Opinion on the Application of Securities and Futures Laws No.3: Opinion on the Application of the Provision “No Major Change Shall Have Occurred in the Issuer's Core Business During the Most Recent Three Years” of Article 12 of the «Measures for the Administration of Initial Public Offerings of Shares and the Listing Thereof»

(Issued by the China Securities Regulatory Commission on May 19 2008.)

Announcement of the CSRC [2008] No.22

Article 12 of the Measures for the Administration of Initial Public Offerings of Shares and the Listing Thereof (Order of the CSRC No.32; the “IPO Measures”) requires that no major change shall have occurred in an issuer's core business during the most recent three years. Recently, there have been circumstances where, during the most recent three years (the Reporting Period), certain companies that have applied for an initial public offering of shares and the listing thereof (Issuers) have reorganized identical, similar or related businesses under the same corporate controller, and numerous Issuers have asked whether such circumstances are in compliance with the aforementioned requirement of the IPO Measures. After consideration, we are of the opinion that: