ANNOUNCEMENT NO. 30, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS CONCERNING THE MATTERS ON THE TRANSFER OF TAXABLE MOTOR VEHICLES ENTERED THE TERRITORY OF CHINA BY THE PERMANENT PERSONNEL

Announcement No. 30, 2006 of the General Administration of Customs concerning the matters on the transfer of taxable motor vehicles
entered the territory of China by the permanent personnel

[2006] No. 30
May 29,2006

In order to regulate the supervision of the customs over the motor vehicles entering the territory of China by the permanent personnel
and take into consideration their reasonable needs, an announcement concerning the matters on the transfer of taxable motor vehicles
entering the territory of China by the permanent personnel is hereby made as follows:

Any taxable motor vehicle entering the territory of China by permanent personnel shall be transferred and changed the name of the
owner in the register only one year after the vehicle register formalities have been gone through in the traffic administrative department
of the public security.

In case the permanent personnel transfers any motor vehicle entering the territory of China and changes the name of the owner in
the register, a written application shall be sent to the competent customs house and the following documents shall be handed in for
examination:

(1)

The identity certificate;

(2)

The long-term residence permit;

(3)

The Driving Permit of Motor Vehicle for the motor vehicle entering the territory of China; and

(4)

The Archival Filing Certificate of the Customs of the People’s Republic of China on Permanent Offices of the permanent office where
the permanent personnel is located or the Registration Certificate of Entities Handling Customs Declaration by Themselves of the
foreign- invested enterprise in which the permanent personnel works.

After examination and approval, the competent customs house shall issue a Certificate of Releasing from Supervision over Vehicles
under the Customs’ Supervision of the People’s Republic of China. According to the said Certificate, the permanent personnel shall
go through the formalities on transferring the motor vehicle and changing the name of the owner in the register of related motor
vehicle in the traffic administrative department of the public security.

The related provisions of the Measures of the Customs of the People’s Republic of China for Supervising the Entry and Exit of Articles
for Self-use of Non-resident Permanent Passengers (Order of the General Administration of Customs, No. 116) shall apply to other
requirements for the permanent personnel concerning self-use vehicles entering the territory of China.

This Announcement shall go into effect as of the date of being promulgated

General Administration of Customs
2006-05-29

NOTIFICATION NO.12, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.12, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.12

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 12th regular meeting of 2006 on Jun 6, 2006. Relevant matters
and decisions are now announced as follows:

The bid-winning enterprise of National Gymnasium Maintenance assistance project was examined and approved. The Bid Board opened sealed
tenders on May 29, 2006. In all, 15 enterprises including Liaoning International Techno-Economic Cooperation Co., Ltd., Weihai International
Economic & Technical Cooperative Co., Ltd., China Jiangsu International Economic Technical Cooperation Corp., China Jiangxi Corporation
For Economic and Technical Cooperation, Gansu Foreign Engineering Corporation, China Henan International Cooperation Group Co., Ltd.,
Jiangsu Construction Group Corp., China State Construction Engineering Corp., China Shandong Foreign Economic Technical Cooperation
Corp., Anhui Foreign Economic Construction Corporation (group) Co., Ltd., China Shanxi International Economic & Technical Cooperative
Co., Ltd, Hubei Construction Engineering Group Corporation, Ningbo Construction Group Co., Ltd., China Tianjian International Economic
and Technical Cooperative Corporation and China SFECO Group Co.,Ltd..submitted tender documents on time. The Bid Board, in accordance
with “the Measures for Tender Assessment of Undertaking Foreign Assistance Complete Plant Projects” which was revised in 2005 by
the Ministry of Commerce of the People’ Republic of China, for Trial Implementation and the principles of “competing with no minimum
bid ” and “biding with reasonable lower price “, determined to confer bid to China Jiangsu International Economic Technical Cooperation
Corporation after two steps of tender assessment with technical measures and integrated quantity measures.

The bid-winning enterprise of Rwanda Ministry of Foreign Affairs Office Building assistance project was examined and proved. The
Bid Board opened sealed tenders on May 29,2006. In all, 18 enterprises including China Civil Engineering Construction Corporation,
Chongqing Foreign Construction Co., Ltd., Yanjian Group Co., Ltd., Anhui Foreign Economic Construction Corporation (group) Co.,
Ltd., Qingdao Construction Group Corporation, Beijing Construction Engineering Group Co., Ltd., Shanxi Construction Engineering (group)
Co., China National Overseas Engineering Corporation, Guangdong Xinguang International Group Co., Ltd., Guangdong Construction Engineering
Group Co., Ltd., Qilu Construction Group Corporation, China Jiangsu International Economic Technical Cooperation Corp., Fujian Construction
Engineering Group General Co., Jiangsu Construction Group Corp., Anhui Construction Engineering Group Co., Ltd., Zhengtai Group Co.,
Ltd., China Ershisanye Construction Group Co., Ltd. and Zhejiang Electric Power Construction Corp. submitted tender documents on
time. The Bid Board, in accordance with “the Measures for Tender Assessment of Undertaking Foreign Assistance Complete Plant Projects”
which was revised in 2005 by the Ministry of Commerce of the People’ Republic of China, for Trial Implementation and the principles
of “competing with no minimum bid ” and “biding with reasonable lower price “,, determined to confer bid to Beijing Construction
Engineering Group Co.Ltd. after two steps of tender review with technical measures and integrated quantity measures .

The contract price of Pakistan medical team for disaster areas of earthquake assistance project was examined and approved.

The tender mode of Mozambique National Gymnasium investigation and design assistance project was discussed. The Bid Board adopted
limited invitation tender mode, and 6 enterprises including Beijing Institution of Architectural Design, Wuhan Architectural Design
Institute, China IPPR Engineering Corporation, China Railway Engineering Consultants Group Co., Ltd., China International Engineering
Design & Consult Co., Ltd. and East China Investigation and Design Institute will be invited to participate in the bid.

Foreign Assistance Project Bid Board of the Ministry of Commerce

Jun 6, 2006

Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-06-06

ANNOUNCEMENT NO.73, 2006 OF MINISTRY OF COMMERCE ON AUCTION OF STATE SUGAR RESERVE OF SEPTEMBER

Announcement No.73, 2006 of Ministry of Commerce on Auction of State Sugar Reserve of September

[2006] No.73

For purposes of guaranteeing market supply and safeguarding the smooth operation of sugar market, related departments of the State
Council decides to release 286,000 ton of national sugar reserve at two auctions in September. The first auction on Sep 12 covers
147,000 ton of state sugar reserve, including the state sugar reserve that was supposed to be released on Sep and the 10th and 11th
ship of imported sugar from Cuba. The second auction on Sep 19 covers 139,000 ton of state sugar reserve, including the state sugar
reserve that was suspended on Aug 15 and the 12th and 13th ship of imported sugar from Cuba. Please refer to website of Ministry
of Commerce http//scyxs.mofcom.gov.cn/for details of the auction.

Ministry of Commerce

Sep 7, 2006

Ministry of Commerce
2006-09-07

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE RECORD OF EXPORT CONTRACT

Circular of the State Administration of Taxation on Relevant Issues concerning the Record of Export Contract

Guo Shui Han [2006] No. 847

Bureaus of State Taxes in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially
designated in the State plan:

With the approval from the State Council, Circular on Readjusting the Export Rebate Rate for Some Commodities and Supplementing the
Prohibitive Catalog for Processing Trade (Cai Shui [2006] No. 139) was released by the Ministry of Finance, the Ministry of Commerce,
the National Development and Reform Commission, the State Administration of Taxation, the General Administration of Customs, prescribing
that the export rebate rate for some export goods shall be adjusted as of September 15, 2006, and that after an export contract concluded
with foreign parties before September 14, 2006 (including September 14, 2006) undergoes the formalities of record at the taxation
authorities within the prescribed period, and if the goods under this export contract hereof are exported within the prescribed period,
an export enterprise may continue to go through the formalities of export rebate in accordance with the pre-adjustment export rebate
rates. And a circular is hereby given on relevant issues concerning the record of export contract as follows:

Article 1

An export contract to be recorded as mentioned in this Circular refers to a contract in written from concluded in accordance with
the provisions in Article 11 of the Contract Law of the People’s Republic of China, and these conditions as follows shall be met
at the same time:

(1)

To be concluded before September 14, 2006 (including September 14, 2006);

(2)

To have clear indications of a contract conclusion date, export enterprise, foreign businessman, name of export commodities, unit
price, quantity, amount, contract serial number, etc.;

(3)

To have the signatures or seals from both the export enterprise and the foreign businessman, and an contract in written from concluded
in the form of data cable shall be printed by the export enterprise and signed or sealed by the person in charge of the enterprise
hereof;

(4)

The content of the contract shall be authentic and effective.

Article 2

An export enterprise shall, before September 30, 2006, submit the original copy of the contract bearing the seal of the enterprise
hereof in line with the provisions in Article 1 of this Circular and its duplicated copy (a clear indication to be given to be in
line with the original copy and signed by the person in charge of the export enterprise hereof), and the Application Form for Record
of Export Contracts (See Annex 1) to the local taxation authorities in charge of export rebate (hereinafter referred to as the taxation
authorities) for record.

Article 3

The taxation authorities at all levels shall timely handle the application of an export enterprise for record of the relevant export
contract, and carefully examine and verify it in accordance with the provisions in Article 1 and Article 2 of this Circular. After
the examination and verification, the export contract which is in line with the provisions shall be allowed to undergo the formalities
of record, and the original copy of the export contract hereof shall be returned to the export enterprise at the same time; and the
export contract which fails to be in line with the provisions shall uniformly not be allowed to undergo the formalities of record,
and be returned to the export enterprise.

Once an export contract undergoes the formalities of record, it shall bear no alteration.

Article 4

After an export enterprise enters out the goods under the aforesaid export contract, a separate indication shall be given when the
formalities of export rebate are undergone.

Article 5

The taxation authorities shall, when examining and approving the export rebate for the goods under the aforesaid recorded export
contract, emphatically examine and verify the main content and the content in relation to the actual export in the recorded export
contract besides examining and verifying routinely the documents which shall be provided by an export enterprise in accordance with
the current provisions. Where the goods are exported before December 14, 2006 (including December 14, 2006, and the date of export
in the Declaration Bill for Export Goods (exclusively used for export rebate) indicated by the customs authorities shall apply),
and the actually exported goods are in line with the export enterprise, foreign businessman, name of export commodity and other items
in the recorded export contract, the taxation authorities shall handle the formalities of export rebate in accordance with the pre-adjustment
export rebate rate; where any of the export enterprise, foreign businessman, name of export commodity etc. under the recorded export
contract bears alterations, the export goods within the recorded amount of this contract shall undergo the formalities of export
rebate in accordance with adjusted export rebate rate, and the excessively rebated funds shall be recovered by the taxation authorities.

The aforesaid recorded amount refers to the export amount of the export goods applying for being subject to the pre-adjustment export
rebate rate.

Article 6

Where an export contract of an export enterprise undergoes the formalities of record at the taxation authorities, and the amount
and quantity of the actually exported goods exceed the recorded amount and quantity in the recorded contract, the exceeded part shall
undergo the formalities of export rebate in accordance with the readjusted export rebate rate.

Article 7

Except the business of processing imported materials for re-export, the export businesses applying for export rebate in other modes
of trade shall be subject to the measures for record of export contract prescribed in this Circular.

Article 8

With regard to the export on consignment, the agreement on export on consignment concluded with a consignee enterprise of a consigner
enterprise shall undergo the formalities of record at the taxation authorities besides its export contract. Where an export contract
is concluded between a consignee and a foreign businessman, the consigner shall uniformly go through the formalities of contract
record.

Article 9

Once an export enterprise is detected to seek illegal interests by altering, counterfeiting and signing inversely the date and other
means, the taxation authorities shall not handle the formalities of export rebate for it, and the rebated or excessively rebated
funds shall be recovered, and a fine shall be given in accordance with the provisions in relevant laws and regulations.

Article 10

The export of coal shall undergo the formalities of record of export contract in accordance with the provisions in Article 1 .4.3
of the document coded Cai Shui [2006] No. 139.

Article 11

The taxation authorities at all levels shall do well the work of sorting and statistics of the recorded export contracts. The Bureaus
of State Taxes in all provinces (autonomous regions, municipalities directly under the Central Government and cities specially designated
in the State plan) shall, before October 31, 2006, report to the State Administration of Taxation (Department of Import and Export
Duties and Taxes) in written form the record of contracts of this time and the Statistical Form for Record of Export Contracts (Annex
2, excluding coal export).

Annexes

Application Form for Record of Export Contracts (omitted)

Statistical Form for Record of Export Contracts (omitted)

State Administration of Taxation

September 14, 2006

State Administration of Taxation
2006-09-14

MINISTRY OF COMMERCE CIRCULAR ON EXPORT QUOTAS VOLUME OF INDUSTRIAL PRODUCTS OF FOREIGN-INVESTED ENTERPRISES OF 2006

Ministry of Commerce

Ministry of Commerce Circular on Export Quotas Volume of Industrial Products of Foreign-invested Enterprises of 2006

Shang Zi Han [2005] No. 107

Administrative commercial departments of all provinces, autonomous regions, municipalities under the Central Government and cities
specifically designated in the state plan:

In accordance with related regulations on Administration on Quota License of Foreign-invested Enterprises, here issues the export
quotas volume of industrial products of foreign-invested enterprises of 2006, which is also released through the network of managing
system on import and export of foreign-invested enterprises. Please inform related enterprises of applying export license in accordance
with regulations of this Circular.

Please well organize implementation of the export quotas volume of industrial products of the local foreign-invested enterprises,
and feedback the implementing status to Ministry of Commerce Department of Foreign Investment Administration in time. In case of
any requirements on deduction, adding or re-approval of applications of foreign-invested enterprises with export scale, please carry
out preliminary examination in time and report to Ministry of Commerce.

Appendix: Export Quotas Volume of Industrial Products of Foreign-invested Enterprises of 2006 (omitted)

Ministry of Commerce

Feb 7, 2006

Ministry of Commerce
2006-02-07

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 10 – ENTERPRISE ANNUITY FUND

Ministry of Finance

Accounting Standard for Business Enterprises No. 10 – Enterprise Annuity Fund

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

To standardize the confirmation and measurement of enterprise annuity fund and the presentation of financial statements, these Standards
are formulated in accordance with the Accounting Standard for Business Enterprises – Basic Standards.

Article 2

The term “enterprise annuity fund” refers to fund raised by an enterprise in the light of the enterprise annuity plan and the supplementary
endowment insurance fund raised by its operating income of investment.

Article 3

The enterprise annuity funds shall be confirmed, measured and presented as independent accounting subjects.

The entrusting party, entrusted party, trustee, account manager, investment manager and other subjects providing services for the
management of enterprise annuity fund shall strictly distinguish the enterprise annuity fund and its fixed assets from other assets
so as to ensure the safety of the enterprise annuity fund.

Chapter II Confirmation and Measurement

Article 4

The enterprise annuity fund shall be confirmed and measured respectively on the basis of assets, liabilities, incomes, expenses and
net assets.

Article 5

The assets formed by payments for the enterprise annuity fund and by the operation of the annuity fund shall include the monetary
funds, settlement accounts receivable of securities, interests receivable, purchases of resale securities, other receivables, bond
investments, fund investments, stock investments and other investments.

Article 6

During the operation of the enterprise annuity fund, the initial acquisition values and subsequent values of the national debt gained
under the State investment scope, the financial debentures and enterprise obligations with the credit rating at the investment grade
or above, convertible obligations, investment insurance products, securities investment funds, stocks and other financial products
with good liquidity shall be measured as the fair value:

(1)

The transaction price paid on the transaction date shall be measured as the fair value when an initially investment obtained. The
transaction fee shall be directly recorded as profit or loss for the current period; and

(2)

When estimating the value of an investment on the estimate day, the original carrying value of the investment shall be adjusted according
to its fair value, and the difference between its fair value and its original carrying value shall be recorded as profit or loss
for the current period.

The determination of the fair value of an investment shall be subject to the Accounting Standard for Business Enterprises No. 22 –
Recognition and Measurement of Financial Instruments.

Article 7

The liabilities formed during the operation of the enterprise annuity fund include the settlement accounts receivable of securities,
beneficiaries’ treatments payable, the management fees payable to the entrustee, the management fees payable to the custodian, the
management fees payable to the investment manager, the taxes payable, the sale accounts of repurchased bonds, the interests payable,
the commissions payable, and other accounts payables.

Article 8

The incomes formed by the operations of the enterprise annuity fund include the interest incomes on deposits, interests, from the
buying of resold bonds, gains on the changes in the fair value, incomes of investment disposal, and other incomes.

Article 9

The incomes shall be confirmed and measured according to the following provisions:

(1)

The interest incomes on deposits shall be determined according to the principal and applicable interest rate;

(2)

The incomes from buying of resold bonds shall, within the time limit of securities loan, be determined according to the purchase price
of the resold bonds, and the interest rate as stipulated in the agreement;

(3)

The gains on the changes in the fair value shall, on the estimate date, be determined according to the difference between the fair
value of the investment on the current date and the original carrying value (namely the fair value of the investment on the previous
estimate date);

(4)

The incomes of investment disposal shall be determined according to the difference between the price obtained from the sale of investment,
and the carrying value of the investment; and

(5)

Other incomes such as risk reserves shall be determined according to the amount actually incurred.

Article 10

The expenses incurred during the operation of the enterprise annuity fund include the transaction expenses, management fees of the
entrusted party the trustee, and the investment manager, the disbursements for the sale of repurchased bonds, and other expenses.

Article 11

The expenses shall be confirmed and measured according to the provisions as follows:

(1)

The transaction expenses, including the commission charge, commissions and other necessary disbursements paid to the commissioned
agents, consultation agents and broker, the amount of which shall be determined in accordance with the actually incurred amount;

(2)

The management fees payable to the entrusted party, trustee, and investment manager shall be determined according to the actual amount
of provisions;

(3)

The disbursements for the sale of repurchased bonds shall, within the time limit for financing, be determined in accordance with the
sales price of the repurchased bonds and the interest rate as stipulated in the agreement;

(4)

Other expenses shall be determined in accordance with the actually incurred amount.

Article 12

The net assets of the enterprise annuity fund refers to the balance of the assets of the enterprise annuity fund minus liabilities.
The date of balance sheet shall carry forward the incomes and expenses of the current period into the net assets.

Different accounts shall be created for the net assets of an enterprise in view of the enterprise itself and the individual employees,
and the distributed operating proceeds shall timely be recorded in each of the aforesaid accounts in accordance with the plan of
the enterprise on annuity fund.

Article 13

The net assets shall be confirmed and measured in accordance with the provisions as follows:

(1)

For the payments collected from the enterprise and employees, the net assets shall be increased according to the amount received;

(2)

For the treatments paid to the beneficiaries, the net assets shall be reduced in accordance with the amount payable;

(3)

As the transfer-in amount of an individual account incurred due to an employee’s transfer into the enterprise, the net assets shall
be increased; and

(4)

As the transfer-out amount of an individual account incurred due to an employee’s transfer out of the enterprise, the net assets shall
be reduced.

Chapter III Presentation

Article 14

The financial statements for the enterprise annuity fund include the balance sheets, net assets change statements and annotations.

Article 15

The balance sheet shall reflect the financial status of the enterprise annuity fund on a specific date. It shall be presented and
sorted by the assets, liabilities and net assets.

Article 16

The items of the assets shall at least present the information as follows:

(1)

The monetary fund;

(2)

The settlement accounts receivable of bonds;

(3)

The receivable interests;

(4)

The purchases of resold securities;

(5)

Other accounts receivable;

(6)

The bond investments;

(7)

The fund investments;

(8)

The stock investments;

(9)

Other investments; and

(10)

Other assets.

Article 17

The items of the liabilities shall at least present the information as follows:

(1)

The settlement accounts payable of bolds;

(2)

The beneficiaries’ treatments payable;

(3)

The management fees payable to the entrustee;

(4)

The management fees payable to the trustee;

(5)

The management fees payable to the investment manager;

(6)

The taxes payable;

(7)

The amounts from the sale of repurchased bonds;

(8)

The payable interests;

(9)

The commissions payable; and

(10)

Other payables.

Article 18

The items of the net assets shall present the net value of the enterprise annuity fund.

Article 19

The net assets change statements shall reflect the increases and reductions of the net assets of the enterprise annuity fund, and
present the information as follows:

(1)

The opening net assets;

(2)

The current amount of increase of the net assets, including the current incomes, payments collected from the enterprise, payments
collected from the employees, transfer-in of individual accounts;

(3)

The current amount of reduction of net assets, including the current expenses, treatments paid to the beneficiaries, transfer-out
of individual account; and

(4)

The closing net assets.

Article 20

The annotations shall disclose the information as follows:

(1)

The main contents and important changes of the annuity fund plan of an enterprise;

(2)

The sorts of investments, amounts, and methods for the confirmation of the fair value;

(3)

The proportion of each kind of investments to the total amount of investments; and

(4)

Any other item that is likely to cause important influence on the investment value.

Appendix: Balance Sheet htm/e04960.htm¼

Appendix:

Balance Sheet

No. 01 Annual Annuity Fund

Entity: Year Month Date Unit: Yuan

Assets

Line No.

Opening Amount of the year

Closing Amount

Liabilities and Net Assets

Line No.

Opening Amount of the year

Closing Amount

Assets

Liabilities

Monetary funds

Settlement accounts payable of securities

Settlement accounts receivable of securities

Payable treatments to beneficiaries

Interests receivable

Management fees payable to the entrustee

Purchases of resale securities

Management fees payable to the trustee

Other receivables

Management fees payable to the investment manager

Bond investments

Taxes payable

Fund investments

Price of sale of repurchased bonds

Stock investment

Interests payable

Other investments

Commission payable

Other assets

Other payables

Total amount of liabilities

Net assets:

Net value of annuity funds of the enterprise

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 20 – BUSINESS COMBINATIONS

the Ministry of Finance

Accounting Standards for Enterprises No. 20 – Business Combinations

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

With a view to regulating the recognition and measurement of business combinations, and disclosure of relevant information, the present
Standards are formulated according to the Accounting Standards for EnterprisesDBasic Standards.

Article 2

The term “business combinations” refers to a transaction or event bringing together two or more separate enterprises into one reporting
entity.

Business combinations are classified into the business combinations under the same control and the business combinations not under
the same control.

Article 3

The business combinations regarding business operation shall be subject to the present Standard.

Article 4

The present Standards does not apply to the following business combinations:

(1)

Any business combination in which two or more enterprises form a joint venture;

(2)

Any business combination in which two or more separate enterprises are brought together into a reporting entity merely by contract
other than ownership shares.

Chapter II Business Combinations under the Same Control

Article 5

A business combination under the same control is a business combination in which all of the combining enterprises are ultimately controlled
by the same party or the same parties both before and after the business combination and on which the control is not temporary.

In a business combination under the same control, the party which obtains control of other combining enterprise(s) on the combining
date is the combining party, the other combining enterprise(s) is (are) the combined party.

The “combining date” refers to the date on which the combining party actually obtains control on the combined party.

Article 6

The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying
amount in the combined party on the combining date. As for the balance between the carrying amount of the net assets obtained by
the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued), the additional
paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall
be adjusted.

Article 7

Where, during a business combination under the same control, the accounting policy adopted by the combined party is different from
that adopted by the combining party, the combining party shall, according to accounting policy it adopts, adjust the relevant items
in the financial statements of the combined party, and shall, pursuant to the present Standard, recognize them on the basis of such
adjustment.

Article 8

The direct cost for the business combination of the combining party shall, including the expenses for audit, assessment and legal
services, be recorded into the profits and losses at the current period.

The bonds issued for a business combination or the handling fees, commissions and other expenses for assuming other liabilities shall
be recorded into the amount of initial measurement of the bonds or other debts. The handling fees, commissions and other expenses
for the issuance of equity securities for the business combination shall be credited against the surplus of equity securities; if
the surplus is not sufficient, the retained earnings shall be offset.

Article 9

Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company
shall, on the combining date , prepare a consolidated balance sheet, a profit statement and a cash flow statement.

In the consolidated balance sheet, the assets and liabilities of the combined party shall be measured pursuant to their carrying amount.
If it is necessary to make an adjustment according to the present Standard because the accounting policy adopted by the combined
party is different from that adopted by the combining party, the assets and liabilities of the combined party (parties) shall be
measured on the basis of the post-adjustment carrying amount.

The consolidated profit statement shall include the incomes, expenses and profits of the combining party incurred from the beginning
of the current period to the combining date. The net profits of the combined party which has been realized prior to the combination
shall be reflected through an item separately presented in the profit statement.

The consolidated cash flow statement shall include the cash flow of the parties to the combination from the beginning of the current
period to the combining date.

When preparing consolidated financial statements, the internal dealings of the parties to the combination shall be treated according
to the Accounting Standards for Enterprises No. 33 – Consolidated Financial Statement.

Chapter III Business Combination Not under the Same Control

Article 10

A business combination not under the same control is a business combination in which the combining enterprises are not ultimately
controlled by the same party or the same parties both before and after the business combination.

In a business combination not under the same control, the party which obtains the control on other combining enterprise(s) on the
purchase date is the acquirer, and other combining enterprise(s) is (are) the acquiree.

The “acquisition date” refers to the date on which the acquirer actually obtains the control on the acquiree.

Article 11

An acquirer shall determine the combination costs respectively in light of the following circumstances:

(1)

For a business combination realized by a transaction of exchange, the combination costs shall be the fair values, on the acquisition
date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the
control on the acquiree.

(2)

For a business combination realized by two or more transactions of exchange, the combination costs shall be the summation of the costs
of all separate transactions.

(3)

All relevant direct costs incurred to the acquirer for the business combination shall also be recorded into the cost of business combination.

