ANNUALREPORT 2016

Another year has come to an end for the Swedish Chamber of Commerce in China.

Annual Report 2015 ........................................................ 1

Membership development in 2015 ............................... 2

Dragon Partners 2014 - 2015 ......................................... 4

Events in 2015 .................................................................. 5

Dragon News in 2015 – The Chinese Dream ................ 6

Website and Weekly Newsletter ................................... 7

Wechat ............................................................................ 7

Lobbying Activities ......................................................... 8

Report of Auditors 2015 .................................................. 9

Content

Another year has come to an end for the Swedish Chamber of Commerce in China. In summary, the year has been favorable; we have received 41 new Corporate Members, 3 new Dragon Partners, and advertisers for both Dragon News and the Members Directory have been at a good level. Our traditional Social Parties were well attended, however, exceptionally well attended were the Crayfish Parties in both Beijing and Shanghai with almost 200 guests at each party. The Suzhou Chapter was formed in 2015, the Camber’s third Chapter. The Suzhou region has 12 Corporate Members, which are included in the numbers for the Shanghai area.

Membership development in 2015

Cancelled memberships

In 2015, 32 Corporate Members cancelled their memberships: 17 from Shanghai, 9 from Beijing, and 6 from other cities. The cancellation rate in 2015 was 11 % of the total number of members, almost the same as the previous year (2014: 11.6%). The main reason for cancelled memberships in 2015 was that Company Members could not use their entitled benefits, whilst the second most cited reason was that they had decreased business in China, or even closing down. In 2014, the most cited reasons for cancelling were: cost saving, and the fact that the Swedish representative was leaving the company. Reasons for cancellation 2015

• Cannot use member benefits 37,5% (12 Companies) (2014: 19%) • Less business in China or closing down 19% (6 Companies) (2014: 13%) • Save cost 12,5% (4 Companies) (2014: 37%)

• Restructuring or merging 9% (3 Companies) (2014: 3%) • The Swedish Chamber Rep. left the Company 3% (1 Companies) (2014: 28%) • Other reasons 19% (6 companies)

Change in Corporate Members

The Swedish Chamber ended 2015 with 287 Corporate Members (85 in Beijing, 175 in the Shanghai area, and 25 in other cities). Suzhou had 12 Corporate Members, included in the Shanghai area numbers. Compared to the previous year, the total number of Company Members increased with 10 members.

Change in Corporate Members 20112-2015

Associate Members An Associate Member is someone with an interest in, or relation to, Sweden or Swedish business. There were a total of 12 Associate Members at the end of 2015; 1 in Beijing and 11 in Shanghai.

Dragon Partners 2014 - 2015 In order to secure the long-term and high-quality operation of the Swedish Chamber of Commerce in China, the Main Board of the Swedish Chamber of Commerce have approached some of the Chambers well-reputed Member Companies for sponsorship during the past two years. Thus far, seven companies have become Dragon Partners. The aim is to attain up to twelve Dragon Partners. 2014 Vinge, SAS, Handelsbanken, Business Sweden 2015 SAS, SCA, Atlas Copco, Mannheimer Swartling, Handelsbanken Atlas Copco, Handelsbanken, Mannheimer Swartling, SAS, SCA, Volvo cars are the Chambers current Dragon Partners in 2016. As a Dragon Partner you are offered long-term structured marketing through the Chamber’s communication channels. Boost Sweden - enhance positive beliefs about Sweden, Swedish values, and Swedish business in China. This will enhance the Swedish image for positive effects on employment attractiveness, corporate history and corporate culture

Thank you to our Dragon Partners 2015

Events in 2015

In Beijing, 32 activities were arranged, a few more activities compared to 2014. In addition, in 2015 the Chamber has co-hosted a couple of After Works with Young Professionals and the Nordic Chambers. This is due to the fact that the Chamber cannot reach the critical mass on its own.

