THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE

READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT

WAIVERS FROM STRICT COMPLIANCE WITH THE LISTING RULES

In preparation of the [REDACTED], the Company has sought the following waivers from
strict compliance with the relevant provisions of the Listing Rules:

MANAGEMENT PRESENCE IN HONG KONG

Rule 8.12 of the Listing Rules provides that a new applicant for listing on the Hong Kong
Stock Exchange must have a sufficient management presence in Hong Kong and, under normal
circumstances, at least two of the new applicant’s executive directors must be ordinarily
resident in Hong Kong. Rule 19A.15 of the Listing Rules further provides that the requirement
in Rule 8.12 may be waived by having regard to, among other considerations, the applicant’s
arrangements for maintaining regular communication with the Hong Kong Stock Exchange.

The Company’s business operations are mostly located in the PRC and most of the
Company’s assets are located in the PRC. The Company’s executive Directors are based in the
PRC as the Board believes it would be more effective and efficient for its executive Directors
to be based in a location where the Company’s operations are located. Therefore, no executive
Directors will, in the foreseeable future be ordinarily resident in Hong Kong.

Accordingly, pursuant to Rule 19A.15 of the Hong Kong Listing Rules, the Company has
applied to the Hong Kong Stock Exchange for, and the Hong Kong Stock Exchange [has
granted] the Company, a waiver from strict compliance with the requirements under Rule 8.12
of the Hong Kong Listing Rules, provided that the Company implements the following
arrangements:

(i) the Company has appointed Mr. Zhang Da, an executive Director and Mr. Xu
Xiangke, one of the joint company secretaries of the Company, as the authorized
representatives of the Company (the “Authorized Representatives”) for the
purpose of Rule 3.05 of the Listing Rules. The Authorized Representatives will
serve as the Company’s principal channel of communication with the Hong Kong
Stock Exchange. They can be readily contactable by phone, fax and email to deal
promptly with enquiries from the Hong Kong Stock Exchange and will also be
available to meet with the Hong Kong Stock Exchange to discuss any matters on
short notice. The contact details of our authorized representatives have been
provided to the Hong Kong Stock Exchange.

(ii) all the Directors who are not ordinarily resident in Hong Kong possess or can apply
for valid travel documents to visit Hong Kong and can meet with the Hong Kong
Stock Exchange within a reasonable period. In addition, each Director has provided
his/her contact details, including mobile phone numbers, office phone numbers,
email addresses and fax numbers, to the Authorized Representatives and to the Hong
Kong Stock Exchange. The Directors have also provided the contact information of
their emergency contacts to the Authorized Representatives, so that each of the
Authorized Representatives would be able to contact all the Directors (including the
independent non-executive Directors) promptly at all times if and when the Hong
Kong Stock Exchange wishes to contact the Directors.

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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT

WAIVERS FROM STRICT COMPLIANCE WITH THE LISTING RULES

(iii) the Company has appointed Anglo Chinese Corporate Finance, Limited as its
compliance adviser for the period commencing on the [REDACTED] and ending on
the date on which the Company complies with Rule 13.46 of the Listing Rules in
respect of the Company’s financial results for the first full financial year
commencing after the [REDACTED], or until the agreement is terminated,
whichever is earlier. The Company’s compliance adviser will act as the Company’s
additional and alternative channel of communication with the Hong Kong Stock
Exchange, and its representatives will be readily available to answer enquiries from
the Hong Kong Stock Exchange.

JOINT COMPANY SECRETARIES

Pursuant to Rules 3.28 and 8.17 of the Listing Rules, the Company must appoint a
company secretary who possesses the necessary academic or professional qualifications or
relevant experience and is therefore capable to discharge the functions of the company
secretary.

Note 1 to Rule 3.28 of the Listing Rules provides that the Hong Kong Stock Exchange
considers the following academic or professional qualifications to be acceptable:

(i) a member of The Hong Kong Institute of Chartered Secretaries;

(ii) a solicitor or barrister (as defined in the Legal Practitioners Ordinance); and

(iii) a certified public accountant (as defined in the Professional Accountants

Ordinance).

In addition, Note 2 to Rule 3.28 of the Listing Rules provides that in assessing “relevant
experience,” the Hong Kong Stock Exchange will consider the individual’s:

(i) length of employment with the issuer and other issuers and the roles he played;

(ii) familiarity with the Listing Rules and other relevant law and regulations including
the Securities and Futures Ordinance, Companies Ordinance, Companies (Winding
Up and Miscellaneous Provisions) Ordinance, and the Takeovers Code;

(iii) relevant training taken and/or to be taken in addition to the minimum requirement
under Rule 3.29 of the Listing Rules; and

(iv) professional qualifications in other jurisdictions.

