THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS This glossary of technical terms contains explanations of certain terms used in this document as they relate to us and as they are used in this document in connection with our business or us. These terms and their meanings may not always correspond to standard industry meaning or usage of these terms. ‘‘4G’’ acronym for fourth generation of mobile communication standards, a mobile communications standard providing mobile phones, computers, and other portable electronic devices with wireless access to the internet ‘‘alternative route a system identifying the expressway route vehicles have passed identification and through with license plate identification points installed along allocation system’’ the expressway for calculating and allocating toll fees. For details, please refer the sub-section headed ‘‘Business ─ Expressway Operations ─ Toll Allocation by the Expressway Toll Settlement Centre’’ in this document ‘‘automobile the total number of registered vehicles in a certain area ownership’’ ‘‘average daily traffic total daily traffic flow of an expressway flow’’ ‘‘Belt and Road the trading policy of the PRC Government aimed at linking Initiative’’ China to the world and to facilitate the trading between China and its neighbouring Asian and European countries along the new silk road ‘‘Build — Operate — a model under which the government may enter into a concession Transfer model’’ agreement with a project company for certain infrastructure projects. The project company is responsible for the investment, financing, construction and maintenance and repair of the project. During the Concession Period under the concession agreement, the project company is allowed to obtain financing for the construction of and operate the specific public infrastructure. The project company is also allowed to collect fee from users thereof or sell its products to repay its debts, recover its investments and gain profits. Upon expiry of the concession period the project company as required to transfer the public infrastructure to the government at nil consideration ‘‘class I highway’’ a multi-lane highway with dividers to separate vehicles travelling in different directions and with access control to regulate traffic flow. The designed annual average daily traffic capacity of class I highway is more than 15,000 small passenger vehicles –28– THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘class II highway’’ a double lane highway for vehicles. The designed annual average daily traffic capacity of class II highway is 5,000 to 15,000 small passenger vehicles ‘‘class III highway’’ a double lane highway for vehicles and non-vehicle traffic. The designed annual average daily traffic capacity of class III highway is 2,000 to 6,000 small passenger vehicles ‘‘class IV highway’’ a double or single lane highway for vehicles and non-vehicle traffic. The designed annual average daily traffic capacity of double lane class IV highway is less than 2,000 small passenger vehicles and the designed annual average daily traffic capacity of single lane class IV highway is less than 400 small passenger vehicles ‘‘class 1 vehicle’’ truck of 2 tons or less and passenger vehicle with 7 seats or less ‘‘class 2 vehicle’’ truck of 2 to 5 tons (including 5 tons) and passenger vehicle with 8to19seats ‘‘class 3 vehicle’’ truck of 5 to 10 tons (including 10 tons) and passenger vehicle with 20 to 39 seats ‘‘class 4 vehicle’’ truck of 10 to 15 tons (including 15 tons), 20-foot container vehicle and passenger vehicle with 40 seats or above ‘‘class 5 vehicle’’ truck of 15 tons or above and 40-foot container vehicle ‘‘closed system’’ a toll system in which all vehicles entering the system are known and recorded, and for which tolls are calculated by reference to the distance travelled on the expressway ‘‘electrical and the development, maintenance and repair, upgrade and reform of mechanical the expressway information management systems (i.e. engineering’’ monitoring system, communication system and toll collection system) ‘‘Eleventh Five-year a series of national economic and social development policies Plan’’ and guidelines which were adopted by the PRC Government to determine and implement the objectives of China’s economic and social development from 2006 to 2010 ‘‘engineering senior research engineer, a senior technical professional title in technology the engineering field in China and one of the highest ranks application among all senior engineering professional titles researcher’’ –29– THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘ETC’’ electronic toll collection system to collect tolls electronically by using automatic vehicle identification technology without the need for the vehicle to stop for payment ‘‘ETC card’’ an IC card used for payment of expressway tolls under the electronic toll collection system, being either an ETC charge card or an ETC prepaid card ‘‘ETC charge card’’ an IC card used by a vehicle owner for payment of expressway tolls. No immediate payment is required upon the presentation of the card. The system will, based on computer records for the use of expressway automatically deduct the relevant fees on a periodic basis from the bank account designated by the vehicle owner to be linked with the card ‘‘ETC prepaid card’’ an IC card used for payment of expressway tolls. The electronic wallet attached to the card is first topped up by the card holder. No cash payment is required upon presentation of the card for toll payment at the expressway. The tolls are directly deducted from the digital wallet ‘‘expressway’’ a multi-lane highway with dividers to separate vehicles travelling in different directions and with access control to regulate traffic flow. The designed annual average daily traffic capacity of an expressway is more than 15,000 small passenger vehicles ‘‘expressway pass’’ an IC card used to record the entry information of a vehicle using the MTC system for passing through the expressway and toll payment, such card being issued to the driver on entry and returned by the driver at the exit of the expressway. The card carries information of the vehicle passing through the expressway including license plate number, vehicle type, vehicle classification, the point of entry to the expressway and the time of entry to the expressway. The driver has to present the card at the exit for toll payment, whereby the tolls are collected by reference to the distance travelled on the expressway, calculated in accordance with the data recorded in the card ‘‘Expressway Toll Expressway Toll Settlement Centre of the Shandong Provincial Settlement Centre’’ Traffic Transport Department, a functional department under the Shandong Transport Department, which is the administrator of the Shandong provincial expressway network toll collection system, and is responsible for the toll record, toll management and toll entitlement allocation of the expressways in Shandong Province ‘‘GFA’’ gross floor area –30– THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘government-repaying- a toll road/expressway constructed by the competent loan toll road/ transportation department of the people’s government at or expressway’’ above the county level, through making use of loans or raising funds with enterprises or individuals ‘‘highway’’ according to the Technical Standards of Highway Engineering (JTG B01–2014) promulgated by the MOT, highways include the following five types: 1. expressway; 2. class I highway; 3. class II highway; 4. class III highway; and 5. class IV highway ‘‘IC card’’ a smart card utilising contactless integrated circuit technology whichisusedtorecordanddetermineinformationrelevantto the computation of tolls ‘‘Jihe Expressway total traffic flow of the Jihe Expressway comprising (i) the Traffic Flow’’ number of vehicles entering the Jihe Expressway through its toll station (no matter whether the vehicle leaves the expressway network through the toll station of the Jihe Expressway or other expressway) and (ii) the number of vehicles leaving the Jihe Expressway through its toll station (no matter whether the vehicle enters the expressway network through the toll station of the Jihe Expressway or other expressway), within a particular time period ‘‘license plate a system that allows real-time identification of license plates identification points’’ information of vehicles passing along the expressway through surveillance cameras installed at specific points along the expressway ‘‘major industrial industrial enterprises with their respective operating revenue of enterprises’’ not less than RMB20 million ‘‘MTC system’’ manual toll collection system –31– THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘national