MEASURES FOR THE ADMINISTRATION OF PRELIMINARY EXAMINATION OF THE LAND USED FOR CONSTRUCTION PROJECTS (REVISED IN 2004)

the Ministry of Land and Resources

Order of the Ministry of Land and Resources of the People’s Republic of China

No. 27

The “Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects” were revised and adopted
at the 9th ministerial meeting of the Ministry of Land and Resources on October 29, 2004. The revised “Measures for the Administration
of Preliminary Examination of the Land Used for Construction Projects” are hereby promulgated and shall come into force as of December
1, 2004.

Minister of the Ministry of Land and Resources Sun Wensheng

November 1, 2004

Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Revised in 2004)

Article 1

For the purpose of guaranteeing the implementation of the overall planning on land utilization, bringing into full play the macro-control
function of land supply and controlling the total amount of the land used for construction, the present Measures are formulated in
accordance with the Land Administration Law of the People’s Republic of China, the Regulation on Implementation of the Land Administration
Law of the People’s Republic of China and the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration.

Article 2

The preliminary examination of the land used for construction projects, as referred to in the present Measures, shall mean the examination
lawfully conducted by the administrative department of land and resources on land utilization matters involved in construction projects
at the stages of examination, ratification and archiving of construction projects.

Article 3

The preliminary examination shall abide by the following principles:

(1)

according with the overall planning on land utilization;

(2)

protecting cultivated land, especially basic farmland;

(3)

utilizing land rationally and intensively; and

(4)

complying with the land supply policies of the state.

Article 4

The land used for construction projects shall be subject to preliminary examination at different levels.

The construction projects, which need to be examined and approved by the people’s government or by the development and reform department
and etc. of the people’s government that has approval power, shall be preliminarily examined by the administrative department of
land and resources of the people’s government.

The construction projects, which need to be ratified and archived, shall be preliminarily examined by the administrative department
of land and resources at the same level with the ratification and archiving organ.

Article 5

For a construction project that needs to be examined and approved, the entity using the land for construction shall file an application
for preliminary examination at the stage of feasibility study.

For a construction project that needs to be ratified and archived, the entity using the land for construction shall file an application
for preliminary examination before applying for ratification and archiving.

Article 6

For a construction project that shall be preliminarily examined by the Ministry of Land and Resources as required by Article 4 of
the present Measures, the Ministry of Land and Resources shall entrust the administrative department of land and resources at the
provincial level at the locality of the project to accept the application. However, if the construction project occupies land within
the scope of urban land for construction use as determined in the planning, the administrative department of land and resources at
the city level shall be entrusted to accept the application. After acceptance of the application, the said administrative department
shall advance its opinions from preliminary examination, and transfer and submit them to the Ministry of Land and Resources.

As to the land used for secret-involving military projects or particular construction projects approved by the State Council, the
entity using the land for construction may directly file an application for preliminary examination to the Ministry of Land and Resources.

The small-size fragmentary land used for construction projects such as electrical wire tower bases, well drilling positions, communication
stations and etc., of which the preliminary examination ought to be finished responsibly by the Ministry of Land and Resources, shall
be preliminarily examined by the administrative department of land and resources at the provincial level and be reported to the Ministry
of Land and Resources for archival purposes.

Article 7

When applying for preliminary examination, any entity using the land for construction shall submit the following documents:

(1)

the application form for preliminary examination of the land used for the construction project;

(2)

the application report for preliminary examination including the basic information on the planned construction project, the planned
location, the planned total scale and type of land use and the initial plan on supplementing cultivated land; and

(3)

In the case of a construction project that needs to be examined and approved, the approval document of the project proposal and the
project feasibility study report shall be submitted. If the approval document of the project proposal and the project feasibility
study report are combined, only does the project feasibility study report need to be submitted.

The application form for preliminary examination as prescribed in Paragraph 1 of this Article, shall be uniformly formulated by the
Ministry of Land and Resources.

Article 8

When transferring and submitting the application for preliminary examination on use of land, the administrative department of land
and resources entrusted by the Ministry of Land and Resources to be responsible for preliminary examination shall provide the following
documents:

(1)

opinions from preliminary examination including whether the planned land use for the construction project accords with the overall
planning on land utilization, whether it accords with the policies of the state on land supply, whether the standard and the total
scale of the land to be used conform to the relevant provisions, and whether the initial plan on supplementing cultivated land is
feasible, and so on;

(2)

the drawing on overall planning at the county level or above on land utilization, which indicates the scope of land used for the project,
and other relevant drawings; and

(3)

Where, under the circumstances as prescribed in Article 26 of the Land Administration Law of the People’s Republic of China, the
land used for a construction project demands to amend the overall planning on land utilization, such materials shall be submitted
as the amended planning which has been demonstrated by the relevant departments and experts, the evaluation report on the impacts
of the construction project to the implementation of the planning and the minutes of the hearing on amending the planning.

Article 9

The administrative department of land and resources shall accept and take over the applications for preliminary examination that accord
with Article 7 of the present Measures, and the transferred and submitted documents from preliminary examination which accord with
Article 8 . Where any application or document falls short of the provisions, the administrative department of land and resources
shall either at the spot or within 5 days inform the applicant or the organ that has transferred and submitted the documents in written
form. If the department fails to inform, the application or document shall be deemed as having been accepted and taken over.

The administrative department of land and resources entrusted by the Ministry of Land and Resources to be responsible for the preliminary
examination shall, within 20 days as of acceptance of the application, finish preliminary examination, and transfer and submit the
application to the Ministry of Land and Resources.

Article 10

The preliminary examination shall mainly include:

(1)

Whether the selected locality of the land used for construction projects accords with the overall planning on land utilization; and
whether it confirms to the conditions prescribed in laws and regulations on land administration;

(2)

Whether the construction project accords with the policies of the state on land supply;

(3)

Whether the standard and total scale of the land used for the construction project accord with the relevant provisions;

(4)

Whether the initial plan on supplementing cultivated land is feasible and whether the funds are guaranteed if any cultivated land
is occupied; and

(5)

In the case of any land used for a construction project under the circumstances as prescribed in Article 26 of the Land Administration
Law of the People’s Republic of China, which demands to amend the overall planning on land utilization, whether the proposal on amending
the planning, the evaluation report on the impacts of the construction project to the implementation of the planning and etc. accord
with the laws and regulations.

Article 11

The administrative department of land and resources shall, within 20 days as of acceptance of the application for preliminary examination
or as of receipt of the transferred and submitted documents, finish the examination and issue its opinions from preliminary examination.
If it fails to issue its opinions from preliminary examination within 20 days, the period may be extended for ten days more with
approval of the responsible person of the administrative department of land and resources in charge of the preliminary examination.

Article 12

The opinions from preliminary examination shall include the conclusive opinions on the contents prescribed in Article 10 of the present
Measures, and the concrete requirements on the entity using the land for construction.

Article 13

The opinions from preliminary examination are the must documents for the approval and checkup of a construction project. The requirements
in the opinions from preliminary examination in such aspects as the standard and the total scale of the land to be used and etc.
shall be taken into full consideration at the stage of initial design of the construction project.

The entity using the land for construction shall carefully and earnestly implement the opinions from preliminary examination, and
shall, when applying for using the land according to law, issue a written document on earnestly carrying out the opinions from preliminary
examination.

Article 14

The period of validity of a preliminary examination document of the land use for a construction project shall be two years as of the
approval date. Where, in a preliminarily examined project, major adjustments need to be made such as the purpose of the land, the
locality of the construction project and etc., the party concerned shall apply for preliminary examination again.

Article 15

The preliminary examination shall be finished according to the present Measures prior to the ratification or examination and approval
of a construction project. If the construction project has not been preliminarily examined or fails to pass the preliminary examination,
the party concerned shall not be approved to convert the land for agricultural use into that for construction use or to have the
land requisitioned, nor shall it be permittedor to go through the land supply procedures.

Article 16

The present Measures shall come into force as of December 1, 2004.

the Ministry of Land and Resources
2004-11-01

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 31 – CASH FLOW STATEMENTS

Accounting Standards for Enterprises No. 31 – Cash Flow Statements

Cai Kuai [2006] No. 3
Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the preparation and presentation of cash flow statements.

Article 2

The term “cash flow statement” refers to a statement which reflects the inflows and outflows of cash and cash equivalents of an enterprise
in a certain accounting period.

The term “cash” refers to cash on hand and deposits that are available for payment at any time.

The term “cash equivalents” refers to short-term and highly liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of change in value.

The cash as mentioned in these Standards shall include cash and cash equivalents unless the cash equivalents are mentioned simultaneously.

Article 3

The Accounting Standards for Enterprises No. 33 – Consolidated Financial Statements shall be applicable to the preparation and presentation
of consolidated cash flow statements.

Chapter II Basic Requirements

Article 4

Cash flows statements shall be reported for operating activities, investing activities and financing activities, respectively.

Article 5

Cash flows shall be presented respectively according to the total amounts of inflows and outflows of cash.

However, the following items shall be presented according to the net amounts:

(1)

Cash received or paid on behalf of customers;

(2)

Cash inflows and outflows on items which are quick in circulation, large in amounts, and short in maturity; and

(3)

Items relating to financial enterprises, including short-term loans granted and repayment of principal of such loans, the acceptance
of current deposits and the repayment of the principal of such deposits, financial institution deposits and deposits from or to other
financial institutions, funds borrowed from or lent to other financial institutions, purchase and sale of securities, etc.

Article 6

Some extraordinary items, such as a loss from a natural disaster or an insurance claim shall be classified into the cash flow of
operating activities, investing activities or financing activities respectively according to their features and shall be presented
separately.

Article 7

The exchange rate used for the translation of cash flows in a foreign currency and the cash flows of an overseas subsidiary shall
be the spot exchange rate on the date of the cash flows or shall be the rate which is determined through a systematic and reasonable
method and which is approximate to the spot exchange rate. The effect of a change in exchange rate on cash shall, as an adjustment
item, separately presented in the cash flow statement.

Chapter III Cash Flows Arising from Operating Activities

Article 8

An enterprise shall adopt the direct method to present the cash flows arising from operating activities.

The term “operating activities” refers to all transactions and events except the investing and financing activities of an enterprise.

The term “direct method” refers to a method whereby major classes of cash receipts and cash payments are presented for the cash flows
arising from operating activities.

Article 9

The relevant information about the cash flows arising from the operating activities may be acquired through either of the following
ways:

(1)

The accounting records of the enterprise.

(2)

Making adjustment on the business revenue, business costs and other items in the income statement according to the following items:

(a) The changes of inventory of current period and the changes of items of operating receivables and payables. ;

(b) The depreciation of fixed assets, amortization of intangible assets, provision for asset impairment, and other non-cash projects;
and

Article 10

The items to reflect the following information for cash flows arising from operating activities shall be presented separately at
least. :

(1)

Cash received from the sale of goods and the rendering of services;

(2)

Tax refunds received;

(3)

Cash received relating to other operating activities;

(4)

Cash paid for goods purchased and labor services received;

(5)

Cash paid to employee and for employee.