The Company has appointed Mr. Xu Xiangke, and Mr. Cheng Ching Kit, as the joint
company secretaries of the Company to jointly discharge the duties and responsibilities of
company secretary of the Company with reference to their work experience and qualifications.
Mr. Xu Xiangke is currently the secretary to the Board. He joined the Company in 2003. For
further biographical details of Mr. Xu Xiangke, see “Directors, Supervisors and Senior

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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT

WAIVERS FROM STRICT COMPLIANCE WITH THE LISTING RULES

Management – Senior Management.” Although Mr. Xu Xiangke does not possess the
qualifications set out in Rule 3.28 of the Listing Rules, the Company has appointed him as one
of the joint company secretaries of the Company due to his extensive experience in corporate
governance matters, information disclosure, investor relationship and corporate secretarial
affairs and his familiarity with the Company. Mr. Cheng Ching Kit has been appointed as the
other joint company secretary of the Company with effect from the [REDACTED] to assist Mr.
Xu Xiangke in discharging the duties of a company secretary of the Company. Mr. Cheng
Ching Kit is an associate member of both The Hong Kong Institute of Chartered Secretaries
and The Chartered Governance Institute in the United Kingdom and is therefore qualified under
Rule 3.28 of the Listing Rules to act as a joint company secretary of the Company. For further
biographical details of Mr. Cheng Ching Kit, see “Directors, Supervisors and Senior
Management – Joint Company Secretaries.”

The following arrangements have been, or will be, put in place to assist Mr. Xu Xiangke
in acquiring the qualifications and experience required under Rule 3.28 of the Listing Rules:

(i) In preparation of the application of the [REDACTED], Mr. Xu Xiangke has

attended training on the respective obligations of the Directors, supervisors, senior
managements and the Company under the relevant Hong Kong laws and the Listing
Rules organised by the Hong Kong legal advisers to the Company.

(ii) Mr. Xu will continue to be assisted by Mr. Cheng and the compliance adviser of the
Company on matters concerning the Company’s ongoing compliance with the
Listing Rules and the applicable laws and regulations.

(iii) Mr. Cheng Ching Kit will work closely with Mr. Xu Xiangke to jointly discharge the
duties and responsibilities as the joint company secretaries of the Company and to
assist Mr. Xu Xiangke to acquire the relevant experience as required under the
Listing Rules for an initial period of three years from the date of the [REDACTED],
a period which should be sufficient for Mr. Xu Xiangke to acquire the relevant
experience as required under the Listing Rules.

(iv) The Company will ensure that Mr. Xu Xiangke continues to have access to the
relevant training and support in relation to the Listing Rules and the duties required
for a company secretary of an issuer listed on the Hong Kong Stock Exchange.
Furthermore, both Mr. Cheng Ching Kit and Mr. Xu Xiangke will seek advice from
the Company’s Hong Kong legal and other professional advisers as and when
required. Mr. Xu Xiangke also undertakes to take no less than 15 hours of relevant
professional training in each financial year of the Company.

(v) At the end of the three years period, the qualifications and experience of Mr. Xu
Xiangke and the need for on-going assistance of Mr. Cheng Ching Kit will be further
evaluated by the Company. The Company will then endeavour to demonstrate to the
Hong Kong Stock Exchange’s satisfaction that Mr. Xu Xiangke, having had the
benefit of the assistance of Mr. Cheng Ching Kit for the immediately preceding three
years, has acquired the relevant experience (within the meaning of Note 2 to Rule

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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT

WAIVERS FROM STRICT COMPLIANCE WITH THE LISTING RULES

3.28 of the Listing Rules) such that a further waiver from Rules 3.28 and 8.17 of the
Listing Rules will not be necessary. The Company understands that the Hong Kong
Stock Exchange may revoke the waiver if Mr. Cheng Ching Kit ceases to provide
assistance to Mr. Xu Xiangke during the three-year period.

The Company have applied to the Hong Kong Stock Exchange for, and the Hong Kong
Stock Exchange [has granted] the Company, a waiver from strict compliance with the
requirements of Rules 3.28 and 8.17 of the Listing Rules. Upon the expiry of the initial
three-year period, the qualifications of Mr. Xu Xiangke will be re-evaluated to determine
whether the requirements as stipulated in Note 2 to Rule 3.28 of the Listing Rules can be
satisfied.

PUBLIC FLOAT REQUIREMENTS

Rule 8.08(1) of the Listing Rules requires that there must be an open market in the
securities for which listing is sought and that a sufficient public float of an issuer’s listed
securities must be maintained.

We have applied to the Stock Exchange for, and the Stock Exchange [has granted] us, a
waiver that the minimum public float requirement under Rule 8.08(1) be reduced and the
minimum percentage of our Company’s H Shares (being the securities for which the
[REDACTED] is sought) from time to time held by the public to be the higher of:

a. 10% of the total issued share capital of our Company; or

b. such a percentage of H Shares held by the public immediately after completion of

the [REDACTED], as increased by the H Shares to be issued upon the exercise of
the [REDACTED].

The above waiver [was granted] on the basis that:

a. our market capitalization is expected to be well over HK$10 billion at the time of
the [REDACTED];

b. there will be an open market for the H Shares upon completion of the
[REDACTED];

c. there will be sufficient H Shares offered in Hong Kong in the [REDACTED]; and

d. disclosure will be made regarding the lower prescribed public float in the Document
and we will confirm the sufficiency of public float in our annual reports after the
[REDACTED].

In the event that the public float percentage falls below the minimum percentage
prescribed by the Stock Exchange, we will take appropriate measures to ensure that the
minimum percentage of public float prescribed by the Stock Exchange is complied with.

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