Chengdu Aiyihang Public Welfare Service Center (Unified Social Credit Code: 52510100MJQ078891H, hereinafter referred to as the Agency) was formally registered and established in the Civil Affairs Bureau of Chengdu Municipality on October 25, 2017, and is mainly engaged in the public welfare activities of the Aiyihang project of the schooling category, and the Aiyihang Marrow Major Disease Relief Project of the medical category, and the Agency completed the previous year prior to the 2018 Enterprise Income Tax Settlement Eligible non-profit organizations income tax exemption preferences for the record, in 2018, the agency to prepare their own relevant tax exemption preferences docketed information to be retained and filed.

I. Sources and utilization of funds

The Agency's sources of funds in 2018 were mainly major foundation endowment grants, endowment income of a public welfare nature, no other sources of revenue for profit, based on the relevant endowment agreement for public welfare activities, the actual situation of the grantee to investigate and understand the endowment grant expenditures, and all the endowment expenditures projects are in line with the nature of the public welfare.

II. Separate accounting for costs, expenses and losses

The organization has no activities of taxable income and its related costs, expenses and losses, and only accounts for tax-exempt income and its related costs, expenses and losses. The relevant accounting costs, expenses and losses are accounted for in strict accordance with the accounting system for private non-profit organizations, and the costs as well as expenses for the current period are accounted for and carried forward at the end of the month in accordance with the requirements of the accounting system, and there is no balance of costs and expenses at the end of the period.

III. Description of various types of tax-exempt income

In FY2018, the cumulative income from tax-exempt donations amounted to RMB 32,556,500, of which RMB 8,032,500 was donated to the school-aided Aishangjian project, and RMB 24,524,400 was donated to the medical-aided Aishangmian major disease relief project, and the above donations were all directly allocated by the major foundations to the public accounts of the institutions, and at the same time, uniform bills for donations to public welfare services of Sichuan Province were issued, and accordingly, the relevant accounting treatment (for supporting information, please refer to Annex 4: Relevant Income Supporting Materials). For the donation income received, the cumulative donation expenditure of 31,299,800 yuan in 2018 for the expenditure of eligible recipients or designated recipients, of which: 6,950,800 yuan for the donation expenditure of the school-aided Aisian project, and 24,341,800 yuan for the donation expenditure of the medical-aided Aisian medulla oblongata major disease relief project. At the same time to pay the project implementation and management fees (in line with the relevant provisions of the private non-enterprise and donor foundations) 1.104 million yuan, the cumulative balance of the remaining 156,300 yuan in the next year for the endowment expenditures.

IV. Special note on salaries and wages

In 2018, the organization incurred a total of RMB 809,600,000 for salaries and wages, five insurance and one fund, and other related labor costs, accounting for 2.5% of the total annual costs.The organization refers to the relevant regulations of the public welfare industry as well as the relevant provisions of the Foundation Law, and the annual labor costs do not exceed 10% of the current year's expenses.The organization pays social security provident fund for its employees in a timely manner, and fulfills the monthly withholding and payment of personal income tax on behalf of employees in a timely manner. For details of the remuneration system and salary information of important personnel, please refer to Annex 5: Remuneration System and Salary Information of Personnel.

V. Institutions make relevant filings based on the following relevant tax exemption incentives:

1. Item 4 of Article 26 of the Enterprise Income Tax Law of the People's Republic of China;

2. Articles 84 and 85 of the Regulations of the People's Republic of China on the Implementation of the Enterprise Income Tax Law;

3. Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Tax-Exempt Income from Enterprise Income Tax of Non-Profit Organizations (Cai Shui (2009) No. 122);

4. Circular of the Ministry of Finance and the State Administration of Taxation on Issues Related to the Administration of Tax-Exempt Qualification Recognition for Non-Profit Organizations (Cai Shui (2018) No. 13).

It is hereby clarified!

Chengdu Aiyihang Public Welfare Service Center

January 21, 2019

List of annexes:

Annex 1: Certificate of Registration of Civil Non-Enterprise Legal Persons

Annex 2: Institutional Statutes

Attachment 3: 2017 Notice of Tax Matters for Tax Exempt Filing

Annex 4: Relevant income documentation (donation agreements, receipts, bank statement attachments)

Annex 5: Remuneration system and information on personnel salaries

Annex 6, Financial Statements for December 2018