(6)

Payments of all types of taxes; and

(7)

Cash payments relating to other operating activities.

Article 11

The financial enterprises may, according to the industrial features and the actual situation of cash flows, reasonably determine
the categories of cash flows arising from operating activities.

Chapter IV Cash Flows Arising from Investing Activities

Article 12

The term “investing activities” refers to those activities of an enterprise, such as the purchase and construction of long-term assets
and the investments and disposal activity that are not considered to be cash equivalents

Article 13

At least, the items reflecting the following information for the cash flows arising from investing activities shall be presented
separately :

(1)

Cash received from returns of investments;

(2)

Cash received from returns on investments;

(3)

Net cash received from the disposal of fixed assets, intangible assets and other long term assets;

(4)

Net cash received from the disposal of subsidiaries and other business entities;

(5)

Other cash received relating to investing activities;

(6)

Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets;

(7)

Cash paid for investments;

(8)

Net cash paid for the acquisition of subsidiaries and other business entities; and

(9)

Other cash payments relating to investing activities.

Chapter V Cash Flows Arising from Financing Activities

Article 14

The term “financing activities” refers to those activities that result in changes in the scale and composition of the capital and
debts of an enterprise.

Article 15

At least, the items reflecting the following information for the cash flows arising from financing activities shall be presented
separately:

(1)

Cash received by absorbing investments;

(2)

Cash received from debts;

(3)

Cash received relating to other financing activities.

(4)

Cash paid for repayments of debts;

(5)

Cash paid for distribution of dividends or profits, or cash payments for interests; and

(6)

Cash payments relating to other financing activities.

Chapter VI Disclosure

Article 16

An enterprise shall, in its notes, disclose the information about the reconciliation of net profits to cash flows arising from operating
activities. It shall at least disclose the following items separately for the reconciliation of net profits to cash flows arising
from operating activities:

(1)

The provision for impairment losses of assets;

(2)

The depreciation of fixed assets;

(3)

The amortization of intangible assets;

(4)

The amortization of long-term deferred expenses;

(5)

The deferred expenses;

(6)

The accrued expenses;

(7)

The profit or losses on the disposal of fixed assets, intangible assets and other long-term assets;

(8)

The losses on the discard of fixed assets;

(9)

The profit and losses on the changes in fair value;

(10)

The financial expenses;

(11)

The profit or losses arising from investments;

(12)

The deferred income tax assets and the deferred income tax liabilities;

(13)

The inventories;

(14)

The item of operating receivables; and

(15)

The item of operating payables;

Article 17

An enterprise shall, in its notes, disclose the following information about the total amounts of acquisition or disposal of subsidiaries
and other business entities in the current period:

(1)

The price for acquisition or disposal;

(2)

The portion of cash paid for the acquisition or disposal;

(3)

The portion of cash received for the acquisition or disposal of subsidiaries and other business entities; and

(4)

The non-cash assets and liabilities classified according to the major categories arising from the acquisition or disposal of subsidiaries
and other business entities.

Article 18

An enterprise shall, in its notes, disclose the significant activities on investment and financing, which do not concern the cash
receipts and payments of the current period but affect its financial status or will possibly affect its future cash flows.

Article 19

An enterprise shall, in its notes, disclose the following information related to cash and cash equivalents:

(1)

The composition of cash and cash equivalents and the corresponding amounts thereof in the balance sheets; and

(2)

The large sums of cash and cash equivalents held by an enterprise that are not available for use by the parent company or by any other
subsidiary within the group.

Ministry of Finance
2006-02-15

ANNOUNCEMENT NO.36, 2006 OF GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING PROMULGATING ORIGIN STANDARDS OF ZERO-TARIFF COMMODITIES OF HONG KONG (MACAO) IN THE FIST HALF OF 2006

Announcement No.36, 2006 of General Administration of Customs of the People’s Republic of China concerning promulgating Origin Standards
of Zero-tariff Commodities of Hong Kong (Macao) in The Fist Half of 2006

No. 36 [2006]

In accordance with The Main Land and Hong Kong Scheme on Establishing Closer Economic and Trade Relations, The Main Land and Macao
Scheme on Establishing Closer Economic and Trade Relations as well as complementary agreements, related issues are now announced
as follows:

Here release Origin Standards of Zero-tariff Commodities of Hong Kong in The Fist Half of 2006 and Origin Standards of Zero-tariff
Commodities of Macao in The Fist Half of 2006 (hereinafter referred to as “Origin Standards”, please refer to Appendix 1 and Appendix
2), which will take effect as from Jul 1, 2006. The commodities post_titles of “glass assembly of automobile skylight and circuit of automobile
skylight” are specific in the Origin Standards while others are simplified with their scopes consistent with commodities with same
tariff codes in Import and Export Tariff Regulations of the People’s Republic of China in 2006.

With consultations to related departments of Hong Kong and Macao, the mainland decides to amend the origin standards of “instant
noodles” (tariff code: 19023030) listed in Origin Standards of Hong Kong Commodities Enjoying Preferential Trade Measures and Origin
Standards of Macao Commodities Enjoying Preferential Trade Measures. After the amendment, the origin standards shall be:

(1)

. Be made of cereals or flour. Mixing, boiling and shaping shall be the major producing procedures. In case baking and roast are involved,
the said producing procedures shall be carried out in Hong Kong;

(2)

. Be made of dried noodles, meats and vegetables. The major producing procedures shall be boiling, seasoning, mixing and refrigeration.

The said standard will take effect as from Jul 1, 2006.

In accordance with regulations of Announcement No.54, 2005 of General Administration of Customs on confirmation of procedures of
watch list of “Hong Kong’s own brand”, the second batch of watch of Hong Kong’s own brand (please refer to Appendix No.3) has been
confirmed and is now released.

Appendix:

Origin Standards of Zero-tariff Commodities of Hong Kong in The Fist Half of 2006

Origin Standards of Zero-tariff Commodities of Macao in The Fist Half of 2006

List of the Second Batch of Watch of Hong Kong’s Own Brand

General Administration of Customs of the People’s Republic of China

Jun 28, 2006

General Administration of Customs
2006-06-28

PROVISIONS ON INFORMATION CONSULTING AND DISCLOSURE OF INDUSTRIAL DAMAGE INVESTIGATION

Order of the Ministry of Commerce

No. 19

The Provisions on Information Consulting and Disclosure of Industrial Damage Investigation, which were adopted at the 5th ministerial
meeting on May 17, 2006, are hereby promulgated and shall go into effect after 30 days as of promulgation.
Bo Xilai, the Minister

August 4, 2006

Provisions on Information Consulting and Disclosure of Industrial Damage Investigation
Chapter 1 General Provisions

Article 1

With a view to guaranteeing the industrial damage investigation to be carried out in an open, fair and impartial manner, and safeguarding
the legitimate rights and interests of the interested parties concerned, these Provisions are hereby formulated in accordance with
the Regulation of the People’s Republic of China on Anti-dumping and the Countervailing Regulation of the People’s Republic of China.

Article 2

The information consulting and disclosure of industrial damage investigation in anti-dumping and countervailing activities shall
be subject to these Provisions.

Article 3

The power to interpret these Provisions shall remain with the Ministry of Commerce of the People’s Republic of China.

Article 4

The interested parties concerned as referred to in these Provisions include:

(a)

the producer, export operator and domestic import operator of the investigated products in a foreign country (region), or the industrial
organization or any other organization of the producer, export operator and import operator of the investigated products;

(b)

the government of the export country (region) of the investigated products;

(c)

the producer of domestic identical products or the industrial organization or any other organization of the investigated products;
and

(d)

others.

Article 5

The term “information consulting” as mentioned in these Provisions refers to activities that all the interested parties concerned
in a case go to the public information consulting office of the trade relief measures of the Ministry of Commerce (hereinafter referred
to as the consulting office) to look up, read, extract and copy the relative public information related to industrial damage investigation.

Article 6

The term “information disclosure” as mentioned in these Provisions refers to the basic facts based on which the ruling on a case
in relation to industrial damage is made and which shall be informed to the interested parties concerned by the Ministry of Commerce
in a reasonable time before the final decision is made.

Chapter 2 Information Consulting

Article 7

All the interested parties concerned may consult the public information related to industrial damage investigation, with the exception
of the information as prescribed in Article 9 of these Provisions.

Article 8

The public information as prescribed in Article 7 of these Provisions shall include:

(a)

the open text or non-confidential summary of an application and the attachment(s) thereof,

(b)

the open text or non-confidential summary of the application materials for the registration of the interested parties concerned in
industrial damage investigation,

(c)

the open text or non-confidential summary of the questionnaires and supplementary questionnaires on industrial damage investigation
as offered by the interested parties concerned;

(d)

the open text or non-confidential summary of the other application materials as provided by the interested parties concerned to the
Ministry of Commerce during the process of industrial damage investigation, including the application materials on the hearing of
industrial damage investigation, relative answer sheets as delivered in delay, adjustment on the product scope, exclusion of domestic
producers and etc.; the open text or non-confidential summary of the opinions or comments put forward by the other interested parties
concerned on the relative application,

(e)

the comments and opinions of the relative interested parties concerned on the application for confidential information and the open
text or non-confidential summary of confidential information as provided by one interested party concerned;

(f)

the open text or non-confidential summary of the cahier or summary of such meetings as the hearing of industrial damage investigation;

(g)

announcements and circulars as issued by the Ministry of Commerce, including the announcements on case fling, preliminary ruling
and terminal ruling; circulars of decisions on the registration of application for industrial damage investigation, distribution
of investigation questionnaires, on-spot investigation, hearing and sampling investigation;

(h)

the open text or non-confidential summary of the disclosure materials of the basic facts based on which the Ministry of Commerce
has made the final decision on industrial damage; and

(i)

other materials that the Ministry of Commerce have acquired or formulated during the process of industrial damage investigation.

Article 9

Where any information cannot be obtained through open channels, and if the publication of it will make other competitors obtain material
gains or impose any material negative influence over the information provider or information source, or bring about any other negative
influence, the information shall be deemed as confidential information.

As regards any information that is confidential in nature or is requested by the interested party concerned as confidential, if the
relative interested party concerned can give justifiable reasons, the Ministry of Commerce shall take the aforesaid information as
confidential.

Article 10

Any relative information to the Ministry of Commerce provided by any interested party concerned shall be indicated as open or confidential.
Where otherwise, the Ministry of Commerce may regard it as open information.

Article 11

When providing confidential information, any interested party concerned shall give its application ground in written form and the
open text or non-confidential summary of identical information. If any interested party concerned requires to make modification or
supplementation to any content of the materials as have been provided, it shall provide the open text or non-confidential summary
of the relative modified or supplementary content meanwhile, and attach the explanations of modification as well.