(4)

Where any future event that is likely to affect the combination costs is stipulated in the combination contract or agreement, if it
is likely to occur and its effects on the combination costs can be measured reliably, the acquirer shall record the said amount into
the combination costs.

Article 12

The acquirer shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a business
combination in light of their fair values, and shall record the balances between them and their carrying amounts into the profits
and losses at the current period.

Article 13

The acquirer shall distribute the combination costs on the acquisition date, and shall, according to Article 14 of the present Standards,
recognize all identifiable assets, liabilities and contingent liabilities it obtains from the acquiree.

(1)

The acquirer shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
it obtains from the acquiree as business reputation.

The business reputation upon initial measurement shall be measured on the basis of its costs minus the accumulative impairment provisions.
The impairment of business reputation shall be treated according to the Accounting Standards for Enterprises No. 8 – Asset Impairment.

(2)

The acquirer shall, pursuant to the following provisions, treat the balance between the combination costs and the fair value of the
identifiable net assets it obtains from the acquiree:

(a)It shall reexamine the measurement of the fair values of the identifiable assets, liabilities and contingent liabilities it obtains
from the acquiree as well as the combination costs;

(b)If, after the reexamination, the combination costs are still less than the fair value of the identifiable net assets it obtains
from the acquiree, it shall record the balance into the profits and losses of the current period.

Article 14

The” fair value of the identifiable net assets of the acquiree” refers to the balance of the fair value of the identifiable assets
acquired from the acquiree in a business combination minus the fair value of the liabilities and contingent liabilities. The identifiable
assets, liabilities and contingent liabilities which meet the following conditions shall be recognized separately:

(1)

As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to the assets which
have been recognized by the acquiree), if the economic benefits brought by them are likely to flow into the enterprise and their
fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values.

As for any intangible asset acquired in a combination, if its fair value can be measured reliably, it shall be separately recognized
as an intangible asset and shall measured in light of its fair value.

(2)

As for the liabilities other than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations
are likely to result in any out-flow of economic benefits from the enterprise, and their fair values can be measured reliably, they
shall be separately recognized and measured in light of their fair values.

(3)

As for the contingent liabilities of the acquiree obtained in a combination, if their fair values can be measured reliably, they shall
separately recognized as liabilities and shall be measured in light of their fair values. After a contingent liability is measured
initially, it shall be subject to a subsequent measurement according to the higher one of the following amounts:

(a)the amount which shall be recognized according to the Accounting Standards for Enterprises No. 13 – Contingent Events.

(b)the balance of the initially recognized amount minus the accumulative amortization amount which is recognized according to the
principle of the Accounting Standards for Enterprises No. 14 – Revenue.

Article 15

Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company
shall prepare accounting books for future reference, which shall record the fair values of the identifiable assets, liabilities and
contingent liabilities it obtains from the subsidiary company on the acquisition date. When preparing consolidated financial statements,
it shall adjust the financial statements of the subsidiary company on the basis of the fair values of the identifiable assets, liabilities
and contingent liabilities determined on the acquisition date.

Article 16

Where a business combination occurs at the end of the current period, if the fair values of the identifiable assets, liabilities and
contingent liabilities acquired in the combination or the cost of the business combination can only be determined temporarily, the
acquirer shall recognize and measure the business combination on the basis of the temporarily determined values.

Where an adjustment is made to the temporarily determined values within 12 months after the acquisition date, it shall be deemed as
the recognition and measurement on the acquisition date.

Article 17

Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company
shall prepare a combined balance sheet on the acquisition date, which shall present the identifiable assets, liabilities and contingent
liabilities acquired in the combination at their fair values. As for the balance between the combination cost of the parent company
and the fair value of the identifiable net assets it obtains from the subsidiary company, it shall present the result of the treatment
according to the present Standards.

Chapter IV Disclosure

Article 18

Where a business combination occurs at the end of the current period, the combining party shall, in its notes, disclose the following
information related to the business combination under the same control:

(1)

the basic information on the combining enterprises;

(2)

the grounds for the judgment of the business combination under the same control;

(3)

the basis for the determination of the combining date;

(4)

Where the consideration for the combination is the cash paid, the non-cash assets transferred and the liabilities assumed, it shall
disclose the carrying amount of the consideration on the combining date. Where equity securities are issued as consideration for
the combination, it shall disclose the number of the equity securities issued during the combination, the pricing principle as well
as the proportion of the shares with voting power exchanged by the parties to the combination;

(5)

The carrying amounts of the assets and liabilities of the combined party on the balance sheet date of the prior accounting period
as well as on the combining date; the information on the revenue, net profits and cash flow of the combined party from the beginning
of the current period, in which the combination occurs, to the combining date;

(6)

the information on the contingent liabilities of the combined party to be assumed according to the stipulations of the combination
contract or agreement;

(7)

an explanation on the adjustment made because the accounting policy adopted by the combined party is different from that adopted by
the combining party; and

(8)

the carrying amount or disposal price of the combined party’s assets or liabilities which have been disposed of or are to be disposed
of.

Article 19

Where a business combination occurs at the end of the current period, the acquirer shall, in its notes, disclose the following information
on the business combination not under the same control:

(1)

the basic information on the combining enterprises;

(2)

the basis for the determination of the acquisition date;

(3)

the composition, carrying amount and fair value of the combination costs, as well as the method for the determination of the fair
value thereof;

(4)

the carrying amounts and fair values of the identifiable assets and liabilities of the acquiree on the balance sheet date of the previous
accounting period as well as on the acquisition date

(5)

the information on the acquiree’s contingent liabilities to be assumed according to the stipulations of the combination contract or
agreement;

(6)

the information on the revenues, net profits and cash flow of the acquiree from the acquisition date to the end of the reporting period

(7)

the amount of business reputation and the determination method adopted;

(8)

the amount which is recorded into the profits and losses of the current period because the combination cost is smaller than the fair
value of the identifiable net assets acquired from the acquiree in the business combination;

(9)

the carrying amount or disposal price of the acquiree’s assets or liabilities which have been disposed of or are to be disposed of.

the Ministry of Finance
2006-02-15

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON FURTHER REGULATING THE WORK FOR THE ADMINISTRATION OF KEY SOURCES OF INCOME TAX OF FOREIGN-RELATED ENTERPRISES

the State Administration of Taxation

Circular of the State Administration of Taxation on Further Regulating the Work for the Administration of Key Sources of Income Tax
of Foreign-related Enterprises

Guo Shui Han [2006] No.244

March 3rd, 2006

The bureaus of state taxation of all the provinces, autonomous regions, municipalities directly under the Central Government, and
cities specifically designated in the state plan, and the local taxation bureaus of Guangdong Province and Shenzhen City,

With a view to strengthening administration on the sources of income tax of foreign-funded enterprises and foreign enterprises (hereinafter
referred to as “foreign-related enterprises”), the State Administration of Taxation distributed the Circular of the State Administration
of Taxation on Relevant Issues concerning Strengthening the Administration on the Sources of Income Tax of Foreign-related Enterprises
(Guo Shui Han No.435 [2004], hereinafter referred to as the Circular on the Administration on Sources of Income Tax of Foreign-related
Enterprises), and requested the enterprises of key tax sources to establish the mechanisms for monitoring, early warning, reporting
and circulating reports. In light of the requirements of the Circular on the Administration on the Sources of Income Tax of Foreign-related
Enterprises, we hereby make the following circular on relevant concrete issues concerning doing a good job for the administration
on key sources of income tax of foreign-related enterprises:

Establishing the System of Management on the Key Sources of Income Tax of Foreign-related Enterprises in the Charge of Special Persons

Determining the key tax sources. Each locality shall, in light of the actual conditions, determine the key tax source enterprises
of its own locality. In principle, the total revenue of income taxes payable by the key tax source enterprises, which is annually
determined by each locality, shall account for more than 50% of the total revenue of income taxes of foreign-related enterprises
within its own locality. Where an enterprise is under any of the following circumstances, it shall be regarded as a key tax source
enterprise: (1) its annual sales income is 100 million yuan or more; (2) the annual foreign-related enterprise income tax paid by
it is 5 million yuan or more; (3) it is on the Name List of Key Source Enterprises of Foreign-related Enterprise Income Tax Countrywide
determined by the State Administration of Taxation (See Attachment I); (4) it is listed in the top ten enterprises in terms of the
revenue of foreign-related enterprise income tax in this locality; and (5) it is determined by each locality as a key tax source
to be monitored.

