CIRCULAR OF SHANGHAI HEADQUARTERS (NO. 1 FINANCIAL SERVICE DEPARTMENT) OF THE PEOPLE’S BANK OF CHINA ON TRANSMITTING THE CIRCULAR ON THE JOINT DEBUGGING AND TESTING OF THE NATIONAL CHECK IMAGE EXCHANGE SYSTEM

Circular of Shanghai Headquarters (No. 1 Financial Service Department) of the People’s Bank of China on Transmitting the Circular
on the Joint Debugging and Testing of the National Check Image Exchange System

Yin Zong Bu Fu [2006] No. 68

All policy banks, state-owned commercial banks, Shanghai (Municipality) branches of joint stock commercial banks, Shanghai Pudong
Development Bank, Bank of Shanghai, Shanghai Rural Commercial Bank, the business department of the headquarters of the Bank of Communications,
and the accounting settlement offices (departments)of all Shanghai-based foreign-funded banks engaging in RMB business,

The Circular on the Joint Debugging and Testing of the National Check Image Exchange System (Yin Zhi Fu [2006] No. 199) is hereby
transmitted to you, please abide hereby.

Attachment: Circular on the Joint Debugging and Testing of the National Check Image Exchange System (Yin Zhi Fu [2006] No. 199)

No.1Financial Service Department of Shanghai Headquarters of the People’s Bank of China

November8, 2006
Attachment:
Circular on the Joint Debugging and Testing of the National Check Image Exchange System

Yin Zhi Fu [2006] No. 199

No.1Financial Service Department of Shanghai Headquarters of the People’s Bank of China, Tianjin and Guangzhou branches, business
departments, Shijiazhuang Central Sub-branch, and the Payment and settlement Office of Shenzhen Central Sub-branch of the People’s
Bank of China, all policy banks, state-owned commercial banks, accounting settlement departments (receipt and payment centers) of
joint stock commercial banks,

Under the Plan on the Implementation of Pilot Projects of the National Check Image Exchange System (Yin Ban Fa [2006] No. 131), the
headquarters has decided to implement joint debugging and testing in the six provinces (municipalities) from November 15 to November
21,2006 in order to ensure the smooth running of national check image exchange system to be disseminated in Beijing, Shanghai,Tianjin,
Hebei and Shenzhen (hereinafter referred to as the six provinces(municipalities)). The Plan on the Implementation of Pilot Projects
of the National Check Image Exchange System (hereinafter referred to as the Plan) is hereby printed and issued to you and the relevant
matters are announced as follows:

Time of Joint Debugging and Testing

For the test of processing fee charges and disposal of year-end businesses, the time for system running is set to be from December
27, 2006 to January 2, 2007, of which December 29-30,2006 are legal holidays.

The Date Comparison Table

ҳ 1

Simulated Running Dates	System Running Dates	Remarks
November15	December27	Normal initiation and receiving of check images
November16	December28	Normal initiation and receiving of check images
November17	December29	Dec. 29is a legal holiday, normal initiation and receiving of check images
November18	December30	Dec. 30is a legal holiday, normal initiation and receiving of check images
November19	December31	Normal initiation and receiving of check images
November20	January1,2007	Normal initiation and receiving of check images
November21	January2,2007	Normal initiation and receiving of check images

2. Participants of Joint Debugging and
Testing

The participants of joint debugging and
testing consist of the clearing houses of all districts, cities and counties of
the six
provinces (municipalities), as well as all the direct participants of
the payment system that handles the check clearing business.
Each direct
participant of the payment system shall arrange 5-10 subsidiary institutions to
participate in the joint debugging
and testing. Besides,2-3 participants shall
be arranged to participate in the joint debugging and testing, which fail to
participate
in the payment system but participate in the check image system,.

3. The Business Scope of Joint Debugging
and Testing

All functions of the national check image
exchange system and the functions relevant to the acknowledgement of receipt of
check
images in the small-sum payment system shall be included in the joint
debugging and testing. .

The business scope of national check image
exchange system covers the functions of sending and receiving check images and
general
images, inquiries and replies, applications for stopping payment and
answers, fee charges, cancellation of records in the register
book, inquiry
statistics, uploading of inter-city information about violations, etc.

The business scope of the small-sum
payment system covers the sending and receiving of acknowledgements of receipt
of check images,
consolidation of acknowledge of receipt, etc.

4. The Environment of Joint Debugging and
Testing

The environment of joint debugging and
testing is classified into the real environment of national check image exchange
system and
the simulated environment of small-sum payment system.

A head center will be established for the
real environment of national check image exchange system by connecting to the
distant
sub-centers of Beijing, Shanghai, Tianjin, Guangzhou, Shijiazhuang and
Shenzhen.

The sub-centers of Beijing, Shanghai,
Tianjin, Guangzhou, Shijiazhuang and Shenzhen shall be connected to the distant
clearing houses
under their respective jurisdictions.

Simulated sub-centers of Jinan and Xi’an
will be set up under the head center for the purpose of testing all the
functions of the
image exchange system sufficiently. Simulated clearing houses
of Jinan and Qingdao will be set up under the simulated sub-center
of Jinan by
sharing the front-end processor. Simulated Xi’an clearing house and simulated
Xi’an industrial and commercial bank
will be set up under the sub-center of
Xi’an respectively by a single front-end processor and indirect connection.

A simulated NPC will be set up for the
simulated environment of small-sum payment system by connecting to the simulated
CCPC of
Beijing, Shanghai, Tianjin, Guangzhou, Shijiazhuang and Shenzhen.

The simulated CCPC of Beijing, Shanghai,
Tianjin, Guangzhou, Shijiazhuang and Shenzhen will be connected to the distant
payment
system participants of the joint debugging and testing under their
respective jurisdictions.

Before November 10,the Clearing Head
Center shall be in charge of establishing a head center for the real environment
of national
check image exchange system and the NPC and CCPC for the simulated
environment of small-sum payment system . It shall finish the
remote connection
with the sub-centers and the participants of the payment system in the six
provinces (municipalities) before
November 14.

The Department of Science and Technology
shall be in charge of completing the distribution of the application software
and plug-in
software for the check image exchange system before November 12.

The payment and settlement offices of the
six provinces (municipalities) shall be responsible for the coordination between
the offices
of science and technology and the clearing centers to ensure the
establishment of a testing environment of small-sum payment system
by all the
direct participants of payment system and their remote connection to a simulated
CCPC before November 10, to ensure
the establishment of sub-centers and the
connection of clearing houses or commercial banks under their respective
jurisdictions
to the sub-centers before November 13 and to ensure the completion
of distribution and installation of the plug-in software before
November 13.

The payment and settlement offices of the
sub-branches in the six provinces (municipalities) shall submit a report in
written form
on the preparation of the systems and environments under their
respective jurisdictions to the Payment and Settlement Department
(to the mail
box of ChenXue through OA) before November 13.

As regards details in technology, please
contact the Settlement Head Center of the People’s Bank of China. Contact person
for equipment:
Zhang Xin 010-68401764, 13601058563; contact person for network
debugging: Wang Xiangwen 010-68401928,13901373622; contact person
for system
integration: Ge Honghui 010-68401775, 1776, 13691294726; contact person of the
application software and the equipment
of front-end processor: Li Ningyu
010-68401775, 1776, 13439525330,Zhou Zhaotao 010-68401775, 1776, 13661226457.

5. Timetable for Joint Debugging and
Testing

The image system shall run in accordance
with the following timetable in the period of joint debugging and testing. The
head center
may make uniform adjustments as required.

Timetable for System Running

Simulated Running Dates	System Running Dates	Remarks
November15	December27	Normal initiation and receiving of check images
November16	December28	Normal initiation and receiving of check images
November17	December29	Dec. 29is a legal holiday, normal initiation and receiving of check images
November18	December30	Dec. 30is a legal holiday, normal initiation and receiving of check images
November19	December31	Normal initiation and receiving of check images
November20	January1, 2007	Normal initiation and receiving of check images
November21	January2, 2007	Normal initiation and receiving of check images

6. Software Version for Joint Debugging
and Testing

All links of the national check image
exchange system and the payment system shall use the post-revision software
after the second
round testing.

7. Basic Data of the Joint Debugging and
Testing

(1) Data of bank codes. The payment and
settlement offices in the six provinces (municipalities) shall be responsible
for organizing
the declaration of the data of bank codes by clearing houses and
the banking financial institutions participating in the joint de
bugging and
testing, and shall submit the data of bank codes for joint debugging and testing
in the excel format to the Department
of Payment and Settlement (to the mail box
of Zhou Pengbo through OA) before November 3. The data of bank codes shall be
consistent
with the data in the complete database of bank codes for the
production environment of the payment system.

The Clearing Head Center shall be in
charge of producing the basic data for this joint debugging and testing and
shall, before November
10, accomplish the installation of the basic data of bank
codes of the image exchange system and the payment system, and export
the said
data to the payment and settlement offices in the six provinces
(municipalities).

The payment and settlement offices in the
six provinces (municipalities) shall be responsible for the installation of the
basic
data of the bank codes of the image exchange system of their respective
sub-centers, and shall, before November 12, export the said
basic data to the
clearinghouses under their respective jurisdictions, and shall distribute the
basic data of bank codes of the
payment system to the direct participants of the
payment system before November 12.

(2) The digital certificates

The digital certificates for the joint
debugging and testing shall be made by the Clearing Head Center uniformly and
shall be distributed
to the clearing centers of the six provinces
(municipalities) before November 10. The clearing centers of six provinces
(municipalities)
shall be in charge of distributing the said certificates to the
clearing houses under their respective jurisdiction and all banking
financial
institutions before November 12.

(3) Balance of clearing account

The balance of the clearing account of
each commercial bank that directly participates in the joint debugging and
testing shall
be RMB 100 million yuan.

All direct participants shall set net
debit level (earmark) of RMB 50 million yuan for the small payment system.

The Clearing Head Center shall be
responsible for setting the balance of the clearing account in the simulated
SAPS before November
12.

As regards other basic data, please see
the Plan.

8. Making and Disposing Check Images for
Joint Debugging and Testing

(1) Making check images

A banking financial institution or
clearing house may use inter-city checks (under the invalidation seal) on its
own initiative,
make check images and form messages of check images subject to
the format as required. It is not required about matching between
the image
information and the electronic clearing information.

(2) Disposing check images

A banking financial institution or
clearing house shall dispose the business on the basis of the electronic
clearing information
after receiving a message issued by the image exchange
system,.

9. Compilation of Joint Debugging and
Testing Cases

When compiling the joint debugging and
testing cases, it shall not only satisfy the requirements of the business types
and business
volume, but also cover all the functions of the national check
image exchange system as well as the messages of acknowledgement
of receipt of
the check images in the small payment system.

The head clearing center shall be in
charge of drawing up testing cases of the head center, simulated NPC and
simulated CCPC.

The payment and settlement offices of the
six provinces (municipalities) shall be responsible for compiling the testing
cases for
all participants of joint debugging and testing under their respective
jurisdictions.

All banking institutions or clearing
houses participating in the joint debugging and testing shall launch 5 national
businesses
and 5 regional businesses (including check businesses and general
businesses) everyday at least. A banking financial institution
that has the
environment for the testing of small-sum payment system shall launch an
acknowledgement of receipt of check image
through the payment system after
receiving any check image,.

The check image business shall be handled
subject to the Measures for Dealing with the Affairs Relating to the National
Check Image
Exchange System (for Trial Implementation), Procedures for Dealing
with the Affairs Relating to the National Check Image Exchange
System (for Trial
Implementation), Administrative Measures for the Running of the National Check
Image Exchange System (for Trial
Implementation), as well as the provisions on
dealing with the businesses of the payment system by personnel of each entity
participating
in the joint debugging and testing.

Each entity participating in the joint
debugging and testing shall print the simulated vouchers and checklist in
accordance with
relevant provisions, check the formats of the vouchers and
checklist carefully, collect the number and amount of the businesses
and check
them against relevant checklist.

10. Organization of Joint Debugging and
Testing

The joint debugging and testing is an
important link before the dissemination and running of national check image
exchange system,
the effects and quality of which are directly related to the
dissemination of the national check image exchange system all over
the country.
In view of lots of participant institutions, huge workload and wide range in the
joint debugging and testing , the
leading groups of the construction of the
check image exchange system of the six provinces (municipalities) and their
offices as
well as all entities as participants shall attach great importance to
it, shall strengthen the organization and management, closely
communicate and
collaborate with each other to ensure the smooth processing of this joint
debugging and testing .

(1) Duty of each department. The Payment
and Settlement Department of the People’s Bank of China shall be responsible for
the overall
organization and management of the joint debugging and testing of
the image exchange system, and drawing up a plan on the joint
debugging and
testing of the national check image exchange system.

The Department of Science and Technology
shall be in charge of coordination and management of the technical work of joint
debugging
and testing, and it shall instruct relevant departments to participate
in the system integration, software installation and technical
support of
network debugging of the participants of joint debugging and testing.

The Clearing Head Center shall responsible
for the preparation of environment, network connection and technical support of
the joint
debugging and testing, it shall coordinate clearing sub-centers to
handle the installation of the basic data of bank codes, and
the operations of
the head center and the simulated NPC, and it requires one operator in each of
the clearing sub-centers in the
six provinces (municipalities) to go to Beijing
to operate the CCPC on November 14. Contact person of the Clearing Head Center:

Zhang Xin, Tel.: 010-68401764 13601058563

The payment offices of the six provinces
(municipalities) shall be responsible for organizing and coordinating the
participants
of joint debugging and testing under their respective jurisdiction.

(2) Report of joint debugging and testing.
In case of any abnormity of the system or any matter inconsistent with the
operation
needs arising during the testing, all participants shall timely record
the problems, and then carefully fill in the Record Form
of Joint Debugging and
Testing Problems (See Attachment 2 for the format), and submit it to relevant
payment and settlement offices
of the six provinces(municipalities) at 160 of
the current day.

The payment and settlement offices of the
six provinces (municipalities)shall, in a daily manner, study the problems
arising from
the joint debugging and testing of the current day jointly with the
operators and technicians of the relevant departments and put
forward
suggestions of solution which shall be submitted to the Payment and Settlement
Department before 130 of the following
day. And then they shall submit a
summary report of the joint debugging and testing to the Payment and Settlement
Department (to
the mail box of Chen Xue through OA).

In case of any serious problem that
affects the normal running of the system during the joint debugging and testing,
the payment
and settlement offices of the six provinces (municipalities) shall
report it to the People’s Bank of China immediately.

(3) Strengthening the operations and
technical support. The Payment and Settlement Department, the Department of
Science and Technology,
and the Clearing Head Center will assign spec

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

CIRCULAR OF MINISTRY OF FINANCETHE CUSTOMS GENERAL ADMINISTRATIONTHE STATE ADMINISTRATION OF TAXATION FOR PROVISIONS ON ISSUES CONCERNING TAX POLICY OF THE CUSTOMS AS REPRESENTATIVE LEVYING IMPORTS TAX ON IMPORTED GOODS

Ministry of Financethe General Administration of CustomsThe State Administration of Taxation

Circular of Ministry of Financethe Customs General AdministrationThe State Administration of Taxation for provisions on issues
concerning tax policy of the customs as representative levying imports tax on imported goods

No. 7 [2004] issued by Ministry of Financethe Customs General AdministrationThe State Administration of Taxation

March 16, 2004

Every province, autonomous region and municipality directly under the Central Government , every Office or bureau of Finance of the
city under direct planning by the state , State Taxation Administration, the branch customs administration in Guangdong , special
appointed office of General Administration of Customs in Tianjin , Shanghai and every customs directly under the General administration
of customs:

Provisions on issues concerning tax policy of the customs as representative levying imports tax on imported goods have been approved
by the State Council. It is issued to you now, and you shall act in accordance with it conscientiously.

Annex: provisions on issues concerning tax policy of the customs as representative levying imports tax on imported goods

Annex:provisions on issues concerning tax policy of the customs as representative levying imports tax on imported goods

The taxpayer pays funds equivalent to the deposit or offers other guarantees to the customs for the interim entry goods as followed
through approval of customs while entry shall not pay imports value-added tax and consumption tax temporarily, and shall return to
exit in six months from the date of entry; the customs can lengthen the term of returning to exit according to the stipulations of
General Administration of Customs:

(1)

The goods shown or used during the exhibition, fair, meeting and similar activity;

(2)

The articles used in performance, competition that used in communication activity of culture, sports.

(3)

The instrument, equipment and articles used in news report or making films, TV program.

(4)

The instrument, equipment and articles used in scientific research, teaching, medical activity;

(5)

The transports and special vehicles used in the listed activities of subparagraph 1 to subparagraph 4 of the article.

(6)

Samples

(7)

The instruments, implements used while installing, debugging, checking the equipment.

(8)

The containers of holding the goods;

(9)

Other goods used for non-commercial purpose.

If the aforesaid listed goods that have been approved for entry temporarily would not return to exit in designate term, the customs
shall levy imports value-added tax and consumption tax according to the law

Other entry goods approved temporarily apart from the aforesaid listed goods exempt for imports value-added tax and consumption tax
shall calculate and levy imports value-added tax and consumption tax respectively according to the forming taxing tariff of the goods
and the term proportion of detention in territory and depreciation of the goods.

By virtue of incompleteness, deficiency, bad quality or incompatible specification, the goods of same type that consignor , carrier
or insurance company compensate and replace free of charge shall not be levied imports value-added tax and consumption tax while
importing. If the original imported goods that were replaced free of charge without return to exit, the customs shall re-levy imports
value-added tax and consumption tax on the original imported goods according to the regulations.

A batch of goods fewer than 50 Yuan of amount of imports value-added tax are exempt from imports value-added tax, a batch of goods
fewer than 50 Yuan of amount of consumption tax are exempt from imports consumption tax.

The advertising products and samples without commercial value are exempt from imports value-added tax and consumption tax.

The goods and materials donated free of charge by foreign government and international organization are exempt from imports value-added
tax and consumption tax.

The loss of imported goods are exempt from imports value-added tax and consumption tax before the customs release; As for the loss
of imported goods before the customs release, it may confirm the tax payment price of customs duties and tariff in the formula of
imports value-added tax and consumption tax forming taxing tariff according to real value of imported goods after being damaged that
customs assert, and levy imports value- added tax and consumption tax in accordance with the law.

The necessary fuel, supplies and diet articles that transports load during the trip are exempt from imports value-added tax and consumption
tax.

The relevant laws and administrative statutes stipulate that the imported goods are allowed to reduce or exempt from the imports tax
levied by the customs as representative, the customs shall practice according to the regulations.

The provisions shall come into force as of January 1, 2004.

Ministry of Financethe General Administration of CustomsThe State Administration of Taxation
2004-03-16

MEASURES FOR THE MANAGEMENT OF AUTO LOANS

the People’s Bank of China, China Banking Regulatory Commission

Order of the People’s Bank of China, China Banking Regulatory Commission

No. 2

The Measures for the Management of Auto Loans, adopted at the fifth president’s working meeting of the People’s Bank of China on March
22, 2004 and at the chairman’s meeting of China Banking Regulatory Commission on August 9, 2004, are hereby promulgated and shall
come into force as of October 1, 2004.

Zhou Xiaochuan, the President of the People’s Bank of China

Liu Mingkang, the Chairman of the China Banking Regulatory Commission

August 16, 2004

Measures for the Management of Auto Loans

Chapter I General Provisions

Article 1

With the view of standardizing the management of auto loans, preventing risks in auto loan business and promoting the sound development
of auto loan business, the present Measures are formulated in accordance with the Law of the People’s Republic of China on the People’s
Bank of China, Law of the People’s Republic of China on Commercial Banks and Law of the People’s Republic of China on Banking Regulation
and Supervision.

Article 2

The term “auto loan” as mentioned in the present Measures refers to a loan granted by a lender to the borrower for the purchase of
an auto (including a second-hand auto), including auto loans granted to individuals, dealers and institutions.

Article 3

The term “a lender” as mentioned in the present Measures refers to a commercial bank or an urban and rural credit cooperative set
up lawfully within the People’s Republic of China with the approval of China Banking Regulatory Commission (CBRC) and its agency
for engaging in Renminbi loan business, or refers to a non-bank financial institution with the approval for engaging in auto loan
business.

Article 4

The term “a personal auto” as mentioned in the present Measures refers to an auto purchased by a borrower through an auto loan not
for the purpose of profit making; “a business auto” refers to an auto purchased by a borrower through an auto loan for the purpose
of profit making; “a second-hand auto” refers to an auto whose ownership is changed, with the formalities for ownership transfer
handled according to law, during the period from the completion of motor vehicle registration formalities to the day that is one
year before its scrapping as specified.

Article 5

The interest rate on auto loans shall comply with the provisions on loan interest rates as promulgated by the People’s Bank of China,
and the methods for the calculation and settlement of interests shall be determined by the borrower and lender through consultation.

Article 6

The terms of auto loans (including the extension periods) may not be longer than five years, of which, the terms of loans for second-hand
autos (including the extension periods) may not be longer than three years, and the terms of loans to dealers may not be longer than
one year.

Article 7

Both the borrower and the lender shall abide by the principles of equality, voluntariness, honesty and faith-keeping.

Chapter II Auto Loans to Individuals

Article 8

The term “an auto loan to an individual” as mentioned in the present Measures refers to the loan granted by a lender to an individual
borrower for the purchase of an auto.

Article 9

When applying for an auto loan, an individual must meet the following requirements:

(1)

being a citizen of the People’s Republic of China, or a resident of Hong Kong, Macao or Taiwan or a foreigner who has successively
resided in China for at least one year;

(2)

having a valid ID certificate, settled and particular dwelling place and full capacity for civil conduct;

(3)

having stable source of legitimate income or legal personal assets sufficient to pay off the principal and interests of the loan;

(4)

having a good personal credit,

(5)

being able to make the down payment as provided herein; and

(6)

other requirements as specified by the lender.

Article 10

When granting an auto loan to an individual, the lender shall synthetically take following factors into account and decide the amount
and term of, interest rate on, and methods of repayment of the principal and interests of the loan:

(1)

the borrower’s credit grade as assessed by the lender;

(2)

the guarantee of the loan;

(3)

the performance and purpose of the auto purchased; and

(4)

the development and the supply and demand situation of the auto industry and market.

Article 11

The lender shall establish a credit record on each borrower which shall contain:

(1)

the name, address, valid ID certificate and effective contact details of the borrower;

(2)

the certificate certifying the income level and the credit of the borrower;

(3)

the auto purchase agreement, and the type, engine number, frame number, price and purpose of the auto;

(4)

the amount, term and method of payment of, the interest rate on and guarantee for the loan;

(5)

records of urging the payment; and

(6)

other materials as may be necessary for credit risk prevention.

Article 12

In the case of a loan to individuals granted for the purchase of a business auto, the borrower’s credit record shall, besides the
items provided in Article 11 herein, contain the annual reviews on the operation license, depreciation and insurance of the business
auto.

Chapter III Auto Loans to Dealers

Article 13

The term “auto loan to a dealer” as mentioned in the present Measures refers to the loan granted by a lender to an auto dealer for
the purchase of autos and/or auto parts and components.

Article 14

When applying for an auto loan, the auto dealer must meet the following requirements:

(1)

having an enterprise juridical person business license and annual review certificate checked up and issued by the administrative department
for industry and commerce;

(2)

having an auto sale agent certificate issued by the auto manufacturer;

(3)

not exceeding 80% of the balance sheet ratio;

(4)

having stable and legitimate income or lawful assets sufficient to pay off the principal and interests of the loan;

(5)

there being no major acts of non-compliance or no records of bad credit on the part of either the dealer, its senior officials or
its customers of whom the dealer handles the application for the loan on behalf; and

(6)

other requirement as may be specified by the lender.

Article 15

The lender shall establish and promptly update the separate credit record on each dealer borrower, which shall contain:

(1)

the post_title, legal representative and business place of the dealer;

(2)

copies of business licenses and certificates;

(3)

the conditions concerning the insurances bought by the dealer and the commercial credit and finance it;

(4)

its loan card (number) issued by the People’ Bank of China;

(5)

the type, price and purpose of the purchased auto, auto parts and components;

(6)

the loan guarantee; and

(7)

other materials as may be necessary for credit risk prevention.

Article 16

The amount of a loan granted by a lender to an auto dealer for the purchase of autos and/or auto parts and components shall be determined
on the basis of the average inventory of the dealer in a certain period which shall be determined in the light of the turnover condition
of the dealer’s inventory.

Article 17

The lender shall regularly inspect the dealer’s credit by regularly checking the dealer’s inventory of autos and auto parts and components
and analyzing the dealer’s financing statements, and adjust the dealer’s credit grade and the inventory-checking frequency in the
light of the result of such inspection.

Chapter IV Auto Loans to Institutions

Article 18

The term “auto loan to an institution” as mentioned in the present Measures refers to the loan granted by a lender to a juridical
person and other entity (hereinafter referred to as an “institution borrower”) who is not an auto dealer for such institution’s purchase
of autos.

Article 19

When applying for an auto loan, the institution must meet the following requirements:

(1)

having an enterprise juridical person business license or an institution juridical person certificate or any other legal certificate,
as issued by the authorities in charge of enterprise or institution registration, certifying the qualification of the borrower to
be a juridical person:

(2)

having legitimate and stable income or lawful assets sufficient to pay off the principal and interests of the loan;

(3)

being able to make the down payment as provided herein;

(4)

there being no major acts of non-compliance and no records of bad credit; and

(5)

other requirements as may be specified by the lender.

Article 20

The lender shall establish a separate credit record on each institution borrower pursuant to the provisions of Article 15 herein
and strengthen the tracking monitoring on credit risk.

Article 21

In the case of a business auto loan granted to an institution engaging in auto leasehold operation, the lender shall supervise the
assessment manner of residual value by the borrower and prevent the risk to the lender caused by over-valuation of the residual value.

Chapter V Risk Management

Article 22

The amount of an auto loan granted by the lender for purchase of a personal auto may not exceed 80% of the price of the auto purchased
by the borrower; that for purchase of a business auto may not exceed 70% of the auto purchased by the borrower; that for purchase
of a second-hand auto may not exceed 50% of the auto purchased by the borrower.

The price of an auto referred to as in the preceding paragraph means, in the case of a new auto, the actual transacted price of the
auto (excluding various surtaxes, charges and insurance premiums) or the price published by the auto manufacturer, whichever is lower;
in the case of a second-hand auto, the actual transacted price of the auto (excluding various surtaxes, charges and insurance premiums)
or the price estimated by the lender, whichever is lower.

Article 23

The lender shall set up a borrowers’ credit rating system and determine each borrower’s credit grade with great caution. The credit
grade of an individual borrower shall be determined on the basis of his occupation, income level, ability to pay, records of credit
and etc.; the credit grade of a dealer or institution borrower shall be determined on the basis of their credit record, their senior
officials’ credit qualities, financial positions and records of credit.

Article 24

When granting an auto loan, the lender shall require the borrower to provide mortgage for the auto purchased or to provide other effective
guarantee.

Article 25

The lender shall either directly accept applications for auto loans or entrust such acceptance to a designated dealer, perfect the
system for separation of credit examination and granting, and strengthen the examination before granting and the tracking and payment-demanding
after granting.

Article 26

The lender shall set up an information database on the second-hand auto market and a residual value assessment system of second-hand
autos.

Article 27

The lender shall establish an auto loan classification monitoring system in the light of loan amounts, distributing areas of the loans,
borrowers’ financial positions, auto brands, mortgages and guarantees, make regular inspection and assessment on risks of different
types of auto loans and promptly adjust the risk grades of different types of auto loans according to the results of such inspection
and assessment.

Article 28

The lender shall establish a warning and monitoring system on auto loans, and formulate warning standards and, in the case of any
dissatisfaction of these standards, adopt measures such as reappraisal of the credit examination and approval system.

Article 29

The lender shall establish a classification disposal system on bad loans and a loss provision system on deliberate loans and make
corresponding loan loss provisions.

Article 30

When granting a mortgage loan, the lender shall assess the value of the mortgage with great caution, pay full attention to possible
depreciation of the mortgage and fix the upper limit for the mortgage rate.

Article 31

The lender shall promptly incorporate the information on auto loans into its credit registration and consulting system and establish
a system for information exchange with other lenders.

Chapter VI Supplementary Provisions

Article 32

Where any lender violates any provision of the present Measures when conducting auto loan business, China Banking Regulatory Commission
and its agencies detached have the right to impose punishment on the lender and persons concerned according to the provisions of
the Law of the People’s Republic of China on Banking Regulation and Supervision and other relevant provisions. The People’s Bank
of China and its branches may make suggestions to China Banking Regulatory Commission and its agencies that they conduct supervision
and inspection over irregular acts of lenders engaging in auto loan business.

Article 33

Loans granted by the lender for purchase of engineering vehicles, such as bulldozers, excavators, mixers and pumps, shall be handled
by applying these Measures mutatis mutandis.

Article 34

The power to interpret the present Measures shall be remain with the People’s Bank of China and China Banking Regulatory Commission.

Article 35

The present Measures shall come into force as of October 1, 2004. The Measures for Management of Loans for Auto Consumption as issued
by the People’s Bank of China in 1998 shall be annulled as of the same date.

