Founded in 1999, Kunming Yunnei Power Co., Ltd. (hereinafter referred to as "Yunnei Power" or "the Company") is a joint-stock listed company exclusively initiated by Yunnan Internal Combustion Engine Plant by the mode of social fund raising. Up to now, Kunming Yunnei has been engaged in diesel engine development and production for almost 60 years. The Company is a leading enterprise in the auto parts and engine industry, a pioneer enterprise in the internal combustion engine industry, and a national enterprise technical center in China. Besides, the Company is also listed among the second batch of innovation-type pilot enterprises and the first batch of innovative enterprises and new high-tech enterprises in Yunnan. Moreover, the Company also won many honorable titles including "Backbone Enterprise of National Passenger Vehicle Diesel Engine High-tech Industrial Bases" granted by the Ministry of Science and Technology, "Key High-tech Enterprise of the National Torch Plan", "International Scientific and Technological Cooperation Base", "National May 1st Labor Award" and "National Advanced Primary Party Organization". At present, the Company has RMB 8.1 billion total assets.

To improve its competitive strength and accelerate the industrial distribution and base construction, the Company purchased Chengdu Internal Combustion Engine Plant, and established Chengdu Yunnei Power Co., Ltd. ("Chengdu Yunnei") in 2001. Chengdu Yunnei is mainly engaged in the production of Series 490 and 495 diesel engines and natural gas engines. With the Sub-center of the National Gas Vehicle Engineering and Technological Research Center as the platform, the Company will establish a national natural gas engine research & development base. In 2013, the Company invested an amount of RMB 60 million to establish Shandong Yunnei Power Co., Ltd. And Yunnei (Shandong) Base mainly engaged in the research and development of non-road diesel engines and sold-out products among the Company's products.

In December 2012, the Company was moved to Kunming Economic and Technological Development Zone. The new plant covers an area of more than 900 mu. Moreover, the Company introduced overseas advanced casting, machining, assembly and other key equipment as well as software development and testing equipment to establish a leading commercial vehicle diesel engine and passenger vehicle diesel engine R&D and production platform, and became an important research, development and manufacturing base of multi-cylinder and small-cylinder diesel engines at the levels of National IV, National V and European V, with great competitive strength in the industry. At present, the Company is capable of producing 300, 000 commercial vehicle diesel engines (above National IV), 100, 000 passenger vehicle diesel engines (above National IV) and 100, 000 non-road diesel engines (above National III) per year.

The Company's leading products take the leading position in the same industry in China. Environmentally-friendly DEV series electronic control high pressure common rail diesel engine with the proprietary intellectual property rights and international advanced level has been matched with SUV, MPV, saloon car and other vehicle models of several domestic passenger vehicle enterprises. In 2012, D19TCI European V engine was exported in batches to Britain together with SAIC MG6 automobiles, opening up a new era of domestic diesel engines into the European market. The emission of YN series commercial vehicle diesel engine reaches the levels of National IV and National V, with excellent power, reliability and economical efficiency. All performance indexes are at an advanced level when compared with similar products in China. The emission of Yunnei power and natural gas dual-fuel power engine reaches the standard of National V, with the potential of upgrading to National VI.