CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON READJUSTING THE EXPORT REBATES RATE FOR SUCH PRODUCTS AS COAL TAR ETC.

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Readjusting the Export Rebates Rate for such Products
as Coal Tar etc.

Cai Shui [2005] No.184

December 23, 2005

Departments (Bureaus) of Finance, Bureaus of State Taxes in all provinces, autonomous regions, and municipalities directly under the
Central Government, and cities specially designated in the state plan, and Bureau of Finance of the Xinjiang Production and Construction
Corps:

With the approval from the State Council, the export rebates rate for these products as follows shall be readjusted as of the date
of January 1, 2006:

Export rebates policy for coal tar, peltry, wet blue hides, wet leather and dry leather shall be abolished. Please see Annex I for
details.

II.

The export rebates rate for the 25 kinds of pesticides, disperse dye, mercury, tungsten, zinc, tin, antimony and their products, magnesium
metal and its primary products, disodium sulphate and paraffin wax as listed in the Rotterdam Convention on the Prior Informed Consent
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (PIC Convention), and the Stockholm Convention on
Persistent Organic Pollutants (POPS Convention) shall be readjusted to 5%. Please see Annex II for details.

This circular is hereby given.

Annexes:

Catalogue for Export-rebates-abolished Commodities

Catalogue for Commodities with a Readjusted Export Rebates Rate of 5% htm/e04659.htmNew Page 1

Annex I.

Catalogue for Export-Rebates-Abolished Commodities

Serial Number	Tariff Heading	Name of Commodity
1	2706	Tar and other mineral tar distilled from coal, lignite or peat, whether or not dehydrated or partly distilled, including refined tar
2	4101 4102 4103	Peltry subject to the antecedent tariff heading
3	4104 4105 4106	Leather subject to the antecedent tariff heading
4	4301	Raw fur

Annex II.

Catalogue for Commodities with a Readjusted Export Rebates Rate of 5%

Serial Number	Tariff Heading	Name of Commodity
1	28331100	Disodium sulphate
2	27122000 27101994	Paraffin wax
3	32041100	Disperse dyes and its essential
4	28054000	Mercury
5	81041100 81041900 81042000 81043000	Magnesium metal subject to the antecedent tariff heading
6	28418010 28418040 28259012 28259019.10 28259011 28418020 28418030 28499020 81011000.11 81011000.19 81011000.90 81019400 28259019.90	Tungsten and tungsten products subject to the antecedent tariff heading
7	80011000.10 80011000.90 80012020 80012010 80012090 80030000 80040000 80060000 80020000	All tins, tin products and waste tin particles subject to the antecedent tariff heading
8	79011100 79011200 79012000 79020000	Zinc, zinc alloy and waste zinc particles subject to the antecedent tariff heading
9	81101010 81101020 81109000 28258000 81102000	Antimony, antimony products and waste antimony particles subject to the antecedent tariff heading
		Pesticide
10	2918900010	2,4,5-Trichlorophenoxyacetic acid
11	2903590010	Aldrin , Heptachlor and Chlordane
12	2930909029	captafol and methamidophos
13	2918199020	Acaraben
14	2910900010	Dieldrin and endrin
15	2908909010	Dinitro-ortho-cresol (DNOC) and its salts
16	2903309020	Dibromoethane
17	2924199020	Fluoroacetamide subject to the antecedent tariff heading
18	2903510010 29035100101 29035100102	Lindane
19	2903510090	1,2,3,4,5,6-HCH
20	29036200	Hexachlorobenzene and DDT
21	2921430030	Chlordimeform
22	2924199010	Monocrotophos and Phosphamidon
23	2920100010	Methyl-parathion and Parathion
24	2908109010	Pentachlorophenol
25	2903590020	Camphechlor
26	2903590030	Dodecachloropentacyclo
27	2931000012	Chloroethane Benzene subject to the antecedent tariff heading
28	28429000	Mercury Arsenide and Mercury Rhodanate subject to the antecedent tariff heading
29	2851009090	Mercury Arsenide subject to the antecedent tariff heading
30	28342990	Mercuric Nitrate, Mercurous Nitrate and Mercuric Sulphate subject to the antecedent tariff heading
31	2826190090	Mercuric fluoride subject to the antecedent tariff heading
32	28121049	Mercuric chloride subject to the antecedent tariff heading
33	2812900090	Mercuric Iodide subject to the antecedent tariff heading
34	2931000029	Mercuric acetate and other organic mercury subject to the antecedent tariff heading
35	28380000	Mercuric thiocyanate, potassium mercuric thiocyanate and ammonium mercuric thiocyanate subject to the antecedent tariff heading
36	28274900	Mercury amide chloride and Mercurate-tetrachloro-dipotassium subject to the antecedent tariff heading
37	28275900	Mercuric bromide and mercuric iodide subject to the antecedent tariff heading
38	28259090	Mercuric oxide and mercurous oxide subject to the antecedent tariff heading

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON DOING WELL RELATED WORKS OF CARRYING OUT AND IMPLEMENTING THE AMENDED COMPANY LAW AND SECURITIES LAW

General Office of the State Council

Circular of the General Office of the State Council on Doing Well Related Works of Carrying out and Implementing the Amended Company
Law and Securities Law

Guo Ban Fa [2005] No.62

People’s Governments in all provinces, autonomous regions, and municipalities directly under the Central Government, ministries and
commissions of the State Council, and organs directly under the State Council:

The amended Company Law of the People’s Republic of China and Securities Law of the People’s Republic of China has been adopted at
the 18th session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on October 27,
2005, and will enter into force as of the date of January 1, 2006. The Company Law and Securities Law are important laws in building
and improving the socialist market economy system, and also fundamental laws in regulating the running of the capital market. In
order to guarantee the smooth implementation of these two Laws and with the approval from the State Council, this circular is hereby
formulated on relevant issues as follows:

It is imperative to fully understand the significance of implementing the amended Company Law and Securities Law. Based on the summarization
of the practices in recent years and in accordance with the change and operation rules in China’s current economic life, the amended
Company Law and Securities Law make relatively big readjustments, supplements and revisions on the former legal regimes for company
and securities, and conduct improvements and innovations on relevant regimes. Accommodating the objective requirements of the reality,
the amendment of these two laws is beneficial for the deepening of the economic system reform and the promotion of economic development,
and for the improvement of the socialist market economy system. A good implementation of these two amended Laws will play important
roles in the fostering of mature and perfect market subjects, in the regulation and promotion of the development of companies, in
the protection of lawful rights and interests of companies, shareholders, creditors, employees etc., in the enhancement of the quality
of the listed companies, and in the promotion of the stable and healthy development of the capital market. People’s Governments at
all levels in all places and relevant authorities of the State Council shall fully understand the significance of implementing the
amended Company Law and Securities Law and do well relevant works.

II.

It is imperative to deeply carry out the works of study and publicity, and strengthen the training of affairs. The amended Company
Law and Securities Law make relatively complete revisions on the registered capital system of the company, the management structure
of the company, the protection of the rights of the shareholders, the financial and accounting system, the merger and divide system
etc., adding up provisions on such fields as the negation of juristic personality, the norms on the association relations, the cumulative
voting, the independent director etc. The amended Securities Law strengthens the internal control system of the securities company,
consolidates the regulatory power of the securities supervisory and managerial authorities, improves the legal responsibilities for
activities in violation of securities laws and regulations, adds up such new mechanisms as the securities issuing and listing recommendation,
the protective funds for securities investors, the pre-disclosure of securities issuing and transactions etc., so as to create conditions
for the stable advance of diversified operation in the financial industry, for the creation of securities derivatives, for the advance
of futures trading of securities, for the widening of channels for capital’s entering into the market as stipulated, and for the
gradual carrying-out of securities financing etc. These innovations in the system need wide and deep studies and publicities so that
the whole society can understand and master them. The Legislative Affairs Office shall, in cooperation with other authorities, formulate
concrete programs for study and publicity, and strengthen, by means of organizing various kinds of lectures and symposiums etc.,
the training of relevant personnel so as to change the functions and working styles of the governments to administering according
to law. The press and media shall conduct publicities on the backgrounds, the main contents, and the significance of implementation
of the amended Company Law and Securities Law and on the various authorities’ effective measures for carrying out and implementing
these two Laws so as to make positive guidance on the hotspot issues in the society.

III.

It is imperative to earnestly do well the linkage of relevant works before and after the amendment of the Company Law and Securities
Law. The amendment of these two Laws concerns the readjustment of relevant managerial systems and of duties among authorities, and
the linkage work shall be well done so as to prevent the disjointing of relevant managerial works.