the People’s Bank of China, China Banking Regulatory Commission
2004-08-16

PROMOTION OF AGRICULTURAL MECHANIZATION LAW

Law of the People’s Republic of China on Promotion of Agricultural Mechanization



	(Adopted at the 10th Meeting of the Standing Committee of the Tenth National People’s Congress on June 25, 2004 and promulgated by Order No.16 of the President of the People’s Republic of China on June 25,2004) Contents Chapter I General Provisions Chapter II Scientific Research and Development Chapter III Quality Safeguards Chapter IV Widespread Use Chapter V Commercialized Services Chapter VI Support Measures Chapter VII Legal Responsibility Chapter VIII Supplementary Provisions Chapter I General Provisions Article 1 This Law is enacted with a view to encouraging and supporting peasants and agricultural production and operation organizations to use advanced and applicable agricultural machines, promoting the mechanization of agriculture and developing modern agriculture. Article 2 For purposes of this Law, mechanization of agriculture means the process of improving the conditions of agricultural production and operation and continually raising the technological level of agricultural production and increasing the economic and ecological benefits of agriculture by equipping agriculture with advanced and applicable agricultural machines. For purposes of this Law, agricultural machines mean the machines and equipment used for agricultural production, primary processing of agricultural products and other activities relating to farming. Article 3 People’s governments at or above the county level shall incorporate the promotion of agricultural mechanization into their plans of national economic and social development, and take such measures as financial support, preferential taxation policy as prescribed by the State and financial aid, in order to gradually increase capital input into the mechanization of agriculture, give full play to the role of market mechanism, and promote the development of agricultural mechanization in compliance with the principles of adapting to local conditions, ensuring economic results, guaranteeing safety and protecting the environment. Article 4 The State provides guidance and support to peasants and agricultural production and operation organizations in their efforts to select advanced and applicable agricultural machines on their own. No units or individuals shall compel peasants and agricultural production and operation organizations to purchase agricultural machines they designate. Article 5 The State takes measures to publicize and disseminate scientific and technological knowledge about agricultural mechanization, to train people in professional skills needed for such mechanization, to promote information services for and to raise the level of such mechanization. Article 6 The administrative departments for agriculture under the State Council and other departments in charge of the work of agricultural mechanization shall, in accordance with the division of their respective duties, closely cooperate with each other, joining the efforts in successfully promoting agricultural mechanization. The departments in charge of the work of agricultural mechanization under the local people’s governments at or above the county level and other departments concerned shall, in accordance with the division of their respective duties, closely cooperate with each other, joining efforts in successfully promoting agricultural mechanization within their own administrative areas. Chapter II Scientific Research and Development Article 7 People’s governments at or above the provincial level and the relevant departments under them shall make arrangements for the units concerned to take such measures as tackling key technical problems and making experiments and demonstrations for the purpose of promoting basic and key scientific researches in agricultural machinery for the public good and the wide use of advanced and applicable agricultural machines. Article 8 The State supports the scientific research institutions, colleges and universities concerned to redouble their efforts in scientific and technological research in agricultural mechanization and, based on the different conditions of agricultural production and different needs of peasants, to make research and develop advanced and applicable agricultural machines; and it supports the efforts made to combine scientific research and teaching of agricultural machinery with their manufacturing and the promotion of their wide use in order that agricultural machinery will be geared to the needs of the technological development of agricultural production. Article 9 The State supports the manufactures of agricultural machines in their efforts to develop advanced and applicable agricultural machines and, by adopting advanced technologies, techniques and materials, to enhance the quality and raise the technological level of their products, reduce their costs of production and provide serialized and standardized agricultural machines characterized by multifunction, high quality, energy saving and reasonable price. Article 10 The State supports the introduction and use of advanced agricultural machines, their key spare parts and technology, and encourages the efforts to absorb foreign funds for purpose of conducting research in, developing, manufacturing and dealing in agricultural machines. Chapter III Quality Safeguards Article 11 The State strengthens the establishment of a standard system for agricultural mechanization, formulates and improves the standards for the quality of the agricultural machines manufactured, the quality of their repairs and maintenance and the quality of their operation. In respect of the technical requirements for the agricultural machines manufactured relating to personal safety, quality and safety of agricultural products and protection of the environment, mandatory technological standards shall be formulated in accordance with the provisions of relevant laws and administrative regulations. Article 12 Supervisory departments for product quality shall, according to law, be in charge of supervision over and spotcheck of the quality of the agricultural machines manufactured. Administrative departments for industry and commerce shall, according to law, tighten supervision and control over the markets of the agricultural machines manufactured. The administrative departments for agriculture under the State Council and the departments in charge of the work of agricultural mechanization under the people’s governments at the provincial level may, based on the complaints by the users of agricultural machines and on the actual need of agricultural production, arrange surveys of the applicability, safety, reliability and after-sale services of a particular type of the manufactured agricultural machines that are in use, and publish the results of the surveys. Article 13 Manufacturers and sellers of agricultural machines shall be responsible for the quality of the machines manufactured or sold by them, and shall , in accordance with relevant State regulations, be responsible for such after-sale services as the supply of spare parts and training. Manufacturers of agricultural machines shall, in accordance with State standards, industrial standards and the requirements of ensuring personal safety, install safety and protection devices on, and attach warning signs and warning in Chinese to, the agricultural machines manufactured by them. Articles 14 Where agricultural machines manufactured do not meet the quality requirements, the manufacturers or sellers of the machines shall be responsible for their repairs, replacement or return; and where losses in agricultural output or other losses are caused to the users of the agricultural machines, they shall compensate the users for the losses according to law. The users of the machines shall have the right to demand that the sellers of the machines make the compensation first. After the compensation is made by the sellers of the machines, if the responsibility rests with the manufacturers of the machines, the said sellers shall have the right to demand recovery from the said manufacturers. Where personal injuries or property losses are caused due to defects in agricultural machines, the manufacturers and sellers of machineries shall make compensations according to law. Article 15 Manufactured agricultural machines included in the catalogue of the products the certification of which is required by law but which are not certified or attached with the signs of certification are prohibited from leaving the factory, being sold or imported. Agricultural machines which do not meet the mandatory requirements of the technological standards of the State are prohibited from being manufactured and sold. Assembling of agricultural machines with defective or substandard spare parts or with spare parts of scrapped machines are prohibited. Chapter IV Widespread Use Article 16 The State supports efforts to promote the wide use of advanced and applicable agricultural machines among peasants and agricultural production and operation organizations. The agricultural machines the wide use of which is promoted shall meet the need of local agricultural development and, according to the provisions of the Law on Popularization of Agricultural Technology, the machines shall have to be proved to be advanced and applicable through experiment in the areas where their wide use is promoted. Manufacturers or sellers of agricultural machines may entrust institutions for experiment and verification of agricultural machines to test the applicability, safety and reliability of the agricultural machines of a finalized design manufactured or sold by them, and to make a technical appraisal. The said institutions shall publish the testing results of the agricultural machines in respect of their applicability, safety and reliability, providing information to peasants and agricultural production and operation organizations in their purchase of advanced and applicable agricultural machines. Article 17 People’s governments at or above the county level may, based on actual conditions, set up demonstration bases for agricultural mechanization in different agricultural areas, and encourage manufacturers of, dealers in agricultural machines, etc. to set up demonstration points for agricultural machines and guide peasants and agricultural production and operation organizations in their use of advanced and applicable agricultural machines. Article 18 The administrative department for agriculture under the State Council together with the department of finance