In the open text or non-confidential summary, the material content thereof shall be illustrated in a reasonable manner. Under special
circumstances, the interested party concerned shall not be required to provide any open text or non-confidential summary upon the
approval of the Ministry of Commerce, but shall give enough reasons in written form for the failure of providing the relative open
text or non-confidential summary.

Article 12

Where an interest party concerned fails to provide any open text or non-confidential summary, or the open text or non-confidential
summary is not enough to reasonably illustrate the material content of confidential information, or any interested party concerned
fails to provide sufficient grounds for not providing the open text or non-confidential summary, the Ministry of Commerce may request
it to withdraw its application. In case an interested party concerned refuses to do so, the Ministry of Commerce may ignore the information
as has been provided, unless the Ministry of Commerce can employ other proper sources to fully prove that the said information is
accurate.

Article 13

Where the Ministry of Commerce considers that the grounds for the application for confidentiality filed by an interested party concerned
do not accord with the requirements of these Provisions, it shall, within 7 days as of the receipt of the relative open text or non-confidential
summary, give explanations to the interested party concerned and allow a reasonable time limit for comments. Where the Ministry of
Commerce determines to ignore the information as provided by an interested party concerned, it shall notify the interested party
concerned in written form, unless the Ministry of Commerce can apply other proper sources to fully prove that the information is
accurate.

Article 14

The Ministry of Commerce shall submit one copy of the open text or non-confidential summary of the aforesaid materials to the public
information consulting office for reference within 7 days as of the day when the relative materials as provided by the interested
party concerned and mentioned in Article 8 of these Provisions are received.

The open text or non-confidential summary of the relative information as formulated or acquired by the Ministry of Commerce and prescribed
in Article 8 of these Provisions shall, under no special circumstance, be delivered to the consulting office within 10 days as of
formulation.

Article 15

During the process of industrial damage investigation, the interested parties concerned may go to the consulting office to look up
any of the public information related to industrial damage investigation within the working hours.

The relative interested parties concerned may also consult the relative public information within 6 months after the final ruling
is announced.

Article 16

When looking up public information, an interested party concerned shall show the relative papers that can prove its identity, and
shall be subject to registration as well.

Article 17

An interested party concerned may look up, read, extract and copy the relative public information, but shall not be allowed to take
any original of public information out of the consulting office.

Chapter 3 Information Disclosure

Article 18

The Ministry of Commerce shall, within a reasonable time limit before the final ruling on a case is made, notify the interested parties
concerned and domestic applicants that have been registered to participate in industrial damage investigation of the basic facts
based on which the final ruling is made, and notify any other interested party concerned that has not been registered that it may
go to the consulting office for the relative materials of information disclosure, on the premise that the parties and applicants
herein comply with the requirements for protecting the confidential information .

Article 19

In general, the basic facts as prescribed in Article 18 of these Provisions include:

(a)

the term and formalities for industrial damage investigation;

(b)

the factors or data based on which the domestic products of the same kind are confirmed;

(c)

the factors or data based on which the domestic industrial confirmation is made;

(d)

the facts or date based on which the cumulative appraisal is made;

(e)

the data on the import quantity (absolute quantity or comparative quantity) of the dumping or subsidized products as well as the
import prices;

(f)

the relative economic factors or data on appraising whether the domestic industry is damaged;

(g)

the factors or data that have further impact on the domestic industry in the relative investigated state (region);

(h)

the acceptance of the relative information as provided by an interested party concerned, including the utilization and grounds of
the most useful information acquired; and

(i)

any other information that may have substantial impact on ruling.

Article 20

The Ministry of Commerce shall make an information disclosure before 30 days as of the day when the final ruling is made. Under special
circumstances, in case any fact cannot be disclosed within the aforesaid time limit, the Ministry of Commerce shall make a disclosure
within a reasonable time limit before the final ruling is made.

Article 21

An information disclosure shall be made in written form, which may be made to all the relative interested parties concerned or the
representatives thereof.

Article 22

After the disclosure of information, an interested party concerned may put forward its comments to the Ministry of Commerce in written
form within 10 days.

Article 23

As regards the comments as put forward by the interested parties concerned within the prescribed time limit, the Ministry of Commerce
shall take them into account, and accept whatever is reasonable in its final ruling. Where any basic fact is therefore different
in making the final ruling, the Ministry of Commerce shall, as long as the normal formalities for case investigation are not disturbed,
disclose the information, upon which the relative interested parties concerned may make comments.

Chapter 4 Supplementary Provisions

Article 24

The information consulting and disclosure on industrial investigation damage in respect of case review shall be performed by referring
to these Provisions.

Article 25

The power to interpret these Provisions shall remain with the Ministry of Commerce.

Article 26

These Provisions shall go into effect after 30 days as of promulgation.

Ministry of Commerce
2006-08-04

MEASURES CONCERNING THE ADMINISTRATION OF WHOLESALE, RETAIL AND LEASE OF AUDIO AND VIDEO PRODUCTS

Decree of the Ministry of Culture

No.40

After the deliberation and adoption at the ministerial meeting of the Ministry of Culture on October 25, 2006, the Measures concerning
the Administration of Wholesale, Retail and Lease of Audio and Video Products are hereby released, and shall enter into force as
of December 1, 2006.
The Ministry of Culture

November 6, 2006

Measures concerning the Administration of Wholesale, Retail and Lease of Audio and Video Products
Chapter I General Rules

Article 1

In order to enhance the administration of wholesale, retail and lease of audio and video products, promote the development and flourish
of the audio and video industry, enrich the cultural life of the masses and promote the construction of socialist material civilization
and spiritual civilization, these Measures are made according to the related provisions of the Regulation concerning the Administration
of Audio and Video Products.

Article 2

These Measures shall be applicable to such activities as the wholesale, retail, and lease, etc. of such audio and video products
as audio tapes, video tapes, gramophone records, compact discs and laser discs, etc. with recorded contents.

Article 3

People conducting the wholesale, retail and lease of audio and video products shall comply with the Constitution and the related
laws and regulations, insist in the orientation of serving people, socialism, and disseminate ideas, morals, scientific and technical
and cultural knowledge beneficial to economic development and social progress.

Article 4

The operation of the audio and video products are prohibited by the state if recorded with any of the following content:

(1)

the content which defies the basic principles determined in the Constitution;

(2)

the content which hurts the national unity, sovereignty or territorial integrity;

(3)

the content which divulges the state secrets, hurts national security or damages the honor or benefits of the state;

(4)

the content which incites the hatred or discrimination of the nationality, damages the solidarity of nationalities, or infringes upon
nationality customs and habits;

(5)

the content which propagates evil cult or feudalistic superstition;

(6)

the content which disturbs the public order or destroys the public stability;

(7)

the content which propagates obscenity, gambling, violence or instigates crimes;

(8)

the content which insults or slanders others, or infringes upon the lawful rights and interests of others;

(9)

the content which endangers public ethics or the excellent national cultural traditions;

(10)

any other content prohibited by any law, administrative regulation, or provision of the state.

Article 5

The Ministry of Culture shall be responsible to supervise and administrate the wholesale, retail and lease of audio and video products
nation-wide.

The cultural affairs administrative department under the local people’s government at or above the county level shall be responsible
to supervise and administrate the wholesale, retail and lease of audio and video products within its own jurisdiction.

Article 6

The state shall apply a license system in aspect of the wholesale, retail and lease of audio and video products. No entity or individual
shall get into the wholesale, retail and lease of audio and video products without permission.

The licenses or approval documents distributed according to these Measures may not be altered, resold, leased, lent, or illegally
transferred in any other form.

Article 7

The Ministry of Culture shall institute the development programming concerning the nationwide market of audio and video products,
and exert macro control over the nationwide market of audio and video products.

The cultural affairs administrative department under the people’s government of the province, autonomous region, or municipality directly
under the Central Government shall, in accordance with the development programming concerning the nationwide market of audio and
video products and the economic and social development of its own region, institute development programs concerning the market of
audio and video products of its own region, and lead healthy development of such a market.

Article 8

The entities conducting the audio and video business are encouraged and supported by the state to circulate domestic audio and video
products and to build up the issuing network and sell audio and video products in the rural areas.

Article 9

Both the cultural affairs administrative department and its functionaries must not, directly or in a disguised form, undertake the
business activities in aspect of the wholesale, retail and lease of audio and video products, or take part in the business activities
of the entities engaged in the wholesale, retail or lease of audio and video products.

Chapter II Operating Entities

Article 10

In order to apply for the establishment of an audio and video product wholesaling entity, the applicant shall report to the cultural
affairs administrative department of the people’s government of the province, autonomous region or the municipality directly under
the central government where it is located to examine and approve, and shall submit the materials as follows:

(1)

an application form including the name, address of the audio and video product wholesaling entity, the name and address of its legal
representative or the chief person in charge, and the major matters on the application;

(2)

a circular concerning the prior approval of the name, and the rules ;

(3)

the registered capital amount and its evidential documents;

(4)

certificate of the property right of the business premise or letter of leasing intent;

(5)

evidential materials concerning the identity of the legal representative or the chief person in charge;

(6)

evidential materials concerning the institutions and personnel proper to the needs of its business scope; and

(7)

other materials as stipulated by laws and administrative regulations.

The cultural affairs administrative department shall, within 30 days from receiving the application, make a decision concerning approving
the application or not. If the application is approved, a License for Operating Audio and Video Products shall be released to the
applicant, and be submitted to the Ministry of Culture for record. The applicant shall obtain the business license according to the
law in the administrative department of industry and commerce with the License for Operating Audio and Video Products; if the application
is disapproved, the reason thereof shall be stated.

Article 11

In order to apply for the establishment of an audio and video product retailing or leasing entity or where an individual applies
for the engagement of the audio and video product retailing or leasing business, the applicant shall report to the cultural affairs
administrative department of the local people’s government at the county level for examination and approval, and shall submit the
materials as follows:

(1)

an application form including the name of the retailing or leasing entity or the business name of the individual and the address,
the name and address of its legal representative or the chief person in charge, and the major matters on the application;

(2)

a circular concerning the prior approval of the name, and the rules;

(3)

certificate of the property right of the business premise or letter of leasing intent;

(4)

evidential materials concerning the identity of the legal representative or the chief person in charge; and

(5)

other materials as stipulated by laws and administrative regulations.

The cultural affairs administrative department shall, within 30 days from receiving the application, make a decision on approving
the application or not. If the application is approved, a License for Operating Audio and Video Products shall be released to the
applicant, and be reported to the cultural affairs administrative department of the local people’s government at the next higher
level for record. The applicant shall obtain the business license according to the law in the administrative department of industry
and commerce with the License for Operating Audio and Video Products; if the application is disapproved, the reason thereof shall
be stated.

An audio and video product wholesaling entity established upon approval may conduct the audio and video retailing and leasing businesses
on the business premise formerly approved for the wholesaling business.

