On February 28, 2011, the application of assets purchase via shares issue or connected transaction of Anhui Xingma Automobile Co., Ltd. (“Xingma Automobile”) has been passed and approved with conditions by M&A and Restructuring of Listed Companies Review Committee of China Securities Regulatory Commission (“CSRC”).

Xingma Automobile intends to offer (non-public) 218.26 million shares at the offer price of RMB8.18 per share to Anhui Xingma Automobile Group Co., Ltd., Anhui Provincial Investment Management Co., Ltd, Zhejiang Huawei Building Materials Group Corporation, Zhejiang Dingyue Investment Co., Ltd, Mr. Shi Zhengfu, Mr. Hang Yufu and Mr. Lou Bihe. The company now holds 100% stakes of Anhui Hualing Automobile Co., Ltd. (“Hualing Automobile”) . After the increase issuance and acquisition of Hualing Automobile, Xingma Automobile’s total equity amounts to 405,741,300 shares.

Grandall Shanghai Office has been retained as the Issuer's Counsel. Mr. LIU Wei, Mr. QIN Guisen and Mr. CHEN Feng are the key lawyers from Grandall in-charge of this transaction.