, promoting the
localized organization and business networks, and increasing the ratio of local subcontracting and procurement.
CMEC has established an overseas staff system, and gradually increased the proportion of local recruitment
to create employment opportunity for local communities. CMEC also pays attention to cultivating local technical
talents and implements localized operation. In 2015, employees hired locally by CMEC in overseas projects have
totaled more than 10,000 headcounts.
Create Livelihood Power Plant to Promote Shared Feelings
CMEC combines its strengths in contracting projects with the pressing needs from local communities to
create multiple livelihood projects in the regions along "the Belt and Road". Those projects are of great importance
to local development and win high recognition of local residents.
Case
The coal-fired power project at Laos was put into operation and has effectively eased power shortage
The HONGSA 3626MW Coal-fired Power Plant, the first and the largest power plant by far in Laos with President Zhang Chun delivered a speech themed withLeveraging '21st Century CMEC signed Strategic Joint Venture Agreement with Ascendas Group
Maritime Silk Road' to promote infrastructure development in Indonesia
CNEEC as the primary contractor and CMEC as the trustor, was put into operation in December 2015. The Plant is
the key project under the energy cooperation framework agreement between Thailand and Laos. Upon completion,
most of the power generated by the Plant shall be loaded into the national power grid of Thailand through 500kV
transmission line and some power shall be loaded into the national power grid of Laos through 115kV transmission
line. Fulfill Global Corporate Citizenship Responsibility to Promote Cultural Integration
By the end of 2015, two power generating units had been put into commercial operation and the third one had
To fulfill its global corporate citizenship responsibility, CMEC cares for vulnerable groups in the society, and
been connected to the national grid for power generation. The construction of the Project created a large number of
actively helps them to get out of the trouble and improve their living by timely offer of funds and material support.
job opportunities locally, and thus had improved the living condition of local residents and driven the local economic
In the meantime, CMEC actively takes advantage of various channels to drive and promote the "Going Out" for
and social development. As the units in the Project have been successively connected to grid, the power shortage
Chinese management, technology and equipment. CMEC has established platforms for multi-party cooperation
condition of Thailand and Laos will be effectively mitigated.
and promoted cultural integration to enable stakeholders to understand Chinese culture and Chinese enterprises.
The rst coal-red power plant at Laos was put into operation
CMEC donated power units to Temple Mihinthalaya of Sri Lanka, effectively mitigating the power shortage issue at temples
10 11
Company Profile

About CMEC
Company Governance
Corporate Structure
Development Strategy
Business Layout
Social Organizations Joined
Awards and Honors
About CMEC Company Governance
Strictly abiding by the Company Law of People's Republic of China and other relevant Chinese laws and regulations as well as
the listing rules of the Hong Kong Stock Exchange, CMEC is continuously optimizing the corporate governance system and structure,
and has formed the "standard and rational, well-defined power and responsibility" governance framework among the General Meeting
Company Profile of Shareholders, Board of Directors, Board of Supervisors, various specialized committees and management. By the normalized,
coordinated and efficient operation of the governance structure in compliance with clear rules of procedure and working routine, CMEC
aims to promote the sound and stable development and safeguard the proper interests for investors.
In accordance with the regulatory requirements of CMEC, the Board of Directors is comprised of 2 Executive Directors, 3 Non-
China Machinery Engineering Corporation ("CMEC") executive Directors and 4 Independent Non-executive Directors. The members of the Board are as follows: Chairman and Executive
Director Sun Bai, Executive Director and President Zhang Chun, Non-executive Directors Wang Zhi'an, Yu Benli, Zhang Fusheng,
In 1978 Its predecessor, China National Machinery & Equipment Import & Independent Non-executive Directors Liu Li, Liu Hongyu, Fang Yongzhong, Wu Tak Lung. The Board of Supervisors is comprised
Export Corporation, was set up. of 3 Supervisors, and the members are Chairman of Supervisor Board Quan Huaqiang, supervisor Qian Xiangdong and worker
In 2012 CMEC was listed in Hong Kong representative supervisor Bai Ming.
stock NameChina Machinery Engineering Corporation

Stock Code1829.HK
In light of the business characteristics, CMEC
Headquartered in Beijing, CMEC's controlling stake is now owned
by China National Machinery Industry Corporation.
has continued to deepen and improve the General meetings of shareholders 3 times
professionalization of the Board of Directors
The core business of CMEC is engineering contracting, but as a large system, strengthened the scope of general
Boards of Supervisors held 2 meetings
international conglomerate, it also extends into trade, investment, R&D and authorization and the level of management and
international services. controlling, therefore continuously enhancing
Board of Directors and various subordinate
the standardization and effectiveness of the
specialized committee meetings
27 times
operation of the Board. In 2015, CMEC stood
With nearly 40 years of experience in the engineering industry, CMEC has developed the out from the listed companies and won China
capacity to provide one-stop customized engineering contracting solutions spanning preliminary Securities Golden Bauhinia "Best Board of Proposals reviewed by Board of Directors 50
planning, EPC, financing, and operation and maintenance, forming an engineering contract layout Directors of Listed Companies" Award.
with electric power as the center and transportation and telecommunications advancing together. In
2015, CMEC ranked 8th in the accomplished turnover from overseas contracting projects and 11th in
the newly signed contracts according to the data released by the Ministry of Commerce. According to CMEC values investor relations maintenance and market value management, and keeps optimizing the information disclosure
the Ipsos Report, CMEC ranked third as one of the major Chinese contractors in electronic power in system. In 2015, CMEC timely released 52 announcements, participated 8 grand investor summits and communicated with
2015, accounting for 4.8% among the top ten Chinese contractors. investors for more than 150 times, which not only increased interaction with capital market and inspired investors' confidence, but
In the area of international trade, CMEC is a pioneer in China's machinery and electronic also raised CMEC brand recognition and ensured a stable market value.
industry and is now the key supplier for top international corporations including GE, Caterpillar and
Liebher. As a comprehensive power solutions supplier, CMEC was the partner for many renowned
projects such as the 2008 Beijing Olympic Games, the iconic new office building of China Central
Television, and the 2010 World Expo in Shanghai. Besides, CMEC has possessed the capacity to
provide one-stop systematic services for distributed photovoltaic power plants.
CMEC now offers door-to-door customized logistics solutions and all-process logistics
The accomplished turnover
services for various engineering projects. So far, it has provided tailor-made logistics services for
from overseas contracting
more than 100 overseas EPC projects, becoming a leading figure in China's international engineering
projects
logistics industry. CMEC's exhibition business covers more than 100 countries and regions, and it
8th has hosted, or participated in more than 1,000 world famous expos and exhibitions covering over
30 industry segments. Their scale and level top the exhibition industry in China. As the No. 1 Brand,
The newly signed CMEC sets the industry standard for China's overseas exhibitions.
contracts Through years of innovation and development, CMEC has built itself into a renowned
11th
international brand, with 40 subsidiaries both at home and abroad and business interests in more
than 150 countries and regions across all five Continents. As China's top ranking engineering
contractor and service provider with an exemplary international reputation, CMEC embraces the
Major Chinese contractors
philosophy of "Create Ideas, Achieve Dreams". To create a happier life for people around the world,
in electronic power field
CMEC vows to provide top quality services with high added value and returns. It is committed to
3rd mutual benefit, common development and progress in harmony.

CMEC, maks the world better !
In June 2015, CMEC successfully held its annual meeting of shareholders
12 13
Company Profile

About CMEC
Company Governance
Corporate Structure
Business Layout
Awards and Honors
Corporate Structure Development Strategy
Corporate Vision
SINOMACH H Share Public Shareholders
100% To be the world leading international engineering contractor and services provider as an innovation-leading,
77.21% 22.01%
China United value-creating and world top-ranking conglomerate
0.78%
Strategic Goal
Near-term Goal: While maintaining a stable business scale, to further optimize business structure, focus on the exploration
of new business mode and establish business platform; strengthen the construction of core competitiveness and key
management system to lay a firm foundation for the next round of development
Audit Committee

Medium to Long-term Goal: To achieve long-term growth with emphasis on "business upgrading, growth breakthrough and
internationalized operation"
Remuneration Committee
General Meeting of Shareholders
Board of Directors Nomination Committee

Board of Supervisors
Strategy and Development Committee Business Structure
General Manager
Operation and Risk Management Committee To establish a cooperative multi-service platform with Engineering Contracting as the pivot, Trade and Services,
Investment as business to drive transformation and upgrading, and Designing and Consulting, CMEC Properties,
and Region/Agricultural Comprehensive development as innovative business
Department
Investment Management
Board Office
Department
General Management
Development Department
Strategy and Business
Party Work Department
Department
Human Resources
of Finance
General Department
Management Department
Complete Plants
Trade and Services
Legal and Risk
Audit Department
Supervision Department
Capital Operation Department

Investment, Financing and
1stComplete Plants Division
2nd Complete Plants Division
3rd Complete Plants Division
4th Complete Plants Division
Tendering Division
General
Department of Headquarter Core Competitiveness
Market development Management innovation Industrial chain integration Multi-service interoperability
Supporting Systems
Internal Export Compliance Office
To establish a management and controlling mode to satisfy "multi-level, diversified and innovative"
business development
Domestic Subsidiaries To establish an "internationalized, diversified and professional" talent team and talent building and reserve
Overseas Subsidiaries
mechanism
To establish a risk management system to meet the challenges of "diversified and international" business
development
To establish an information system to strengthen multi-service management and international operation
management
International To deepen corporate culture, and strengthen the construction of corporate culture through system
Trade and Investment Designing and
Engineering Services and Financing construction and culture promotion
Consulting
Contracting Business Business Business
Business
14 15
Company Profile

About CMEC
Company Governance
Corporate Structure
Business Layout
Awards and Honors
Business Layout
CMEC boasts 40 subsidiaries both at home and aboard, with diversified businesses covering multiple CMEC Business Distribution
modern international service industries including project contracting, import and export trading, engineering design,
international bidding, international exhibitions, international logistics and property management.
Domestic Subsidiaries
24
CMEC International Engineering Co., Ltd. China-East Resources Import & Export Co. Ltd.
China Machinery International Engineering Design & Research Institute Co., Ltd. Shanghai Zhong Jing Import & Export Corporation
China Power Construction Engineering Consulting Central Southern Corporation China Machinery Engineering Henan Co., Ltd.
China Jikan Research Institute of Engineering Investigations and Design, Co., Ltd. China National Machinery & Equipment Import & Export (Fujian) Co., Ltd.
CMEC Petrochemical-General Machinery Co., Ltd. China National Machinery & Equipment Import & Export (Hubei) Co., Ltd.
CMEC Engineering Machinery Import & Export Co., Ltd. China Machinery and Equipment International Tendering Co., Ltd.
CMEC General Machinery Import & Export Co., Ltd. CMEC International Exhibition Co., Ltd.
China Equipment International Trading Co., Ltd. CMEC Beijing Property Development Co., Ltd.
CMEC Machinery & Electric Equipment Import & Export Co., Ltd. CMEC Comtrans International Co., Ltd.
China Machinery Engineering Wuxi Co., Ltd. CMEC (Beijing) International Economic & Legal Advisors Inc.
China National Machinery & Equipment Import & Export (Suzhou) Co., Ltd. Shanghai International Transportation Co., Ltd.
China Machinery Industry Products Co., Ltd. Shenzhen CMEC Industry Corporation Limited
Overseas Subsidiaries
16
CMEC Senegal S.A. (Senegal) CMEC Middle East FZE (United Arab Emirates) CMEC
CMEC Nigeria Development Limited(Nigeria) Sino American Machinery Corporation (Delaware, USA)
China Machinery Engineering Argentina S.A. (Argentina) China Machinery & Equipment (HK) Company Limited (Hong Kong)
CMEC Engineering C.A. (Venezuela) China Everbest Development International Limited (Hong Kong)
Subsidiaries More than Headquarter
40 150
China Machinery Engineering Corporation Namibia (Proprietary) Limited Euro M.E.C. Import & Export GmbH (Germany)
Domestic Subsidiaries
China Machinery Engineering Corporation (PNG) Limited (Papua New Guinea) Ausino Pty. Ltd. (Australia) countries and regions that
Market Distribution
Sinland Development PTE, LTD (Singapore) CMEC Japan Co., Ltd.(Japan) business interests cover
CMEC Lanka (Private) Limited (Sri Lanka) CMIC Enmei Co., Ltd.(Japan)
16 17
Company Profile

About CMEC
Company Governance
Corporate Structure
Business Layout
Awards and Honors
Social Organizations Joined Awards and Honors Title: The Amgalan Heating Plant 3116MW Project contracted by CMEC
As China's top-ranking and globally renowned international engineering contractor, CMEC has never
2015.01 won the Best Energy Infrastructure Project in Mongolia
Awarded by: Ministry of Energy of Mongolia
confined its objective to pursuing its own development, and also attaches great importance to playing the leading
Title: 2014 SINOMACH Business Collaboration Contribution Award and
role in the industry and actively strengthens communications with industry associations and peer companies, so as
2015.01 Outstanding Contribution Award for Growth Maintenance
to make contributions to the healthy and sustainable development of international contracting project and service Awarded by: SINOMACH
industry. Title: 2015 First-Class Enterprise for Export Tax Rebating and Exemption
2015.04 Awarded by: State Administration of Taxation of Beijing Municipal Office
Title: "Leading Enterprise" in "CSR Performance Evaluation of Chinese
Vice President Company of China

2015.06 International Contractors 2015"
Chamber of Commerce for Import
Vice Chairman Company of Awarded by: China International Contractors Association
Journal of International Economic
and Export of Machinery and
Cooperation Council
Electronic Products Title: 2015 Best Export Internal Control and Compliance Team Award
2015.07 Awarded by: World ECR (a journal of export controls and sanctions)
Title: CMEC International Exhibition Co., Ltd. was awarded 2015 Golden
Five-star Excellent Exhibition Management
2015.08
Awarded by: China International Conference & Exhibition
Title: Phase I of the CMEC New Energy Hangzhou Bay Distributed

Standing Director Member of Photovoltaic Projects Group contracted by China Machinery
Standing Director Member of
China International Contractors
Standing Director Member of China China Statistical Society for Engineering Wuxi Co., Ltd. was awarded "2015 China Distributed
Tendering & Bidding Association Foreign Economic Relations and
Association Energy Excellent Project Prize"
Trade of China
2015.08 Awarded by: China Energy Research Society, China Enterprises Investment
Association, China Society for Electrical Engineering, China Gas
Association, China Biogas Society and China Renewable Energy
Association
Title: AAA Corporate Credit Rating Certificate in the areas of complete

engineering
2015.10 Awarded by: China Chamber of Commerce for Import and Export of Machinery and
Electronic Products
Council Member of the Chinese-
Council Member of China Council Member of China
African People's Friendship Title: 2015 China Securities Golden Bauhinia "Best Board of Directors of
2015.11
Association for Quality Electrotechnical Society
Association Listed Companies" Award
Awarded by: Ta Kung Pao
Title: The Berezov 427MW Combined Cycle Power Plant Project in the
Belarus contracted by CMEC was awarded 2015 China's Luban Prize
2015.11 for Construction Project for foreign projects
Awarded by: China Construction Industry Association
Title: GoldenBee 2015 Excellent CSR Report - Special Award for Employee
2015.12 Care
Member of China Chamber of Member of China Chamber of Commerce Member of China Construction Awarded by: China WTO Tribune
International Commerce of Metals, Minerals & Chemicals Industry Association
Importers & Exporters
Member of China Association Member of Foreign Affairs

of Construction Enterprise Council of China Engineering
Management Cost Association
18 19
Social Responsibility Management Model

Responsibility Management
Social Responsibility Organizational System
Social Responsibility Work Promotion
Stakeholders Management
Responsibility Management Social Responsibility Organizational System
CMEC has established Social Responsibility Committee with its Chairman as the director, President as the
executive director, General Managers of functional departments and business divisions as the committee members
to plan and coordinate the Company's overall social responsibility work. Under the Committee, there is Social
Responsibility Office in Strategy and Business Development Department that implements its policies and perform
Fulfilling social responsibility has become an important path for enterprises to contribute to global economy's daily works. Functional departments and business divisions also have been arranged for social responsibility
sustainable development and a significant strategy to adapt to the new normal of economic development and liaison officers to implement and finish social responsibility work and other related tasks.
improve their corporate competitiveness. CMEC strengthens its social responsibility management, pays special
attention to the construction of four major systems including social responsibility management system, social
responsibility practice system, social responsibility communication system and social responsibility dissemination
system. By these efforts, the company continues to integrate the concept and demand of social responsibility into
its policies and daily business operation, hence constantly improving its sustainable capacity.
Faced with economic, social and environmental challenges, CMEC sticks to the right views of morality and Social Responsibility Committee
benefits which set the ability of sustainable development at the core and incorporate social responsibility into the Social Responsibility Office
Making decisions on how to carry out
genes of CMEC. Besides, it gives full play to its core advantages, joins hands with shareholders and stakeholders social responsibility work Implementing the strategies
like investors, employees, governments, customers, industries as well as partners to pursue the optimum Establishing social responsibility and deployment of social
management system responsibility work
comprehensive value of the economy, society and the environment. In this way, it provides innovative solutions to
Approving social responsibility plans Coordinating the construction
economic, social and environmental problems and strives to realize a harmonious coexistence among Company, Approving and releasing social and implementation of social
society and the environment.solutions to economic, social and environmental problems and strives to realize a responsibility report responsibility management
Organizing major social responsibility system Social Responsibility Liaison
harmonious coexistence among Company, society and the environment.
work Organizing the compilation plans
Officer
for social responsibility work
Proposing budget and training Coordinating to promote social
plans for social responsibility responsibility practice
work Coordinating the compilation
Va Organizing the compilation of of Social Responsibility Report
M EC lu a Social Responsibility Report Implementing the research of
bl e
t yC
a li C Organizing the research of key key social responsibility
u M
Q Customers
Shareholders social responsibility projects projects
E
and Investors
C
i c G ui d a n ce
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20 21

Social Responsibility Work Promotion Strengthen Social Responsibility Ability Building

While advancing its social responsibility work, CMEC attaches great importance to the social responsibility
CMEC strengthens its strategic guidance and actively creates brand image of social responsibility.
ability building and constantly promotes all employees' social responsibility ability by organizing relevant seminars
Meanwhile, the Company constantly promotes social responsibility communication and social responsibility
and CSR exchange activities, providing a strong support for the comprehensive social responsibility management.
ability building, conducts special researches on social responsibility and advocates the integration of the concept
and demands of social responsibility into its mission, operation and culture, cultivating the competitiveness in
a comprehensive way. In 2015, we were elected as the "Leading Enterprise" in "CSR Performance Evaluation
we participated in the research on social responsibility work of leading Chinese enterprises launched
of Chinese International Contractors", representing the highest level of social responsibility fulfillment of China's
international contractors.
2015 by Chinese Academy of Social Science and visited many companies including China Resources,
Sinopec Group, LG, Sino-Ocean Land, Samsung and so on. We got a better understanding of
Create Brand Image of Social Responsibility their fulfillment of social responsibilities in the seminars and field trips, providing references for the
CMEC attaches great importance to the social responsibility branding and commits itself to creating excellent Company to enhance its social responsibility management comprehensively.
CMEC social responsibility brand.
we engaged ourselves in the compilation of 2015 Report on the Sustainable Development of Chinese
2015 Enterprises Overseas cosponsored by International Trade and Economic Cooperation Research
Institute of Ministry of Commerce, State-owned Assets Supervision and Administration Commission
Research Center of the State Council and the UNDP China. This report included cases and practices of
the Company's overseas social responsibility fulfillment and has been released globally, promoting the
brand value of CMEC.
CMEC participated in "China Tour for Social Responsibility Experience Sharing" activity
Conduct Special Researches on Social Responsibility

CMEC pays close attention to the latest issues of corporate social responsibility, actively conducts special
researches on social responsibility and promotes social responsibility management and constant progress in
practices, contributing to the sound development of its business.
2015 Report on the Sustainable Development of Chinese Enterprises Overseas, included CMEC practices, was issued globally
we carried out overseas researches on social responsibility practices and completed Research
Enhance Social Responsibility Communication

2015 Report on CMEC Overseas Social Responsibility PracticeSri Lanka , offering experiences
for guiding and assisting CMEC's overseas social responsibility fulfillment. It is also a sound
CMEC actively strengthens the communication with all stakeholders, enhances the release system of Social exploration in social responsibility fulfillment and serves "rebuilding a new CMEC in overseas
Responsibility Report, adheres to the regular compilation and release and constantly improves the report quality, market".
practically giving full play to Social Responsibility Report in promoting the image of central state-owned enterprises.
In addition, CMEC makes extensive use of the company's official website, China Machinery and Equipment
magazine, the internal newsletter CMEC Communication, new media and other channels to promote information
disclosure of social responsibility. Meanwhile, the Company conducts researches and interviews on social
responsibility to enhance the society's recognition and acknowledgement.
CMEC went to Sri Lanka to conduct featured researches on social responsibility

CMEC participated in "The 8th International Conference on CSR Reporting in China" to discuss how infrastructure construction industries can help the development of "the
Belt and Road" by using CSR information with its peer companies
22 23

Stakeholders Management Stakeholders Communication and Engagement
Identification and Analysis of Social Responsibility Material Issues

From the perspectives of stakeholder appeals and business operation development, CMEC has identified
social responsibility material issues by analyzing macro background at home and abroad, conducting surveys Stakeholders Expectations and Demands Communications Approaches
on internal and external stakeholders and benchmarking with international and Chinese social responsibility
standards. This profoundly promotes the company's sustainable development.
Profits and returns

Satisfied market values Improve profitability
Protection of rights and interests Timely information disclosure
Shareholders Know the company's operation Follow market rules
and Investors situation
Issues Issues Examination and

Identification Prioritization Confirmation
Abide by laws and regulations Accept guidance and supervision
Review domestic and international Issues that affect corporate Preliminary approval by Social Pay taxes Communication activities
development environment sustainable development Responsibility Report Team Promote local employment Compliance management
Refer to social responsibility Issues that are highly concerned Review by Social Responsibility Enhance local economic and social Be proactive in paying taxes
standards including ISO 26000,
Governments
by the stakeholders Group development Provide employment opportunities
GRI G4, CASS-3.0, ESG, GB/T 36001 Issues that company's strategy Examination and confirmation by
and so on focuses on Social Responsibility Committee
Conduct surveys on internal and Issues that overseas operation disclosure of issues and priorities
external stakeholders focuses on
Hold seminars for stakeholders
Honor the contracts Implement contracts
Information transparency Survey on requirements
High quality products Daily communication
Customers High quality services Suggestions and feedbacks
Enforcement of agreements and

Common development contracts
Highest
Win-win cooperation Regular meetings

Resource sharing Suggestions and supports
Open and fair Negotiation and communication
Responsible procurement High-level visits
Integrity and compliance Partners Honor its commitments Multichannel cooperation and
Employee training and career development Guarantee payment researches
Risk management Open procurement information
Project quality
Win-win cooperation
Sincere service Growth together Protection of rights and interests
Wages and welfare guarantees Democratic communication
Health and safety Education and training
Higher
Anti-corruption Value creating ability promotion

Employees Humanistic concern Labor protection
Customers' satisfaction
Innovative development
Localized operation
Work safety
Energy conservation and Green design
Overseas safety emission reduction Green construction
The Significance to CMEC
Promote industry's progress Save resources Develop new energy industry

Concerns about occupational health
Clean energy
High
Green office
Environment Ecological protection and restoration Advocate environment protection
Energy conservation and emission reduction
Improve community livelihood Human rights
Conduct strategic cooperation

Facilitate industrial development
Keep a balance between work and life Participate in standard formulation
Achieve mutual-benefit and
Fair competition Organize and attending industrial
Industries win-win result
exhibitions
Engage in public welfare
High Higher Highest

Promote public welfare Localized operation
Community engagement Improve people's livelihood
The Significance to Stakeholders Promote community development Organize public welfare activities
Communities
and Public
Identification Process of the Materiality of Social Responsibility
24 25
Transformation and Upgrading
Promote Sustainable Development
As the competition in international contract project market is becoming increasingly intensified and the society is paying
more attention to the comprehensive influence of enterprises' operation, CMEC adheres to strategic guidance, clarifies
development goals, strengthens fundamental management, enhances the capacity of resource integration, and
deepens innovation development to endeavor to realize the transformation and upgrading of development mode hence
paying back investors with good market performance and contributing to the sustainable social development.
Stablize Operation & Strengthen Basic Improve Value-creating

Development Management Capacity
Stabilize Operation & Development

Transformation and Upgrading Promote Sustainable Development
Strengthen Basic Management
Improve Value-creating Capacity
Stabilize Operation & Development Strengthen Basic Management
Formulated and Revised
In 2015, faced with the pressure of slow global economic recovery and increasingly fierce The fundamental management capability serves as the very basis of the Company's
international engineering contracting market, CMEC consolidated its fundamental management, sustainable operation. In 2015, CMEC has adhered to strategic guiding principles, strictly
improved innovation ability and completed the task of preserving and increasing the value of state-
owned assets, continuously creating values for investors. 40
Rules
managed the Company according to law and enhanced risk management, financial
management and informatization construction. The Company also formulated and revised
more than 40 rules and regulations, and thus effectively ensured the meticulous, rigorous,
clear and efficient management.
Highlight Strategic Control
The year 2015 is crucial for promoting the CMEC Five-Year Development Strategy Plan . Based on the
major changes in internal and external environment, we have made corresponding adjustments and revisions
of the previous strategy, and modified its original principle of facilitating "transformation" by "breakthrough" into
"quality assurance, integration, synergy and innovation", further highlighting development focuses including quality
assurance and stability in business development, internal and external integration and synergy of resources
and innovation on the industrial chain, in an effort to ensure consistency with the overall strategic direction and
measures and the thought of development. When formulating strategic goals, CMEC clarified the important
measures to achieve strategic objectivesand combined its efforts with the deployment set during the work
meeting earlier this year. The Company further organized and refined the strategic measures into several annual
Survey and Research Group of Board of Directors of SINOMACH presented at President Zhang Chun chaired the debrieng of the company's operation situation
CMEC and offered guidance key work, and elaborated every task to concrete details like the responsible departments and persons and their
deadlines, and conducted quarter-check of the implementation, in order to ensure that there were no vacuum of
responsibility or management. In doing so, the Company has ensured the orderly and effective implementation of
the strategy. In 2015, the Company has fully implemented all the key work in accordance with the plan made in the
beginning of the year.
Total Asset Total Prot Operating Revenue

( RMB 100 Million ) ( RMB 100 Million ) ( RMB 100 Million) Strictly Manage the Company According to Laws
422.32
CMEC has deeply implemented the new five-year plan of the legal work issued for the central State-
27.77
Owned Enterprises set by the State-owned Assets Supervision and Administration Commission, further improved
27.65 237.47
the legal support and guarantee system, and actively intensified compliance management. The Company also
380.90 26.64 enhanced Export Control, and ensured that the Company strictly abides by the relevant laws and regulations
214.26
207.57 during operation to provide quality and efficient legal services and supports for the business development. In
319.53 2015, we conducted the research on some of our overseas projects to get in-depth understanding of the present
condition of the legal affairs of foreign institutions, and explored the legal services of foreign institutions and risk
management and control model to meet the requirements of business development.
The Company has actively promoted the transformation of internal audit, implemented the system of auditing
opinions with company executives of the audited company as the primary owner, revised and published the
Auditing Regulations of the Complete Programs of the Project , and established the auditing information platform
2013 2014 2015 2013 2014 2015 2013 2014 2015 to further develop auditing functions and ensure the legal and compliant operations. In 2015, the Internal Export
Compliance Office won the Best Export Internal Control and Compliance Team Award from the World ECR.
28 29

Implement Risk Management Promote Construction of the Clean Party
CMEC follows the principle of "overall planning, step-by-step progress, highlighting priorities and integrated CMEC adheres to the principle of strengthening party self-discipline. The Party organizations at all levels
operation", and has constantly improved comprehensive risk management system, and embedded it in businesses implemented the spirit of the fourth and fifth plenary sessions of the 18th National Congress, learned the spirit of
and level management. We strictly follow Comprehensive Risk Management Measures , Comprehensive Risk the General Secretary Xi Jinping's speeches, and gave full play to the political central role and struggling stronghold
Management Manual and so on to conduct risk management work, improve risk prevention and control system function of the Company's party organizations to provide strong guarantee for the Company's sound development.
and ensure regular monitoring on possible operational risks, financial risks, investment risks and legal risks. In
2015, there was no significant risk event.
Comprehensive Risk Management

Organizational System
Comprehensive Risk
Management Assessment
Supervision and
improvement of
risk management
Proposing Gathering
Management Culture
Management Culture
Comprehensive Risk
Comprehensive Risk
solutions for risk preliminary
management information of risk
management
Basic procedures of
comprehensive risk
management
Formulating risk
management Risk
strategies assessment
CMEC held the rst Party congress of China Mechanical Equipment Engineering Co. Ltd.
Improving institutional construction and formulating the Opinions on Implementing

Entity Responsibilities of the Construction of Clean Party, Opinions on Implementing
Supervising Responsibilities of the Construction of Clean Party, and Measures of the
Comprehensive Risk Anti-corruption
Management Information Construction Project Monitoring and Supervision
System Regulations Improving and implementing the 2013-2017 Work Plan for Constructing System of
Punishing and Preventing Corruption
Improve Financial Management Summarizing the "CMEC '3 + 3' Working Methods of Party Construction"
In 2015, CMEC continued to strengthen financial management system construction and financial risk
Implementing the entity responsibility of the Party committee and the supervising
prevention and control, regulate basic financial work and improve financial information quality. Meanwhile, CMEC responsibility of the Commission for Discipline Inspection, and strictly carrying out
actively provided and further enhanced its professional financial support for the Company's investment business, accountability
new business and regional centers and overseas institutions. By refining analysis of budget performance, CMEC Highly valuing and actively cooperating with the inspection of Central Commission for
Anti-corruption Discipline Inspection and Organization Department of the CPC Central Committee,
increased its matching rate with business execution and incorporated budget and business target into salary
Supervision organizing and launching special inspections, and improving the program based on
assessment system, thus gradually achieving the budget closed-cycle management.
in-depth researches
Organizing and launching special inspections, and earnestly implementing the work
requirement
Promote Informatization Construction Checking with 24 petition letters to ensure to "respond to all cases"
Centering on its strategic targets, CMEC improves information system construction to provide strong support Conducting seminars and integrity education, studying and implementing the
for strategy implementation. In 2015, the Company strengthened the management accuracy and application of the Honest Self-Discipline Rules of the Communist Party of China and the Disciplinary
Regulations of the Communist Party of China
existing information system to promote the management effectiveness. The coverage and application scope of
Carrying out theme activities like "To be Excellent Party Members under the
information system was expanded for business demands. CMEC also strengthened the construction of information Anti-corruption Strategic Guidance", and "Learning from Exemplary Models to Implement
security, built a uniform user platform, completed system connection to all applications, and realized the classified Practice Activities Streamlined Protocol"
management and safety control of wireless network users. Launching special meeting of democratic life entitled "Implementing Streamlined
Protocol to Pool Development Power"
Organizing special project education seminars
30 31

Improve Value-creating Capacity Our engineering contracting projects had covered 48 countries and regions around the world by the end
of 2015, mainly in Asia and Africa. Meanwhile, we also had many projects in construction and some projects
had been successfully completed in North America and Europe. In 2015, international engineering contracting
business, as a traditional core business, contributed to 66.2% of the Company's total revenue. The value of newly
CMEC adheres to the corporate culture of "diversity, inclusiveness and innovation", deepens the effective contracts was 3.181 billion USD.
transformation and upgrading of core businesses of complete engineering, trade and services,
investment and financing. Efforts have also been made in building design and consulting
segments, promoting resource integration capability, and creating more values for investors. In Area Distributions and Corresponding Proportions of International Engineering
Contracting Revenues in 2015
2015, the Company achieved fruitful results in international project contracting, trading services,
and investment and financing.
North America
0.87 RMB100 Million
0.6% Asia
50.83 RMB100 Million
Innovative Breakthrough in Complete Engineering Project Business 37.0%
CMEC has made great efforts to deepen institutional construction, improve supporting system, elaborate
project management and improve the management of the complete engineering project business; it has actively
South America
integrated into the national strategic layout to improve supporting incentives, fully implemented mature projects, 58.39 RMB100 Million
and made steady progress in market exploration; besides great breakthroughs in "Investment-driven EPC" 42.6%
business, the Company pressed ahead in new modes like the industrial parks and modern agriculture, and
generated achievements of strategic cooperation and innovative breakthroughs; the Singapore Regional Center
has been put into formal operation and regional and local strategies will be continually deepened; China Jikan Africa
20.24 RMB100 Million Europe
Research Institute of Engineering Investigations and Design, Co., Ltd. and other scientific research institutes were
114.7% 7.08 RMB100 Million
successfully merged and acquired, and the team of self-patented equipment supervision and on-site construction 5.1%
supervision with Harbin Complete Power Equipment Designing Institute and Beijing Xingdian International
Engineering management Co., Ltd.,as the leaders, was basically established to improve its industrial chain.
The rst set of unit and utility system 2X135MW burning bituminous rock circulating uidized bed Power Plant Mongolia Amgalan Heat Only Boiler Plant's 3X116MW project has completed in October 2015 Commencement Ceremony for Tenaga Wind Power Project was successfully held in Pakistan
project of Turkey SILOPI station Plant has passed the provisional acceptance
32 33

Transformation and Development of Trade and Services Business Investment and Financing to Create New Advantages
In 2015, CMEC continued to improve trade and services business management system, changed the CMEC's innovative progress in financing and investment has become the Company's new advantage in
management mode and endeavored to transform a product trader to a product value-added service provider. development. In 2015, new breakthroughs were made in CMEC's overseas investment business as the Company
In terms of resource distribution, the Company adhered to the guidance of trade business elaboration strategy signed financing agreement of Pakistan Tal Fibre Coal Power Integration Project, won the bidding of Maldives
and the orientation of business performance to develop high-quality child businesses. Besides, the Company Solar Power Plant Investment Project and signed financing agreement with Singapore Ascendas to develop the
put forward "one-stop management mode" and established post-evaluation mechanism of trade business, industrial park project in China, Malaysia, Vietnam, Indonesia and Burma together. Meanwhile, evident progresses
and formed a complete management chain of "appraisals beforehand, tracking in the process and conclusions have been made in domestic investment businesses. The Company relied on the new energy investment platform
and evaluations afterwards". All these efforts enhanced management and profitability and ensured high quality, of CMEC Guolian to promote the domestic photovoltaic power plant investment business. Now it has taken shape
efficiency and sustainable development of trade and services business. At the same time, focusing on innovation basically and has accumulated an investment volume of RMB 1.41 billion. The diversified project financing has also
and practice, CMEC actively promoted the construction of e-commerce service platform of cross-border supply been improved due to the Company's efforts in financing mode innovation and cooperation with China-invested
chain and set up a service platform for cross-border supply chain, creating new trade business growth point. financial and insurance institutions.
Domestic 30.5%
Trade Revenue Trade International
Distribution in (RMB 100 Million)
Trade
17.18 (RMB 100 Million ) 69.5%
2015 39.12
China Machinery Industry Products Co., Ltd. passed CMEC East Business Department was committed to the
th e ISO 90 0 1 Ce rtifica tio n i n th e fie l d o f e q u i p m e n t
manufacturing and established production base through
1 2 development of distributed photovoltaic power plant project,
new energy products and comprehensive foreign trade
joint venture service platform. The accumulated construction scale of the
photovoltaic power plant has reached 178.66 MW
China-East Resources Import & Export Co. Ltd. was CMEC Engineering Machinery Import & Export Co., Ltd.
3 4
committed to the in-depth exploration of Southeast regarded electric equipment, engineering machinery
Asia market and gained space for stable and sustained and textile machinery parts products as its three cores,
development transforming itself from traditional commodity selling to one-
stop service trade
The high-speed railway brake developed by China Machinery Subsidiaries including CMEC General Machinery Import &
5 6
Industry Products Co., Ltd. has passed the examination of Export Co., Ltd. conducted cooperation with Alibaba Group to
70,000-kilometer operation explore trans-border e-commerce business and established
a service platform for trans-border supply chain Chinese President Xi Jinping witnessed the Signing Ceremony of CMEC Pakistani Project
The high-speed railway brake developed by China Machinery Industry Products Co., Ltd. CMEC held Trans-border E-commerce Selection Meeting in Japan
has passed the examination of 70,000-kilometer operation
Case
CMEC develops riser hammer that filled the gap in China
Jinan Foundry and Metal Forming Machinery Research Institute Co., Ltd.
cooperated with China Machinery Industrial Products Co., Ltd. which is one
of CMEC subsidiaries and developed the world-leading riser hammer. It filled
the gap in China and would effectively solve the problems of foundry industry
in China and promote the competitiveness of Chinese foundry products. This
product compresses air to produce power, hence removing the dead heads
formed in the process of casting of products of large casting parts and reducing
Ren Hongbin, President of SINOMACH, and Serbian President witnessed the MOU signing of CMEC-SerbiaMeat Product Processing Plant Project
the patch weld and wastes due to inappropriate pouring of dead heads.
34 35