Article 12

In accordance with the related provisions of the state, an audio and video product publishing entity may wholesale and retail the
audio and video products published by itself. If it intends to get into the business of wholesaling or retailing audio and video
products not published by itself, it shall handle the formalities of examination, approval and registration according to Articles
10 and 11 of these Measures.

Article 13

For the purpose of establishing a chained operation entity of audio and video products, the applicant shall satisfy the conditions
as follows:

(1)

having a certain name and rules;

(2)

having a certain business scope;

(3)

having at least 1 million Yuan of registered capital, or at least 5 million Yuan of registered capital if conducting nationwide chained
operations;

(4)

planning to develop 5 or more direct-operation chained stores or 10 or more chained stores of audio and video products;

(5)

having an institution and personnel fit for the needs of its business scope;

(6)

having relevant management system and computer management conditions; and

(7)

other conditions stipulated by laws and administrative regulations.

Article 14

In order to apply for the establishment of a chained operation entity of audio and video products, the applicant shall report to
the cultural affairs administrative department of the people’s government of the province, autonomous region, or the municipality
directly under the central government where it is located; the application for establishing nationwide chained operation entities
of audio and video products shall be examined and approved by the cultural affairs administrative department under the people’s government
of the province, autonomous region or municipality directly under the Central Government where the applicant’s headquarters is located
before it is submitted to the Ministry of Culture for examination and approval.

The following materials hereby shall be submitted by the applicant entity:

(1)

an application form including the name, address of the applying entity, the name and address of its legal representative or the chief
person in charge, and the major matters on the application;

(2)

a circular concerning the prior approval of the name, and the rules;

(3)

amount of the registered capital and its evidential documents;

(4)

certificate of the property right of the business premise or letter of leasing intent;

(5)

evidential materials concerning the identity of the legal representative or the chief person in charge;

(6)

information concerning the institution, distributing departments and systems of distribution management of the chained operation entity
of audio and video products;

(7)

evidential materials concerning the related computer management conditions; and

(8)

other materials as stipulated by laws and administrative regulations.

The cultural affairs administrative department shall, within 30 days from receiving the application, make a decision on approving
the application or not. If the application is approved, a License for Operating Audio and Video Products shall be released to the
applicant, who shall obtain the business license according to the law in the administrative department of industry and commerce with
the License for Operating Audio and Video Products; if the application is disapproved, the reason thereof shall be stated.

Without approval and registration, the characters of “chained operation” must not be used by anyone in the name of an entity, and
anyone may not engage in the business activities of wholesale, retail and lease of audio and video products by ways of chained operation.

Article 15

A chained operation entity of audio and video products may adopt either the pattern of direct chained operation or that of franchise
chained operation, or may operate by both ways. It shall have at least one year of experience in direct chained operation and have
the approval of the original approving department if it chooses the franchise chained operation.

Direct chained operation refers to the uniform operation which is under the direct management of the headquarters, and under which
all the chained stores are opened by the headquarters in wholly-owned form or shareholding form.

Chained operation in the form of franchise shall refer to that the chained stores are established by the headquarters through participating
in shares or, have no asset contact with the headquarters but are authorized the franchise to use the trademark, name, operational
techniques of the headquarters and to sell commodities of headquarters through signing contracts with the headquarters.

The distributing center and the direct-operation chained stores of the chained operation entities of audio and video products shall
use the shop name of their headquarters in their own names. Franchised chained stores may, also use the shop name of their headquarters
upon consent by their headquarters.

Article 16

There is no need for an audio and video chained operation entity built up upon approval to obtain a separate License for Audio and
Video Products Operation to open direct-operation chained stores or build up chained operation counters, but may, after reporting
to the cultural affairs administrative department of the county people’s government of the place where the store is to be located,
obtain the business license at the administrative department of industry and commerce in accordance with law upon the strength of
the copy of the License for Audio and Video Products Operation released by the headquarters of the chained operation entity.

Where an audio and video chained operation entity built up upon approval opens a franchise chained store, it must transact the examination
and approval formalities according to the related provisions of Article 11 of these Measures; where it has already obtained the
License for Audio and Video Products Operation, it shall transact the modification formalities according to the related provisions.

Article 17

Whoever applies for the establishment of an entity conducting the business of operating audio and video products through information
network, it shall transact the examination and approval formalities with reference to the related provisions in Article 10 of these
Measures and report the information concerning its website name or the names of the websites linked to it, its address, its email
address and other materials to the cultural affairs administrative department of the people’s government of the province, autonomous
region, or the municipality where it is located for record.

Article 18

An audio and video product wholesaling or chained operation entity may get into the operation business of audio and video products
through the information network, but it shall, before starting its operations, prepare its License for Audio and Video Products Operation,
its website name or the names of the websites linked to it, its email address, and other materials to report to the cultural affairs
administrative department under the people’s government of the province, autonomous region, or municipality directly under the Central
Government where it is located for approval.

Article 19

An applicant who applies for conducting the wholesaling, retailing or leasing business of audio and video products shall hand in
the related materials to the administrative organ in accordance with the facts and shall be responsible for the authenticity of the
application materials.

Article 20

The cultural affairs administrative department shall publicize the approval documents concerning establishing the wholesaling, retailing,
leasing or chained operation entities, or establishing the entities that may conduct the audio and video products operation through
the information network, or the individuals that may involve in the wholesaling or leasing business of audio and video products,
the public has the right to consult these documents.

Chapter III Operation and Management

Article 21

The entities or individuals that conduct the business of the wholesale, retail and lease of audio and video products shall not operate
the audio and video products as follows:

(1)

those published by an entity that does not conduct the audio and video products publication or those illegally published by an entity
that conducts the audio and video products publication;

(2)

those reproduced by an entity that does not conduct the of audio and video products reproduction or those illegally reproduced by
an entity that conducts the audio and video products reproduction;

(3)

those imported without being approved by the Ministry of Culture;

(4)

those imported for reference in research or teaching or for exhibition or display;

(5)

those that infringe upon other’s copyright; and

(6)

PROVISIONS ON MINIMUM WAGES

Ministry of Labor and Social Security

Order of the Ministry of Labor and Social Security of the People’s Republic of China

No. 21

The Provisions on Minimum Wages, which were adopted at the 7th executive meeting of the Ministry of Labor and Social Security on December
30, 2003, are hereby promulgated and shall come into force as of March 1, 2004.

Zheng Silin, the Minister of the Ministry of Labor and Social Security

January 20, 2004

Provisions on Minimum Wages

Article 1

With a view to safeguarding the legitimate rights and interests of the laborers in getting labor remunerations, and ensuring the basic
necessities of laborers and their family members, the present Provisions are formulated according to the Labor Law and other relevant
regulations of the State Council.

Article 2

The present Provisions shall apply to the enterprises, private non-enterprise entities, individual industrial and commercial households
with employees (hereinafter collectively referred to as employing entities) and the laborers who have formed a labor relationship
with those employing entities.

The state organs, public institutions and social bodies and the laborers who have formed a labor relationship with them shall accord
with the present Provisions.

Article 3

The term ” standards on minimum wages” as mentioned in the present Provisions refers to the minimum labor remunerations that shall
be paid by the employing entities according to law under the precondition that the laborers have provided normal labor within the
promissory working hours or within the working hours as prescribed in the labor contracts concluded according to law.

The term “normal labor” as mentioned in the present Provisions refers to the labor undertaken by a laborer, pursuant to the contract
concluded according to law, within the promissory working hours or within the working hours as prescribed in the contract. A laborer’s
enjoying paid annual vocation, home leave, marriage or funeral leave, maternity leave and conception-control operation leave and
his (her) participating in any social activities during the promissory working hours shall be deemed as having offered normal labor.

Article 4

The administrative departments of labor and social security of the people’s governments at or above the county level shall be responsible
for the supervision and inspection over the employing entities’ fulfillment of the present Provisions within their respective administrative
areas.

The labor unions of all levels shall conduct supervision over the implementation of the present Provisions according to law. Where
a labor union finds that any employing entity pays employees wages in violation of the present Provisions, it shall have the power
to demand the local administrative department for labor and social security to deal with the case.

Article 5

In general, the standards of minimum wages appear in two forms, namely the monthly minimum wage standard and the hourly minimum wage
standard. The monthly minimum wage standard applies to full-time employees while the hourly minimum wage standard to non-fulltime
employees.

Article 6

When determining and regulating the monthly minimum wage standard, one should take into consideration factors such as the minimum
costs of living of the local employees and the people supported by them, the urban residents’ consumption price index, the social
insurance premiums and the public accumulation funds for housing paid by the employee themselves, the average wage of the employees,
the level of economic development, the status of employment and etc..

When determining and regulating the hourly minimum wage standard, one shall, on the basis of the announced monthly minimum wage standard,
take into consideration such factors as the basic pension insurance premiums and the basic medical insurance premiums that shall
be paid by the entity. In addition, one shall appropriately take into consideration the disparities between the non-fulltime laborers
and the fulltime laborers in the aspects of working stability, condition, intensity and welfare, etc ..

For the specific calculating methods for the monthly minimum wage standard and the hourly minimum wage standard, please read the Attachment.

Article 7

Different administrative areas within a province, autonomous region or municipality directly under the Central Government may adopt
different standards of minimum wages.

Article 8

The program for determining and regulating the standards on minimum wages shall be formulated by the administrative department of
labor and social security of the people’s government of a province, autonomous region or municipality directly under the Central
Government in consultation with the labor union, the league of enterprises (or the association of entrepreneurs) at the same level,
which shall be reported and submitted to the Ministry of Labor and Social Security. Such a program shall include the basis, applicable
scope, drawn-out standards and explanations on the determination and regulation of the minimum wages. The Ministry of Labor and Social
Security shall, after receiving the program, collect opinions of the China Labor Union and the China League of Enterprises (or the
China Association of Entrepreneurs).

The Ministry of Labor and Social Security may provide advice on the revision of the program. If it fails to provide any advice on
revision within 14 days from the day when it receives the program, it shall be deemed as having granted consent.

Article 9

The administrative department of a province, autonomous region or municipality directly under the Central Government shall report
its program on the standards on minimum wages applicable in their respective areas to the people’s government of this province, autonomous
region or municipality directly under the Central Government, and shall, within 7 days from the day when the program is approved,
announce it through the bulletin of the local government and at least one newspaper circulated widely in the area. The administrative
department of labor and social security shall report the standards on minimum wages to the Ministry of Labor and Social Security
within 10 days from the day when the program is announced by the administrative department of the province, autonomous region or
municipality directly under the Central Government.

Article 10

If the related factors as prescribed in Article 6 of the present Provisions change, after the standards on minimum wages have been
announced for implementation, they shall be regulated in good time. The standards on minimum wages shall be regulated at least once
every two years.

Article 11

The employing entities shall, within 10 days from the day when the standards on minimum wages are announced, announce the standards
to all their laborers thereof.