and the department for comprehensive macro-economic control under the State Council shall, on the principles of promoting agricultural restructuring, protecting the natural resources and ecological environment, promoting the wide use of new agricultural technologies and speeding up the updating of agricultural machines and tools, determine and publish the catalogue of the advanced and applicable agricultural machines the wide use of which is supported by that the State, and make adjustment to the catalogue regularly. The departments in charge of the work of agricultural mechanization under the people’s governments at the provincial level together with the department of finance and the department for comprehensive macro-economic control at the corresponding level shall, on the principles mentioned above, determine and publish the catalogue of the advanced, applicable agricultural machines the wide use of which is supported by the people’s governments at the provincial level, and make adjustment to the catalogue regularly. To have their products included in the catalogue mentioned in the preceding paragraph, the manufacturers of agricultural machines shall, on a voluntary basis, submit an application and their products shall be subject to verification, by institutions for experiment and verification of agricultural machines in respect of their advancedness, applicability, safety and reliability. Article 19 The State encourages and supports peasants to cooperate in the use of agricultural machines, in order to raise the utilization ratio and operational efficiency of agricultural machines and to reduce operational cost. The State supports and protects peasants, while adhering to household contractual management, to engage in regional and standardized planting on a voluntary basis in order to raise the operational level of agricultural machines. No units or individuals shall, on the pretext of regional or standardized planting, encroach upon the peasants’ right of contractual management of land. Article 20 The administrative department for agriculture under the State Council and the departments in charge of the work of agricultural mechanization under the local people’s governments at or above the county level shall, upholding the principles of safe production and putting prevention first, improving the publicity of and education in the safe use of agricultural machines and control of such machines. When users of agricultural machines operate the machines, they shall do so in accordance with the safe operation regulations, and shall put up the protective devices or warning signs at the dangerous parts of the machines and at the place of operation. Chapter V Commercialized Services Article 21 Peasants and agricultural machines operation organizations may, on the principles of mutual voluntariness and consultation on an equal footing, provide local or nonlocal peasants and agricultural production and operation organizations with various kinds of compensated services of agricultural machinery operation. Compensated agricultural machinery operation shall be in conformity with the State and local standards for the quality of such operation. The State encourages the provision of agricultural machinery operation among different administrative regions. People’s governments at various levels and the relevant departments under them shall support such inter-regional agricultural machinery operation, maintain the order of such operation, provide conveniences and services, and exercise supervision over safety according to law. Article 22 People’s governments at various levels shall take measures to encourage and assist the development of multiforms of agricultural machinery service organizations, to facilitate the establishment of an information network for agricultural mechanization and improve the service system of agricultural mechanization. Agricultural machinery service organizations shall, based on the needs of peasants and agricultural production and operation organizations, provide such commercialized services as demonstration and promotion of the use of agricultural machines, training in practicable technologies, maintenance and repairs, information, and intermediary service. Article 23 Institutions for promotion of agricultural machinery technologies at the grassroots level established by the State shall rely on the experiment and demonstration bases in providing, without compensation, peasants and agricultural production and operation organizations with such public welfare services as promotion of and training in agricultural machinery technologies. Article 24 Any unit or individual engaged in agricultural machinery maintenance and repairs shall have the instruments and equipment needed for maintenance and repairs as well as the technicians with the professional skills for agricultural machinery maintenance and repairs, in order to guarantee quality. If the quality of repair is not up to standards, the repairer shall do the repairs again free of charge; and if personal injuries or property losses are caused, the repairer shall bear the responsibility for compensation according to law. Article 25 Manufacturers, dealers in and repairers of agricultural machines may, in accordance with the provisions of laws and administrative regulations and on a voluntary basis, establish industrial associations, practice self-discipline within the industry, provide services to the members of their associations and preserve lawful rights and interests of their members. Chapter VI Support Measures Article 26 The State takes measures to encourage and support the manufacturers of agricultural machines to increase their input in research and development of new products, new technologies and new techniques, and executes a preferential tax policy for scientific research in, and development and manufacture of agricultural machines. A certain amount of the funds for scientific and technological development arranged in the central or local budgets shall be used in support of technical innovation of the agricultural machinery industry. Article 27 The central and the provincial governments shall respectively allocate special funds to subsidize the peasants and agricultural production and operation organizations for their purchase of the advanced and applicable agricultural machines supported and promoted by the State. The funds for subsidies shall be used in accordance with the principles of openness, impartiality, timeliness and effectiveness. Such funds may be distributed to the peasants and agricultural production and operation organizations, and may also be used as a discount for the loans provided by banking institutions in support of the peasants and agricultural production and operation organizations that purchase advanced and applicable agricultural machines. The specific measures in this regard shall be formulated by the State Council. Article 28 Incomes from providing services in production with agricultural machines shall enjoy preferential taxation policy in accordance with State regulations. The State, based on the needs of agricultural and rural economic development, appropriates financial subsidies for the fuel oil used in agricultural production with agricultural machines. Such subsidies shall be given directly to the peasants and agricultural production and operation organizations that are engaged in operations with agricultural machines. The specific measures in this regard shall be formulated by the State Council. Article 29 Local people’s governments at various levels shall take measures to make greater efforts in the construction and maintenance of the infrastructure in respect of agricultural mechanization, such as rural roads for farm machines, in order to create the conditions for agricultural mechanization. Departments in charge of the work of agricultural mechanization under the local people’s governments at or above the county level shall establish the system of information gathering, sorting and issuing for agricultural mechanization, in order to provide peasants and agricultural production and operation organizations with information services free of charge. Chapter VII Legal Responsibility Article 30 Violations of the provisions in Article 15 of this Law shall be penalized in accordance with the relevant provisions in the Law on Product Quality; and if a crime is constituted, criminal responsibility shall be investigated according to law. Article 31 Where the driver or operator of agricultural machine violates the State procedures for safe operation and relevant regulations in his work, he shall be instructed to rectify and be penalized in accordance with the provisions of relevant laws and administrative regulations; and if a crime is constituted, criminal responsibility shall be investigated according to law. Article 32 When an institution for experiment and verification of agricultural machines fails to make verification for the manufacturers or sellers of agricultural machines in accordance with relevant regulations, forges the results of verification, or produces false certificates, thus causing losses to the users of agricultural machines, it shall bear the responsibility for compensation according to law. Article 33 Where the administrative department for agriculture under the State Council or the department in charge of the work of agricultural mechanization under a local people’s government at or above the county level, in violation of the provisions of this Law, compels, or does so in disguised form, the manufacturers or sellers of agricultural machines to have the agricultural machines they manufacture or sell verified, the competent department at the higher level or the supervisory organ shall instruct it to rectify within a time limit, and give administrative sanctions to the persons who are directly in charge and the other persons who are directly responsible. Article 34 Any unit or individuals that, in violation of the provisions in Articles 27 and 28 of this Law, withholds or misappropriates the funds for subsidies, shall be instructed by the competent organ at the higher level to return the funds withheld or misappropriated within a time limit, its/ his unlawful gains shall be confiscated; and the competent organ at the higher level, the supervisory organ or the entity it/ he belongs to shall give administrative sanctions to the persons who are directly in charge and the other persons who are directly responsible. If a crime is constituted, criminal responsibility shall be investigated according to law. Chapter VIII Supplementary Provisions Article 35 This Law shall go into effect as of November 1, 2004.

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 STATE ADMINISTRATION OF TAXATION ON CARRYING OUT THE WORK OF DETERMINATION OF ENTERPRISES WHOSE SCOPE OF VAT DEDUCTION IS TO BE ENLARGED

State Administration of Taxation

Circular of the State Administration of Taxation on Carrying out the Work of Determination of Enterprises Whose Scope of VAT Deduction
Is To Be Enlarged

GuoShuiHan [2004] No. 143

January 29th, 2004

The administrations of state taxation of Heilongjiang, Jilin, Liaoning provinces, and Dalian city:

According to Some Opinions of the Central Committee of the Communist Party of China and the State Council on Implementing the Strategy
of Developing Vigorously the Old Industry Bases in the Northeast Region, Etc. (ZhongFa [2003] No.11), the ordinary taxpayers of value-added
taxes in eight industries of the three provinces in the northeast region and Dalian city (hereinafter referred to as the “taxpayers”)
shall enlarge their scopes of VAT deduction. With a view to making good preparations, the State Administration of Taxation decides
to carry out the work for the determination of the enterprises subordinate to the eight industries temporarily, and hereby makes
the following Circular on the relevant issues in this regard:

The work for the determination of enterprises whose VAT deduction scopes (hereinafter referred to as the “determination work”) is
to be enlarged is an important part for enlarging VAT deduction scope. The administrations of state taxation at all levels shall
attach high importance to it, reach a common understanding, and make a concerted effort to ensure that the determination work be
completed on schedule. Meanwhile, proper publicity and guidance shall be made known to the taxpayers.

II.

Where the products produced by a taxpayer fall within the scope of the eight industries (see the Specific Scope of the Eight Industries
in the Northeast Region), the enterprise shall fill out the Form for Determination of Enterprises whose VAT Deduction Scope Is To
Be Enlarged in accordance with the actual conditions of production and management of the enterprise, and apply for determination
to the local administration of state taxation. Those who fail to file an application for determination shall not implement the taxation
provisions on enlarging the VAT deduction scope.

III.

All levels of administrations of state taxation shall make determination in accordance with the Specific Scope of the Eight Industries
in the Northeast Region temporarily. After the scheme for reshaping the VAT in northeast region has been approved by the State Council,
the determination shall be made according to the scope prescribed specifically by the Ministry of Finance and the State Administration
of Taxation. And marks shall be loaded in the database for tax collection administration and in the database of archives for the
VAT ordinary taxpayers.

In case it is difficult to make determination concerning certain enterprises during the process of determination, the tax authorities
in charge may negotiate with the development and reform commission (or planning commission) of the corresponding level to determine.

In case a taxpayer influences the conclusions of determination by providing false documents or by other improper means, the tax authorities
in charge shall cancel its qualification for enlarging the VAT deduction scope immediately once such acts are found out, and impose
punishment on it in accordance with the relevant provisions of the Law on the Administration of Tax Collection.

IV.

Any problems encountered in the determination work shall be reported to the higher level in each region in good time.

Annex 1:The Specific Scope of the Eight Industries in the Northeast Region

The equipment manufacturing industry, petrochemical industry, metallurgy industry, shipping manufacturing industry, auto industry,
ventures in agroindustry, military supplies industry, and high and new technology industry shall refer to the following industries:

Equipment manufacturing industry is the general name for all the manufacturing industries, which provide technical equipment to all
the departments of national economy for their simple reproduction and extended production. Their scope of products includes the machine
industry (including aviation, spaceflight, shipping and enginery and other manufacturing industries) and the investment products
of electronic industries. It also includes the general equipment manufacturing industry, special equipment manufacturing industry,
electric machine and equipment manufacturing industry, communication equipment computers and other electric equipment manufacturing
industry, apparatus and instrument, as well as stationery and office supplies manufacturing industry, etc.

Petrochemical industry is the general name for the petroleum industry and chemical industry, including petroleum processing, coking
plant, and nuclear fuel processing industry, chemical materials, and chemical produce manufacturing industry, pharmaceutical manufacturing
industry, chemical fiber manufacturing industry, rubber produce industry, and plastic industry, etc..

Metallurgy industry: including black metal smelting and rolling processing industry, non-ferrous metal smelting and rolling processing
industry, etc..

Shipping manufacturing industry is the general name for the industries of shipping manufacturing, shipping components and parts and
fittings manufacturing, and shipping repair manufacturing, including metal shipping manufacturing, non-ferrous shipping manufacturing,
entertainment shipping and sports shipping building and repair, manufacturing of supporting equipment for shipping use, shipping
repair and dismantling, navigation mark equipment and other floating installations manufacturing.

Auto industry is the general name for the industries of the entire automobile manufacturing, components and parts and fittings manufacturing,
and the auto repair, including the manufacturing of the entire automobile and the refitted automobile, trolley manufacturing, manufacturing
of the bodywork of automobile and trailers, manufacturing of components and parts and fittings of automobiles, and automobile repair,
etc..

Ventures in agroindustry refer to the farm produce processing and manufacturing industry other than tobacco and alcohol, including
agricultural by-products food processing, food manufacturing, beverage manufacturing, textile, leather, coat and feather or eiderdown
processing, timber processing and timber, bamboo, rattan, palm and grass produce, textile, clothing, shoes and caps manufacturing,
furniture manufacturing, paper making and paper produce, handicrafts and other manufacturing, etc..

Military supplies industry refers to the taxpayers who produce products for armies, armed police and public security organs.

High and new technology industry, at present, shall be determined temporarily in accordance with the scope of taxpayers, who fall
within the scope of high and new technology as prescribed in the documents of the Conditions and Measures for Determination of High
and New Technology Enterprises in the State High and New Technology Development Zones (GuoKeFaHuoZi [2000] No.324), and the Conditions
and Measures for the Determination of High and New Technology Enterprises Outside the State High and New Technology Development Zones
(GuoKeFaHuoZi [1996] No.018), which are printed and distributed by the Ministry of Science and Technology, and which are in conformity
with other determination conditions, have obtained the certificates of a high and new technology enterprise issued by the provincial
science and technology commission, and whose products fall within the scope of the Circular of the Ministry of Science and Technology,
Ministry of Finance, and the State Administration of Taxation on Issuing the Catalogue of China High and New Technology Products
(GuoKeFaHuoZi [2000]No.328).

Annex 2: the Form for Determination of Enterprises whose VAT Deduction Scope Is To Be Enlarged (omitted)

State Administration of Taxation
2004-01-29

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