Design and Consulting Segment Injects New Development Impetus Other Businesses
CMEC has maintained efforts to improve the industrial chain, enhance project technology and design In addition to international engineering contracting business and trade business, CMEC also operates other
capabilities, and further strengthen the control over technology and design of the project. It has established a businesses including logistics services, exhibition services, bidding agency services and so on. In 2015, the
team for equipment supervision and on-site construction supervision to focus on enhancing regulations on such Company's logistics business and exhibition business enjoyed stable development. CMEC Comtrans International
core quality control sectors of project and engineering supervision, promote its ability to provide customers with Co., Ltd. continued to actively develop external businesses and professional logistics service. CMEC International
a set of professional solutions, reduce the engineering cost, minimize the project risks, and create more synergy Exhibition Co., Ltd. continuously made use of its major business advantages to provide main customers with
value. In 2015, the Company merged and acquired China Jikan Research Institute of Engineering Investigations customized service, innovate business models and expand profit modes, enhancing the recognition and
and Design, Co., Ltd.. After that, the Company will effectively reduce the engineering cost, minimize the project cooperation of SINOMACH and other relevant companies.
risks, and create more synergy value when providing customers with a set of professional solutions. At the same The Company continued to strengthen its cooperation with local governments, and actively sought for
time, we have completed the construction of the China Mech International Engineering Technology Research project and business opportunities in national key development areas, injecting new vigor to regional economic
and Development Center, in Changsha City, Hunan Province, and we will endeavor to forge the CMEC Technical development. By the end of 2015, the Company had joined hands with companies including Ningxia International
Support and Services Platform. Exhibition Co, Ltd. to establish China-Arab Exhibition Group, hoping to work together with China and Arabic State
Expo to promote Ningxia's development in exhibition business and the communications and cooperation between
China and Arab.
CMEC attended the Signing and Inauguration Ceremony of China-Arab Expo Group Sponsors
Case
CMEC held Brand Exhibition in Indonesia
The year 2015 witnessed the successful holding of the Third CMEC Brand Exhibition in Indonesia. The
exhibition invited guests from governments and industry organizations of Indonesia, Singapore, Sri Lanka, Maldives
and so on and organized promotion activity themed"CMEC, Your Development Partner", which introduced CMEC
CMEC has successfully launched the delivery meeting and business transition meeting of the acquisition and reorganization of China Jikan Research Institute of Engineering Puttalam Coal-fired Power Plant Project, Independent Power Provider (IPP) Supplier Model, CMEC New Energy
Investigations and Design, Co., Ltd.
and so on. This exhibition demonstrated CMEC's strength in a comprehensive way and promoted the international
reputation and influence of CMEC Brand.
Case
CMEC signs the overseas testing station contracting project
In 2015, China Machinery International Engineering Design & Research Institute Co., Ltd. which CMEC is affiliated to,
signed with CNR Pioneer Electronic Pvt Ltd (India) the general contract of the complete motor testing station project. The
testing station is an important part of the traction motor manufacturing process of CNR Pioneer Electronic Pvt Ltd (India). China
Machinery International Engineering Design & Research Institute Co., Ltd. has fully investigated the professional technologies,
designed a systematic plan, and taken full considerations of the local environment, production management and remote
service, thus demonstrating its abundant experience and prominent advantages in such areas as electric motor factory
construction services, especially in the development and application of the core techniques of electric motor manufacturing and
the dedicated system, which has been fully recognized by its customers.
The third CMEC Brand Exhibition was successfully held in Indonesia
36 37
Going Forward Hand-in-hand
Pursue Win-win with Our Partners
The development of CMEC couldn't separate from the strong support from its stakeholders including the
government, customers, suppliers, sub-contractors, partners and the industry. We stick to the philosophy of
achieving win-win cooperation, cherish the cooperation with our stakeholders, and aim to realize responsible growth
and development with our partners. We work hard to provide our customers with quality products and services and
to reach an all-win situation in order to propel the healthy and sustainable development of the industry.
Create Excellent Projects Build Responsible Value Pursue Win-win

Chains Together Cooperation
Create Excellent Projects

Going Forward Hand-in-hand Pursue Win-win with Our Partners
Build Responsible Value Chains Together
Pursue Win-win Cooperation
Create Excellent Projects Satisfactory Services
CMEC attaches great importance to the operation and maintenance of its projects, strives to transform from
an engineering contractor into a comprehensive services provider and offers package solutions to its proprietors,
including training for the operation and maintenance of the power plants and preservation of an operation and
In CMEC, the quality of projects always comes first. CMEC provides high-class projects and maintenance team to provide services and guidance for its proprietors. With these, it aims to maintain a stable
services to its customers wholeheartedly, makes quality engineering projects, and strives to operation of the power plants after project delivery and to create more values in each step.
create excellent projects to create long-term and sustainable project values for its customers. We value, tap and respond to customer demands, and provide services in the whole process from contract
signing, plan formulation, designing, procurement, manufacturing, storage and transportation, construction,
installment to training, test running and after-sales services, etc. We work hard to provide high-quality services
beyond their expectation to satisfy them.
High-Quality Projects
In 2015, the complete engineering segment in CMEC extracted the Company's years of project experience
and issued a few systems and regulations, including Detailed Rules of the Assessment and Management of Key
Case
Process Nodes in EPC General Contract Projects, Regulations on Design and Management of EPC General CMEC provides high-quality training to the operators and maintenance workers from the No.6 unit in
Contract Projects , etc., to mainly focus on the management of early stage and implementation process of project the Venezuelan Central Power Plant Project
to guarantee the whole process goes normal. CMEC deepened its supervision systems at the Company and
business level, improved the full life-cycle systems of EPC projects, and established and improved its project In March 2015, 48 operators and maintenance workers from the Project for Engineering, Procurement,
inspection system to quicken the professional skills building for a solid foundation of excellent projects. Construction and Commissioning of 600MW Unit No.6 came to China to get trained. The workers received three-
month training in China, and their courses include the basic knowledge about power plants and analogue machines,
internship, and field trips in power plants and visits to the overhauls of power plants,etc.. They were all qualified.
This training will guarantee the stable operation of the power plants and improve the independent operational and
maintenance abilities of the power plants in Venezuela.
Zambian President witnessed the grid-connected operation of two sets of The Prime Minister of Mongolia attended the ignition ceremony of the rst boiler from
generator units in Lun Zuo hydropower station Amgalan Heat Only Boiler Plant in Amugulang
Case
The Berezov 427 MW Combined Cycle Power Plant Project in Belarus was Awarded China's Luban
Prize for Construction Project (Overseas Projects)
The whole contracted project of the Berezov 427 MW Combined Cycle Power Plant Project in Belarus started
in June 2011. During the construction, CMEC overcame difficulties like the designing, construction in severely cold
weather and communication barriers, etc. and put this project into operation in advance.
The Berezov Power Plant is the biggest gas-steam combined cycle unit in operation in the Republic of
Byelorussia now. The electricity it generates accounts for 10% of the total. As a result, it contributes to a lot in
easing the electricity shortage, improving the efficiency of the energy system and propelling the social and economic
development in the Republic of Byelorussia. The Power Plant has been operating well since it was first put into
operation and has received unanimous praise from the government of China and the Republic of Byelorussia as well
as all sectors of society in the latter. This project marks the first export of China's SGT5-4000F level combined cycle
units. It drives China's equipment manufacturing industry and technical services to go global and sets an important
example for making the "the Belt and Road" workable.
In November 2015, the Berezov Power Plant Project in the Belarus was awarded China's Luban Prize for
Construction Project (Overseas Projects).
40 41

Build Responsible Value Chains Together Drive Industrial Chain Development
CMEC follows the principle that big programs guide the developmental directions of industry and dominate
the industrial resource agglomeration and optimal allocation. The total construction projects contracted by CMEC
has promoted the efficiency of local supply chains and raised the resource utilization efficiency of the companies.
CMEC pays attention to its leading role in the supply chains, insists on carrying out responsible Meanwhile this also brings obvious value promotion to all parties up and down the industrial chain, effectively
procurement, makes regulations and takes measures to do strict qualification examinations lowers the cost of supply chains and promotes the common development of the companies up and down the
towards suppliers and sub-contractors, by which it tries to avoid liability risks at the maximum level industrial chain. Besides, CMEC not only makes the total construction projects a beautiful local scenery, but also
and builds a responsible value chain. informs Chinese people of more about the host countries, further promoting the prosperity of local business,
tourism, culture and other related industries.
Case
Carry out Responsible Procurement Puttalam Coal-fired Power Plant drives the development of local cement plants
CMEC has always committed itself to building a responsible value chain and keeps improving the supply chain The fly ashes generated from the coal burning are high-quality raw materials for making cement, cement
management to guarantee the rights and interests of its suppliers and sub-contractors and enhance the social bricks, concrete and stuffing as they can solve the technical problems, such as erosion, to some extent. The Tokyo
responsibility of its supply chains. Based on the ability, past achievements, financial strength and prices, we choose our Cement Company is the major buyer of the fly ashes in Puttalam Coal-fired Power Plant since its operation. The
suppliers and sub-contractors carefully. In each project, we make agreement with the supplier and sub-contractor and Company has bought 43% of the fly ashes here. Before the Plant was built, the fly ashes that Sri Lanka used was
ask them to obey the rules and take multiple measures to manage and monitor their performance so as to guarantee mainly imported from India, with high price. The operation of the Puttalam Coal-fired Power Plant lowered the cost
that they obey the rules concerning quality, safety and delivery deadlines, etc. CMEC encourages responsible suppliers of the cement industry by two thirds, and furthermore, the plant builders also brought advanced techniques, which
and sub-contractors and gives preference to qualified and reliable suppliers and sub-contractors with good records effectively drives the sound development of the local cement industry.
and long-term partnership.
In 2015, we kept promoting centralized procurement, strengthened the dynamic management of eligible suppliers, "The small businesses nearby have all found the developmental opportunities from the construction and operation of the power plant.
normalized projects' procurement process and controlled the procurement risks to realize "Sunshine Purchase". By the With the building of the power plant, we local enterprises have benefited from it and our high-quality products have also benefited our
end of 2015, our five major suppliers had contributed 12.88% of the total purchasing volume. The procurement by the customers, so I think this power plant is quite successful. It has brought great development to Sri Lanka in many respects."
biggest supplier accounts for 5% of the total. LakmaHead of the Fly Ash Lab in Tokyo Cement Company
Consolidate the Supply Chain Management

Promote the Industry Prosperity
CMEC incorporates social responsibility requirements into the supply chain management. It includes the social
responsibility performance of suppliers or sub-contractors in the evaluation standards and incorporates social
The success of CMEC couldn't be achieved without the healthy and orderly development of project
responsibility requirements into the terms of contract according to the actual situation; during contract enforcement, it'll
contracting industry. We actively coordinate with our peers, maintain the environment for fair competition, and
investigate the responsibility fulfillment of its suppliers and sub-contractors. CMEC formulates Regulations on the Anti-
improve the overall social responsibility of the industry. We also actively participate in formulating professional
Corruption Supervision of the Sub-contracting and Procurement for the Complete Engineering Projects and conducts
standards and interactive activities to power sustainable development of the industry.
effective anti-corruption supervision over the whole process of sub-contracting and procurement by "promising before
signing a contract, giving notices during the signing and confirming after the signing".
CMEC attended the 2nd Forum on China-Africa Local Government Cooperation CMEC attended "the Made in China 2025 Transformation and Upgrading of
Equipment Manufacturing Industry Forum"
42 43

CMEC highly values its partnerships from the strategic height. CMEC actively expands its
external cooperation mode, conducts mutually beneficial cooperation with governments, banks,
enterprises and international agencies, and strengthens communication and mutual trust,
especially its cooperation with global leaders and key strategic partners, to promote the industrial
Chairman Sun Bai accompanied Ren Hongbin, President of China
competence and broaden business development for common development. By the end of National Machinery Industry Corporation, to meet Serbian President
2015, CMEC had built strategic relations with 13 partners including General Electric International
Inc., China's Wuhuan Engineering Company, Beiqi Foton Motor Co., Ltd., and the People's Chairman Sun Bai met the Chief Minister of Pakistan's Punjab
province
Government of Shangqiu City, Henan Province.
Cooperation between Cooperation between Cooperation between

Government and Enterprises Banks and Enterprises Enterprises
CMEC strengthens its strategic cooperation CMEC conducts extensive and innovative CMEC strengthens its strategic cooperation with
with Chinese local governments and cooperation with banks, security companies GE, Alibaba, and the Ukrainian National Food
foreign governments. It conducts strategic and other financial agencies to enhance its and Grain Group to broaden cooperation fields
cooperation with Ningxia Autonomous nancing capacity and enhances their competence in the market by
Region and Zhumadian city and Jiaozuo complementing each other's advantages
city from Henan Province
Case
CMEC signed the Memorandum of Understanding in respect of Strategic Cooperation in Africa with GE
In January 2015, CMEC signed the Memorandum of Understanding in respect of Strategic Cooperation
in Africa and Cabinda Power Generation Equipment Procurement Contract with GE. The two companies will
broaden their cooperation field and deepen their cooperation through multiple modes such as engineering general
contracting, combos, co-investment and financing.
Chairman Sun Bai and President Zhang Chun met Minister of

Transportation and Communications and Interior Minister from
Argentina and signed the framework agreement of phase II
project of Argentina Belgrano Freight Rail Renovation Project
President Zhang Chun met the rotating chairman of the
presidium of Bosnia and Herzegovina Covic and his group
The signing ceremony of the Memorandum of Understanding in respect of Strategic Cooperation in Africa was held
44 45
Happy Homeland
Share the Fruits of Development
CMEC attaches importance to the leading role of talents towards corporate development, and always sticks to the
people-oriented philosophy. The Company builds good development platforms for its employees and pays attention
to and safeguards its employees' legal rights and interests, their health and safety. It cares about the employees'
happiness, and gives full play to their talents to help them live a healthy and happy life.
Build Harmonious Build the Platform for Create Happy Life

Working Environment Employee Development
Build Harmonious Working Environment

Happy Homeland Share the Fruits of Development
Build the Platform for Employee Development
Create Happy Life
Build Harmonious Working Environment Improve Salary and Welfare
CMEC provides a competitive salary and welfare for its employees. It pays the social insurance in full and on
time, and respects employees' rights to take leaves or vacations. Besides, its overseas operational centers have
set up salary and welfare systems in accordance with local customs and habits. In 2015, we propelled the reform
CMEC strictly abides by national laws and regulations to conduct employment management. It
of the salary and welfare system and rebuilt a salary and welfare framework, effectively guaranteeing the normal
provides a competitive salary and other welfare and responses to employees' expectations and
compensation and welfare for employees.
appeals to effectively guarantee the legal rights and interests of them and build harmonious and
stable labor relations.
Standardize the Employment Management

Committee for
CMEC strictly abides by the relevant laws and regulations concerning employment such as Labor Law in Payment Policies
China and other project operating countries and regions, respects and safeguards International Covenants on
Human Rights and International Labor Standards, and keeps improving its employment system. It also sticks to
fair employment and never discriminates against its employees because of their religion, race, nationality, gender,
political views, regions or color. Besides, CMEC never hires child laborers, never coerces or forces people to work, Committee
CMEC Payment for Payment
protects the interests of disadvantaged groups, eliminates employment and job prejudices and prevents and deals Management System Supervision
with nonstandard employment.
Postgraduate and above Senior 35 years old and below
Bachelor Intermediate 36-45 years old

Committee
Junior college and below Junior and below 60.1% 46-55 years old for Payment
2,094 Performance
56.9% 51.0% 56 years old and above
1,983 1,778 Assessment
28.8%
20.2% 1,004
27.0% 18.3% Strengthen Democratic Administration
942 703 638
16.1% 17.0% CMEC keeps improving the system of workers' congress Membership Rate Employees' Satisfaction
560 593
and the system of making public the affairs of enterprises
4.6% to safeguard employees' right to know, to supervise and to

160 participate in decision-making. In this way, it aims to give full
100 99.9
play to employees' dominant role in the democratic management
Number and Proportion of Employee Divided by Number and Proportion of Employee Divided by Job Title Number and Proportion of Employee Divided by Age and consultation, systematize, standardize and institutionalize
Education Background
its democratic management, and effectively raise their sense % %
of responsibility and ownership. In 2015, the workers' congress
1.4% of CMEC received 20 proposals and accepted and adopted 3
51
0.1% rational suggestions.
2
1.8%
61 China
4.9% Asia (except China and Turkey) Corporate Culture Construction

171
77.5% Africa Culture acts as the core to keep a company for long-term development. With nearly 40-year progress,
14.3% 2,700
Europeincluding Turkey
CMEC has formed the corporate philosophy of "making visions come true" and corporate culture of "diversity,
500 inclusiveness and innovation". In 2015, we completed a book named CMEC Will Never Forget to systematically
North America comb and summarize our corporate culture, and we also completed Collection of Historical Data in CMEC (1986-
1997) to record CMEC's history. Besides, we organized activities such as "Discussion of CMEC's Core Values"
South America
and "Talk about CMEC Corporate Culture" to further strengthen the sense of belonging and sense of honor of
employees in order to make the CMEC family more harmonious.
Number and Proportion of Employee Divided by Geographical Location
48 49

Create Happy Life

Case
CMEC online training platform developed
In 2015, based on the traditional training, CMEC made innovations and developed an online training platform.
This platform aims at employees from different posts and at different levels. Around the issues about professional
CMEC carries out the strategy of "reinvigorating enterprise through human resource skills, business abilities and management improvement, it innovates training modes, broadens training scales,
development," attaches great importance to the growth and development of employees, tries to and enriches training contents to make trainings systematic, normal and professional. In this way, it helps every
build a scientific and reasonable talent cultivating mechanism and dedicates itself to building a employee to achieve their career development and lays foundations for the company to cultivate innovative
solid and broad stage for the career development of employees. international talents.
Carry out Employee Educational Training
CMEC has always seen human resources as the first corporate resource to develop. We formulate talent Smooth Channels for Career Development
team-building plans and strive to build six troops of talents including "senior management talents, program
CMEC actively gives guidance to employees' career planning. By setting up a managerial and professional
management talents, projects technical talents, professional management talents, marketing talents and
Y pattern development channel, it broadens the space for the career development and standardizes the
investment, financing and capital operation talents" to consolidate the reserving foundation of key talents; we
employee promotion management. The Company also makes efforts to smooth the promotion channels for key
have built a two-level training system with our headquarters and department offices and branches as the main
business personnel, and sets up three ways - normal promotion, quick promotion and exceptional promotion
bodies, innovated our training mode and strengthened the training for in-service cadre staff of all levels and new
for employees to get promoted and further improve the personnel quitting mechanism so as to form a career
employees.
management system featuring complete coverage both lengthwise and crosswise, providing channels for getting
We provide systematic and effective training for employees. Highly persistent and targeted educational
promoted and providing a mechanism for quitting, which works as a security mechanism for its employees to
training is provided for senior managers, middle-level managers and various professional and technical personnel
realize multi-channel career development and helps to build a broad development platform for them. Besides,
to improve their quality and ability continuously. We conduct standardized management in the training and have
CMEC will explore to formulate and improve a more reasonable, transparent and scientific employment system
also formulated regulations on education management and training, all of which have effectively promoted the
further to keep consolidating the fruits of talents introduction and strengthen the communication among cadres and
construction of CMEC's educational and training system. During the process of planning and implementing training
talents.
programs, we paid great attention to the needs of our senior managers, middle-level managers and various
In the future, CMEC will strengthen the cultivation of young cadres further to form a talent echelon in order
professional and technical personnel and adopted a rationally distributed training system featuring workforce
to lay a foundation for the sustainable development ;It will further improve the three-level talent cultivation system
diversity to encourage more employees to participate in the training.
consisted of overseas talents, talents from Chinese colleges and universities and within the Company, to ensure
that the training system will cover everyone from senior managers to middle-level managers and normal workers.
Satisfaction for Training Per-capita Training Hours Total Training Hours
100 %
38.51
h / per person
33,274 hours Senior professional
posts
Senior management
posts
Te t
pr ch en
om n m o n
o e ti
ot log ag o
io y
n an rom
M p
Ordinary
The opening ceremony of capacity improvement training class for new CMEC CMEC employees went to the U.S for Export Control Training in 2015 employees
employees in 2015
The Y Pattern Channel for Career Development for CMEC Function Employees
50 51

Create Happy Life
Create Happy Life Care for Female Employees
CMEC cares for its female workers. It strictly abides by national laws and regulations to protect the health
and safety of female employees and provides specialized welfare according to their demands. Every year, CMEC
will provide specialized checkup for its female employees and organize all kinds of health lectures to meet the
CMEC pays great attention to the happiness of employees. It cares for the life of overseas employees
demands of them to guarantee their physical and mental health. On the March 8th Festival of 2015, we specially
and their families as well as the retirees, helps employees in need and attaches importance to the
invited experts to give a lecture named "Introduction to the Prevention and Control of Cardio-Cerebrovascular
balance between work and life for employees. Besides, it also organizes various kinds of cultural
Disease" and organized female employees to participate in a seminar of "On the Mental Health of Office Ladies"
and recreational activities to continuously enhance employees' sense of happiness and strengthen
organized by the China National Machinery Industry Corporation.
corporate inclusiveness in order to build a happy CMEC family.
Help Employees in Need
CMEC cares for employees in need. In 2015, it launched "Heart-warming" activities, like visiting
underprivileged workers and workers who were seriously ill. It also took an active part in the donation of
"SINOMACH Day to Give Love" to offer love and warmth to underprivileged employees.
Care for the Retirees

Lecture of "Introduction to the Prevention and Control of Cardio-Cerebrovascular Lecture of "A Happy Land for Reproductive Health"
Disease"
CMEC cares for the retirees and has found the CMEC Corner for Senior Citizens and CMEC Club for Senior
Citizens to enrich their cultural life. The Company organizes regular cultural activities such as painting, calligraphy
Care for Overseas Employees
and photography, and actively helps them deal with difficulties in life.
CMEC cares for its overseas
employees and their families. It
establishes an overseas family
fellowship mechanism to get to
know their problems and difficulties
in time and provide help. It also
invites its overseas employees to
the project sites to reunion with their
families and feel the happiness.
Chairman Sun Bai went to Sri Lanka to pay a visit to the employees at the Puttalam Coal-red Power Plant during
Spring Festival
Case
Children travel thousands of miles to look for the "Chinese Daddy"
"Surprise! Daddy" is a large-scale documentary reality TV show

presented by 3C Media and Sichuan TV. The show records how 16 children
travel 10 countries (110,500 km) to look for the 13 Chinese fathers who
Chairman Sun Bai accompanied Ren Hongbin, President of China National Machinery Industry Corporation, to visit the retirees
work overseas. In the show, the stories of Qi Lin and Pi Yanyao, CMEC's
employees who reside permanently at the Puttalam Power Plant in Sri Lanka,
are recorded. The story is told from the angle of the two children who go
Case abroad and travel thousands of miles to look for their fathers and bring surprise
The CMEC community college for the elderly enriches the life of the retirees
and touching to their daddies who work overseas. During the trip to unfamiliar
places, for the first time the children have experienced the hardship of their
CMEC set up a CMEC community college for the elderly with courses of computer skills, music, painting, and fathers who work on another land in person; they even tried to do what they
photography, etc. It keeps digging out the interests and hobbies of retirees to enrich their lives so as to make them Children travel thousands of miles
can to take care of their fathers. After days of living together, the father-son/ to look for the "Chinese Daddy"
feel the colorful life in the community college. daughter relations have been sublimed.
52 53