Article 12

In the event that a laborer has provided normal work, the wage paid by the employing entity shall, after being deducted of the following
items, not be less than the local standards on minimum wages:

(1)

wages paid for extra work done after the promissory working hours;

(2)

allowances given for the middle shift, night shift, and for working under special environmental conditions such as high temperature,
low temperature, downhole operation, venomousness and nocuousness;

(3)

the welfare treatments to laborers as prescribed in the laws, regulations and by the state.

On the basis of the scientific and reasonable labor quota, an employing entity that adopts the way of paying wages by piece or by
deducting a percentage, shall not pay the laborers less wages than the corresponding standard minimum wages.

In case a laborer, for his own reasons, fails to provide normal labor within the promissory working hours or within the working hours
as provided for in the lawfully concluded labor contract, this Article shall not apply

Article 13

Where an employing entity violates Article 11 of the present Provisions, it shall be ordered to make corrections by the administrative
department of labor and social security. If it violates Article 12 of the present Provisions, it shall be ordered to make up the
wages owing to the laborers by the administrative department of labor and social security, and may be ordered to pay laborers compensations
in the sum of one to fives times of the wages owed within a time limit.

Article 14

Where there arises any dispute over the standards on minimum wages between laborers and employing entities, it shall be coped with
according to the provisions on labor disputes.

Article 15

The present Provisions shall come into force as of March 1, 2004. The Provisions on Minimum Wages in Enterprises promulgated by the
former Ministry of Labor on November 24, 24, 1993 shall be repealed simultaneously.

Attachment:The Methods for Calculating Minimum Wages

Factors to be taken into consideration when determining the standards on Minimum Wages

When determining the standards on minimum wages, one shall generally take into consideration the following factors as the living costs
of urban residents, the social insurance premiums and the public accumulation funds for housing paid by employee themselves, the
average wage of the employees, the rate of unemployment and the level of economic development. The formula may be:

M = f (C, S, A, U, E, a )

M: the standards on minimum wages

C: the average living costs of urban residents;

S: the social insurance premiums and the public accumulation funds for housing paid by employee themselves;

A: the average wage of the employees;

U: the rate of unemployment;

E: the level of economic development;

a: the factors.

The universal methods for determining the standards of minimum wages

(1)

The proportion method, that is firstly to determine a certain proportion of families with the minimum average income as poverty families
in light of the investigation materials of the family livelihood of urban residents, then to calculate the average living cost of
the poverty families and multiply it by the coefficient of the people supported by each employee, and finally to make the result
plus an adjustment.

(2)

The Engel Coefficient method, that is to calculate the minimum expense standard for food pursuant to the annual standard cookbook
and the standard quantity of food taken by people as offered by the National Nutrition Academy as well as the market prices of the
standard food, then to divide the minimum expense standard for food by the Engel Coefficient, thus to work out the standards on minimum
living costs, to multiply the minimum living costs by the coefficient of people supported by each employee and finally to make the
result plus an adjustment.

After working out the standards on monthly minimum wage by the above-mentioned methods, one shall take into consideration the following
factors to make necessary amendment as the social insurance premiums paid by the employee themselves, the public accumulation funds
for housing paid by the employee themselves, the average wage of the employees, social assistance grants and the standards on unemployment
premiums, the status of employment and the level of economic development.

For example, if, in a certain region, the minimum monthly living cost of persons within the groups of minimum income is 210 yuan,
the coefficient of the people supported by each employer is 1.87, the minimum expense for food is 127 yuan, the Engel Coefficient
is 0.604, the average wage is 900 yuan.

By the proportion method, the standard on monthly minimum wage worked out is:

The monthly minimum wage = 210.87a393a(yuan)(1)

By the method of Engel Coefficient, The monthly minimum wage worked out is:

The monthly minimum wage = 127.604.87a393a(yuan)(2)

In the formulas (1) and (2) the adjustment “a” mainly involves the expenses for the pension, unemployment and medical insurance premiums
and the public accumulation funds for housing.

In addition, as it is universally considered that the monthly minimum wage is equivalent to 40-60% of the average monthly wage, the
monthly minimum wage of this region shall be ranged from 360 yuan to 540 yuan.

The standard of the hourly minimum wage = {(the standard of the monthly minimum wage 0.92)1 the summation of the basic
pension insurance premium and the basic medial insurance premium that shall be paid by their respective entities)}1the floating
coefficient)

The determination of the floating coefficient shall mainly take into consideration the disparities between the fulltime employees
and the non-fulltime employees in the aspects of working stability, conditions and intensity and welfares.

Every region may rationally determine the standards on monthly and hourly minimum wages by referring to the calculating methods mentioned
above and in light of the local actual circumstances.

Ministry of Labor and Social Security
2004-01-20

URGENT CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING TEMPORARILY SUSPENDING TAX REBATE FOR UREA EXPORT

Ministry of Finance, State Administration of Taxation

Urgent Circular of the Ministry of Finance and the State Administration of Taxation concerning Temporarily Suspending Tax Rebate for
Urea Export

Caishui Open Telex [2004] No.1

March 15, 2004

The Departments (Bureaus) of Finance and the State Taxation Bureaus of all provinces, autonomous regions, municipalities directly
under the central government, and cities separately listed in the state budgetary planning, the Financial Supervisor’s Offices under
the Ministry of Finance in all provinces, automats regions, municipalities directly under the central government, and cities separately
listed in the state budgetary planning, the Bureau of Finance of the Xinjiang Production and Construction Corps:

In order to implement the provisions of “Temporarily suspending the tax rebate for urea export for one year to curb export growth”
in the Urgent Circular of the General Office of the State Council on Ensuring Sufficient Market Supply of Food and Means of Production
for Agriculture (Guobanfa Open Telex No.1 [2004]), after consulting the National Development and Reform Commission, the relevant
issues are hereby publicized as follows:

VAT rebate for all the urea products under export codes 3102100010, 3102100090, 31028000 shall be suspended temporarily from March
16, 2004 to March 15, 2005; Export of the above mentioned products during this period shall be subject to VAT according to relevant
provisions. The specific date of implementation shall be based on the date of export indicated by the customs in the “Declaration
Form for Export Goods” (the copy for export tax rebate).

Urea export after March 16, 2004 in fulfilling contracts signed before March 16, 2004 shall still be subject to tax rebate rate of
11 percent. The signed contracts shall be submitted to the tax authorities in charge of export tax rebate for record.

Please implement the above accordingly.

Ministry of Finance, State Administration of Taxation
2004-03-15

CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON SEVERAL ISSUES CONCERNING THE PROMOTION OF INNOVATION ACTIVITIES IN SECURITIES INDUSTRY

China Securities Regulatory Commission

Circular of the China Securities Regulatory Commission on Several Issues Concerning the Promotion of Innovation Activities in Securities
Industry

Zheng Jian Ji Gou Zi [2004] No. 96

August 12, 2004

All securities companies:

For the purpose of implementing the Several Opinions of the State Council on the Promotion of Reform, Opening and Steady Growth of
the Capital Market, actively promoting the standard development of securities industry and encouraging securities companies to launch
innovation activities in their business and management, related matters are hereby notified as follows:

Securities companies shall be encouraged to give full play to the enthusiasm, initiative of innovation, carry out innovation in business,
operation mode as well as organizations according to market requirements and their own practical needs, improve the quality of service,
and better the profit mode with a view to growing excellent to become powerful in market competition and pushing forward the integral
development of securities industry.

Although innovation is the motive power of development of securities companies and securities market, in such process requirements
of “legal system, supervision, self-discipline and standards” must be observed so as to prevent and control material risks likely
to occur by taking realistic measures. At the initial stage of promoting innovation in securities companies, we must firstly make
an experiment in this field, use such experience of one point to lead the whole area, draw continuous conclusions from experiences,
perfect relevant rules and then gradually spread successful new practices. Therefore, certain standards mustn’t be established for
securities companies (hereinafter referred to as pilot securities companies) which carry out pertinent pilot innovation activities
until such standards are reviewed first. Pilot securities companies must meet such conditions as better corporate governance, better
internal risk control, higher level of capital adequacy and more standard operation and management, various innovation activities
of which shall start on the precondition that risks of such activities are measurable, controllable and sustainable.

The China Securities Regulatory Commission shall produce review measures for pilot securities companies and be liable to organize
such review.

Principles of “openness, fairness and impartiality” must be adhered to in the process of such review, standards and procedure of which
must be fair and transparent. Securities companies may, according to procedure, apply for such review only if meeting prescribed
requirements and standards, and may be confirmed as pilot securities companies after passing review.

Legal representatives and principal persons responsible for operation and management of the securities company applying for review
shall undertake and directly bear clear liability for the truthfulness, accuracy and completeness of such information used for application
for the said review as operating status and financial statements of their companies, and shall directly take clear responsibility
for the truthfulness, completeness, compliance and risk control of matters with respect of application for pilots.

Political measures on the promotion of innovation development in securities industry along with reform measures in respect of the
promotion of supervision over securities institutions will be tried in pilot securities companies, relevant application matters of
which shall be accepted preferentially with corresponding procedure to be simplified. We shall support pilot securities companies
to voluntarily present pilot programs for business exploration and organizational management, to actively launch innovation in securities
business and explore experiences from innovation development in securities business. Operational approach, product innovation programs
and reform measures of operation and management, all of which have been proved mature through pilots, will be popularized in securities
industry for implementation.

Specific innovation programs put forward by pilot securities companies in line with their own operating status and business development
requirements, shall not be implemented until passing the professional review organized by the China Securities Regulatory Commission.
The said innovation programs shall include risk assessment, internal controls, pre-arranged plan for risk exposure preparation and
feasibility arrangement of acceptance for administrative supervision.

The scale of innovated business of pilot securities companies shall match risk control ability and risk bearing capacity of the same
companies, and a system on quantitative risk control level shall be established for such innovated business.

Innovation activities of various kinds of pilot securities companies shall be subject to the supervision of the China Securities Regulatory
Commission and its dispatched institutions.

All dispatched institutions shall establish a dynamic supervision system and produce working contents thereof for pilot securities
companies within their jurisdiction, focus on monitoring over the safety, completeness, and transparency of their clients’ funds
for transaction settlement, as well as compliance operation in such business as clients’ assets management and repurchase of debentures,
and shall supervise pilot innovation activities carried out by such clients within a business scope decided by pilot programs and
strictly implement all the undertakings and rules required by pilot projects.

Pilot securities companies shall, prior to January 31 each year, submit summary reports on their innovation activities to the institutions
dispatched by the China Securities Regulatory Commission where they were registered.

The China Securities Regulatory Commission shall conduct continuous evaluation on pilot securities companies.

Pilot companies, which are disqualified to carry out relevant innovation activities as a result of problems in respect of their operation
and management, risk control and financial status, shall have their corresponding business activities under pilots suspended and
terminate the organized pilot business on schedule.

Pilot securities companies, if found to have committed grave acts in violation of laws and regulations, shall terminate their pilot
businesses and be ordered to conduct checks within a stipulated period.

Since the promotion of innovation in securities companies is a task lasting for long, every securities company shall, in light of
the spirits of this Circular and various supervision provisions, carry out operation according to laws and regulations, perfect corporate
governance, strengthen the internal risk control, and ensure the safety and completeness of clients’ assets and the truthfulness
of financial statements. Various securities companies shall deal well with self-inspection of risks and business norms, feel out
their assets and financial status based on comprehensive verification, consciously rectify nonconforming and highly risky business,
produce and put into effect one by one practical rectification and improvement plans. The China Securities Regulatory Commission
shall, according to actual situations of various securities companies like degree of risks, internal control level and financial
strength, formulate and implement gradually measures on classified supervision, support such companies to carry out diversified innovation
activities within the scope of their financial status, business competition abilities and risk bearing capacities so as to promote
the standardization and development of securities industry.

China Securities Regulatory Commission
2004-08-12

MEASURES FOR THE IMPLEMENTATION OF INTERNATIONAL TENDER INVITATION AND BIDDING FOR MECHANICAL AND ELECTRICAL PRODUCTS

Order of the Ministry of Commerce of the People’s Republic of China

No. 13

Measures for the Implementation of International Tender Invitation and Bidding for Mechanical and Electrical Products were amended
and adopted at the 11th executive meeting of the Ministry of Commerce of the People’s Republic of China on September 23, 2004, and
the amended Measures for the Implementation of International Tender Invitation and Bidding for Mechanical and Electrical Products
are hereby promulgated and shall enter into force 30 days after the date of promulgation.
Minister of the Ministry of Commerce, Bo Xilai

November 1, 2004

Measures for the Implementation of International Tender Invitation and Bidding for Mechanical and Electrical Products
Contents
Chapter I General Provisions

Chapter II Scope of Bidding

Chapter III Evaluation Experts

Chapter IV Bidding Documents

Chapter V Invitation to Tender and Bidding

Chapter VI Evaluation of Tender

Chapter VII Publication and Challenges

Chapter VIII Winning the Bid

Chapter IX Legal Liabilities

Chapter X Supplementary Provisions
Chapter I General Provisions

Article 1

For the purpose of regulating the international tender invitation and bidding activities for mechanical and electrical products,
safeguarding the state interests, the social public interests and the legitimate rights and interests of the parties involved in
the tender invitation and bidding activities, enhancing the economic performance and the efficiency of capital usage, and ensuring
the quality of bidding and products, and establishing an open, fair, just, good faith and selecting-the-best competition mechanism
and tender evaluation principles for the international tender invitation and bidding, the present Measures are hereby formulated
according to such laws and regulations as the Tender and Bidding Law of the People’s Republic of China (hereinafter referred to as
“the Bidding Law”) and to the rules of the State Council concerning the division of responsibilities of the administrative supervision
over the bidding activities of the relevant departments.

Article 2

The present Measures shall be applicable to the international tender invitation and biding activities of mechanical and electrical
products within the territory of the People’s Republic of China.

Article 3

The Ministry of Commerce shall be the state administrative department which oversees the international tender invitation and bidding
for mechanical and electrical products, and be responsible for supervising and coordinating the international tender invitation and
bidding work of mechanical and electrical products of the whole country, formulating the relevant rules, adjusting and publishing
the scope of international tender invitation and bidding for mechanical and electrical products, examining and approving the qualifications
of international tender invitation and bidding institutions, and undertaking the routine work of the National Tender Evaluation Committee.

The import and export administrative institutions of mechanical and electrical products (hereinafter referred to as “departments in-charge”)
of all provinces, autonomous regions, municipalities directly under the Central Government, cities directly under state planning
and all departments shall be responsible for supervising and coordinating the international tender invitation and biding activities
of mechanical and electrical products within their respective regions and departments.

Article 4

In general, the international tender invitation and bidding for mechanical and electrical products shall be carried out by the way
of open bidding. Where the open tender method is unsuitable according to laws and administrative regulations, the way of invitation
to tender by request may be adopted. Any project that adopted the way of invitation to tender by request shall be reported to the
Ministry of Commerce for archival purpose, and invitation to tender by request shall be carried out pursuant to the handling formalities
as specified in the present Measures.

The international procurement of mechanical and electrical products shall generally be carried out by way of international tender
invitation and bidding. Where the origins of products to be purchased have been confirmed within the territory, the domestic bidding
method may be adopted. Where the international tender invitation and bidding method is necessary for the procurement, no domestic
bidding or any other method may be adopted to evade the international tender invitation and bidding.

Article 5

The National Tender Evaluation Committee shall be responsible for supervision over and inspection of the international tender invitation
and bidding work of the projects which receive loans from international financial institutions, and be responsible for solving the
relevant issues arising from the bidding process through coordination, examining the tender evaluation outcomes and issuing the Notice
of Tender Evaluation Outcomes of the National Tender Evaluation Committee, and ensuring that the bidding activities comply with the
principles of openness, fairness and justness.

Article 6

The Ministry of Commerce shall designate a special bidding website (hereinafter referred to as “the bidding website”) to offer network
services for the international tender invitation and bidding businesses of mechanical and electrical products. For the international
tender invitation and bidding for mechanical and electrical products, such procedures relating to the bidding business as setting
up archives for the bidding project, putting bidding documents on record, announcing bidding notices, selecting evaluation experts,
publishing tender evaluation outcomes as well as handling challenges shall be accomplished at the bidding website.

Article 7

The “tenderee” as referred to in the present Measures is a state organ, enterprise, public institution or any other organization
that purchases mechanical and electrical products by way of international tender invitation and bidding method when necessary.

The “tendering agency” as referred to in the present Measures is an enterprise as legal person, which meets certain conditions and
has obtained the qualification for international tender invitation and bidding after applying to the Ministry of Commerce and engages
in the international tendering agency services of mechanical and electrical products.

The “tenderer” as specified in the present Measures refers to a domestic or foreign legal person or any other organization which participates
in the bidding in response to the requirements of the bidding documents.

Chapter II Scope of Bidding

Article 8

The procurement of the following mechanical and electrical products must be conducted by the way of international tender invitation
and bidding:

(1)

the mechanical and electrical products subject to the international procurement and used in such projects as infrastructures and public
undertakings which have a bearing upon the social public interests, public safety. The concrete scope of the products shall be found
in Attachment I;

(2)

the mechanical and electrical products subject to the international procurement and used in the investment projects which entirely
or partly use State capitals;

(3)

the mechanical and electrical products subject to the international procurement and used in the projects financed entirely or partly
by the State;

(4)

the mechanical and electrical products subject to the international procurement and used in the projects which use loans and aid funds
from an international financial institution or foreign government (hereinafter referred to as “foreign loans”);

(5)

the mechanical and electrical products subject to the international procurement and used in the government procurement projects; and

(6)

any other mechanical and electrical product subject to the international procurement according to laws and administrative regulations.

Article 9

The international tender invitation and bidding may be unnecessary for any of the following conditions although it falls within the
scope of bidding as listed by Article 8 :

(1)

the mechanical and electrical products which are given by foreign countries or through gratuitous assistance;

(2)

the parts and components supporting the accessory manufacturing;

(3)

used mechanical and electrical products;

(4)

the estimated price of a one-time product procuring contract being less than 1,000,000 yuan;

(5)

the price of mechanical and electrical products imported by foreign-funded enterprises being within the overall investment amount;

(6)

the samples and prototypes of machines for the use of research and development of productive enterprises and scientific research institutes;

(7)

the special products or special trades as specified by the State Council and the mechanical and electrical products for meeting the
national significant emergencies;

(8)

the amount of preference of mechanical and electrical products being more than 50% of the estimated price of the product procuring
contract when the manufacturer offers discounts;

(9)

the special moulds necessary for the production of productive enterprises;

(10)

the parts and components for the use of maintaining the products; or

(11)

any other mechanical and electrical products unfitting for the international procurement according to laws and administrative regulations.

Chapter III Evaluation Experts

Article 10

The Ministry of Commerce shall establish the national and local two-level system of expert databases at the bidding website, conduct
dynamic administration on the experts of expert database, train them and make adjustments on time.

Article 11

The experts needed for the international tender invitation and biding activities of mechanical and electrical products shall be selected
randomly from the national and local two-level system of expert databases at the bidding website by the tendering agency and owners.
No tendering agency or owner may abandon the experts selected randomly without justifiable reasons, and an expert selected shall
reply to the tendering agency in written form if he can’t participate in the evaluation work of the bidding project due to objective
factors. And the tendering agency shall state the causes on the website and carry out another random selection of experts upon receipt
of the reply. Where the number of times for selecting experts exceeds three times, it shall be reported to the corresponding administrative
department for archival purpose, and then the random re-selection of experts shall be carried out.

Article 12

An expert shall put forward an application by himself and be recommended by the department in-charge or a tendering agency for entering
into the expert database. Any recommended expert shall fill in a “Recommendation Form of Evaluation Experts of International Tender
invitation and bidding for Mechanical and Electrical Products”, which shall be signed or sealed by the recommendation entity and
submitted to the bidding website and be reported to the Ministry of Commerce for archival purpose at the same time.

To serve as an expert, one shall:

(1)

love the bidding undertaking and actively participate in the tender evaluation;

(2)

be familiar with the state laws, regulation and policies relating to bidding;

(3)

have fine political and professional quality, and abide by laws and observe disciplines;

(4)

have an undergraduate degree or the same educational level or above;

(5)

have a senior post_title in technology or economics or the same professional level, and have engaged in the related fields for more than
eight years. For the experts engaging in the fields of new and high technology, the said conditions may be relaxed to some degree;
and

(6)

be familiar with the domestic and overseas technical levels and developmental trends in his professional field.

Any expert who both complies with the conditions as set forth in the preceding paragraph and possesses any of the following conditions
may be recommended to be an expert of the national expert database:

(1)

having a professional post_title of professor;

(2)

having undertaken any evaluation work of a large-scale national bidding project in the last five years;

(3)

enjoying a state allowance; or

(4)

having ever won a national level scientific prize.

Article 13

An expert shall perform the following duties according to the rules:

(1)

to undertake the work of examining and approving the bidding documents of the international tender invitation and bidding for mechanical
and electrical products;

(2)

to undertake the evaluation work belonging to the Tender Evaluation Committee. The evaluation experts shall fill in the evaluation
opinions respectively and assume the responsibilities for the opinions put forward by themselves;

(3)

to participate in the deliberation work of the issues challenged; and

(4)

to report any problem arising from the process of tender evaluation to the departments concerned, and put forward opinions and suggestions.

The experts shall be responsible for the evaluated items of the international tender invitation and bidding for mechanical and electrical
products, and assume the corresponding responsibilities.

Article 14

The number of experts selected randomly shall be the number of experts actually needed. Where the one-time entrusted bidding amount
of an international tender invitation and bidding project is more than 5 million US Dollars, more than half of the needed experts
shall be selected from the national expert database.

For the same package under the same item of serial number of bidding project, each expert may only participate in one of such two
kinds of work as the examination and approval of bidding documents or the tender evaluation. No external expert who has interests
with the present bidding project or with the tenderee or any manufacturer may be selected as an expert by the tendering agency, and
another selection of experts shall be required.

Article 15

Any expert who is employed to participate in the evaluation work of international tender invitation and bidding for mechanical and
electrical products shall abide by the following work regulations:

(1)

to seriously enforce the state laws, regulations and policies relating to bidding;

(2)

to scrupulously perform duties, strictly keep secrets and be honest and self-disciplined;

(3)

to participate in the evaluation work of the bidding objectively, impartially and fairly; and

(4)

to withdraw on his own initiative if he has any interests with the bidding project or with the tenderee or any manufacturer.

Article 16

If the number of experts in the expert database is insufficient for the necessary number when selecting experts, the tendering agency
and the tenderee may recommend experts by themselves, but the recommendation forms of the experts meeting the conditions shall be
submitted to the bidding website so that they may enter into the national or local expert database as supplementary experts according
to the related rules, and another random selection of the necessary experts shall be carried out.

Article 17

If the category of the bidding project is not included in the categories of trades or majors in the expert database, the tendering
agency may make an application to the bidding website for the addition of such category, and the bidding website may put the recommended
experts in the newly added category.

Article 18

Once the name list of experts is fixed upon selection, it shall be strictly kept secret. Any disclosure of secrets shall be reported
to the corresponding department in-charge and another selection of experts in the expert database shall be carried out in addition
to investigating the liabilities of the parties concerned. Where the disclosure of secrets has an impact upon the tender evaluation,
the former bidding documents or tender evaluation outcomes shall become invalid.

Article 19

After the evaluation work of the specific project undertaken by the employed experts ends, the department in-charge or the tendering
agency shall evaluate the experts in aspects such as the capacity, level and fulfillment of duties. The evaluation outcomes shall
be divided into excellent, competent or incompetent, and be filed for archival purposes on the bidding website.

Chapter IV Bidding Documents

Article 20

A tenderee may, according to the commercial and technical requirements of mechanical and electrical products to be purchased, compile
bidding documents by itself, or entrust a tendering agency or consulting service institution to compile bidding documents. The bidding
documents mainly include the following:

(1)

the written invitation to tenders;

(2)

general instructions to tenderers;

(3)

names, quantities and technical specifications of the products under bidding;

(4)

contract clauses;

(5)

contract format; and

(6)

attachments:

(a)

the format of a tender letter;

(b)

a table for opening tenders;

(c)

a tender quotation by different items;

(d)

a table of product descriptions;

(e)

a deviation chart of technical specifications;

(f)

a deviation chart of commercial clauses;

(g)

the format of letter of guarantee of tender bond;

(h)

the format of power of attorney of legal representative;

(i)

the qualification certificate format;

(j)

the format of letter of guarantee of performance bond;

(k)

the format of letter of guarantee of advance payment of the bank;

(l)

a sample of letter of credit; and

(m)

other materials needed.

Article 21

In addition to the items as prescribed in Article 20 of the present Measures, the bidding documents shall contain the performance
requirements and evaluation basis for the tenderers and the manufacturers.

To the important commercial and technical clauses (parameters) in the bidding documents, an asterisk “*” shall be added and it shall
also be stated that if any of the clauses (parameters) with an asterisk “*” has not been satisfied, it will result in the annulment
of the bid.

The evaluation basis not only constitutes the important commercial and technical clauses (parameters) which will result in the annulment
of the bid, but also includes the maximum permissive deviation scope and largest number of terms in general commercial and technical
clauses (parameters) and the calculation methods for adjusting the evaluated price within the permissive scope of deviation and number
of clauses. The rate for raising the deviation price of general parameters shall commonly be 0.5% and the maximum shall be not more
than 1%. No discriminatory clause or unreasonable requirement may be written down in the bidding document to exclude potential tenderers.

Article 22

The lowest evaluation method shall commonly be adopted for the international tender invitation and bidding for mechanical and electrical
products. Due to special factors, a comprehensive evaluation method (method for giving marks) may be used for the tender evaluation
of a bidding project. Under this circumstance, its bidding documents shall explicitly prescribe the scoring methods and standards
for all commercial requirements and technical parameters and shall be reported to the Ministry of Commerce for archival purpose through
the bidding website. All scoring methods and standards shall be an indivisible part of the bidding documents and be made public to
the tenderers.

Article 23

The tendering agency shall send the bidding documents to the evaluation expert panel for examination and approval after their compilation,
and report them to the corresponding department in-charge for archival purpose through the bidding website. The number of the members
of the evaluation expert panel undertaking the work of examining and approving the bidding documents shall be an odd number of three
or more experts.

The tendering agency may only mark the serial number of the bid and may not state the tenderee or the project name when it sends the
bidding documents to the evaluation expert panel for examination and approval.

Article 24

When the evaluation expert panel examines and approves the bidding documents, they shall mainly examine and approve whether the commercial
and technical clauses are discriminatory or unreasonable and whether the compiled contents in the bidding documents will cause more
than three potential tenderers to compete, and shall fill its examination and approval opinions in the experts’ opinion forms concerning
the examination and approval of bidding documents (see Attachment II).

Article 25

The tendering agency shall, after the bidding documents are examined and approved by the evaluation expert panel, send all the examination
and approval opinions and the final revisions of the bidding documents to the corresponding department in-charge for archival purpose
through the bidding website, and shall report the original examination and approval opinions of the evaluation expert panel and the
opinions of the tendering agency to the corresponding department in-charge for archival purpose. The opinions of the tendering agency
shall include the explicit reasons for adopting or not adopting the opinions of the experts.

The department in-charge shall reply to the tendering agency through the bidding website within three days upon receipt of the said
archival materials. The said time limit may be extended if coordination is required.

Article 26

The tendering agency shall report the revisions and reasons to the corresponding department in-charge for archival purpose through
the bidding website 15 days before the date for opening the bid in case it needs to revise the bidding documents which have been
put on sale, in accordance with the tenderee’s demands. The tendering agency shall inform all those that have received the bidding
documents of the revisions in written form. The revisions shall be one part of the bidding documents.

Chapter V Invitation to Tender and Bidding

Article 27

The tenderee or the tendering agency may make a bid announcement in other medias besides the mediae and the bidding website designated
by the State upon receipt of the reply concerning putting on the bidding documents record.

The period of announcement for the bidding documents is also the period for putting on sale, which may not be less than 20 days beginning
from the announcement date of the bid documents to the expiry day for the bidding, and may not be less than 50 days for large-scale
equipment or complete sets of equipment.

Article 28

A tenderer shall compile the tender documents in accordance with the requirements of the bidding documents, and indicate article
by article whether it meets the requirements and conditions as put forward by the bidding documents pursuant to its own commercial
capabilities and technical level. As for the technical parameters with an asterisk (“*”), technical supporting materials shall be
provided in the tender documents, otherwise the tender documents will not be recognized when evaluation is made on them.

Article 29

Where any tenderer believes that the bidding documents that have been put on sale contain discriminatory clauses or unreasonable
requirements, he shall put forward his objections to the corresponding department in-charge in writing five days before the date
for opening the bidding, and shall submit the corresponding certificates at the same time.

The tendering agency or the department in-charge shall deal with objections put forward by the tenderers prior to the bid opening
and inform the corresponding tenderers of the settlement results.

Article 30

A tenderer shall register at the bidding website free of charge and send the tender documents to the bidding site before the specified
deadline for the bid. The tenderer may supplement, revise, or withdraw the tender documents submitted prior to the specified deadline
for the bidding. The supplements and revisions shall be part of the tender documents. Any tenderer may not supplement or revise the
tender documents after the deadline for the bidding.

Article 31

Where there are less than three tenderers when the bidding expires, the bid opening shall be called off and another invitation to
tender in accordance with the present Measures shall be carried out.

As for the bidding products of two or more tenderees being produced by the same manufacturer or integrator, they will be computed
as one tenderee. As for two or more integrators using the products of the same manufacturer for one part of their integrated products,
they will be counted as different integrators.

Article 32

The tendering agency shall open the bid at the specified time and site, and invite the tenderee, terderers and the relevant persons
to participate in it.

The tender scheme and tender announcement (announcement of changing prices and other announcements) of the tenerers shall be called
out altogether when opening the tenders, otherwise they will not be recognized when tenders are evaluated. The tender sum shall not
include the products or services other than those as required by the bidding documents, otherwise it may not be reduced when tenders
are evaluated.

The tenderee or the tendering agency shall make records for the opening of the tenders when opening tenders, and make records through
the bidding website within two days after the opening of the tenders.

Chapter VI Evaluation of Tender

Article 33

A tender evaluation committee established in light of the present Measures shall be responsible for the tender evaluation. The number
of members of the tender evaluation committee shall be an odd number of more than 5 persons and it shall be composed of the experts
with senior professional post_titles or with corresponding professional level in related fields such as technology, economics, the tenderee
and the representative of the tendering agency. Among them, no less than two thirds shall be the experts in the technology and economics
fields.

Any tendering agency or any other person may not disclose the contents of the bidding project that are about to be evaluated and the
circumstances relating to the tenderee and tenderers to any tender evaluation expert before the opening of the tenders.

Article 34

The name list of the members of the tender evaluation committee shall be kept confidential before the tender evaluation outcomes
are made public. The tenderee and the tendering agency shall take measures to ensure that the tender evaluation be carried out in
a strictly confidential manner. No entity or individual may interfere in or influence the process or outcomes of the evaluation of
tender.

Article 35

The tender evaluation committee shall evaluate the tender documents in strict compliance with the commercial and technical clauses
as stipulated in the bidding documents, and no criterions other than those as specified in the bidding documents may be the basis
for tender evaluation, unless it is otherwise prescribed by the laws and administrative regulations. Each member of the tender evaluation
committee shall separately fill in the evaluation opinion form of the tender evaluation committee (see Attachment III) when the tender
evaluation ends. The evaluation opinion forms shall be an indispensable part of the tender evaluation report.

Where the lowest evaluation method is adopted, the person with the lowest evaluated price will be the recommended bid winner. Where
the comprehensive evaluation method is adopted, the person with the highest comprehensive marks will be the recommended bid winner.

Article 36

During the process of commercial tender evaluation, the bidding shall be annulled and the technical tender evaluation shall be called
off upon occurrence of any of the following conditions:

(1)

the tenderer fails to provide the tender bond or the tender bond is insufficient, or the validity period of the letter of guarantee
is not enough, or the tender bond form or the bank issuing the letter of guarantee doesn’t conform to the requirements of the bidding
documents;

(2)

the tender documents have not been signed page by page according to the requirements;

(3)

the tenderer and its manufacturer have interests with the tenderee or the tendering agency ;

(4)

the tenderer fails to offer the letter of tender or the qualification certificate, or those offered do not conform to the requirements
of bidding documents;

(5)

the tender documents have not been signed by the legal representative, or the person that signed on them doesn’t have the valid power
of attorney of the legal representative;

(6)

the performance of the tenderer can’t meet the requirements of the bidding documents;

(7)

the validity period for the bidding is insufficient; or

(8)

the tender documents conform to other commercial clauses in the bidding documents stipulating the annulment.

Unless it is otherwise prescribed by the present Measures, the documents as listed in the preceding paragraph shall be offered in
originals, and no clarification or supplement may be conducted prior to the opening of the tenders, otherwise it will result in the
annulment of the bid.

Article 37

During the process of technical tender evaluation, the bid shall be annulled upon occurrence of any of the following conditions:

(1)

the tender documents fail to comply with the requirements of the main parameters with an asterisk (“*”) in the technical specifications
of the bidding documents, or the main parameters marked with an asterisk (“*”) are not supported by the technical materials;

(2)

the general parameters in technical specifications of the bidding documents exceed the permissible maximum scope of deviation or the
highest number of terms;

(3)

the re

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 32 – INTERIM FINANCIAL REPORT

Ministry of Finance

Accounting Standards for Enterprises No. 32 – Interim Financial Report

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the contents of interim financial reports, and the principles of recognition and measurement to be followed when working out the
interim financial reports.

Article 2

An interim financial report refers to a financial report worked out on the basis of an interim period.

An interim period refers to a reporting term which is shorter than a full fiscal year.

Chapter II Contents of Interim Financial Reports

Article 3

An interim financial report shall at least include a balance sheet, an profit statement, a cash flow statement and explanatory notes.

The balance sheet, profit statement and cash flow statement included in an interim financial report shall be presented in their complete
forms. Their format and contents shall be consistent with the annual accounting statements of the prior fiscal year. .

If the format and content of the financial statements have been changed due to the adoption of new accounting standards for the current
year, the interim financial statements shall be worked out according to the amended format and content. In addition, the format and
content of comparative financial statements for the prior fiscal year shall also be adjusted accordingly.

The basic earnings per share and the diluted earnings per share shall be separately presented in the interim profit statement.

Article 4

Where consolidated financial statements were worked out for the prior year, consolidated financial statements shall be worked out
by the end of the interim period.

If a financial report for the prior year includes financial statements of the parent company besides the consolidated financial statements,
the interim financial report shall include the financial statements of the parent company as well.

If a financial report for the prior year includes consolidated financial statements, but if all subsidiaries which were included in
the consolidation scope were disposed during the period of interim reporting, the interim financial report shall be only required
to provide the financial statements of the parent company, but the comparative financial statements for the prior year shall still
include the consolidated financial statements unless there is no subsidiary in the comparative interim period of the prior year.

Article 5

An interim financial report shall, according to the following provision, provide the comparative financial statements :

(1)

The balance sheet statement at the end of the current interim period and the balance sheet statement at the end of the prior year;

(2)

The profit statement for the current interim period, the profit statement for the period from the beginning of the year to the end
of the current nterim period, as well as the profit statement of the comparative period of the prior year; and

(3)

The cash flow statement for the period from the beginning of the year to the end of the current interim period, and the cash flow
statement for the period from the beginning of the prior year to the end of the comparative current interim period.

Article 6

Where any adjustment or revision is made to the items of the financial statements in an interim report, the relevant amounts of the
items in the comparative financial statements for the prior year shall be re-classified according to the requirements of the interim
financial statements for the current year, and the reasons and contents of the reclassification shall be explained in the notes.
If the reclassification is impracticable, the reasons shall be given in the notes.

Article 7

The notes in an interim financial report shall be worked out based on the period from the beginning of the year to the end of the
current interim, and shall disclose any significant events or transactions, which occurred after the balance sheet date of the prior
year and which may be helpful to the understanding of financial status, operating performance and cash flows changes of the enterprise.

The enterprise shall, in its notes, disclose any significant events or transactions, which may be helpful to the understanding of
its financial status, operating performances and cash flows during the current interim period.

Article 8

The notes in an interim financial report shall at least include the following information:

(1)

A declaration that the accounting policies adopted for the interim financial statements are consistent with those for the financial
statements of the prior year.

If the accounting policy altered, the nature, details, reasons and effect of the change of the accounting policy shall be explained
. If it is unable to make a retrospective adjustment, the reasons shall be explained.

(2)

The details, reasons and effect of alteration of accounting estimates, or if the effect cannot be determined, the reason shall be
explained;

(3)

The nature of any prior period error and the amount of correction; if the retrospective restatement is impractical, the reasons shall
be explained;

(4)

The seasonal or periodicity features of the enterprise’s operations;

(5)

The details of changes in affiliated enterprises where a control relationship exists. Where there are related party transactions,
the nature of the affiliated party relationship, the types of transactions and the essential elements of the transactions shall be
disclosed;

(6)

The details of changes in the consolidation scope for the consolidated financial statements;

(7)

The explanatory comments about the financial statement items that are abnormal in terms of their nature or amounts;

(8)

The details of issuance, repurchase, and repayment of securities;

(9)

The details of any distribution of profits to the enterprise’s owners, including profits distributed and distribution proposed or
approved but not yet made in the interim period;

(10)

If any segment reporting information is required to be disclosed under the Accounting Standards for Enterprises, the segment revenue
and segment profit (loss) under primary segment reporting shall be disclosed;

(11)

The non-adjusting events occurring during the period from interim balance sheet date to the date on which the interim financial report
is authorized for issuance;

(12)

The details of any changes in contingent liabilities and contingent assets after the prior year’s balance sheet date;

(13)

A description of any changes in the composition of the enterprise such as business combination, acquisition or disposal of long-term
investments for which the enterprise can exercise significant influence, has joint control or control over the investees, or termination
of business operations; and

(14)

Other significant transactions or events such as transfer and sale of significant long-term assets, significant acquisitions of fixed
assets and intangible assets, significant research and development disbursements, significant assets impairment losses, etc.

When an enterprise provides information about the affiliated party transactions, and segment revenue and segment profit (loss) as
mentioned in the preceding items (5) and (10), it shall simultaneously provide the figures of the current interim period (or the
end of the current interim period), the figures during the period from the beginning of the current year to the end of the current
interim period, the comparative figures of the comparative current period of the prior year (or the end of the comparative period),
and comparative figures during the period from the beginning of the comparative year to the end of the current interim period.

Article 9

In the recognition, measurement and reporting the each line item on the interim financial statements, the enterprise shall base its
judgment about the importance of each line item on the interim financial figure other than on the annual financial figure. As compared
with annual financial figures, the interim accounting measurement may rely on the estimates to a greater extent, however, the enterprise
shall ensure that the interim financial report it provides includes the relevant important information.

Article 10

During the same fiscal year, if an estimate amount reported in an prior interim financial report is changed significantly during the
final interim period but a separate financial report is not published for that final interim period by enterprise, the details, reasons,
and effect amount of that alteration of estimate should be disclosed in the notes of the annual financial statements. .

Chapter III Recognition and Measurement

Article 11

The accounting policies adopted by an enterprise for its interim financial statements shall be consistent with those as adopted for
its annual financial statements.

If any accounting policy alters after the balance sheet date of prior year and if the accounting policy after alteration will be adopted
for the annual financial statements, the accounting policy after alteration shall be adopted for the interim financial statements
and shall be treated according to the provision of Article 14 of these Standards.

Article 12

The interim accounting measurement shall be based on the period from the beginning of the year to the end of the current interim period.
The frequency of the financial reports shall not affect the measurement of the annual results.

Within a same accounting year, if the accounting estimate for an accounting statement item reported in a prior interim period alters
in the subsequent interim period, such amount after accounting estimate alteration should be reflected in the subsequent interim
accounting statements, but the amount of the item as reported in the prior interim period should not be adjusted. In the mean while,
the alteration of the accounting estimate shall also be disclosed in the notes according to provisions of Article (2) or Article
10 of these Standards.

Article 13

An enterprise should recognize and measure revenues that are received seasonally, cyclically or occasionally when they are occurred
and shall not anticipate or defer such revenues in interim accounting statements unless anticipation or deferral were permitted at
the end of the accounting year.

An enterprise shall recognize and measure costs that are incurred unevenly during an accounting year when they are incurred and shall
not anticipate or defer such costs in the interim accounting statements unless the anticipation or deferral would be acceptable at
the end of the fiscal year.

Article 14

If there is any alteration in an accounting policy during the interim period for an enterprise, it shall be treated according to the
Accounting Standards for Enterprises No. 28 – Changes in Accounting Policies and Accounting Estimates, and Corrections of Errors
and shall be disclosed accordingly in the notes pursuant to the provision of Article 8 (1) of these Standards.

If the cumulative effect of a change in accounting policy can be reasonably determined and if the change in accounting policy affects
the figures of any line items on the interim financial statements for the prior interim period in the current fiscal year, these
items shall be adjusted retrospectively as if the same accounting policy has been adopted throughout the whole fiscal year. In the
mean while, the comparative financial statements of the prior year shall also be adjusted accordingly.

Ministry of Finance
2006-02-15

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Uncategorized

CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION ON THE RELEASING OF STANDARDS CONCERNING THE CONTENTS AND FORMATS OF INFORMATION DISCLOSURE...

CIRCULAR ON ISSUING ADMINISTRATIVE PROVISIONS ON CARRYING OUT PREFERENTIAL IMPORT DUTY POLICIES ON DOMESTIC AVIATION COMPANIES OPERATING INTERNATIONAL AND...

MEASURES FOR THE ADMINISTRATION OF PRELIMINARY EXAMINATION OF THE LAND USED FOR CONSTRUCTION PROJECTS (REVISED IN 2004)

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 31 – CASH FLOW STATEMENTS

ANNOUNCEMENT NO.36, 2006 OF GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING PROMULGATING ORIGIN STANDARDS OF ZERO-TARIFF COMMODITIES OF HONG KONG (MACAO) IN THE FIST HALF OF 2006

PROVISIONS ON INFORMATION CONSULTING AND DISCLOSURE OF INDUSTRIAL DAMAGE INVESTIGATION

MEASURES CONCERNING THE ADMINISTRATION OF WHOLESALE, RETAIL AND LEASE OF AUDIO AND VIDEO PRODUCTS

PROVISIONS ON MINIMUM WAGES

URGENT CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING TEMPORARILY SUSPENDING TAX REBATE FOR UREA EXPORT

CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON SEVERAL ISSUES CONCERNING THE PROMOTION OF INNOVATION ACTIVITIES IN SECURITIES INDUSTRY

MEASURES FOR THE IMPLEMENTATION OF INTERNATIONAL TENDER INVITATION AND BIDDING FOR MECHANICAL AND ELECTRICAL PRODUCTS

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 32 – INTERIM FINANCIAL REPORT

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