The VAT rate is applicable to foreign-invested projects under construction.

The enterprise income tax rate is 15% if it is recognized as a high-tech enterprise by the local science and technology commission, finance bureau and tax bureau.

Value-added tax: the company's holding subsidiary Chengdian Medical Star is a software enterprise. According to the provisions of Guofa [2011] No.4 and Caishui [201] 100, Chengdian Medical Star sells itself at the rates of 16% and100. The company's software technology development income is exempt from value-added tax. The company and its subsidiaries belong to the construction service industry. According to Caishui [2016] No.36, the VAT rate of the company and its subsidiaries is levied at the applicable tax rates of 10% and 9%, but the old projects are simply levied at the tax rate of 3%. For off-site inspection and management projects, the tax shall be paid in advance at the location of the project (specifically, for simple collection projects, it shall be paid at the rate of 3%, and for general collection projects, it shall be paid at the location of the institution), but the tax paid in advance may be deducted from the tax payable. The applicable tax rate for the contract energy management business of Dongfang Yanhua, a subsidiary of the Company, is 6%.