First, the work of company registration and record shall be timely readjusted. In accordance with the amended Company Law and Securities
Law, the establishment of incorporated companies needs no longer the approvals from the authorities authorized by the State Council
or the provincial people’s governments, while in case that the public distribution of shares is concerned, the approval from the
China Securities Regulatory Commission is required. And the State Administration for Industry and Commerce shall, targeting on the
aforesaid changes, revise the provisions for company registration and record and strengthen the administration of registration and
record.

Second, the administration on the distribution of securities shall be strict. In accordance with the provision in the amended Securities
Law that public distribution of securities shall all and singular need the examination and approval from the securities regulatory
authorities of the State Council or the authorities authorized by the State Council, the China Securities Regulatory Commission and
the authorities authorized by the State Council shall, targeting on the present actual situations, accelerate the study and making
of relevant provisions, specify the conditions and procedures for examination and approval, and establish relevant systems on the
registration, custody and settlement of securities. And the rush for overissuing securities shall be prevented before the promulgation
of relevant match-up provisions. The China Securities Regulatory Commission shall temporarily deny other applications for the public
distribution of securities except the existing ones, and the authorities for industry and commerce at all levels shall also deny
the related applications for registration and record. With regard to those who illegally purchase and sell the illegally-distributed
securities or who provide services of transaction through agent, transfer, and custody etc. to the illegally-distributed securities,
such authorities as the China Securities Regulatory Commission, the Ministry of Public Security, the State Administration for Industry
and Commerce etc. shall, in cooperation with the local people’s governments, investigate and prosecute them according to law.

Third, the administration on securities exchange shall be strengthened. In accordance with the amended Securities Law, the publicly
issued securities according to law may be transferred at other stock exchanges approved by the State Council besides being listed
for transactions at the Shanghai Stock Exchange and Shenzhen Stock Exchange. In light of the previous experiences and lessons, the
advance of the building of multilevel capital markets shall be promoted under the unified leadership of the State Council in an organized
and gradual way. Without the approval from the State Council, the local people’s governments at all levels and relevant authorities
of the State Councils shall not establish stock exchanges or provide the service of securities transfer utilizing the existing transaction
platforms. The China Securities Regulatory Commission shall, in cooperation with relevant authorities of the State Council, accelerate
the studies on the programs for building a multilevel capital market system, and submit them to State Council for implementation
after approval.

IV.

The organizational leadership for the implementation work shall be strengthened, and relevant administrative laws and regulations
shall be timely formulated or cleared. The local people’s governments at all levels and relevant authorities of the State Council
shall strengthen their organizational leadership for the implementation work, enforce strictly the provisions in the amended Company
Law and Securities Law, do well works of their own and enhance the coordination and cooperation among them. The China Securities
Regulatory Commission shall enhance its cooperation with relevant authorities of the State Council, carry out its law-enforcing powers
and measures entrusted by the law, strengthen supervision and administration on the capital markets together with relevant authorities,
and adopt effective measures to prevent and reduce market risks so as to construct a good environment for the development of capital
markets. The State-owned Assets Supervision and Administration Commission of the State Council and other authorities in charge of
the supervision and administration of the state-owned assets shall, in accordance with the provisions in the amended Company Law,
further improve the management structures of the wholly state-owned companies and the state-owned holding companies and actively
advance the shareholding reform of the state-owned enterprises.

Relevant authorities of the State Council shall, in accordance with the amended Company Law and Securities Law, accelerate the drafting
of administrative laws and regulations concerning the supervision and administration of the listed companies, securities companies
and the financial holding companies, and the risk treatment of the securities companies, and submit them to the State Council for
examination and deliberation as soon as possible; and they shall advance relevant programs for the securities credit exchange system
in a proper time, so as to create conditions for the capital’s entering into the market as stipulated. The Legislative Affaires Office
shall organize relevant authorities to conduct special screening of the existing administrative regulations and rules related to
the Company Law and Securities Law, and the administrative regulations and rules, if conflicting with the amended Company Law and
Securities Law, shall be revised or cancelled. The State Administration for Industry and Commerce and other relevant authorities
shall accelerate the revision on the Administrative Regulation of the People’s Republic of China on the Registration of Companies
and other administrative regulations and rules, and conduct a comprehensive clearance of the administrative regulations and rules
related to the registration of companies. The Ministry of Finance shall further revise and improve the financial system of the enterprises
and the national accounting system. The National Development and Reform Commission shall, in cooperation with the People’s Bank of
China, the China Securities Regulatory Commission and other authorities, study and improve the legal system concerning the enterprise
bond. The Legislative Affaires Office, the Ministry of Public Security, the State Administration for Industry and Commerce, the China
Securities Regulatory Commission and other authorities shall actively communicate with relevant authorities, and cooperate with them
in the relevant revisions or legislations and judicial interpretations on the provisions in the Criminal Code related to companies
and securities crimes, so as to readjust the provisions related to the prosecution against the economic crimes as soon as possible.
People’s governments in all provinces, autonomous regions, and municipalities under direct control of the Central Government shall
also improve relevant governmental regulations in accordance with the relevant provisions in the amended Company Law and Securities
Law.

All the authorities in all places, after receiving this Circular and in accordance with their actual circumstances, shall formulate
concrete measures and implement it earnestly. And the important issues and problems occurring in the process of implementation shall
be timely reported to the State Council.

The General Office of the State Council

December 23, 2005

General Office of the State Council
2005-12-23

CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION AND CHINA BANKING REGULATORY COMMISSION ON REGULATING THE EXTERNAL GUARANTIES PROVIDED BY LISTED COMPANIES

China Securities Regulatory Commission, China Banking Regulatory Commission

Circular of China Securities Regulatory Commission and China Banking Regulatory Commission on Regulating the External Guaranties Provided
by Listed Companies

Zheng Jian Fa [2005] No.120

Listed companies and financial institutions in the banking sector,

With a view to regulating the external guaranties provided by listed companies as well as the examination and approval of financial
institutions in the banking sector on the loans as guaranteed by listed companies and effectively preventing the risks arising from
the external guaranty of listed companies and the credit risks of financial institutions, and in accordance with the provisions of
such laws and regulations as the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China,
the Law of the People’s Republic of China on Banking Regulation and Supervision, and the Guaranty Law of the People’s Republic of
China, relevant issues concerning the external guaranty as provided by listed companies are hereby notified as follows:

We should regulate the external guaranty as provided by listed companies and strictly control the risks arising therefrom.

(1)

Any guaranty as provided by a listed company shall be subject to the deliberation of the board of directors or the shareholders’ meeting;

(2)

The authority of the shareholders’ meeting or the board of directors regarding the examination and approval of an external guaranty
as well as the responsibility assuming system in the case of any violation of the said authority of examination and approval or the
procedures for examination and deliberation shall be stated in the articles of association of a listed company;

(3)

A external guaranty subject to the examination and approval of the shareholders’ meeting may not be submitted to the shareholders’
meeting for examination and approval until the board of directors has reviewed the external guaranty. A external guaranty that shall
be subject to the examination and approval of the shareholders’ meeting shall include but not be limited to the following circumstances:

Any guaranty as provided after the total amount of guaranties provided by a listed company and its controlling subsidiaries exceeds
50% of the net assets upon the latest auditing;

A guaranty as provided to a guaranteed party whose asset-liability ratio is higher than 70%;

A guaranty, the amount of which exceeds 10% of the net asset upon the latest auditing; and

A guaranty as provided to the shareholder, actual controller or the related party.

Where the shareholders’ meeting deliberates on a guaranty to be provided to a shareholder, or an actual controller or a related party,
the shareholder, actual controller or related associated party may not take part in the voting. A resolution on the external guaranty
shall be subject to approval of shareholders with half or more of the voting rights held by shareholders present at the meeting.

(4)

As to a external guaranty subject to the examination and approval of the board of directors, it shall be subject to approval of 2/3
of the directors present at the meeting of the board of directors upon deliberation, and a resolution shall be made thereafter;

(5)

A guaranty subject to the examination and approval of the board of directors or the shareholders’ meeting of a listed company shall
be timely disclosed in a newspaper for information disclosure as designated by China Securities Regulatory Commission. The content
as disclosed shall include the resolution of the board of directors or the shareholders’ meeting as well as the total amount of external
guaranty of a listed company and its controlling subsidiaries to other parties and the total amount of guaranties provided by the
listed company to its controlling subsidiaries until the day when the information is disclosed.

