Stati stical Unit in Construction refers to corporate enterp rise engaged in the construction of buildings and structures
and in t he installation of equipment. A corp orate cons truct ion ent erprise should meet t he following 3 requirements : ①
being set up in line with relevant legal basis, having its full name, organization and location, and cap able of t aking civil
liabilities ; ② independently posses sing and using its ass ets and assuming its liabilities, and entitled to s ign cont racts wit h
other institut ions; and ③ making independent accounts of its profits and losses, and capable of compiling its own balance
sheet.

Gross Output Value of Cons truction (Output Value of Projects Under Construction) refers to t otal of const ruct
ion products, expressed in money terms, completed by construction and installation enterp rises during a given period of
time. It includes:

(1) Outp ut value of construction projects, that is t he value of projects covered by the project budgets;

(2) Output value of installation projects, that is the value of the installation of equipment, (excluding the value of the
equipment t o be installed);

(3) Outp ut value of others, that is t he output value of construction indust ry excluding that of const ruct ion p rojects and
installation projects. It includes: outp ut value of repair of buildings and structures ; output value of non-st andard equipment
manufacturing; overhead expenses received by contracted enterprises to the sub-contract ed enterprises and the completed
output value of cons truction activities that have no clear definition.

a. Output value of repair of buildings and structures, that is the value created through the rep airs of buildings or structures,
but does not include the value of buildings or structures being repaired and the value of the repair of production equipment;

b. Out put value of manufactured non-st andard equipment, that is the value of non-standard production equipment including
raw materials and manufact uring cost made for the construction project (i.e., chemical plant ; kettles or tanks used by
refineries; various fillers , t riangle tanks, valves used by mines), and t he out put value of equipment manufactured by subs
idiary workshops.

Value -added of Construction refers to the final result of the activities of production and management of construction
industry in monetary terms in the reference period. At present, the value-added of cons truction is calculat ed with the income
approach, t hat is to say, it is the sum of income of various production factors in t he production process. The formula is as
follows:

Value-added of construction=depreciation of fixed assets in the year + wages pay able of the major operation + welfare
expenses payable of major operation + insurance premium and tax for waiting for emp loyment in the administrative
expenses + taxes and surcharges on project set tlement + profit gained from project settlement.

Floor Space of Buildings Under Construction refers to floor space of buildings under const ruction during t he reference
period, including newly start ed buildings, buildings started earlier and continued during the reference p eriod, and buildings
suspended earlier but restarted during the reference period, buildings completed during the reference period, and buildings
under construct ion and then suspended during the reference period.

Floor Space of Buildings Compl eted refers to the floor space of buildings that are comp leted in the reference period in
accordance with the requirements of the des ign, up to the s tandard for put ting them into use, and have been checked and
accepted by concerned departments as qualified ones.

Total Number of Machinery and Equipment Owned by the End of Year refers to the number of machines and
equipment owned by the ent erprises, and list ed as the fixed assets of the enterprises by the end of the year, including
machinery and equipment for const ruction, production and transportation and other equipment.

Total Power of Machinery and Equipment Owned by the End of Year refers to the t otal p ower of machinery and
equipment owned by t he enterprises, and lis ted as t he fixed assets of the enterprises by the end of the year, including
machinery and equipment for cons truction, production and transportation and other equipment. The power of the machinery
is calculated on basis of the designed or verified capacity, covering the power of the machinery/equipment and the separate
power equipment serving the machinery/equipment (such as electric motors), but excluding welders, trans formers and
boilers. The unit used for the calculat ion of power is kilowatt , with horsepower converted to kilowatt by 1 horsepower=0.735
kilowatt.

Income from Settlement of Projects refers to the income received by the construction enterprise from the contracted
project t hrough s ett lement procedures, and ot her charges to the contractoree as operational costs in addition to the value
of the project, such as temporary facility fee, labour insurance premium, moving cos t of construction equipment, as well as
various types of claims t o the contractee.

Profi t from S ettlement of Projects refers to p rofit realized through s ettled projects. It is calculated with the following
formula:Profit from Settlement of Projects=Income from Settlement of Projects - Set tled Cost - Settled Taxes and Other Cost

Total Revenue of Enterprises refers to the sum of income from production and op eration of enterprises, including
income from settlement of projects and other operational income, namely:

Total Revenue of Enterprises=Income from Settlement of Projects + Other Operational Income