Establishing standard archives. Each locality shall, for the enterprises that have been brought into the list of key tax sources of
its locality, take various measures to establish the mechanism of communication between taxation agencies and enterprises, and set
up enterprise archives for the key tax source enterprises by industrial sectors and accounts. It shall track and make investigations
on them on the monthly or quarterly basis. In case any abnormal condition is discovered in the monthly or quarterly income, the locality
shall analyze the reasons in a timely manner, and file the analysis results into the archives of enterprises. Each locality shall
make flexibility analysis and industry analysis on the relevant economic indicators and the revenue of income tax of the key tax
source enterprises in terms of their operation and taxation conditions, and file the relevant analysis reports into the enterprises’
archives.

Appointing special personnel to take charge. Each locality shall establish a high efficient system for monitoring and managing the
key tax source enterprises, and master the alteration of the key tax sources and the trend of change in the revenue of enterprise
income tax in a timely, accurate and overall manner, and make timely predication on the revenue of income tax of foreign-related
enterprises. The international (foreign-related) taxation administrations at the provincial level shall appoint special personnel
to take charge of the work of tax source monitoring and revenue analysis on the key tax source enterprises.

Each locality shall fill in the Form of Basic Information of Key Tax Source Enterprises of Income Tax of Foreign-related Enterprises
(See Attachment II), which are included in the Name List of Key Tax Source Enterprises of Income Tax of Foreign-related Enterprises
and among the top ten enterprises of the locality in terms of the revenue of foreign-related enterprise income taxes. The aforesaid
Form of Basic Information of Key Tax Source Enterprises of Income Tax of Foreign-related Enterprises and the names and contact telephones
of the personnel in the international (foreign-related) taxation administrations at the provincial level who take charge of monitoring
the key tax source enterprises and income analysis shall be reported to the State Administration of Taxation (International Taxation
Department) before the end of April, 2006 by floppy disks or CDs.

II.

Further Regulating the Mechanism of the Management on Key Tax Sources of Income Taxes of Foreign-related Enterprises and the Income
Analysis

In light of the particularity and effectiveness of the management of income tax of foreign-related enterprises, the department of
international (foreign-related) taxation management of each locality shall effectively combine the work for the management on key
tax sources of foreign-related enterprises and the revenue analysis work so as to improve the efficiency and quality of the management
on tax sources of income tax of foreign-related enterprises and the work of income analysis. Therefore, you shall focus your work
on the following:

Monthly Analysis. Each locality shall make a brief analysis on the monthly revenue of income taxes of foreign-related enterprises
at the locality by month. The emphasis shall be laid on making a brief analysis on the factors of increase and decrease in terms
of the abnormal changes (an increase of 0%) incurred in the monthly revenue of its own locality by referring to the relevant conditions
of the key tax source enterprises of its locality. Each locality shall, before the 8th day of the next month (postponed in the case
of festivals or holidays), fill in the Form of Revenue Analysis of Income Taxes of Foreign-related Enterprises (For monthly analysis)
(See Attachment III) concerning the abnormal alteration of the monthly income and the reasons that account for such an alteration,
and report it to the State Administration of Taxation (International Taxation Department). No report may be made if there is no abnormality.

Quarterly Analysis. Each locality shall, on the basis of the monthly analysis, make an in-depth analysis quarterly on the total profit
of the key tax source enterprises and other relevant economic indicators, the quarter prepayment of foreign-related enterprise income
taxes of its locality as well as the accumulative income, and fill in the Statistics Form of Income Tax Revenue of Foreign-related
Enterprises of the Key Tax Source Enterprises and the Profit Thereof (For Quarterly Analysis) (See Attachment IV), so as to evaluate
the prepayment of income taxes of foreign-related enterprises, discover the imbalance of entry of state treasury and other problems
and make prediction on the revenue of the current year. Each locality shall, before the 25th day of the next month after the end
of each quarter (postponed in the case of festivals or holidays), fill in the Statistics Form of Income Tax Revenue of Foreign-related
Enterprises of the Key Tax Source Enterprises and the Profit Thereof in light of the prepayment of income taxes of the last quarter,
and a written analysis report, and report them to the State Administration of Taxation (International Tax Department).

Annual Analysis. The annual analysis shall be conducted at two stages:

(1)

Each locality shall, at the end of the fourth quarter each year by referring to the incomes, costs, profits and other relevant economic
indicators of the key foreign-related tax source enterprises, make an in-depth analysis on the prepayment of taxes of the last quarter
and the revenue of the whole year, make a detailed and systematic analysis on all the major factors affecting the increase and decrease
of the revenue of its own locality. Such an analysis report shall be reported to the State Administration of Taxation (International
Taxation Department) before January 31 of the next year.

(2)

Each locality shall, by referring to the settlement and payment of income taxes of foreign-related enterprises, make an overall and
detailed analysis on the operation of the key tax source enterprises, the tax payment thereof and the income tax revenue of the foreign-related
enterprises of the current year, and fill in the Form of Information on Income Tax of Foreign-related Enterprises by Nature and Industry
(Annual Analysis) (See Attachment V). The analysis shall include the flexibility analysis on the year-round operations of the key
tax source enterprises, the tax payment thereof, relevant economic indicators and the income tax revenue of foreign-related enterprises
(full standard), the analysis on the year-round revenue by industries and economic types, the analysis on tax burdens and the prediction
on the revenues of the next year, and etc.. When making an annual analysis, each locality may, for the taxation and major economic
indicators (for example, the sales profit rate) within the whole country by industry, district, or enterprise scale, consult the
“Basic Data of Foreign-related Enterprises in the Year 2000-2003” and the “Basic Data of Income Taxes of Foreign-related Enterprises
Countrywide in 2004”, which have been distributed at the meeting of international (foreign-related) taxation work countrywide. The
aforesaid annual analysis report and the Form of Information on Income Tax of Foreign-related Enterprises by Nature and Industry
shall be reported to the State Administration of Taxation (International Tax Department) before August 25 of the next year.

III.

Requirements for Data Collection and Analysis Report Submission

Each locality shall, when determining foreign-related key tax source enterprises and filling in the analysis form, make full use of
the “Key Tax Source Investigation and Analysis System” by the department of statistics, and try its best to collect data from this
System. A single archive shall be established for the foreign-related key tax source enterprise that is not listed in the aforesaid
System.

Each locality may report the monthly and quarterly analysis materials by fax (010-63417977) or via the FTP (network) of the State
Administration of Taxation (Path: the State Administration of Taxation/CENTER/International Taxation Department/Department of Taxation
Collection Administration). The annual reports shall be submitted as official documents. For the convenience of making statistics
and analysis, the written materials reported shall be made in Microsoft WORD, while the tables shall take be made in EXCELL.

IV.

Establishing the System of Regular Circulation of Reports

The State Administration of Taxation shall collect information and circulate regular reports on the work of management on key tax
sources of foreign-related enterprise income taxes, income tax revenues and the analysis reports on the revenue reported, and pay
attention to the examination on the quality and effectiveness of the aforesaid work, and circulate a report of criticism on the districts
with low quality in the work of management on key tax sources and the work of revenue analysis.

Each locality may formulate concrete measures for the management on key tax sources and income analysis according to the realities,
and continuously improve the efficiency and quality of the work for the management and analysis on income taxes of foreign-related
enterprises, and strengthen the monitoring and management on foreign-related key tax source enterprises in an earnest and efficient
manner.

the State Administration of Taxation
2006-03-03

PROVISIONS GOVERNING PHARMACEUTICAL DIRECTIONS AND LABELS

State Food and Drug Administration

Order of the State Food and Drug Administration

No. 24

The Provisions Governing Pharmaceutical Directions and Labels, which were deliberated and adopted at the executive meeting of the
State Food and Drug Administration on March 10, 2006, are hereby promulgated, and shall come into force as of the date of June 1,
2006.

Director General Shao Mingli

March 15, 2006

Provisions Governing Pharmaceutical Directions and Labels

Chapter I General Provisions

Article 1

For the purpose of regulating the administration of pharmaceutical directions and labels, the present Provisions are formulated in
accordance with the Pharmaceutical Administration Law of the People’s Republic of China and the Regulations for the Implementation
of the Pharmaceutical Administration Law of the People’s Republic of China.

Article 2

The directions and labels of the pharmaceuticals sold on market within the territory of the People’s Republic of China shall meet
the requirements in the present Provisions.

Article 3

Pharmaceutical directions and labels shall be subject to the ratification of the State Food and Drug Administration.

The labels of a pharmaceutical shall be based on the directions, and the contents thereof shall not exceed the scope of directions,
and may not be printed with any word or mark that implies the curative effect, misleads the usage or inappropriately advertises the
product.

Article 4

The package of a pharmaceutical must be printed or affixed with the label according to the Provisions, and shall not carry any other
literal or video materials or other information that advertises the product or the enterprise.

The smallest packages produced by a pharmaceutical manufacturing enterprise for sale on the market must be attached with directions.