In Shanghai, 43 activities were arranged, the same as the previous year. In Suzhou, 3 activities have been arranged. The Chinese trainings and Crayfish Parties have been specifically well attended in both Shanghai and Beijing, and joint events in Shanghai. We can see a trend of fewer participants at our activities in both Beijing and Shanghai. To ensure improvements and suggestions for future topics and speakers, the participants evaluate all events they attend. The following activities were organized in 2015:

Beijing Number Average for each meeting

Total number of participants

Chamber Traditions 2 157 313 Chamber Business Breakfast 14 18 249 Chamber Jointly 8 14 106 Chamber Light 2 22 44 Chamber Training 7 15 102 Nordic Chamber Golf Tournament 1 40 40 Total 34 854 (1169)

Shanghai Number Average for each meeting

Total number of participants

Chamber Traditions 3 163 489 Chamber Business Breakfast 14 21 285 Chamber Jointly 3 43 130 Chamber After Work 7 17 119 Sponsored events 3 15 45 Newcomer´s Gathering 1 42 42 Chamber Training 11 13 140 Chamber Evening 1 39 39 Total 43 1289 (1620)

Suzhou Number Average for each meeting

Total number of participants

Dragon News in 2015 – The Chinese Dream The Chambers member magazine, Dragon News, is published by the Editorial Committees of the Swedish Chamber of Commerce in Hong Kong and China and it is financed by advertisements and sponsorship. Dragon News is an important part of the Chamber’s communication platform in sharing information, views, opinions, and thoughts with its members. 2500 copies of Dragon News are printed four times a year. The magazine is distributed to the members of the Swedish Chamber and among the most important trade councils, organizations etc. Dragon News is also available on issuu.com; the largest collection of free to read publications from publishers around the world. You may read it on your computer; download the issue APP, read Dragon News on your tablet, and share articles and links with friends. In 2015 the annual theme that inspired the four issues of the magazine was - the Chinese dream. Issue 1: Where will China be in 2020? Issue 2: China expands it´s global power Issue 3: Connecting China Issue 4: The boom days are over

Website and Weekly Newsletter

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Website and Weekly Newsletter The number of visitors on our website is stable and almost the same as last year, the average visiting number was 5 164 (5 200) visitors per month. The Chamber’s database had at the end of 2015, 5 283 (5 310) mail addresses, and the Weekly Newsletter was sent to the same number of people. We work on a regular basis to clean up the database from old and invalid email accounts.

Wechat

The Swedish Chamber’s Wechat account was created in April 2014. In the end of 2015 we had 2953 followers. Most followers are Chinese-speaking people from Beijing, Shanghai and Guangzhou.

Lobbying Activities

The Lobbying Committee focuses on improving the conditions for Swedish companies doing business in China. For the last three years, the Swedish Chamber of Commerce in China has strengthened its work to influence decision-makers and those who shape opinions that affect our business climate. Since 2012, the Main Board has appointed a committee within the board of directors. Gradually, the Swedish Chamber is positioning itself as a natural spokesperson with decision-makers and opinion leaders that can affect the business climate for Swedish business in China. The Lobbying Committee is working together with different stakeholders to gain as much attention as possible. Among these stakeholders, we should note the Swedish China Trade Council in Sweden, Swedish Chamber International, EUCC, Swedish Embassy in Beijing, and the Swedish Consulate General in Shanghai. We have also had a fruitful cooperation with Stockholm Chamber of Commerce.

The Swedish Chamber of Commerce in China

FINANCIAL STATEMENTS

With Report of Auditors As of 31 December 2015

Independent Auditor’s Report

(This English translation is for reference only)

KZSZ [2016] No.