(6)

Where a listed company undertakes the provision of loan guaranty , it shall submit such materials as the articles of association,
the original of the resolution of the board of directors or the shareholders’ meeting with respect to the guaranty and the designated
newspaper, on which the relevant issues concerning the guaranty are published.

(7)

As to the guaranty provided by a controlling subsidiary of a listed company, the aforesaid provisions shall be referred to. The controlling
subsidiary shall timely inform the listed company of performing the information disclosure obligations after its board of directors
or its shareholders’ meeting makes the relevant resolution.

We should regulate the examination and approval of loan guaranties by financial institutions in the banking sector and effectively
prevent the credit risks arising from the loans guaranteed by listed companies and granted by financial institutions.

(1)

All the financial institutions in the banking sector shall, in strict compliance with such laws and regulations as the Guaranty Law
of the People’s Republic of China, the Company Law of the People’s Republic of China, and the Interpretation of the Supreme People’s
Court on Some Issues Concerning the Application of the Guaranty Law of the People’s Republic of China, reinforce the examination
of the application for loan as guaranteed by a listed company, effectively prevent the relevant credit risks and shall timely upload
the information on loans and guaranties into the credit management system.

(2)

All financial institutions in the banking sector shall, according to this Circular, the articles of association of the listed company
concerned as well as other relevant provisions, seriously examine the following matters:

Completeness and compliance with relevant laws and regulations of the application materials submitted by the listed company for the
loan it guarantees;

Performance of the listed company in respect of the procedures for the examination and approval of the board of directors or the shareholders’
meeting on its external guaranty;

Performance of information disclosure obligations of the listed company;

Guaranty capability of the listed company; and

Other matter concerning the accommodator’s creditworthiness and payment capability.

(3)

Financial institutions in the banking sector shall, according to such provisions as the Guidance for Commercial Banks on the Fulfillment
of Credit Authorization Work, improve the internal control system so as to control credit risks.

(4)

As to application for loans as guaranteed by a controlling subsidiary of a listed company, the above provisions shall be referred
to.

We should strengthen the supervision and coordination and intensify the responsibility prosecution for any rule-breaking provision
of external guaranty by listed companies.

(1)

The China Securities Regulatory Commission and branches thereof and the China Banking Regulatory Commission and the branches thereof
shall strengthen supervision and coordination, share information with each other, jointly establish a supervision and coordination
mechanism, jointly intensify the prosecution of the violation of an listed company by concealing information on guaranty or providing
a guaranty illegally or the violation of a financial institution in the banking sector by unlawfully granting a loan, and affix legal
liabilities to the parties concerned according to law.

(2)

A listed company or any senior manager thereof such as director, supervisor or manager which violates the provisions of this Circular,
shall be ordered to make rectification and correction by the China Securities Regulatory Commission, and shall be punished according
to law. If a suspected crime is involved in the case, it shall be transferred to the judicial organ.

(3)

Where a financial institution in the banking sector violates laws or regulations, the relevant institution and the parties concerned
shall be punished by the China Banking Regulatory Commission. If a suspected crime is in the case, they shall be subjected to legal
liabilities by means of transferring the case to the judicial organ.

Other Matters

(1)

All listed companies shall revise and improve their articles of association according to the aforesaid provisions. All financial institutions
in the banking sector shall incorporate the guaranty provided by the listed companies into the uniform credit granting system, and
shall, in strict accordance with the relevant provisions, carry out examination and approval as well as administration with respect
to guaranties.

(2)

The term “financial institutions in the banking sector” as mentioned in the present Circular shall be defined according to that as
used in the Law of the People’s Republic of China on Banking Regulation and Supervision. The term “external guaranty” as mentioned
herein shall mean the guaranty provided by a listed company to others, including the guaranty provided by a listed company to its
controlling subsidiary. The term “the total amount of the external guaranty of a listed company and its controlling subsidiaries”
as mentioned herein shall mean the sum of the total amount of guaranties provided by a listed company to other parties and the total
amount of guaranty provided by its controlling subsidiaries to other parties, including the guaranty provided by a listed company
to its controlling subsidiaries.

(3)

This Circular shall apply to all listed financial companies.

(4)

Where the Circular on the Relevant Issues concerning the Provision of Guaranty by Listed Companies to Other Parties( Zheng Jian Gong
Si Zi [2000] No. 61 ) and the Circular on Some Issues concerning the Fund Flow Between a Listed Company and its Associated Parties
as well as the Guaranties Provided by a Listed Company (Zheng Jian Fa [2000] No. 56 ) has any conflict with the provisions of this
Circular, this Circular shall prevail.

(5)

The present Circular shall go into effect as of January 1, 2006.

China Securities Regulatory Commission, China Banking Regulatory Commission
2005-12-23

MINISTRY OF COMMERCE ANNOUNCEMENT NO. 58, 2005 ON STARTING ANTI-DUMPING INVESTIGATION ON IMPORTED OCTANOL

Ministry of Commerce Announcement No. 58, 2005 on Starting Anti-dumping Investigation on Imported Octanol

Announcement [2005] No.58 of the Ministry of Commerce

Ministry of Commerce announced an anti-dumping investigation on imported Octanol (octyl alcohol) originating in ROK, Saudi Arabia,
Japan, EU and Indonesia (hereinafter referred to as “investigated product “) on September 15, 2005.

In respond to an appeal from domestic industry on July 15, 2005, Ministry of Commerce examined related issues and evidence. Since
the examination shows the appeal is in line with Article 11 , 13 and 17 and includes related contents and evidence of Article 14
and 15 of Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce decided to start an anti-dumping investigation
on the investigated product as of September 15, 2005.

The period of investigation on dumping is from March 31, 2004 to March 31, 2005. The investigation on injury to domestic industry
is from January 1, 2001 to March 31, 2005.

The investigated product is classified under Code 29051600 in Import and Export Tariffs of General Administration of Customs of the
People’s Republic of China.

Interested parties can apply to Bureau of Fair Trade for Imports and Exports or Bureau of Industry Injury Investigation of Ministry
of Commerce for responding to charges within 20 days as of the date the Announcement is issued.

At the same time, the related exporters and producers should provide the quantity and amount of the product exported to mainland China
during March, 2004 to March, 2005. Registration Form on Dumping Investigation can be downloaded from http//gpj.mofcom.gov.cn.

Besides, the interested parties should provide explanation materials on production capacity, output, storage, construction plans,
and quantity and amount of the product exported to mainland China during the period of investigation on injury to domestic industry.
Registration form on Industry Injury Investigation can be downloaded from http//www.cacs.gov.cn.

If the interested parties are not registered responding to charges within the fixed time, Ministry of Commerce shall have the right
to refuse their materials and make adjudication according to the available materials.

Interested parties can submit their written opinions to Ministry of Commerce in 20 days as of the date when the Announcement is issued
if they have objections to the production margin, qualification of the applicants, investigated countries and other issues.

Interested parties can look up the unclassified version of the application handed in by the applicants at Open Information Look-up
Office of Ministry of Commerce during the above-mentioned period.

Investigation measures can be conducted by questionnaire, sampling, hearing and examination on the spot.

The investigation begins on September 15, 2005 and last 1 year normally. In case of special situation, it could be extended to March
15, 2007.

Address of Ministry of Commerce:

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports:

Tel86-10-65198747, 65198740, 65197354

Fax: 86-10-65198164, 65198497

Address: No. 82, DongAnMen St. Beijing

Postcode: 100747

Bureau of Industry Injury Investigation:

Tel86-10-85226852, 85226855, 85226853

Fax: 86-10-85226854

Ministry of Commerce

September 15, 2005

Ministry of Commerce
2005-09-15

REPLY OF THE PEOPLE’S BANK OF CHINA CONCERNING ISSUING FINANCIAL SECURITIES BY CHINA MERCHANTS BANK

Reply of the People’s Bank of China Concerning Issuing Financial Securities by China Merchants Bank

Yin Fu [2005] No. 75

The China Merchants Bank:

We have received your Request for Instructions on Issuing Financial Securities by China Merchants Bank (Zhao Yin Fa [2005] No. 434).
In accordance with the Provisions on Issuing Financial Securities in the Nationwide Inter-bank Securities Market (Zhong Guo Ren Min
Yin Hang Ling [2005] No. 1, hereinafter referred to as the Management Measures), we hereby reply as follows:

We approve you to issue 15 billion Yuan of financial securities in the nationwide inter-bank securities market. 10 billion Yuan shall
be issued in the first period, of which, 5 billion Yuan is of 3-year term and 5 billion Yuan is of 5-year term. The issuance of all
financial securities shall be concluded before June 30, 2006.