Article 5

The literal expression in pharmaceutical directions and labels shall be scientific, regular and accurate. The directions of an OTC
pharmaceutical shall use the literal expression easy to understand in addition, so that the patients may identify, choose and use
the pharmaceutical by themselves.

Article 6

The words in pharmaceutical directions and labels shall be clear and easily identifiable, and the marks shall be clear and eye-catching,
and no printed word shall be missing or loosely affixed, nor shall any mark be amended or supplemented by means of affixation, cutting
or alteration, etc.

Article 7

Pharmaceutical directions and labels shall use regular Chinese characters promulgated by the State Language Commission. If the same
contents are simultaneously expressed in both Chinese and another language, the Chinese expression shall prevail.

Article 8

With a view to protecting public health and guiding correct use of medicine, a pharmaceutical manufacturing enterprise may take initiative
to add cautions on the pharmaceutical directions or labels, and the State Food and Drug Administration may also require pharmaceutical
manufacturing enterprises to add cautions on directions or labels.

Chapter II Pharmaceutical Directions

Article 9

The directions of a pharmaceutical shall include important scientific data, conclusion and information on its safety and effectiveness,
so as to guide the safe and reasonable usage of the pharmaceutical. The specific format, contents and writing requirements of the
pharmaceutical directions shall be formulated and promulgated by the State Food and Drug Administration.

Article 10

The expression in the directions of a pharmaceutical for the name of a disease, the professional pharmacological terms, the name of
a pharmaceutical, and the name and result of the clinical examination shall use the special words uniformly promulgated or regularized
by the state, and the metrological units shall meet the national standards.

Article 11

The directions of a pharmaceutical shall list all active ingredients or the medical herbs of composite prescriptions. The injections
and OTC pharmaceuticals shall list the names of all supplementary materials in use in addition.

Where a pharmaceutical prescription contains any ingredient or supplementary material that might cause a serious adverse reaction,
the matter shall be stated.

Article 12

A pharmaceutical manufacturing enterprise shall actively trace the safety and effectiveness of a pharmaceutical on market, and shall
file an application in time when it is necessary to amend the pharmaceutical directions.

The State Food and Drug Administration may also require the pharmaceutical manufacturing enterprise to amend the pharmaceutical directions
on the basis of the information on the results from monitoring of adverse reactions of a pharmaceutical, or from re-assessment of
the pharmaceutical, etc..

Article 13

After the amendment of directions of a pharmaceutical are approved, the pharmaceutical manufacturing enterprise shall immediately
notify the relevant pharmaceutical trading enterprises, the using entities and other relevant departments of the amended contents,
and timely use the amended directions and labels according to the requirements.

Article 14

The directions of a pharmaceutical shall contain full information on adverse reactions of the pharmaceutical, and indicate the adverse
reactions in details. The adverse consequences caused therefrom shall be borne by the manufacturing enterprise if the pharmaceutical
manufacturing enterprise fails to timely amend the directions according to the safety and effectiveness of the pharmaceutical on
market or fails to fully state the adverse reactions of the pharmaceutical in directions.

Article 15

The dates of ratification and amendment of the directions of a pharmaceutical shall be both indicated on an eye-catching position
in the directions.

Chapter III Labels of Pharmaceuticals

Article 16

The labels of a pharmaceutical shall refer to the contents printed or affixed on the packages of the pharmaceutical, which includes
interior labels and exterior labels. The interior labels of a pharmaceutical shall refer to the labels on the packages that are in
direct contact with the pharmaceutical, while the exterior labels shall refer to the labels on other packages out of the interior
label.

Article 17

The interior labels of a pharmaceutical shall include such contents as the general name of the pharmaceutical, indications or functions,
specifications, usage, dosage, date of production, product batch number, valid term and manufacturing enterprise, etc.

Where the package size is too small and the aforesaid contents cannot be fully indicated, the contents such as the general name of
the pharmaceutical, specifications, product batch number, and valid term shall be indicated as a minimum requirement.

Article 18

The exterior labels of a pharmaceutical shall indicate such contents as the general name of the pharmaceutical, ingredients, character,
indications or functions, specifications, usage, dosage, adverse reactions, contraindication, precautions, storage, date of production,
product batch number, valid term, approval number, and manufacturing enterprise, etc. If the indications or functions, usage, dosage,
adverse reactions, contraindication and precautions cannot be fully indicated, the main contents and the words “see directions for
details” shall be indicated.

Article 19

The labels of the packages used for transport and storage shall at least indicate the general name of the pharmaceutical, specifications,
storage, date of production, product batch number, valid term, approval number and manufacturing enterprise, and may also indicate
necessary contents such as the package quantity, precautions for transport or other marks when necessary.

Article 20

The labels of a raw material medicine shall indicate the name of the medicine, storage, date of production, product batch number,
valid term, applicable standards, approval number, and manufacturing enterprise, and shall indicate necessary contents such as the
package quantity and precautions for transport at the same time.

Article 21

For the same pharmaceutical manufactured by the same pharmaceutical manufacturing enterprise, the contents, format and color of the
label must be consistent with each other if the pharmaceutical specifications and the package specifications are the same; on the
other hand, the labels shall be distinctively different, or the difference shall be explicitly indicated in the specifications if
the pharmaceutical specifications and the package specifications are different.

Where the same pharmaceutical manufactured by the same pharmaceutical manufacturing enterprise is managed separately as both prescription
pharmaceutical and OTC pharmaceutical, the packages and colors of both shall be distinctive from each other.

Article 22

For a pharmaceutical with particular storage requirements, such requirements shall be indicated at an eye-catching position on the
label.

Article 23

The valid term on a pharmaceutical label shall be indicated in a sequence of “year, month and date”. The year shall be expressed with
four numerals, while both the month and the date shall be expressed with two numerals. The specific format shall be “valid up to
(aaaear)/(aonth)” or “valid up to (aaaear)/(aonth)/(aate)”; or may be expressed with numerals and other symbols
as “valid up to aaaa” or “valid up to aaaaa, etc.ical product for preventive use shall be indicated in light
of the standards approved by the State Food and Drug Administration for registration, and the valid term of a biological product
for curative use shall be counted as of the date of dispensation. The valid term of any other pharmaceutical shall be counted as
of the date of production.

If the year, month and date of a valid term are all indicated, the indicated expiry date shall be the day corresponding to that before
the beginning date, while if only the year and month are indicated, the indicated expiry month of shall be the month corresponding
to that before the beginning month.

Chapter IV Use of Names and Registered Trademarks of Pharmaceuticals

Article 24

The name of pharmaceutical indicated in pharmaceutical directions and labels must conform to the principles promulgated by the State
Food and Drug Administration on giving general names and commodity names to pharmaceuticals, and shall be consistent with the corresponding
contents in the pharmaceutical approval certificates.

Article 25

The general name of a pharmaceutical shall be distinct and prominent, and the style, size and color of the characters shall conform
to the following requirements:

(1)

The general name must be indicated at a distinct position within the scope of the upper one-third part for those with horizontal labels;
and the general name must be indicated at a distinct position within the scope of the right one-third part for those with vertical
labels;

(2)

No grass style, seal character or other style difficult to identify shall be used, nor shall any italic, hollow or shadow form, etc.
be used to decorate the style;

(3)

The color of the characters shall be black or white, so as to form an intense contrast with their corresponding light or dark background;
and

(4)

It shall not be written in different lines unless it is unable to be written in one line due to restriction of the package size.

Article 26

The commodity name of a pharmaceutical shall not be written with the general name in the same line, its style or color shall not be
more distinct or prominent than the general name, and the average character area size of the commodity name shall not be larger than
a half of that of the general name.

Article 27

It is prohibited to use any unregistered trademark or any other pharmaceutical name not approved by the State Food and Drug Administration
in pharmaceutical directions and labels.

Where a pharmaceutical label uses a registered trademark, the said trademark shall be printed at the border corner of the pharmaceutical
label. If any words are included, the average character area size shall not be larger than one fourth of that of the general name.

Chapter V Other Provisions

Article 28

Where a narcotic drug, psychotropic drug, toxic drug for medical use, radioactive drug, pharmaceutical for external use, or nonprescription
pharmaceutical is required by any state provision to be attached with a special mark, its directions and labels must be printed with
the prescribed mark.

Where the state has particular provisions on pharmaceutical directions and labels, such provisions shall prevail.

Article 29

The provisions on the administration of labels of traditional Chinese medicinal materials, herbal medicines for decoction shall be
separately formulated by the State Food and Drug Administration.

Article 30

Where the directions or labels of a pharmaceutical do not conform to the present Provisions, the pharmaceutical manufacturing enterprise
involved shall be penalized in accordance with the relevant provisions of the Pharmaceutical Administration Law of the People’s Republic
of China.