Create Happy Life
Keep a Balance between Work and Life
CMEC actively organizes various cultural and recreational activities for its employees in their spare time to
CMEC Employees' Cultural Life
enrich their cultural life, enhance the corporate vitality and inclusiveness, and make them work efficiently and live
happily.
Brisk walking in the Olympic Forest Park The 5th workers' sports meeting of China The voice of CMEC:"Sing your Employees tug of war competition for the 37th 2015 May Cup badminton competition The "Rendezvous with
01 02 National Machinery Industry Corporation

03 youth, show yourself"
04
anniversary of CMEC
05 06
Youth, Love at CMEC"
match-making meeting
07 The 1st CMEC employees' sports meeting

08 Competition of cooking skills
09 Speech contest themed with
"I Am Elite" 10 The Pingbei Memorial Hall of Anti-Japanese
War in Yanqing tour 11 The 1st CMEC Commercial Shipment Cup
Football match 12 Basketball match at the
Angola project site
54 55
Safety and Environmental Protection
Ensure Sustainable Operation
CMEC has always been operating on the basis of work safety. With a focus on green production, we continuously
improve the management system of production safety and occupational health, advocate environmental and green
operation, and build a safe, healthy and environmental industrial chain.
Emphasize Protect Implement

Work Safety Occupational Health Green Operation
Emphasize Work Safety

Safety and Environmental Protection Ensure Sustainable Operation
Protect Occupational Health
Implement Green Operation
Emphasize Work Safety Improve Safety Capability
CMEC has been offering varied work safety training regularly for employees of different levels in order to
improve their safety awareness and self-protection awareness. Through themed activities such as Work Safety
CMEC sticks to the principle of "Safety first with precaution and comprehensive treatment". We Month, experience sharing Seminars about Work Safety and emergency drills, CMEC has been continuously
comply strictly with red line of work safety, tighten safety supervision of domestic and overseas improving employees' ability in safety precaution and handling emergencies, and conveying safety concept to all
projects, and have introduced the work safety responsibility system and organized related themed employees and other stakeholders.
activities. In this way, we have been able to improve the safety ability and awareness of the Implement multiple-tier work safety trainings according to the different posts of employees to provide
Company and guarantee the work safety in the long run. In 2015, no work safety accident with the professional work safety trainings
general level or above happened in the Company. Organize activities such as Work Safety Month, serial trainings on work safety and work safety management
knowledge, study of Work Safety Law and "Three-System" qualification, etc.
Organize annual work safety training and experience sharing seminars in order to help departments to share
Consolidate Safety Management their experience in work safety
Aimed at building up a long-term mechanism for work safety in the whole life cycle of all projects and
according to CMEC business characteristics, CMEC strengthens its standardized safety management system
and further guides its safe operation with it, thus constantly consolidating the foundation of work safety. Project Manager Carry out internet training on work safety management
On-Site Work Send qualified, experienced and responsible safety management

Safety Management personnel to take part in important projects after getting proper
Organizational Institutional Subcontractor qualifications and organize regular qualification training
Personnel
System System Management
The Company: Establish Work The Company: Formulate regulations The Company: Formulate the
Safety Committee and Work Safety like Management Approaches Management Agreement of Work
Office of Work Safety, Comprehensive Safety which specifies work safety Provide work safety education through mobilization conferences,
Emergency Plan for Work Safety
On-site
management responsibilities of the topic signatures, videos, safety knowledge competitions, newsletters
Business Department/Subsidiaries: Accidents and Incidents Company and subcontractors Practitioners
Establish Work Safety Leading and bulletin board
Group Project Departments: Formulate work Project Departments: Review the
safety responsibility system, work qualifications of subcontractors, signing
Project Departments: Establish Work safety education and training system, the Management Agreement of Work
Safety Management Agencies work safety examination and hidden Safety which requires contractors to
danger checking and treatment delegate a full-time / part-time safety
system, work safety assessment, management person
and vehicle management system, etc
Case
Thermal Power Generating Sets Expansion Project of Karaganda Unit 3 Power Plant in Kazakhstan
passed the "Three-System" on-site examination
In July 2015, the Thermal Power Generating Sets Expansion Project of Karaganda Unit 3 Power Plant in
Kazakhstan contracted by CMEC passed the NQA "Three-System" on-site examination. The examination experts
carried out sufficient communication with related personnel from the Company and the project department, through
which specific suggestions and advices were proposed.
President Zhang Chun inspected the construction site in Angola
58 59

Implement Safety Actions Emphasize Overseas Safety
While pursuing the strategy of "Going Out", CMEC has always been paying great attention to the operation
Adhering to the guidance of work safety by the central government, CMEC strictly abides by safety for overseas projects and the safety of overseas employees and their properties. The Company adopts the
the new Work Safety Law and has constantly improved the safety emergency response ability, same long-term mechanism of work safety for overseas projects, and establishes targeted emergency precaution
enhanced supervision of work safety in each subsidiary and project and tried to infiltrate the concept mechanism according to local situations to guarantee the safety of project operation and team members.
of work safety into each link of the construction.
Safety Emergency Management System

Case
Comprehensive Plan Team members of Bagir Cement Plant project in Yemen returned to China safely
CMEC develops and implements the

Early in the morning of March 26, 2015, Saudi Arabia launched coalition air strike against Yemen with other 10
level-1 comprehensive plan
gulf countries. 62 team members involved in the Yemen cement plant project were facing unprecedented danger.
The division (subsidiary) develops and
CMEC actively communicated with Ministry of Foreign Affairs and Ministry of Commerce of P.R.C., and organized
implements the level-2 comprehensive plan
Specialized Plan evacuation immediately after the air strike. In just one week, the evacuation decision was made, relief goods were
prepared and obstruction for suppliers were reduced. All 62 team members were sent back to China safely. CMEC's
Relevant departments develop and
On-site Settlement Plan excellent performance in handling emergencies won the appraisal of the whole society.
implement the specialized plan according
to the nature of incidents The project department
Situation Analysis
develops and implements
Air Strike
Before the
the on-site settlement plan Two days before the attack, CMEC's on-site project department had predicted that the situation was
becoming uncontrollable, and sent out an emergency report to the Company and SINOMACH. CMEC paid
great attention to the seriousness of the situation, and held emergency meeting to decide to evacuate 40
members, with the remaining 22 left to finish the rest of the work and observe the situation.
Proper Division of Good Evacuation Assistance from

Work Arrangement Multiple Parties
After the Air Strike

Project Manager Yang Lianhai CMEC arranged centralized residence for On March 27, Ministry of
was in charge of overall project employees while requiring proprietors to enhancing Foreign Affairs of P.R.C.
control and actively appeased the security protection; actively prepared goods and ordered evacuation of all
employees; project vice manager cash; contacted and rented local minibuses for Chinese in Yemen; on March
Wu Hao was also in charge of immediate action; convened subcontractors for 30, with the escort of the
finance, liaison and logistics; meetings and informed them of the guidance of Chinese People's Liberation
project vice manager Peng Ruoyu Chinese embassy and the evacuation process; Army, 62 Chinese employees
was responsible for material dealt with labor disputes with local workers; held were sent to Djibouti by the
reserve, cash preparation and meetings with suppliers for issuing post-dated warship Weifang and flied
vehicle coordination. check; communicated with proprietors. back to China on March 31.
In the early morning of March 26

Saudi Arabia launched coalition air strike against
Yemen together with other gulf countries. Local
Record
Back-to-China
situation became more serious.
Yemen
Sana'a back to China
Hodeida
Key Evacuation Timings

12 a.m., March 30: CMEC fleet arrived at Hodeida port together with
other fleets
Djibouti 4 p.m., March 30: Chinese employees were sent to Djibouti by the
warship Hodeida
Djibouti 12 p.m., March 30: The warship Weifang arrived at Djibouti Airport
8 p.m., March 31: Employees flied back to China
Chairman of the Board Sun Bai and President Zhang Chun inspected the project of ISFC Building in Shenzhen
60 61

Protect Occupational Health Implement Green Operation
CMEC attaches great importance to the occupational health of overseas employees and In its global operations, CMEC has always been giving special attention to environmental
constantly improves the occupational health management system and health safety service. protection during the projects construction and actively practicing green construction. It has
CMEC offers employees with regular physical examination and disease prevention training, and established a systematic and informationized energy conservation and emission reduction
dispatches medical teams to overseas projects in order to truly guarantee the health and safety of management system, and introduced new energy resources and materials to minimize the
overseas employees. negative impact on the environment.
Strengthen Environmental Protection

Improve Occupational Health and Safety Management CMEC makes ceaseless efforts to improve its environmental protection system for the life-cycle of projects
In order to guarantee the health and safety of all employees, CMEC establishes and improves its occupational and revise its manuals so as to institutionalize the environmental protection work. In addition, we have also
health and safety management system. It carries out annual physical examination for all employees, and develops established an information platform on energy conservation and emission reduction to raise employees' awareness
special disease examination in major overseas regions flexibly to prevent the spread of diseases. and integrate environmental protection into every link of project development and construction, thus minimizing our
negative impacts on local environment.
Conduct verification of suppliers' qualification

Carry out related laws and regulations
on environmental protection
Improve Occupational Health Service Carry out contractual requirement Survey
Equipment Purchase materials that meet environmental
and
Design Purchase requirement
CMEC has been constantly improving employee occupational health services. It organizes activities to
popularize knowledge related to occupational health, and dispatches medical teams to overseas regions with poor Project Conduct verification of subcontractors'
Include investment on environmental Project Construction
Financing qualification on environmental protection
protection into total cost and
medical condition to guarantee a healthy and safe working environment for employees. Management Guarantee green construction
Know local laws and regulations on

Formulate Measures for the Health Management of Overseas Staff and environmental protection Monitor pollutant emission
Project Operation
updates it every year Know the requirements on EIA contracts
Development Maintenance
Offer a life-cycle health management package including epidemic

prevention before going abroad, overseas prevention and treatment,
medical examination after coming back
Pre-plan
for Source Promote Energy Conservation and Emission Reduction
Management Provide regular physical examination and medical training themed
prevention of infectious diseases and other related content To further facilitate energy conservation and emission reduction, CMEC held the kick-off meeting to
launch the information platform on work safety, energy conservation and emission reduction, integrating energy
conservation and emission reduction into systematic and informationized management, and thus deepening the
Send medical teams to overseas project sites to offer health lectures on function of the energy conservation and emission reduction team. We implement the Provisional Regulations of
prevention and treatment of highly infectious diseases such as malaria, Supervision and Administration of Energy Conservation and Emission Reduction , the Provisional Regulations
Ebola, etc. on Energy Conservation and Emission Reduction Statistics and Supervision , and the Provisional Regulations on
Energy Conservation and Emission Reduction Assessment so as to enhance our efforts in energy conservation
and emission reduction.
Offer physical examination to overseas staff to know about their health Establish Energy Conservation and Emission Reduction
condition, and then works out a treatment plan according to the medical Leading Group;Under the leadership of corresponding
management department in the project, each
report Going Abroad to
department designates a person for data analysis,
Carry out Health promotion and implementation
Inspection Formulate Provisional Regulations on Energy Organizational Formulate Provisional Regulations of Supervision
Offer health consultation and encourage staff to take physical exercise after System
Conservation and Emission Reduction and Administration of Energy Conservation
work and keep balance between work and life, thus improving their overall Assessment , implement departmental manager and Emission Reduction ;Abide by related
Appraisal
Institutional
physical and mental health responsibility system, carry out annual System
System
national laws and regulations, implement energy
assessment of department functions, with award consumption limits of high-energy consuming
ahead and punishment followed Statistical products and quota management system for
Monitoring major energy consumption equipment
Formulate Provisional Regulations on Energy

