Summary：As a subsidiary of CSR Corporation Limited and a major R & D and manufacturing base of China’s bulletin trains, CSR Qingdao Sifang Co., Ltd. has been attaching great importance to building the corporate management and control system.

As a subsidiary of CSR Corporation Limited and a major R & D and manufacturing base of China’s bulletin trains, CSR Qingdao Sifang Co., Ltd. has been attaching great importance to building the corporate management and control system. We have noticed recent media reports on purchase of bullet train parts and conducted elaborate investigation and verification, only to find the serious discrepancy between reported and actual purchase prices of bulletin train parts. The Ministry of Railways has taken a series of measures to standardize bidding administration since last year, and we have been giving strong support and cooperation as a supplier. We hereby thank the public and the press for their attention and would welcome any supervision from them.