Chapter VI Supplementary Provisions

Article 31

The present Provisions shall come into force as of the date of June 1, 2006. The Provisions on the Administration of Pharmaceutical
Package, Label and Directions (for Trial Implementation) promulgated by the State Drug Administration on October 15, 2000 shall be
repealed simultaneously.

State Food and Drug Administration
2006-03-15

THE SPECIFICATIONS FOR SECOND-HAND AUTOMOBILE TRADE

e04243

Ministry of Commerce

Announcement No. 22, 2006 of Ministry of Commerce, on Business Criterion for Second-hand Vehicle

No. 22

In order to standardize trade for second-hand vehicles and guide related actions and in accordance with Measures for Administration
of the Circulation of Second-hand Vehicle, Business Criterion for Second-hand Vehicle is established. It is now promulgated and shall
be popularized in the industry.

Ministry of Commerce

March 24, 2006

The Specifications for Second-hand Automobile Trade

Chapter I General Principles

Article 1

These Specifications are worked out according to the Measures for Administration of Second-hand Automobile Circulation for the purposes
of regulating the service and operation of the managers of the second-hand automobile trade market and the main body of second-hand
automobile business, and the transaction of the two parties in second-hand automobile trade, clarifying transaction rules, increasing
the transparency of the transaction, safeguarding the legitimate rights and interests of the two parties in second-hand automobile
trade.

Article 2

These specifications apply to second-hand automobile trade and corresponding activities in the territory of the People’s Republic
of China.

Article 3

The principles of honest, reliable, fair and open shall be followed and the illegal activities of forcing people to buy and sell,
practicing fraud, malicious collaboration and swindling and squeezing shall be strictly forbidden.

Article 4

A manager of a second-hand automobile trade market and a main body in a second-hand automobile business shall be engaged in the business
within their own business range, shall not do business beyond the range of their business.

Article 5

A manager of a second-hand automobile trade market and a main body of a second-hand automobile business shall confirm the seller’s
identity and the legitimacy of the automobile according to following items:

The original copy of identity or the unit code certificate of the seller shall be legal and effective;

Number plate on vehicle, automobile registration certificate, driving license, sign of automobile safety and technical inspection
shall be true, lawful and effective; and

The transacted automobile is not subject to the automobile prohibited to be dealt as stipulated in the provisions of Article 23 of
the Measures for Administration of Second-hand Automobile Circulation.

Article 6

A manager of a second-hand automobile trade market and a main body of a second-hand automobileautomobile business shall verify the
sellers’ certificate of the ownership or disposal automobile business shall verify the seller’s certificate of ownership or disposal
right. The certificate of the ownership or disposal right of the automobile shall meet following requirements:

The name on automobile registration certificate, driving license shall accord with the name on the seller’s identity. Property disposal
certificate shall be attached for the automobile sold by the state agency and state-owned enterprises or public institutions;

For the automobile to be sold on commission, the seller shall provide the owner’s Power of Attorney and identity; and

The automobile to be sold by second-hand distributing enterprises shall have the automobile purchasing certificate and relevant materials
that may prove the distributing enterprises have the ownership or disposal right of the automobile.

Article 7

To do second-hand automobile trade business shall sign a contract, clarifying corresponding responsibilities and duties. The contract
shall include: purchasing contract, selling contract, buying and selling contract, trust buying contract, trust selling contract,
trust auction, etc..

Article 8

After a transaction is concluded, both the buyer and the seller shall, according to relevant regulations of the state, apply for automobile
transferring registration to the communication administration of the public security agency by following legal certificate and evidence:

Identity of the buyer and his or her agent;

Automobile registration certificate;

Automobile driving certificate;

Uniform invoice for the sale of automobile written out by a second-hand automobile trade market, distributing enterprise and auction
company according to the regulations; and

The automobile subject to the supervision of the customs, shall provide the Certificate for the Termination of Supervision on Supervised
Automobile of the People’s Republic of China.

Automobile transferring registration shall be fulfilled within the period stipulated by relevant policies and regulations of the state,
and given clear indication in the trade contract.

After the transferring registration, a buyer shall, according to the relevant regulations of the state, by new automobile registration
certificate and driving license, go through the change formalities for automobile purchasing tax and road toll in relevant department..

Article 9

A second-hand automobile shall be dealt in the area that the automobile was registered. The transferring registration formalities
for a second-hand automobile shall be handled in the communication administration of the public security agency in the area where
the automobile was registered according to the relevant regulations of the public security agency. As for the automobile that need
to make the transferring registration in another area, the formality for transferring out shall be handled by the communication administration
of the public security agency in the area where the automobile was located, and the formality for transferring in shall be handled
by the communication administration of the public security agency in the area where the automobile will be received.

Article 10

A managers of a second-hand automobile trade market and a main body of a second-hand automobile business shall, according to the needs
of the consumers, provide relevant services, write out an invoice when collecting service fee and commission.

Article 11

A managers of a second-hand automobile trade market, distributing enterprise and auction company shall establish transaction archives.
Transaction archives shall include following content:

Copy of legal certificate and evidence as stipulated in Article 5 , Section 2 of these specifications;

Copy of original invoice of purchasing the automobile or the latest transaction invoice;

Copy of the identity of the buyer and seller or agency code certificate;

Copy of the identity of the trustee and the authorized agent or agency code certificate and power of attorney;

The original copy of transaction contract;

Automobile Information Form of the second-hand automobile distributing enterprise (see Appendix I). Automobile Auction Information
of the second-hand automobile auction company (see Appendix II) and Letter of Confirmation for the Conclusion of the Second-hand
Automobile Auction (see Appendix III); and

Other relevant materials that need to be placed on file.

The archives shall be kept for no less than three years.

Article 12

If a manager of a second-hand automobile trade market or a main body of a second-hand business find any illegal activities, such as
illegal automobile, forged license and number plate, and altering the number of the engine, automobile identifying code (frame number)
and adjusting mileage meter without permission, he, she or it shall report to relevant enforcement agency in time and have the duty
to cooperate in the investigation.

Chapter II Purchasing and Selling

Article 13

A second-hand automobile distributing enterprise shall purchase automobiles according to following requirements:

Verifying the identity of the seller and the ownership or disposal right of the automobile to be dealt and examining the legitimacy
of the automobile according to the items prescribed in article 5 and 6 of these specifications;

Decide the purchasing price with the seller through consultation. If there is any disagreement on technical status and the price of
the automobile, after the consultation of the two sides, they may trust a second-hand automobile appraising agency to appraise the
technical status and the value of the automobile. Where a purchasing intention is reached, the purchasing contract shall be signed
and, in the contract, it shall make clear that the buyer shall enjoy the disposal right of the automobile; and

Pay the automobile to the seller according to the purchasing contract.

Article 14

Before selling the automobile to the buyer, a second-hand automobile distributing enterprise shall test and repair the automobile.

For the automobile entering into the display area for sale, the second-hand automobile distributing enterprise shall fill in relevant
information according to the requirements as prescribed in the Automobile Information Form, put up it on a visible place and add
relevant information of Automobile Information Form in light of needs.

Article 15

Where selling intension for an automobile is reached, a second-hand automobile distributing enterprise shall sign selling contract
with the buyer, and enclose the Automobile Information Form as an Appendix, write out an uniform invoice manufactured under the supervision
of the taxation agency to the buyer and fill in the transaction price according to the fact.

A buyer shall, by the legal certificate and evidence as stipulated in Article 8 of these specifications, go through transferring
registration formalities in the communication administration of the public security agency.

Article 16

A second-hand distributing enterprise shall, when selling the automobile that the period for use is within 3 years or the traveling
mileage is within 60 thousand km (take which reaching first as standard), except for the commercial vehicle) provide the consumers
with quality guarantee of no less than 3 months or 5 thousand kilometers (take which reaching first as standard.). The quality guarantee
includes engine system, steering system, transmission system, brake system and suspension system.

Article 17

A second-hand automobile distributing enterprise shall, while providing after-sale service to the final consumers, provide them with
after-sale service inventory.

Article 18

A second-hand automobile distributing enterprise shall not add any other service items by

themselves without the consumers’ agreement while providing after-sale service.

Article 19

A second-hand automobile distributing enterprise shall establish archives for after-sale service. The archives for after-sale service
shall include:

Basic information of the automobiles, mainly including: the automobile’s brand and model, plate number, engine number, frame number,
date of shipment, character of use, the latest date for transferring registration, time and place for sale, etc.;

Basic information of the consumers, mainly including: the consumers’ appellation (name), address, occupation and contact information,
etc.; and

Maintenance record, mainly including: time, mileage and items of the maintenance.

The technical archives for after-sale service shall be kept for no less than 3 years.

Chapter III Broker

Article 20

A broker may be trusted for buying or selling a second-hand automobile. Trusting a broker to buy a second-hand automobile shall be
handled according to Article 21 of the Measures for Administration of Second-hand Automobile Circulation.

