Stock Code: 002 105 securities referred to: Nobutaka Industry Announcement Number: 2016-018

HL CORP(SHENZHEN) , Ltd.

Announcement on impairment of assets

The Company and all members of the Board of Directors to ensure the information disclosed is true, accurate and complete, not false, misleading statements or material omissions.

Fifteenth Meeting of the Fourth Board of HL CORP(SHENZHEN) , Ltd. (hereinafter referred to as the "Company") on 13 April 2016 and the fourth meeting of the fourteenth meeting of the Supervisory Board, reviewed and approved "on the provision for asset impairment value preparation, "the motion. Now according to "the Shenzhen Stock Exchange SME board listed companies standardize operational guidelines" provisions, will be specifically announced as follows:

1. Items Impairment Provision

According to the relevant provisions of "Enterprise Accounting Standards", the company's accounting policies and other requirements in order to more truly and accurately reflect the company's balance sheets as of December 31, 2015 and the financial position of the company and its subsidiaries at the end of 2015 the corresponding accounts receivable paragraph, inventories, fixed assets and other assets in the inventory analysis, the possibility of various types of receivables recovery, inventory and fixed assets and other net realizable carried out a full analysis and evaluation, in line with the principle of prudence, the company asset impairment loss for an asset impairment may occur.

1, bad debts

During the reporting period due to the decline in revenue resulting in accounts receivable balance be reduced, according to the company policy of provision for bad debts, estimated by the end of the period required to be reversed prior year provision for bad debts 704,400 yuan.

2, inventory impairment

Customers cancel orders due to other causes part of the company inventory backlog, sluggish product is formed, according to company policy provision for depreciation reserves inventory, the estimated period required provision for inventories 7.3175 million yuan; due to be diverted to other products in sales orders, factors Affecting the original write-down of the inventories have disappeared, the reversal of prior year provision for inventory impairment 935,900 yuan; reporting period due to the disposal of part of the backlog of inventory write-off in prior years provision for inventories 321,900 yuan.

3, fixed assets and construction in progress impairment

Disposal of certain period due to aging and production technology advances eliminated idle equipment (mainly due to last year revoked the original aluminum extrusion production sectors and idle three aluminum extrusion machine and its ancillary equipment), resellers previous year provision impairment of fixed assets 4,149,100 yuan; because of company policy adjustment, resulting in the original purchase of the old equipment to be installed temporarily idle, the current company's fair value less disposal costs to determine the recoverable amount and accrued corresponding impairment of assets, in addition, because the company Songgang factory planning and adjustment, part of the original steel building temporarily idle, the current book value of the company minus its costs to determine the recoverable amount and the corresponding provision asset impairment, the estimated total of the current provision for construction in progress impairment 4.6824 million yuan; purchase of part of the original issue of the disposal of old equipment to be installed, reseller prior year provision for impairment of construction in progress ready to 19,800 yuan.

Second, the current impairment impact on the company

Impairment of the period Total assets impairment loss of 1,035.96 million, reducing net profit attributable to shareholders of the year 2015 7.663 million yuan, reducing the equity attributable to shareholders of the parent company of the year 2015, 7.663 million yuan.

The provision for impairment of assets has Ruihua Certified Public Accountants (special general partnership) audit confirmation.

Third, the underlying asset impairment approval process

Fifteenth Meeting of the Fourth Board of the company in April 13, 2016 meeting of the fourth Board of Supervisors fourteenth meeting examined and adopted the "on the provision for asset impairment," the motion, the company agreed to the terms of the underlying asset provision for impairment of program.

Fourth, the Committee's comments on the matter

Board of Supervisors that the company on matters related to asset impairment in line with the provisions of "Enterprise Accounting Standards", and does not involve manipulation of profits, the company agreed to the provision for impairment of assets related to the preparation program.

Special announcement.

         HL CORP(SHENZHEN) , Ltd. Board of Directors

April 15, 2016