In line with the relevant provisions of the Management Measures, your Bank shall file the relevant documents with the People’s Bank
for archival within 5 workdays before the issuance of financial securities of each period and shall do a good job in the security
issuance of each period as well as the relevant information disclosure according to the requirements of the People’s Bank of China.

Your Bank shall report the security issuance to the People’s Bank of China within 10 workdays as of the date of the conclusion of
each period of financial security issuance.

After your financial security issuance is concluded, the securities shall, in accordance with the relevant provisions of the People’s
Bank of China, be allowed to circulate and be traded in the nationwide inter-bank securities market.

The People’s Bank of China

October 9, 2005

The People’s Bank of China
2005-10-09

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 34 – EARNINGS PER SHARE

Accounting Standards for Enterprises No. 34 – Earnings Per Share

Cai Kuai [2006] No.3
February 15, 2006
Chapter I General Provisions

Article 1

In order to regulate the methods for the calculation of the earnings per share and the presentation thereof, these Standards are
formulated according to the Basic Standards of Accounting Standards for Enterprises.

Article 2

This Standards applies to enterprises whose ordinary shares or potential ordinary shares have been traded publicly, and those that
are going on a public offering of ordinary stocks or potential ordinary shares.

The term “potential ordinary stock” refers to a financial instrument or other contract that could endow its holder ordinary with ordinary
share rights within reporting term or the following term, such as convertible corporate bonds, share warrants, share options and
etc.

Article 3

In the consolidated financial statements, an enterprise shall calculate and present the earnings per share based on the consolidated
financial statements.

Chapter II Basic Earnings Per Share

Article 4

For an enterprise, the basic earnings per share shall be calculated by dividing the current net profits belonging to the shareholders
of ordinary shares by the weighted average number of ordinary shares issued to the public.

Article 5

The weighted average number of ordinary shares which are issued to the public shall be calculated in the light of the formulas as
follows:

The weighted average number of ordinary shares issued to the public = the number of ordinary shares issued to the public at the beginning
of the period + the number of shares newly issued in the current period the lapsed time after issuance the time during the
reporting period – the number of ordinary shares repurchased in the current period the lapsed time after repurchase the time
during the reporting period The lapsed time after issuance, the time during the reporting period as well as the time after the repurchase
shall be calculated by days. On the precondition of not affecting the reasonableness of calculation result, a simplified calculation
method may be employed.

Article 6

In accordance with the specific terms and clauses of the issuance contract, the number of newly issued ordinary shares shall be calculated
and decided as of the date of receivable consideration (generally the date of issuance of stocks), consisting of the circumstances
as follows:

(1)

The number of ordinary shares issued for cash collection shall be calculated as of the date of cash receivable;

(2)

The number of ordinary shares issued as a result of conversion of debt to capital shall be calculated as of the date of cessation
of calculation of debt interest or the settlement date;

(3)

As to a business combination not under the same control, the number of ordinary shares issued as a consideration shall be calculated
as of the purchase date. As to a business combination under the same control, the number of ordinary shares issued as a consideration
shall be charged to the weighted average number of ordinary shares presented during each reporting period; and

(4)

The number of ordinary shares issued for buying non-cash assets shall be calculated as of the date of recognition of the purchase.

Chapter III Diluted Earnings Per Share

Article 7

If an enterprise has any diluted potential ordinary shares, it shall modulate the current net profits belonging to the shareholder
of ordinary shares, and the weighted average number of ordinary shares issued to the public in a separately way, and then calculate
the diluted earnings per share according to the adjusted results.

The term “diluted potential ordinary shares” refers to the potential ordinary shares of which the earnings per share shall be reduced
on supposing they would be converted to ordinary shares in the current period.

Article 8

When calculating the diluted earnings per share, an enterprise shall modulate the current net profits belonging to the shareholders
of ordinary shares in accordance with the items as follows:

(1)

The interests of the diluted potential ordinary shares determined to be expenses in the current period; and

(2)

The gains or expenses to be resulted from the conversion of the diluted potential ordinary shares.

The effects of the income tax on the aforesaid modulation shall be taken into consideration.

Article 9

When calculating the diluted earnings per share, the weighted average number of the ordinary shares issued to the public in the current
period shall be the sum of the weighted average number of ordinary shares in calculating the basic earnings per share and the weighted
average number of increased ordinary shares on supposing that the diluted potential ordinary shares convert into ordinary shares
already issued.

When calculating the weighted average number of increased ordinary shares resulted from that the diluted potential ordinary shares
convert into ordinary shares already issued, the diluted potential ordinary shares issued in prior periods shall be supposed to be
converted at the beginning of the current period. The diluted potential ordinary shares issued in the current period shall be supposed
to be converted on the date of issuance.

Article 10

In case the exercise prices of the share warrants and share options are lower than the average market price of the ordinary shares
of the current period, the dilution shall be taken into consideration. When calculating the diluted earnings per share, an enterprise
shall calculate the number of the ordinary shares increased in accordance with the formula as follows:

The number of ordinary shares increased = the number of ordinary shares to be converted in the exercise of warrants – the exercise
price the number of ordinary shares to be converted in the exercise of warrants the average market price of ordinary shares
in the current period

Article 11

The dilution shall be taken into consideration when an enterprise promises that the price for the repurchase of its shares provided
in the contract is higher than the average market price of the current period. When calculating the diluted earnings per share, an
enterprise shall calculate the number of the ordinary shares increased in accordance with the formula as follows:

The number of ordinary shares increased = the repurchase price the number of ordinary shares promised to repurchase the average
market price of the current period – the number of ordinary shares promised to repurchase

Article 12

The diluted potential ordinary shares shall be charged to the diluted earnings per share based on the extent of dilution according
to the sequential order from the big to the small, until the diluted earnings per share to be the minimum.

Chapter IV Presentation

Article 13

If the number of ordinary shares issued to the public or of potential ordinary shares is increased because of the distribution of
stocks or dividends, the increase of capital converted by accumulation fund or share split-up, or is reduced because of reverse split-up,
but causing no affect on the amount of the owner’s equities, an enterprise shall recalculate the earnings per share in each presentation
period in accordance with the number of post-adjustment shares.

In case the aforesaid changes occur during the period from the balance sheet date to the date on which the financial reports are authorized
for issue, the earnings per share in each presentation period shall be recalculated in the light of the number of post-modulation
shares.

In case any of the profits and losses of any previous year are retroactively modulated or restated in the light of the Accounting
Standards for Enterprises No. 28 – Changes of Accounting Policies, Estimates and Corrections of Errors, the earnings per share during
the period of presentation shall be recalculated.

Article 14

The basic earnings per share and the diluted earnings per share shall be respectively shown in the profit statements of an enterprise.

Article 15

The information related to the earnings per share as follows shall be brought into the open by an enterprise in its notes:

(1)

The calculating process of the numerators and denominators on the basic earnings per share and diluted earnings per share;

(2)

The potential ordinary that not possessing dilution during the presentation period but likely to possess dilution in the subsequent
periods; and

(3)

The information about the great changes on the number of the ordinary shares issued by the enterprise to the public or the potential
ordinary shares during the period from the balance sheet date to the date on which the financial reports are authorized for issue.

The Ministry of Finance
2006-02-15

AMENDMENTS TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA (VI)

Order of the President of the People’s Republic of China

No.51

The Amendments to the Criminal Law of the People’s Republic of China (VI), adopted at the 22nd meeting of the Standing Committee of
the Tenth National People’s Congress on June 29, 2006 are hereby promulgated and shall go into effect as of the date of promulgation.

President of PRC, Hu Jintao

June 29, 2006

Amendments to the Criminal Law of the People’s Republic of China (VI)

(Adopted at the 22nd meeting of the Standing Committee of the Tenth National People’s Congress on June 29, 2006)

Article 134 of the Criminal Law is amended to as: “Anyone who violates the provisions on the safety management in production or operations
and thus leading to any serious accidents of death and injury or any other serious consequences, shall be sentenced to not more than
three years of fix-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced
to fix-term imprisonment of not less than 3 years but not more than 7 years.

“In case anyone forces any other person to take a risk of working in violation of the related regulations so that any serious accidents
of death and injury or any other serious consequence is caused, he shall be sentenced to not more than five years of fix-term imprisonment
or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years or more of fix-term imprisonment.”

II.

Article 135 of the Criminal Law is amended to as: “In case the facilities or conditions for safe work fail to meet the related provisions
of the state and lead to any serious accidents of death and injury or any other serious consequences, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention.
If the circumstances are particularly serious, he shall be sentenced to three years to seven years of fix-term imprisonment.”

III.

There is an article added to the end of Article 135 as Article 135 (I): “In case any of the provisions on safety management is in
violation of holding large-scale mass activities and any serious casualty or any other serious consequence is caused accordingly,
the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fixed-term
imprisonment of or criminal detention. If the circumstances are particularly serious, they shall be sentenced to three years to seven
years of fixed-term imprisonment.”

IV.

There is an article added to the end of Article 139 as Article 139 (I): “After any safety accident happens, if the person responsible
for reporting it fails to report it or provides false report of the situation so that the rescue of the accident is bungled and if
the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention.
If the circumstances are particularly serious, he shall be sentenced to not less than three years but not more than seven years in
prison.”

Article 161 of the Criminal Law is amended to as: “If any company or enterprises, which has the responsibility of information disclosure,
provides any financial and accounting report which is false or conceals any important facts to its shareholders and the general public,
or . fails to disclose any other important information in accordance with the provisions so that serious damages are caused to the
interests of the shareholders or any other person, or any other serious circumstances exist, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than three years of fix-term imprisonment or criminal detention,
and/or shall be imposed upon to a fine of not less than 20,000 Yuan but not more than 200,000 Yuan.”

VI.

There is an article added to the end of Article 162 (I) as Article 162 (II): “If any company or enterprise transfers or disposes
of its properties by concealing its properties or undertaking fabricated debts or by any other means or implement false bankruptcy
so that serious damages are caused to the interests of the creditors or any other persons, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention,
and/or shall be imposed upon to a fine of not less than 20,000 Yuan and not more than 200,000 Yuan.”

VII.

Article 163 of the Criminal Law is amended to as: “If any staff of any company, enterprise or other units ask for or illegally accept
properties from other persons taking advantage of job convenience, and seek benefits for other persons, and in case the properties
involved is of a relatively large amount , he shall be sentenced to not more than five years of fixed-term imprisonment or criminal
detention. If the amount is huge, he shall be sentenced to less than five years of fixed-term imprisonment and confiscation of property.

“If the staff of any company, enterprise or any other units, in the course of economic intercourses, accept kickbacks and commission
charge in various forms taking advantage of job convenience in violation of the provisions of the state for his personal ownership,
he shall be punished in accordance with provisions under the preceding paragraph.

“Anyone engaging in public services in any state-owned corporations, enterprise or other state-owned units and anyone assigned by
state-owned companies, enterprises and other state-owned units to non-state-owned companies, enterprises and other units to engage
in public service found to be committing the acts mentioned in the two preceding paragraphs, shall be convicted and punished in accordance
with Articles 385 and 386 of the present Law.”

VIII.

Paragraph 1, Article 164 of the Criminal Law is amended to as: “Anyone who gives a relatively large amount of property to the staff
of any company, enterprise or other units so as to seek unwarrantable benefits shall be sentenced to not more than three years of
fixed-term imprisonment or criminal detention. If the amount is huge, he shall be sentenced to not less than three years but not
more than ten years in prison, and shall be imposed upon a fine.”

IX.

There is an article added to the end of Article 169 of the Criminal Law as Article 169 (I): “If any director, supervisor or senior
manager of a listed company violates his fiduciary duty to the company and manipulate the listed company to pursue any of the following
behaviors taking advantage of job convenience ,causing any serious loss to the interest of the listed company, he shall be sentenced
to not more than three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If the listed
company thus suffers from a particularly huge loss, he shall be sentenced to not less than three years but not more than seven years
in prison, and shall be imposed upon a fine:

(1)

Providing any fund, commodity, service or any other asset gratuitously to any other unit or individual;

(2)

Providing or accepting any fund, commodity, service or any other asset with obviously unfair terms;

(3)

Providing any fund, commodity, service or any other asset to any unit or individual obviously without the ability of repayment .;

(4)

Providing any guarantee to any unit or individual obviously without the ability of repayment , or providing guarantee to any other
unit or individual without due reasons;

(5)

Giving up credit or assumption of debts without due reasons; or

(6)

Causing damage to the interests of the listed company by any other means.

If the controlling shareholder or actual controller of a listed company instigates any of the directors, supervisors, or senior managers
of the listed company to conduct any of the acts as described in the preceding paragraph, it or he shall be punished in accordance
with the provisions of the preceding paragraph.

If the controlling shareholder or actual controller of the listed company committing the acts as described in the preceding paragraph
is a unit, the unit shall be imposed upon a fine and the directly liable persons-in-charge and other directly liable persons shall
be punished in accordance with the first paragraph herein.”

There is an article added to the end of Article 175 as Article 175 (I): “If anyone obtains any loan, acceptance of any instrument,
letter of credit, letter of guarantee, etc. by means of deception from any bank or any other financial institution so that any serious
loss is caused to the bank or financial institution or any other serious circumstances exist, he shall be sentenced to not more than
three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If a particularly large loss
is caused to the bank or any other financial institution or if there is any other particularly serious circumstance, he shall be
sentenced to not less than three years but not more than seven years in prison, and shall be imposed upon to a fine.

“Any unit committing the acts as described in the preceding paragraph shall be imposed upon to a fine, and the directly liable persons-in-charge
and other directly liable persons shall be punished in accordance with the provisions of the preceding paragraph.”

XI.

Article 182 of the Criminal Law is amended to as: “The person who manipulates the securities or futures market, if the circumstances
are serious, shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed
upon to a fine. If the circumstances are particularly serious, he shall be sentenced to not less than five years but not more than
10 years in prison, and shall be imposed upon to a fine, in case any of the following circumstances arises:

(1)

Centralizing one’s predominance in capital, shareholding and warehousing or taking advantage of information predominance to jointly
or continuously buy and sell securities and futures, manipulating the trading prices or the trading volume of securities and futures,
either on one’s own or by conspiring with other people;

(2)

Affecting trading prices or volumes of securities and futures by colluding with other persons, conducting securities or futures transactions
with each other at a predetermined time and price and in a predetermined way.;

(3)

Affecting trading prices or volumes of securities and futures by conducting securities transactions among the accounts under the actual
control of the same person or regarding oneself as the trading object, buying and selling futures contracts from and to himself;
or

(4)

Manipulating the securities or futures markets by any other means.

If any unit commits the acts as described in the preceding paragraph, the unit shall be imposed upon a fine, and the directly liable
persons-in-charge and any other liable persons shall be punished in accordance with the provisions of the preceding paragraph.”

XII.

There is an article added to the end of Article 185 as Article 185 (I): “Any commercial bank, stock exchange, futures exchange,
securities company, futures brokering company, insurance company, or any other financial institution in violation of its fiduciary
duty, utilizes the funds or any other consigned or entrusted property of its clients on itself, if the circumstances are serious,
shall be imposed upon a fine, and the directly liable persons-in-charge and other directly liable persons shall be sentenced to not
more than three years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 30,000 Yuan up to
300,000 Yuan. If the circumstances are particularly serious, he shall be sentenced to f not less than three years but not more than
ten years in prison, and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan.

“In case of any public fund management institution such as a social security fund management institution or housing accumulation fund
management institution, or any insurance company, insurance asset management company, or securities investment fund management company
violates the provisions of the state in its use of funds, the directly liable persons-in-charge as well as other directly liable
persons shall be punished in accordance with the provisions of the preceding paragraph.”

XIII.

Paragraphs I and II of Article 186 of the Criminal Law are amended to as: “If the staff of any bank or other financial institution
offers any loan in violation of the provisions of the state and the amount is huge or any serious loss has caused, he shall be sentenced
to not more than five years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 10,000 Yuan
up to 100,000 Yuan. If the amount is particularly huge or particularly serious losses have been caused, he shall be sentenced to
more than five years of fixed-term imprisonment, and shall be imposed upon to a fine of 20,000 Yuan up to 200,000 Yuan.

“Any staff of any bank or other financial institution in violation of the provisions of the state to offer loans to any of his relatives,
shall be punished in accordance with the provisions of the preceding paragraph.”

XIV.

Paragraph I of the Article 187 of the Criminal Law is amended as: “If any staff of any bank or other financial institution accepts
the money of any client without writing it into the accounts, and if the sum is huge or if any serious loss has caused, he shall
be sentenced to not more than five years of fixed-term imprisonment, and shall be imposed upon to a fine 20,000 Yuan up to 200,000
Yuan. If the sum is particularly huge or the losses are particularly serious, he shall be sentenced to five years or more in prison,
and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan.”

XV.

Paragraph I of Article 188 of the Criminal Law is amended to as: “If the staff of any bank or any other financial institution in
violation of the provisions when issuing any letter of credit, letter of guarantee, instrument, certificate of deposit, certification
of credit, etc. for any other person, and if the circumstances are serious, he shall be sentenced to not more than five years of
fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years
or more in prison.”