To The Swedish Chamber of Commerce in China, We have audited the accompanying financial statements of The Swedish Chamber of Commerce in China (the “Chamber”), which comprise the balance sheet as at December 31, 2015, the statements of income, shareholders’ equity, and cash flows for the year then ended, and notes to the financial statements. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparation and fair presentation of these financial statements in accordance with Accounting Standards for Non-profit Orgenisation; (2) design, implementation and maintenance for a necessary internal control to enable financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China’s Standards on Auditing for Certified Public Accountants. Those standards require that we comply with China Code of Ethics for Certified Public Accountants and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

Opinion

The Swedish Chamber of Commerce in China

BALANCE SHEET

As of 31 December 2015(in RMB) Notes 2015/12/31 2014/12/31

Page 3

CURRENT ASSETS

Cash in hand and at bank 4 864,367.37 1,588,919.23

Short-term investment - - Notes receivable - - Receivables 5 243,959.60 52,836.10

Prepayments 6,000.00 8,924.90

Inventory - - Deferred expenses - - Long-term debt investment due in 1 year - - Other current asset - - Total Current Assets 1,114,326.97 1,650,680.23 LONG-TERM INVESTMENT Long-term equity investment - - Long-term debt investment - -

Total long-term investment - - FIXED ASSETS Fixed assets-Cost 6 314,686.07 307,937.07 Less Accumulated depreciation 279,413.28 258,630.30 Fixed assets-Net value 35,272.79 49,306.77 Construction in progress - - Cultural assets heritage - - Disposal of Fixed assets - - Total fixed assets 35,272.79 49,306.77

INTANGIBLE AND OTHER ASSETS Intangible assets - - ASSETS ENTRUSTED BY AGENT Assets entrusted by agent - -

Total of assets 1,149,599.76 1,699,987.00 The accompanying notes form part of the financial statements. Stamp: President: Financial Controller:

The Swedish Chamber of Commerce in China

BALANCE SHEET

As of 31 December 2015(in RMB) Notes 2015/12/31 2014/12/31

Page 4

CURRENT LIABILITIES

Short-term loan - - Payables 166,761.38 476,581.38 Wages payable 1,080.00 - Taxes payable 7 10,330.57 18,104.51 Advances from members 8 310,896.00 547,500.00 Accrued expenses - - Provisions for foreseeable liabilities - - Long-term liability due within one year - - Other current liabilities - - Total current liabilities 489,067.95 1,042,185.89 LONG-TERM LIABILITY Long-term loan - - Long-term payable - -

Other long-term liabilities - -

Total long term liabilities - -

FIDUCIARY AGENT LIABILITIES Fiduciary agent liabilities - - Total of liabilities 489,067.95 1,042,185.89 NET ASSETS Non-restrictive net assets 660,531.81 657,801.11 Restrictive net assets - - Total net assets 660,531.81 657,801.11 Total of liabilities and net assets 1,149,599.76 1,699,987.00

The accompanying notes form part of the financial statements. Stamp: President: Financial Controller:

The Swedish Chamber of Commerce in China

Income Statement

For the year ended 31 December 2015(in RMB) Notes 2015 2014

Page 5

Non-limited Non-limited 1 Income 9 of which Donation - - Membership fee 1,848,183.79 1,400,408.96 Rendering services 1,760,517.45 1,466,579.88 Sales of goods - - Government grant - - Investment income - - Other income - - Total income 3,608,701.24 2,866,988.84 2 Expenses 2.1The cost of operational activities 10 1,169,872.71 1,137,476.47 of which Project cost - - Cost of rendering services 1,169,872.71 1,137,476.47 Cost of goods sold - - 2.2 General and administrative expenses 2,456,633.01 2,548,714.87 2.3 Financial expenses (20,205.18) (41,628.54) 2.4 Other expenses (330) (684.92) Total costs 3,605,970.54 3,643,877.88

3 Restrictive net assets turn into non-restrictive net costs

- - 4 Amount of changes in net assets 2,730.70 (776,889.04) The accompanying notes form part of the financial statements. Stamp: President: Financial Controller:

www.swedishchamber.com.cn

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