GIA BRAND BACKGROUND

On July 28, 2016, Sweden Epiroc Rock Drills Aktiebolag (formerly Atlas Copco Group) and Hongwuhuan Group signed a drilling rig joint venture project ceremony in Quzhou,Zhejiang, China. The two sides jointly established a joint venture company to develop, produce and sell open-air engineering and mining equipment for all Chinese customers, and named the joint venture company GIA () brand.

Sweden Epiroc Rock Drills Aktiebolag (formerly Atlas Copco Group) is the world's leading provider of sustainable productivity solutions, with innovative compressors, vacuum solutions and air handling systems, construction and mining equipment, power tools and assembly systems and other equipment proprietary manufacturing technology, as well as a global sales network. Its mining and rock excavation technology business has leading drilling and rock excavation technologies that provide sustainable solutions for open-air and underground mining, infrastructure, civil engineering, water well drilling and geotechnical applications. Founded in 1997, Hongwuhuan group is a leading manufacturer of aerodynamic and engineering tunneling equipment in China, with a strong equipment manufacturing base. At present, Hongwuhuan group has eight series of more than 400 kinds of products, with an annual production capacity of 200,000 sets of general machinery, engineering machinery, tunneling machinery, power machinery and mining machinery.

The signing of the joint venture agreement between Sweden Epiroc Rock Drills Aktiebolag (formerly Atlas Copco Group) and Hongwuhuan group is an important milestone in both cooperation. After the establishment of the joint venture, it will rely on the technology of Epiroc Rock Drills Aktiebolag and Hongwuhuan, develop and produce high cost-effective open-air drilling rig products according to the needs of Chinese users, so as to comply with the trend of mechanized mining in the market and meet the needs of customers for the upgrading of mining equipment.

"Epiroc Rock Drills Aktiebolag not only has excellent products, excellent corporate culture, but also has hundreds of years of management experience. Hongwuhuan has rich practical experience and equipment manufacturing foundation in China. Our cooperation is win-win and complementary. We are confident that we will build the joint venture into a world-class company." Mr. Su Yongqiang, chairman of Hongwuhuan group, said at the signing ceremony.

[It is believed that the fusion efficiency of this powerful alliance will open up a new situation in China's mining and construction equipment market, "Mr. Gong Yuanxiang, chairman of Atlas Copco (China) Investment Co., Ltd., was full of confidence in the cooperation between the two sides at the joint venture signing ceremony." I sincerely hope that our joint venture will develop better and better. "