XVI.

Paragraph I of Article 191 of the Criminal Law is amended as: “If anyone who is clearly aware that the earnings are obtained from
drug-related crime, organizational crime of any gangland, terrorist crime, crime of smuggling, crime of corruption or bribery, crime
of disrupting the financial management order, crime of financial fraud, etc. as well as that the incomes are generated therefrom,
yet commits any of the following acts so as to conceal and disguise the origin or nature thereof, the incomes obtained from the commission
of the aforementioned crimes as well as the incomes generated therefrom shall be confiscated, and the criminal shall be sentenced
to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine of 5% up to
20% of the amount of laundered money. If the circumstances are serious, he shall be sentenced to not less than five years but not
more than ten years in prison, and shall be imposed upon to a fine of 5% up 20% of the amount of laundered money:

(1)

Providing any capital account;

(2)

Assisting to transfer property into cash, financial instruments, or negotiable securities;

(3)

Assisting to transfer capital by means of transfer accounts or any other means of settlement;

(4)

Assisting to remit capital abroad;

(5)

Concealing and disguising the origin or nature of any crime-related earnings or the incomes generated therefrom by any other means.”

XVII.

There is an article added to the end of Article 262 of the Criminal Law as Article 262 (I): “Anyone who organizes any disabled person
or any juvenile below the age of 14 by force or coercion to beg, shall be sentenced to not more than three years of fixed-term imprisonment
or criminal detention, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than
three years not more than seven years in prison, and shall be imposed upon to a fine.”

XVIII.

Article 303 of the Criminal Law is amended as: “Anyone who, for the purpose of making profits, assembles a crow to engage in gambling
or makes a gambling his occupation, shall be sentenced to not more than three years of fixed-term imprisonment criminal detention,
or surveillance, and shall be imposed upon to a fine.

“Anyone who sets up any casino shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or
surveillance, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than three
years but not more than ten years in prison, and shall be imposed upon to a fine.”

XIX.

Article 312 of the Criminal Law is amended as: “If anyone who is clearly aware that the earnings are obtained through crimes as well
as that the incomes are generated therefrom yet conceals, transfers, purchases, or acts as an agent to sell them or conceals and
disguises them by any other means, he shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention,
or surveillance, and/or shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than
three years but not more than seven years in prison, and shall be imposed upon to a fine.”

XX.

There is an article added to the end of Article 399 of the Criminal Law as Article 399 (I): “If anyone who undertakes the duties
of arbitration in accordance with law makes any wrongful ruling purposely in violation of the facts and laws in the activities of
arbitration, in case the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment
or criminal detention. If the circumstances are particularly serious, he shall be sentenced to not less than three years but not
more than seven years in prison.”

XXI.

The present Amendments shall go into effect as of the date of promulgation.

the Standing Committee of the NPC
2006-06-29

CIRCULAR OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA ON FURTHER STRENGTHENING THE ADMINISTRATION OF THE INSPECTION AND QUARANTINE OF PEANUT EXPORT

Circular of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China on Further
Strengthening the Administration of the Inspection and Quarantine of Peanut Export

Guo Zhi Jian Shi Han [2006] No. 613

The inspection and quarantine bureaus directly under the General Administration of Quality Supervision, Inspection and Quarantine:

As one of our country’s traditional staple agricultural products, peanuts are exported to more than 100 countries and regions, with
the annual export amount 778,000 tons, equivalent to more than $0.6 billion. In recent years, the peanut export amount of our country
has increased steadily and its quality safety has been improved somewhat. However, developed countries have been increasingly strict
with peanut safety requirement. The production and management as well as the process control of peanut whose plantation and initial
processing is very popular in our country are not perfect. In order to further strengthen the administration of the inspection and
quarantine of the export of peanuts and to comprehensively improve the quality safety of the export of peanuts, the relevant issues
are notified as follows:

To get a clear understanding of the current situation and to nail down the work direction

All the bureaus concerned should be clearly aware of the serious situation faced with the peanut export in our country. On the one
hand, import countries are increasingly strict with the quality safety index. The positive list system of Japan has increased the
inspection item of pesticide residues in the peanut to 290 and implements the uniform standard of 0.01mg/kg for the pesticide residue
items which are not clearly limited. On the other hand, the quality safety of exported peanut in our countries has many problems.
First, the cases being reported due to the excess of alflatoxin are annually increasing, such cases reported by the European Union
increased from 53 in 2004 to 76 in 2005; the cases where the excess of alflatoxin in the peanut exported to Japan are also increasing
strikingly, in February 2006 the excess rate reached 3.47% and was ordered to be investigated. Second, the excess of pesticide remnant
in the exported peanut is also serious. The Japanese authority has ordered checking Daminozido in the peanut exported hereto and
supervising and checking Acetochlor in the proportion of 50%. Third, the cases where heavy metal pollution and the use of addictive
against the law are also more and more serious, for instance, the excess of cadmium in the peanuts exported to Australia and the
Sodium Cyclamate prohibited in Japan in the finished peanut products exported to Japan has been found.

All the authorities should attach great importance to it, change their minds, research and analyze the situation and the problems
faced nowadays in an earnest manner, actively explore them and take feasible and effective measures to further strengthen the supervision
and administration of plantation origin, production and processing, storage and transportation and the quality safety control, continuously
improve the quality of inspection and quarantine work so as to promote the development of China’s peanut export.

To strengthen the process control and to improve the work effectiveness

The pollution of peanut aflatoxin may happen in every link or process of plantation, reaping, drying, shelling, storage, processing
and transportation, so the whole-process supervision should be carried out in order to solve problems radically. In order to improve
its whole-process quality safety control upon the peanut exported to such countries and regions as European Union and Japan, the
General Administration of Quality Supervision, Inspection and Quarantine has formulated Quality Safety Control Requirement of Exported
Peanut (for Trial Implementation) (Appendix, hereinafter referred to as Control Requirement). All the bureaus shall organize the
relevant enterprises to earnestly study and learn the Control Requirement herein, to guide enterprises to establish the whole-process
quality safety control system and traceability system, and to increase their efficiency in the control of hazardous pollutants such
as aflatoxin in exported peanut.

Where the content of such harmful material in the exported peanuts as aflatoxin, pesticide remnants, heavy metal does not meet the
requirement of the import country, these peanuts may not be given clearance.

To strengthen the personnel training and improve their inspection capability

All the bureaus shall carry out training of relevant laws and rule, professional knowledge and quality safety control system in European
Union, Japan and China toward the managers who process peanut production and processing, urge enterprises to establish and perfect
the self-examination and self-control system of such poisonous materials as aflatoxin. The enterprises who intend to export peanut
to European Union and Japan must establish the inspection lab of aflatoxin equipped with the inspection personnel who meet the requirement,
and carry out contrast experiment with the inspection and quarantine authorities to ensure the preciseness of the inspection result
of alfatoxin in exported peanut material and finished products and to improve the self-examination and self-control capability.

To strengthen the inspection of the remnant of pesticide and to reduce the export risk

All the relevant authorities shall, in accordance with the Inspection and Control Plan of the Pesticide Remnant in Food of Plant Origin
as well as the local situation, do well the inspection of the poisonous products such as aflatoxin, pesticide, and heavy metal as
well the remnant control work, establish the relevant data, persuade the export enterprises from purchasing peanut material from
the seriously polluted areas, and reduce the risk of standard excess of poisonous material in exported products.

To carry out supervision and inspection to ensure its effective implementation

All the bureaus shall undertake comprehensive inspection upon the quality safety control system of the relevant enterprises and inspection
and quarantine of the exported products. Once the peanut herein does not meet the requirement, the authorities shall urge the enterprise
to rectify itself to ensure the effective implementation of the Control Requirement from the plantation of raw material to every
link of the export. The General Administration of Quality Supervision, Inspection and Quarantine shall undertake supervision and
inspection upon the implementation of the Control Requirement and to report the relevant situation to the whole system.

Once all the bureaus find problems in the process of inspection and quarantine of exported peanut, they shall deal with them and report
them to the General Administration of Quality Supervision, Inspection and Quarantine.

Appendix: Quality Safety Control Requirement of Exported Peanut

The General Administration of Quality Supervision, Inspection and Quarantine

August 7, 2006
Appendix:
Quality Safety Control Requirement of Exported Peanut (for Trial Implementation)

In order to guide and urge the farmer of peanut for export and peanut production and process enterprises to establish and perfect
the measures of quality safety control in such links as peanut plantation, reaping, purchase, shelling, processing, package, transport
and inspection, and to comprehensively improve the quality safety control of exported peanut, the present Requirement is formulated
in accordance with the principle of Good Agricultural Practice (GAP), Good Manufacturing Practice (GMP) and Hazard Analysis Critical
Control Point(HACCP).

Control requirement of farm land

1.1

choice of farm land

The farmer shall plant peanut for export on the land which is characterized by sound drainage and irrigation condition, rich in sand
and organic material, free from numerous eelworm and other underground pests.

1.2

field management

The farmers shall avoid the damage incurred to peanut and legumen by agricultural operation, and take measures to reduce the field
pollution of peanut aflatoxin. Where it is successively hot and droughty 30 or 50 days before peanut reap, the field herein shall
be irrigated promptly, yet the depth of water may not exceed 1/3 of the dyke; where it is excessively rainy, the dyke shall be cleaned
to drain water to prevent the mildew and rot of peanut.

The peanut farm land shall be rotated in order to reduce the propagation and proliferation of underground pesticide and aflatoxin.
Deep plough shall be taken to provide sound conditions for the germination, radication, rooting and the growth of legumen, when the
peanut farm land is free.

1.3

the usage of pesticide

The planters shall, in accordance with the plantation protection guideline of “give priority to prevention, comprehensive treatment”,
comprehensively use such prevention measures as agriculture, physics, chemistry, biology to control pesticides. The inspection and
quarantine authorities shall correctly choose the pesticide products which meet the prescriptions of the relevant authorities of
the importers and China, purchase pesticide at the pesticide sellers who have the relevant qualifications, strictly observe the relevant
prescriptions to apply pesticide during the safety period of pesticide, and reduce pesticide remnant to the scope allowed by the
importers and China.

1.4

survey of the pollution of pesticide remnant, heavy metal, and aflatoxin

The inspection and quarantine authority shall guide the export enterprises to undertake survey upon the pollution of pesticide remnant,
heavy metal and aflatoxin in the farm land. Sample in the survey shall be representative and be properly stored. Measures against
moisture shall be taken to prevent mildew to guarantee the preciseness of the survey, and the relevant documents and archives shall
be properly stored.

1.5

source code of peanut plantation

The serial number of farmland shall be on the township basis with its postal code as its plantation serial number.

Control requirement of peanut reap and drying

2.1

Peanuts shall be reaped promptly after they become ripe. The reaped peanut shall be spread out in the ventilated place for drying.
Peanuts may not be heaped together and may not be drenched by rain in order to prevent the pollution of aflatoxin and mold in the
peanut.

2.2

The reaped and dried peanuts shall be picked promptly and be stored or shelled after the moisture has been reduced to less than 10%.
The stored peanuts shall be covered with a cover of sound air permeability to prevent mildew of part of the peanuts.

The requirement of purchase control

3.1

The peanut purchase enterprises shall establish operation standard of peanut purchase, clarify quality demand, check and acceptance
requirement and standard. The purchaser of raw peanut shall skillfully master the requirement of purchase control.

3.2

Peanut export enterprises shall in light of the surroundings purchase the peanut which is free from pollution, low pollution of aflatoxin(the
content of aflatoxin B1 lower than 2PPB, the content of aflatoxin lower than 4PPB and its positive sample rate is lower than 5%)
with the pesticide remnant and heavy metal meeting the requirement of the importer. Sample inspection shall be undertaken before
the purchase. The relevant authorities shall purchase the peanut whose quality safety items accord with the requirement of the importers,
and do well the relevant records of plantation serial number.

3.3

When the peanut export enterprises purchase raw material directly or indirectly from the planters, they shall have the raw material
provider record material and verify whether the quality safety items come from the plantation place prescribed in 3.2. Before collecting
peanut, the relevant authority shall undertake sample upon the relevant raw material and collect the peanut whose quality safety
items accord with the requirement of the importers, and make the relevant record of the provider and plantation place for the peanut
whose quality safety does not meet the requirement, investigate the reasons and undertake measures to rectify it.

3.4

Peanut export enterprises shall collect the peanut in shell or peanut with well-propositioned moisture, the moisture of peanut in
shell shall be less than 10%, that of peanut less than 9%.

3.5

Peanut export enterprises shall undertake batch and mark management upon the purchased raw material and stored by batch, with one
batch no more than 100 tons. The serial number of raw batch shall include serial number of the plantation place to avoid mixing them
together.

3.6

Peanut export enterprises shall undertake quality control after the raw material enterprise factory. Where the raw material herein
does not meet the requirement of the importer and the safety and sanitation requirement, it may not be used for processing export
or food raw material, shall be used for other purpose or destroyed after it has been marked, shall be recorded after the reasons
have been found.

Shelling control requirement

4.1

The original moisture in the peanut shall be less than 10% and no water shall be added in the process of shelling. Such control measures
as removing dust and shell shall be taken and powerful magnet shall be installed at the material exit to remove such metals as nail.

4.2

After shelling, the peanut with its moisture more than 9% shall be ventilated and dried and then stored with clean packs which have
sound air permeability and accord with the quality requirement.

4.3

The workshop and machine shall remain clean. The workshop and sheller shall be cleaned on the very day and peanut in shell, peanut
or smashed peanut may not be stored in the sheller to prevent mildew and pollution.

Processing control requirement

5.1

Peanut export enterprises shall establish Good Manufacturing Practice(GMP), the workshop sanitary condition hereof shall accord with
the Administration of Sanitary Registration of Food Export Enterprise and the peanut export enterprises shall obtain the qualification
of sanitary registration.

5.2

Peanuts from the places of different serial number shall be processed respectively and the raw material with strikingly different
content of water shall be processed together. In the process of processing, the rotten, moldy, pullulated, covered or worm-eaten
peanut shall be thoroughly picked out.

5.3

A powerful magnet shall be installed at the exit of processing material to remove such harmful impurities as magnet metal.

5.4

The processing equipment such as screening machine, peeler and operator’s desk shall be cleaned every day, shall be free from the
remaining peanut, smashed peanuts to prevent the pollution of mildew and aflatoxin.

Package and mark control requirement

6.1

The peanut export factories shall be inspected and accepted before the entrance of package material to meet the quality control requirement
of food package. The provider shall provide quality measurement report of package material.

6.2

The usage of package supplement material such as deoxidant shall accord with the laws of the importer and the People’s Republic of
China. The producer shall provide the official inspection report

6.3

The enterprise shall strengthen its batch management upon finished products. Every procedure shall record the serial number of material
in detail, and batch mark where the batch serial number name and the annual yield are written shall be pasted in the finished package.
The batch mark in the finished package shall match with the serial number in the original batch serial number.

6.4

The peanuts exported to European Union shall accord with the requirement of the European Union, as for the indirectly edible or for
food raw material the peanuts in shell or peanuts, the destination nation and “peanuts must be subjected to sorting or other physical
treatment to reduce aflatoxin contamination before human consumption or use as an ingredient in foodstuffs” shall be noted in every
package, and the aforesaid English content shall be noted in the description of the consignment of the issued bill of health.

6.5

The batch number of exported peanuts shall be the serial number of the sanitary registration of processing factory + four digit number(for
example, in the batch serial number 3700D132270003, 3700D13227 shall be the sanitary registration number, 0003 shall be batch serial
number).

Storage control requirement

7.1

Peanut export enterprises shall establish perfect storage of peanut raw material and storage management of finished product, clarify
the operation standard in the storage link, and have the storage in line with their processing capability.

7.2

Raw material and finished products shall be stored in different warehouses and the storage of products shall be neat, separated from
wall, ground and roof. The products of different plantation places and batches may not be mixed together.

7.3

The enterprises shall establish the warehouses on par with its production capability, the temperature of the warehouse shall be below
10nd its relative moisture below 70% to prevent the mildew of peanut. The quality of the peanut raw material or finished products
during the period of storage shall be regularly inspected. Once having found mildew of peanut, the relevant authority shall take
measures to find out the reason and to undertake necessary treatment of the relevant products. Thermometer and hygrometer shall be
installed in the warehouse to carry out regularly inspection.

7.4

The ground of the warehouse shall be even, dry, clean; something shall be reasonably put under the pile to prevent the moisture and
mildew of products. There shall be such measures as insect, bird, and rat prevention and free from peculiar smells.

8 Control requirement of export shipping

8.1

Peanut export enterprises shall establish loading and transporting operation standard.

8.2

The vehicle shall be checked before being loaded to find whether the vehicle has been polluted or there are sharp projected objects
to prevent damaging or polluting the package.