Article 21

A second-hand automobile agent shall, strictly according to the trust buying contract, deliver the automobile, the documents with
the automobile and the legal certificate and evidence as stipulated in Article 5 , Section 2 of these specifications.

Article 22

A broker shall accept the authorization to sell a second-hand automobile according to following requirements:

Inform the trustee in time of the market information;

Sign trust selling contract with the trustee;

Displaying the trusted automobile and taking good care of it according to the agreement of the contract, shall not use it for other
purpose; and

Shall not sell the trusted automobile at a higher or lower price without permission.

Article 23

After signing the trusted selling contract, the trustee shall hand over the automobile, the documents with the automobile and the
legal certificate and evidence as stipulated in Article 5 , Section 2 of these specifications to the second-hand automobile broker.

The automobile and commission shall be paid according to the agreement of the trust selling contract.

Article 24

For the second-hand automobile dealt through a second-hand automobile broker, an uniform invoice manufactured under the supervision
of the state taxation agency shall be written out by the manager of the second-hand automobile trade market.

Article 25

A second-hand automobile broker that has entered the second-hand automobile trade market shall sign corresponding management contract
with the manager of the trade market, subordinating himself or herself to unified control of the manager of the second-hand automobile
trade market.

Article 26

A second-hand automobile broker shall not be engaged in the second-hand broker business in the name of himself or herself.

A second-hand automobile broker shall not be engaged in buying and selling the second-hand automobiles by any means.

Article 27

A second-hand automobile broker shall not bring about any transaction by illegal means, and shall not ask the trustee for the costs
beyond the commission of the contract.

Chapter IV Auction

Article 28

To be engaged in second-hand automobile auction and corresponding intermediary service shall accord with relevant provisions of Auction
Law and Measures for Administration of Auction.

Article 29

A trustee shall, while trusting others’ to make an auction, provide identity, the certificate of the ownership and disposal right
and other corresponding materials. The auctioneer who accepts the trust shall sign trust auction contract with the trustee.

Article 30

A trustee shall provide the real technical status of the automobile. An auctioneer shall fill in the Information of the Auctioned
Automobile according to the fact.

If there is any disagreement on the technical status of the automobile, the auctioneer and trustee may, through consultation, authorize
the second-hand automobile appraising agency to appraise the automobile.

Article 31

An auctioneer shall release an auction notice seven days before the auction day. The auction notice shall be issued via newspapers
or other mass media and give clear indication to following issues:

Time and place of the auction;

Model and quantity of the auctioned automobiles;

Time and place for display of the automobiles;

The formalities about attending the auction and bidding for buying; and

Other issues that need to be noticed.

An auctioneer shall display the auctioned automobiles before the auction day and put up the Information of Auctioned Automobiles on
a visible place of the automobile. The display period shall not be less than two days.

Article 32

If an auction is carried out through internet, the color photo of the automobile and Information of Auctioned Automobile shall be
released on internet. The publication period shall not be less than seven days.

Auction on internet refers to the business activities that an auction company makes use of the internet to release auction information,
technical parameter and visual picture of the automobile, transfer the second-hand automobile to the person who gives the highest
price which is higher than the reserve price by bidding on internet and transaction under internet.

The process and formalities of the auction on internet shall be as the same as the auction on the spot. An organizer for auction on
internet shall work out rules for auction on internet according to relevant provisions of Auction Law and Measures for Administration
of Auction. The bidders shall go through the formalities for auction on internet.

Any individual or any enterprise that has not obtained the qualifications as a second-hand automobile auctioneer shall not be engaged
in the auction on internet.

Article 33

After the conclusion of an auction, the buyer and the auctioneer shall sign Letter of Confirmation for the Conclusion of the Second-hand
Automobile Auction.

Article 34

A trustee and a buyer may jointly set the commission ratio together with an auctioneer.

If a trustee and a buyer do not have any agreement with an auctioneer on the commission ratio, the commission shall be collected according
to Auction Law and Measures for Administration of Auction.

If an auction is not concluded, an auctioneer may collect service fee from a trustee according to the agreement of an auction contract.

Article 35

An auctioneer shall, after an auction is concluded and an buyer has paid all the costs, deliver the buyer the automobile, documents
with the automobile and legal certificate and evidence as prescribed in Article 5 , Section 2 of these specifications, write out
an uniform invoice for the sale of the second-hand automobile to the buyer, and fill in the transaction price according to the fact.

Chapter V Direct Trading

Article 36

A natural person who is engaged in the second-hand automobile trade shall have the ability to bear civil liability independently.
If a person has no ability to bear civil liability independently, his or her legal agent shall handle it, the legal agent shall provide
corresponding certificate.

If an agent is trusted for handling the second-hand automobile direct trade, a lawful Power of Attorney shall be signed.

Article 37

Both the two parties of the second-hand automobile trade and their agent shall provide their legal identity to the manger of the second-hand
automobile trade market, and give the legal certificate and evidence as prescribed in Article 5 , Section 2 of these specifications
to the manager of the second-hand automobile trade market for legal verification.

Article 38

The two parties of the second-hand automobile trade shall sign a buying and selling contract, fill in relevant information according
to the fact and bear corresponding legal liability.

Article 39

After a buyer of the second-hand automobile direct trade paid the automobile according to the contract, a seller shall, according
to the agreement of the contract, deliver in time the automobile and the legal certificate and evidence as prescribed in Article
5 , Section 2 of these specifications to the buyer.

If the legal certificate and evidence is complete and lawful, as well as the trade is concluded, the manager of the second-hand automobile
trade market shall, according to relevant regulations of the state, write out a uniform invoice for the sales of the second-hand
automobile, and fill in the transaction price strictly according to the fact.

Chapter VI Service and Management in the Trade Market

Article 40

A manager of the second-hand automobile trade market shall have necessary service facilities and place, establish automobile display
place, place for handling the trade formalities and the consumers’ rest place where a visible sigh will be put up and the environment
is clean. Accepting windows shall be established in the place for handling the trade formalities, on every window, the clear indication
of business range shall be given.

Article 41

A manager of s second-hand automobile trade market shall establish a visible notice board, giving clear indication of the procedures
of trade service, items and standard of the charge, and the phone number for the consumers’ looking up and supervision, etc..

Article 42

A manager of s second-hand automobile trade market shall work out the rules for administration of the market, supervising, regulating
and managing the trade activities in the market, safeguarding the sound environment and trade order in the market. For any losses
caused to the consumers due to the improper management of the market, corresponding responsibility shall be born.

Article 43

A manager of a second-hand automobile trade market shall accept and handle appropriately the consumers’ complaints in time, assisting
the consumer to retrieve the losses, safeguarding the consumers’ rights and interests.

Article 44

A manager of a second-hand automobile trade market may, while performing his or her functions of service and management, collect trade
service fee, housing service fee , etc..

Article 45

A manager of a second-hand automobile trade market shall establish strict management rules, set up firmly the consciousness of service
for the consumers and the enterprises in the market, tighten up the management of the staffs, and improve their quality. The staffs
for service and management of the market shall be on duty after obtaining the qualifications.

Chapter VII Supplementary Articles

Article 46

These specifications shall come into force as of the promulgation day.

Ministry of Commerce
2006-03-24

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Probate

REPLY OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE TERM FOR RECOVERING OVERDUE TAXES

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE CENTRALIZED MANAGEMENT OF TURNOVER POSITIONS OF FOREIGN EXCHANGE SETTLEMENT...

ANNOUNCEMENT NO. 30, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS CONCERNING THE MATTERS ON THE TRANSFER OF TAXABLE MOTOR VEHICLES ENTERED THE TERRITORY OF CHINA BY THE PERMANENT PERSONNEL

NOTIFICATION NO.12, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

ANNOUNCEMENT NO.73, 2006 OF MINISTRY OF COMMERCE ON AUCTION OF STATE SUGAR RESERVE OF SEPTEMBER

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE RECORD OF EXPORT CONTRACT

MINISTRY OF COMMERCE CIRCULAR ON EXPORT QUOTAS VOLUME OF INDUSTRIAL PRODUCTS OF FOREIGN-INVESTED ENTERPRISES OF 2006

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 10 – ENTERPRISE ANNUITY FUND

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 20 – BUSINESS COMBINATIONS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON FURTHER REGULATING THE WORK FOR THE ADMINISTRATION OF KEY SOURCES OF INCOME TAX OF FOREIGN-RELATED ENTERPRISES

PROVISIONS GOVERNING PHARMACEUTICAL DIRECTIONS AND LABELS

THE SPECIFICATIONS FOR SECOND-HAND AUTOMOBILE TRADE

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CONSTITUTION ACT, 1982 – page 11

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