Conservation and Emission Reduction Statistics and
Supervision , prepare energy saving and emission
reduction measurement devices according to law, and
examine and calibrate such devices regularly
62 63

Devoted to Clean Energy Practice Green Office
According to the concept of green development, CMEC has long been focusing on and devoted to the By focusing on small things related to energy conservation and emission reduction, CMEC tries to save
development and application of clean energy. We actively build green projects such as solar power plant in order to as much resource as possible in daily work and integrates the green concept into every detail of daily operation.
contribute to the construction of a beautiful China and dealing with global climate change. We organize presentations, training and seminars about environmental protection among employees, aiming at
improving employees' awareness and practice of environmental protection constantly, to build up a green office.
Green office
Initiative
CMEC participated in the signing ceremony of the Strategic Memorandum of CMEC signed agreements related to the 1.5MW photovoltaic power plant investment
Understanding of Clean Energy Project in African region project with the Maldive Ministry of Environment and Energy
Save
Paper
Practice paperless
office
Case Double-sided
printing
Abandoned mine turns into an energy-saving power plant
On November 1, 2015, the grid-connection ceremony Save

Gasoline
of a 20MW photovoltaic power plant project in Leping, Jiangxi
Account of public
province under CMEC was successfully completed. This transportation use
Green travel advocate
project was the first project that used photovoltaic power
plant to change the environment of an abandoned mine, and Save
was CMEC's first try in implementing the policy of "Going Electricity
Save
out of Jiangsu toward the whole China". The project was Water Energy-saving lights
Water-saving The temperature of air
finally put into use successfully, and the waste was turned transformation of water conditioners above 26 degrees
tank Celsius
into wealth, helping Leping in improving the ecology and Cyclic utilization of Energy-saving office facilities
water resources
industrial development. After being put into use, it is estimated
that the power plant will provide 20 million KWH for Jiangsu
province. Compared with a thermal power plant with the same
capacity, it will save 8,081 tons of standard coal and reduce
CO 2 emission by 21,774 tons. In addition, the project will also
reduce the emission of other atmospheric pollutants, including
631 tons of SO 2 , 57 tons of carbon dust and about 315 tons
Advocate Public Welfare Related to Environmental Protection
of nitric oxides.
While improving its own awareness of environmental protection and enhancing environmental practice,
CMEC also contributes to promoting green and environmental lifestyle and production methods among the public.
We hold public welfare activities related to the promotion of environmental protection awareness and the protection
of our ecological environment, jointly coping with climate change and making the world a better place.
64 65
Harmonious Community
Benefit Local Livelihood
CMEC actively fulfills global corporate citizenship responsibility. By carrying out localized operation based on the
engineering feature, CMEC has actively improved infrastructure of the community, taken a lead in developing public
welfare activities and participated enthusiastically in major social activities related to national economy and people's
livelihood, providing an inexhaustible motive force for the prosperity and development of the community.
Implement Improve Community Engage in Public

Localized Operation Livelihood Welfare
Implement Localized Operation

Harmonious Community Benefit Local Livelihood
Improve Community Livelihood
Engage in Public Welfare
Implement Localized Operation Hire Local Employees
CMEC is committed to creating job opportunities in places where it operates. We have established and
improved overseas employee management system, provided professional training for local employees and helped
them achieve career development.
CMEC continuously implements localized operation, respects local traditions and customs and
makes greater efforts to develop overseas organizations to create more job opportunities. We
give priority to using local resources and are committed to building a "community of shared
destiny" with the regions in which we operate so as to strengthen the tie of our mutual benefits.
Case
Teaching locals skills and operating knowledge
Puttalam Power Plant is the first coal-fired power plant ever built in Sri Lanka. However, there used to be a
Localized Companies
serious lack of local skilled workers and operating staff. While constructing the plant, CMEC also carried out training
CMEC upholds the corporate culture of "diversity, inclusiveness and innovation", carries out the principle of programs to enable locals to manage and operate the Plant.
localization of companies at places with our presence, especial overseas regions where we run projects. We also During the peak of construction, CMEC hired 1,000 local employees and trained all types of skilled workers.
attach importance to our integration with local politics, economy and culture while making efforts to blend in local CMEC also signed with the proprietor a long-term maintenance instruction agreement for training local technicians
society and achieve joint sustainable development with the local regions. in Sri Lanka to make sure that the proprietor master related management and operating skills.
Starting from scratch, Sri Lanka now has its own power plant and local technicians. Kinsaka is a civil engineer
of the plant, who grew to the director of the civil engineering department from an assistant engineer during the
project construction. "The Puttalam Coal Power Plant not only offers a technical platform for local engineers, but also
Case gives them cozy and modern accommodation", said him. Now Kinsaka lives in a small house provided by the plant
CMEC actively explored the localization of companies to build the regional hub in Southeast Asia and
with his wife, two-year-old son and his mother. Apart from all kinds of household appliances, the plant also provides
South Asia
barreled drinking water. With complete living security, Kinsaka can work with passion. After work, he can go home
and see the people he love. He is very satisfied with his life.
On September 15, 2015, Sinland Development PTE, LTD, the Singapore subsidiary of CMEC, held its
inauguration ceremony in Singapore. Chen Xiaodong, the Chinese Ambassador in Singapore, and Zheng Chao,
Minister-Counselor of Commercial Office of the Chinese Embassy, as well as representatives from Singapore "The construction of the power plant created jobs for 600 local residents. At present, over 250 people are still working at the plant. It not only
brings benefits to the people, but also enables local deprived regions to keep pace with other areas in Sri Lanka."
Business Federation, Singapore Manufacturing Federation and the banking industry attended the opening and
IndrasiriHead of Puttalam Power Plant in Sri Lanka
ribbon-cutting ceremony.
"Thanks to the kindness of Chinese contractors, our knowledge of the operation of coal-fired power plant has been greatly enhanced. Many
Sinland Development PTE, LTD was a significant attempt by CMEC for its business transformation. CMEC
young people of my age have become key technicians of the plant or have been transferred to be the technical or administrative managers of other
will take advantage of Singapore's mature capital market to launch investment business with power industry and
projects, playing crucial roles in different fields under the power bureau."
other core industries as priority; it will cooperate with Singapore banking system to explore overseas diversified
KinsakaCivil Engineer of Puttalam Power Plant
financing model and make more innovation in trade, purchase and logistic businesses, so as to make Singland
Development PTE, LTD a regional hub in Southeast Asia and South Asia, facilitating CMEC to go international.
Chinese and Sri Lanka staff discussed the technical issues CMEC provided training for employees from the proprietor side
Sinland Development PTE, LTD held its inauguration ceremony in Singapore
68 69

Localized Procurement Improve Community Livelihood

Localized procurement is a key step in a company's efforts to localize its operation. CMEC always sticks to localized
procurement to prioritize purchasing the products locally. This not only helps to save cost, but also reduces negative impact of long-
distance transport on the environment and invigorates local economic development.
With its advantages in project contracting, CMEC actively supports local infrastructure
construction such as medical service, housing, power and facilities in an effort to meet the most
pressing need of local residents, and continuously improve the local community environment.
Case
Boosting Community Business: Chamira's Fresh Meat Store is booming
Chamira, who lives in Puttalam, runs a farm and two fresh meat stores. In the past, she collected leftovers
Participate in Major Community Activities
in the neighborhood to feed livestock and was often nagged by the shortage of fodder. Since the construction of
Puttalam Power Plant, leftovers from the plant have been much easier to get, and the employees often buy fresh As a State-owned Enterprise which always fulfills its social responsibility, CMEC actively responds to and
meat in her store. Now her business is booming. The plant boosts the local breeding industry and has greatly supports major social activities and improves the living conditions and environment in communities with practical actions,
improved people's livelihoods by buying fresh meat locally. thus establishing a sound foundation for interaction and communication between the Company and local communities.
"Thanks to the Puttalam Power Plant, my business and other business of local residents who sell vegetables and fruits to the plant is brisk. My
husband and I bring up 3 children, 2 sons and 1 daughter. They all are going to school. Our business can totally support our family now." Case
CMEC cares about orphans and attended charity auction held at the Embassy of Ukraine in China
ChamiraLocal resident living near Puttalam Power Plant
In May 2015, the Ukrainian Embassy in China held a charity auction named "For the Children in Ukraine"
where all funds raised would be used for helping orphans living in Ukraine. Invited by the organizer, China National
Complete Engineering Corporation (hereinafter abbreviated as CMCC) under CMEC attended the auction and
bought an oil painting named "Spring" and a washing painting named "Dress of Ukrainian Women" .
CMEC's efforts in public charitable work over the years have won high recognition by the Ukrainian government
and people of all walks of life, thus has greatly improved the recognition of Chinese companies represented by
CMCC in the minds of the Ukrainian people. This has not only played an active role in China-Ukraine economic
and trade relations, but also laid a solid foundation for the two countries to develop cultural exchanges and
communications.
Chamira and her family
Ofcial of Ukrainian Embassy in China took a group photo with representative from China National
Complete Engineering Corporation
70 71

Safeguard the Development of Indigenous People and Protect Indigenous Culture Engage in Public Welfare
CMEC attaches importance to the issues of economic and community development in regions where
we carry out operations. In the process of project construction, we help to boost local economic growth
and employment, and offer professional skill trainings to the natives so that they can have more chances of
employment. Meanwhile, we conduct comprehensive survey on construction environment in an effort to protect
local tangible and intangible cultural heritages. For years, CMEC has been continuously contributing to public welfare. We innovate the way of
public welfare, actively engage in public welfare and organize employee volunteer activities to
offer care and support to those in need, and facilitate poverty alleviation as well as scientific and
educational development.
Promote Poverty Alleviation and Help Those in Need
CMEC is committed to the balanced distribution of social resources in response to the call of the central
government. We aim to fundamentally change the status quo of poverty-stricken areas and have continuously
increased our supplies to these areas while carrying out policy-based poverty alleviation undertakings and
developing related projects.
Main Road 67 in Namibia solved the traffic problem for people living in densely-populated area Support Educational Development
The development of education is of great significance
Case to the future of our country. However, there exists an obvious

Medical equipment supply project in Zimbabwe helped to improve the local medical conditions contradiction between the backward education in rural areas
and the nation's growing demand for scientific and cultural
As the general contractor of "Medical Equipment Supply Project in Zimbabwe", CMEC offered medical development. In order to change the situation and contribute
equipment and related spare parts for local sanitation and the children welfare department, covering devices used for to the development of education, CMEC actively organizes
nephrology, ophthalmology, dentistry, maternal and children health care, laboratory and operating rooms. In addition, activities to offer help and support to Hope Primary Schools,
The Public Welfare Association of CMEC organized book donation
CMEC installed and debugged some of the large equipment and provided trainings for local medical workers. At the and also participates in and organizes charity sale and donation activity for a primary school in Tibet
handover ceremony, the Zimbabwean President Robert Mugabe said the Zimbabwean government appreciated activities.
the assistance from China and gave permission to commercial loans offered by the Export-Import Bank of China.
CMEC helped them purchase advanced medical equipment and this will effectively boost the current medical level of
Zimbabwe. Case
Participated in international charity sale Tribute to rural teachers in Yunnan Province
In response to the plan issued by the State Council to

support the work of teachers and improve their working conditions
in rural areas, the 7th International Charity Sale named "Love
Knows No Borders" was held in Beijing in October, 2015. As it
was themed "A Tribute to Rural Teachers in Yunnan Province",
fund raised in the activity would be used as reward for primary
school and middle school teachers holding special positions in
Jinping County and Malipo County, which are key counties of the
country's poverty alleviation plan, so as to relive their life pressure
and encourage them to better serve the educational development
in deprived areas. In its response, CMEC provided solar power
emergency device for the sale and donated all the fund through
Zimbabwean President Robert Mugabe attended the handover ceremony
the sale to education development in Yunnan.
72 73
Key Performance
Performance Indicators 2013 2014 2015

Total Assets (RMB 100 Million) 319.53 380.90 422.32
Total Headcounts (Persons) 2,633 2,892 3,485
Total Profits (RMB 100 Million) 26.64 27.65 27.77
Labor Contract Signing Rate (%) 100% 100% 100%
Total Revenue (RMB 100 Million) 214.26 237.47 207.57

Staff Turnover Rate (%) 0.10% 4.30% 5.60%
Tax (RMB 100 Million) 7.04 6.45 7.23

Total Training Hours for Staff (Hours) 12,376 22,553 33,274
Amount of Newly Effective Contracts of International Project Contracting 31.81
Business (100 Million USD) 33.67 41.39
Average Training Hours for Staff (Hours) 14.88 21.77 38.51
Amount of Effective Contracts of International Project Contracting Business
134.76 128.58 121.91
(100 Million USD) Physical Examination Rate (%) 100% 100% 100%
Amount of Unfinished Contracts of International Project Contracting Business
82.17 71.07 75.41
(100 Million USD) Employee Satisfaction (%) 95.7% 97.5% 99.9%
Trade Business Revenue (RMB 100 Million) 49.08 64.43 56.30

Membership Rate (%) 100 100 100
Other Business Revenue (RMB 100 Million) 11.33 12.01 13.88 Support for Employees in Need (10,000) 28.0 31.5 42.4
Ranking of Accomplished Turnover in China's Foreign Contracted Business
11 8 8
Released by the Ministry of Commerce of P.R.C. (Ranking Numbers)
Domestic and Overseas Subsidiaries (Numbers) 36 38 40
Coverage Rate of Quality Management System (%) 100% 100% 100%
Contract Fulfillment Rate of Finished Projects (%) 100% 100% 100%
The Proportion of the Procurement by Five Major Suppliers in the Total

11.00% 14.17% 12.88%
Procurement (%)
The Proportion of the Procurement by the Biggest Supplier in the Total
3.20% 4.89% 5.00%
Procurement (%)
Total of National Standards Formulated and Edited (Pieces) 5 6 10
Total of Regional and Industrial Standards Formulated and Edited (Pieces) 4 4 5
The Number of Strategic Partners (Numbers) 6 11 13
Complaints from Major Partners (Cases) 0 0 0
Total of Pragmatic New Patents (Numbers) 8 14 20
Total of Invention Patents (Numbers) 2 3 4
Total of Computer Software Copyrights (Numbers) 7 28 35
Total of Registered Trademarks at Home (Numbers) 63 63 63
Total of Registered Trademarks Abroad (Numbers) 23 23 26
74 75
Transformation and Upgrading
Promote Sustainable Development
CMEC keeps strengthening market development, top-level design and
guidance. The complete engineering business projects serve as solid
foundation as well as source of innovation. Investment and financing
businesses are part of the investment-driven strategy and aim to
realize the integration of investment and financing. Trade and services
businesses continue to upgrade and transform, gradually turning
CMEC into an integrated service provider and constantly enhancing its
2016 is the first year of the 13th Five-Year Plan and the first year after CMEC's five-year management and profitability. The design consulting platform is set up,
strategic adjustment. CMEC will stick to the strategic guidance, consolidate its foundation, forming an effective collaboration with CMEC's core businesses while
integrate services, and seek collaboration and innovative breakthroughs so as to realize ensuring its own healthy development.
its sustainable development.

Going Forward Hand-in-hand
Pursue Win-win with Our Partners
CMEC always upholds the quality-oriented concept and provides
customers with high-quality projects and services. Playing the leading
role in the supply chain, CMEC works with partners in the industry chain
to build a responsible value chain. Being the industry leader, CMEC
continues to promote the common prosperity and development. It also
pays great attention to partnership, and carries out mutually beneficial
cooperation with governments, banks, enterprises, universities and
international agencies.
Happy Homeland
Share the Fruits of Development
CMEC strengthens the organizational leadership of its talent team,
improves its talent training system, sets up a reasonable talent
structure, and establishes a sound reward system and performance
assessment system so as to stimulate creativity and enthusiasm of its
talents.
Safety and Environmental Protection

Ensure Sustainable Operation
CMEC keeps enhancing its work safety by building up a long-term
mechanism. It tightens the supervision and inspection of each unit
and project to ensure the implementation of safety liability at all levels.
CMEC also improves the occupational health management system
and relevant services, and promotes environmental protection through
various green projects.
Harmonious Community
Benefit Local Livelihood
CMEC seeks to create a community of common destiny with the local
areas by carrying out localized operation in depth. It improves the
living environment of local people by using its advantaged position as
a project contractor. To perform its responsibility as a global corporate
citizen, CMEC also innovatively carries out support and relief actions
through multiple ways and channels.
76 77
Report Index
Table of Contents GRI(G4) ESG Page
Expert Opinion About This Report

22-23\28-31\45 P1
P4-P7
1-2\39
Feature on Responsibility P8-P11
China Machinery Engineering Corporation Social Responsibility Report 2015 is the third social report released About CMEC
by CMEC. It gives a good demonstration to CMEC's new progress in sustainable development. In completeness, About CMEC / Company Profile 3-9 P12
its content covers all important decisions and activities of CMEC in the whole year and fully reflects the influence of About CMEC / Company Governance 4\38\41 P13
CMEC's domestic and overseas operations on its proprietors, partners, the local governments, local residents and About CMEC / Corporate Structure 17\34 P14
its staff in China and overseas. The report also gives positive responses to the major issues in the interest of its About CMEC / Development Strategy 56 P15
stakeholders in the form of features, in which CMEC's overseas operation philosophy and ideas are clarified. This About CMEC / Business Layout 6 P16-P17
has reflected CMEC's vision to realize the"the Belt and Road"with the guidance of responsibility. The report also About CMEC / Social Organizations Joined 16 P18
has good readability. It uses a large number of pictures and cases in each chapter, which highlights the annual About CMEC / Awards and Honors P19
events and enhances readers' understanding and acceptance of the report.

Responsibility Management / Social Responsibility Management Model 56 P20
Responsibility Management / Social Responsibility Organizational System 34-35\45-46\48 P21
Responsibility Management / Social Responsibility Work Promotion 15\43 P22-P23
Responsibility Management / Stakeholders Management 18-21\24-27\50 P24-P25
Yu ZhihongPresident of China WTO Tribune Transformation and Upgrading Promote Sustainable Development / Stabilize Operation & Development EC1 P28
Transformation and Upgrading Promote Sustainable Development / Strengthen Basic Management SO3-SO5\SO7-SO8 B7.2 P29-P31
Transformation and Upgrading Promote Sustainable Development / Improve Value-creating Capacity 13\EC7-EC8 P32-P37
Going Forward Hand-in-hand Pursue Win-win with Our Partners / Create Excellent Projects EC8\PR5 B6.2 \B6.4 P40-P41
Going Forward Hand-in-hand Pursue Win-win with Our Partners / Build Responsible Value Chains Together 12\EC8-EC9\EN33\LA15 B5.1-B5.2 P42-P43
Based on the previous two social responsibility reports, the China Machinery Engineering Corporation
Going Forward Hand-in-hand Pursue Win-win with Our Partners / Pursue Win-win Cooperation 16\EC8 P44-P45
Social Responsibility Report 2015 demonstrates its profound understanding of social responsibility and excellent
performance in this field. Firstly, CMEC further extends the industry chain of complete engineering business,
promotes service transformation and upgrading, and realizes high-quality development. It also consolidates its Happy Homeland Share the Fruits of Development
leading role in the industry, and sticks to the implementation of the"the Belt and Road"as required. Secondly, Happy Homeland Share the Fruits of Development / Build Harmonious Working Environment 10\ EC3-EC5\LA1-LA2\LA9-LA10\LA12-LA13\ HR3 B1.1-B1.2\ B4.1-B4.2 P48-P49
CMEC deepens its regionalization and localization to promote the localized companies, management, personnel, Happy Homeland Share the Fruits of Development / Build the Platform for Employee Development LA9-LA10 B3.1-B3.2 P50-P51
and procurement so that CMEC can better integrate into and contribute to the local development. Thirdly, CMEC Happy Homeland Share the Fruits of Development / Create Happy Life LA2 P52-P55
fulfills its social responsibility for stakeholders by concerning about the local development, environment protection,
overseas staff and people's livelihood during the whole process of engineering projects. It is an excellent social Safety and Environmental Protection Ensure Sustainable Operation
responsibility report in the industry. Safety and Environmental Protection Ensure Sustainable Operation / Emphasize Work Safety B2.1-B2.3 P58-P61
Safety and Environmental Protection Ensure Sustainable Operation / Protect Occupational Health B2.3 P62
Safety and Environmental Protection Ensure Sustainable Operation / Implement Green Operation EN12-EN13\EN27\LA2 A1.1 \A1.5-A1.6 \A3.1 P63-P65
Harmonious Community Benefit Local Livelihood / Implement Localized Operation EC6\EC9 B8.1-B8.2 P68-P70
Harmonious Community Benefit Local Livelihood / Improve Community Livelihood EC7\SO1-SO2 B8.1-B8.2 P71-P72
Han BinExecutive Secretary of Global Compact Network China Harmonious Community Benefit Local Livelihood / Engage in Public Welfare SO1-SO2 B8.1-B8.2 P73
Key Performance P74-P75

Outlook 44 P76-P77
Expert Opinion P78
Report Index 32 P79
Feedback Form 57-58 P80
78 79
Feedback Form
Dear readers,
Thank you for reading this Report. We are looking forward to your comments and
opinions on it, which can help us improve our social responsibility work and enhance our
capacity to fulfill social responsibility.
Thank you!

August, 2016
Multiple Choice: (Please tick the corresponding choice)

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Open Question:
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Responsibility Report 2015? If yes, you are more than welcome to share with us:
Contact Information

Postcode100055 Contact person: WANG Sudan, Social Responsibility Office
TEL: +86-10-63312002
FAX: +86-10-63268156
E-mail: csr@mail.cmec.com
http: //www.cmec.com
80

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Contribution to the World

China Machinery Engineering Corporation

China Machinery Engineering Corporation

Reference to China Machinery Engineering Corporation

Reporting Data Sources

Access to This Report

Responsibility Management Going Forward Hand-in-hand Safety and Environmental Protection

President been laid out by the Company?

Create Excellent Projects to Strengthen Quality Construction

Development Led by Responsibilities

Implement Localized Operation to Integrate into Community Development

Create Livelihood Power Plant to Promote Shared Feelings

2015 Social Responsibility Report

About CMEC Company Governance

stock NameChina Machinery Engineering Corporation

3rd mutual benefit, common development and progress in harmony.

2015 Social Responsibility Report

Corporate Structure Development Strategy

Board of Directors Nomination Committee

Party Work Department

Capital Operation Department

1stComplete Plants Division

2nd Complete Plants Division

3rd Complete Plants Division

4th Complete Plants Division

5th Complete Plants Division

6th Complete Plants Division

7th Complete Plants Division

8th Complete Plants Division

Market development Management innovation Industrial chain integration Multi-service interoperability

2015 Social Responsibility Report

2015 Social Responsibility Report

Title: "Leading Enterprise" in "CSR Performance Evaluation of Chinese

Vice President Company of China

Title: Phase I of the CMEC New Energy Hangzhou Bay Distributed

Title: AAA Corporate Credit Rating Certificate in the areas of complete

Member of China Association Member of Foreign Affairs

2015 Social Responsibility Report

Responsibility Management Social Responsibility Organizational System

Social Responsibility Management Model

Partners Economic Environment

Social Responsibility Management Model

2015 Social Responsibility Report

Social Responsibility Work Promotion Strengthen Social Responsibility Ability Building

CMEC social responsibility brand.

Conduct Special Researches on Social Responsibility

Enhance Social Responsibility Communication

CMEC went to Sri Lanka to conduct featured researches on social responsibility

2015 Social Responsibility Report

Stakeholders Management Stakeholders Communication and Engagement

Identification and Analysis of Social Responsibility Material Issues

Profits and returns

Issues Issues Examination and

Enforcement of agreements and

Win-win cooperation Regular meetings

Anti-corruption Value creating ability promotion

Promote industry's progress Save resources Develop new energy industry

Improve community livelihood Human rights

Conduct strategic cooperation

High Higher Highest

Stablize Operation & Strengthen Basic Improve Value-creating

2015 Social Responsibility Report

Stabilize Operation & Development Strengthen Basic Management