8.3

The airproof and sanitary condition of the box shall be checked before boxing, the box which fails to meet the standard may not be
used.

8.4

Weather should be noticed in the time of export shipment, boxing without prevention measures in the raining or snowing weather shall
be forbidden to prevent damp.

8.5

When loading the peanut stored in cold warehouse, we shall move them to cool, dry and clean places and reload them when the temperatures
in and outside the warehouse are balanced.

8.6

Where it is necessary to load peanut in mixed batch, an explanation shall be given in the loading and transporting record.

8.7

An appropriate amount of cardboards shall be pasted inside the container and an appropriate amount of desiccant be placed in the time
of boxing for the ocean transported peanut to prevent the mildew of peanuts against the container. Containers shall be placed below
decks or waterline on the occasion of shipping to prevent strong sunlight.

9 To examine the control requirement

9.1

Peanut export enterprises shall establish a lab meeting quality control requirement and compile scientific and standardized lab working
manual. The inspection personnel in the lab shall have the degree of technical secondary school (high school) or above and have the
relevant professional knowledge, the training by the relevant sectors, have the ability to independently undertake inspection task.

9.2

Peanut export enterprises shall strengthen its self-inspection and self-control. The lab shall be equipped with alflatoxin inspection
equipment and the relevant crushing equipments which meet the requirement of the importers in such aspects as moisture and appearance.
Other items may carry out self-inspection or entrust the qualified social labs to carry out inspection.

9.3

Enterprises shall, in accordance with the requirement of the importer, carry out sampling and inspection to ensure the representation
of the sample of finished products and the preciseness of the inspection results.

9.4

The enterprise lab shall issue the aflatoxin inspection report after having examined the raw material and finished products, whose
result shall be numbered and kept in the archive with the original record. The lab inspection record shall be complete, true and
traceable, and all the inspection record and inspection report shall be stored for at least two years. The issued finished inspection
report shall in duplicate and the original shall be provided to the inspection and quarantine authority as the application for inspection.

9.5

Where the enterprise finds that the quality safety item does not meet the standard in the time of self-inspection, entrusted-inspection
or sampling by the inspection and quarantine authority, it shall certificate batch of the excess of standard and trace to the original
plantation place in accordance with the serial number, investigate the situation, analyze reasons and take measures to rectify it
and make record properly.

9.6

Peanut export enterprises shall strengthen its management upon the lab, strengthen its training upon the technical personnel, check
the apparatus and equipment regularly to ensure the preciseness and liability of the inspection result, and take measures appropriately
to rectify problems.

9.7

The local inspection and quarantine authorities shall strengthen its technical guide, supervision and administration upon the enterprise
lab, carry out a contrast experiment annually to ensure the preciseness and liability of the inspection result.

10 Treatment of the reject

10.1

Where the processing enterprise find that the aflatoxin exceeds the requirement of the importer in the time of purchasing raw material,
the processing enterprise may refuse to accept it or change the measure s of the importer and store the raw material independently
after having marked it. The processing materials herein shall record the treatment process properly for trace management purpose.

10.2

The processing enterprises shall independently store and mark such products as the reject, scrap, and the products which the content
of excessive pesticide remnant, heavy metal and aflatoxin exceed the limit requirement of the importer. Such measures as reprocessing,
changing usage and the treatment measures of importer shall be taken for the aforesaid rejects. The treatment process shall be recorded
promptly for the purpose of traceability management.

10.3

Where such safety sanitary items as aflatoxin, pesticide remnant, heavy metal in the exported peanut does not meet the relevant standards,
the enterprise shall trace all the links such as peanut plantation, shelling, purchase, processing, storage, and transport, and takes
the measures of changing the importer or usage, and report the treatment records to the inspection and quarantine authority for archive.

10.4

Where it is found by the foreign inspection authority that the exported does not meet the safety sanitary item such as aflatoxin,
pesticide remnant, heavy metal, the enterprise shall trace all the links such as peanut plantation, shelling, purchase, processing,
storage, export and transport, find out the reason and report it in written form to the inspection and quarantine authority. Where
this batch of peanut has been returned, the inspection and quarantine authority shall take samples for inspection; the enterprise
may take such measures as changing its usage and report the treatment record to the inspection and quarantine authority for archive.

The General Administration of Quality Supervision, Inspection and Quarantine
2006-08-07

CIRCULAR OF THE SUPREME PEOPLE’S COURT ON ESTABLISHING THE ARCHIVAL FILING SYSTEM OF JUDICIAL RECOGNITION OF WELL-KNOWN TRADEMARKS

circular of the Supreme People’s Court on Establishing the Archival Filing System of Judicial Recognition of Well-known Trademarks

Higher Courts of all provinces, autonomous regions and municipalities directly under the central government, Military Court of the
People’s Liberation Army, Production and Construction Corp Court of Higher Court of Xinjiang Uigur Autonomous Region:

In recent years, the local people’s courts recognized a certain number of well-known trademarks under with the Trademark Law of the
People’s Republic of China and relevant judicial interpretations when trying cases on trademark infringement and other civil disputes.
For the need of the trial work and to timely grasp and research the situations and problems about judicial recognition of well-known
trademarks, the Supreme People’s Court determines to establish the archival file system of judicial recognition of well-known trademarks.
A circular in respect of relevant issues are hereby given as follows:

With regard to the cases involving recognition of well-known trademarks in force prior to this Circular, each higher people’s court
shall, within two months as of the distribution of this Circular, submit the legal documents of the first and the second instances
along with the statistical forms of the cases on recognition of well-known trademarks to No. 3 Civil Tribunal of the Supreme People’s
Court for archival filing;

As from the distribution of this Circular, each higher people’s court shall, with regard to the cases involving recognition of well-known
trademarks within its jurisdiction whose legal documents have become effective, submit the legal documents of the first and second
instances along with the statistical forms to No. 3 Civil Tribunal of the Supreme People’s Court for archival filing within 20 days
since the legal documents have become effective.

Appendix: Pattern of the Statistical Form (Omitted)

The Supreme People’s Court

November 12, 2006

The Supreme People’s Court
2006-11-12

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON EXEMPTING THE HONG KONG OR MACAO HOUSING SUBSIDIES RECEIVED BY FOREIGN INDIVIDUALS FROM INDIVIDUAL INCOME TAX

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Exempting the Hong Kong or Macao Housing Subsidies
Received by Foreign Individuals from Individual Income Tax

Caishui [2004] No. 29

January 29th, 2004

The finance departments and the bureaus of local taxation of Guangdong province, the finance bureaus and the bureau of local taxation
of Shenzhen city:

On account of Hong Kong and Macao geographically adjacent to China Mainland and of the convenient traffic, some foreigners working
in Mainland enterprises choose to live in Hong Kong or Macao, come and go between the Mainland and Hong Kong or Macao every working
day. With regard to the question whether the housing, food and laundry subsidies given by the companies to the foreign individuals
in non-cash form or in the form of actual reimbursement for actual costs shall be exempted from the individual income tax in pursuance
of relevant provisions, we hereby clarify it as follows upon deliberation:

With respect to the foreign individuals employed by enterprises within China (excluding individual residents of Hong Kong or Macao)
who live in Hong Kong or Macao for family or any other reason, come and go between the Mainland and Hong Kong or Macao, the housing,
food, laundry and move subsidies given to them by the enterprises within China (including their affiliated enterprises) in non-cash
form or in the form of actual reimbursement for actual costs may, if supported by valid voucher, and upon examination and confirmation
of the competent tax organ, be exempted from the individual income tax according to Article 2 of the Notice of the Ministry of Finance
and the State Administration of Taxation on Several Issues concerning the Policy on Individual Income (CaiShuiZi [94] No. 020) and
Articles 1 and 2 of the Notice of the State Administration of Taxation on Several Issues concerning the Implementation of Exempting
the Relevant Subsidies Received by Foreign Individuals from the Individual Income Tax (GuoShuiFa [1997] No. 54.).

With respect to the subsidies obtained by any of the foreign individuals as mentioned in Article 1 for the expenses of his (her)
language training and children education in Hong Kong or Macao, if they can provide valid payment voucher and other materials, the
subsidies determined as reasonable by the competent tax organ upon examination and confirmation shall be exempted from the individual
income tax according to Article 2 of the aforesaid Notice of CaiShuiZi [94] No. 020 and Article 5 of the Notice of GuoShuiFa [1997]
No. 54.

The present Circular shall come into force as of January 1st, 2004.

Ministry of Finance, State Administration of Taxation
2004-01-29

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CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

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CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7