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7. Report on Authorizing the Company’s Chairman and Management Team to Apply for Bank Credit Lines and Loan Limits for the Year 2014

Document No. 7 of the 2013 Annual General Meeting

Regarding the Authorization of the Company’s Chairman and Management Team
Report on the Application for Bank Credit Lines and Loan Limits for the Year 2014

Dear Shareholders:
To ensure the Company’s normal production and operational needs, enhance the efficiency of capital utilization, strengthen the Company’s creditworthiness, reduce the costs associated with banking relationships, and facilitate more convenient access to bank credit and loans, the Board of Directors proposes to authorize the Company’s General Manager and Chief Financial Officer, within the aggregate bank credit limit of RMB 500 million, and the Chairman of the Board, within the aggregate loan limit of RMB 200 million, to assume full responsibility for the Company’s 2014 bank credit and loan activities.
The above report is submitted for your review.

May 20, 2014