Ping An Securities Company Ltd. PING AN SECURITIES 1 PING AN SECURITIES COMPANY LTD. Overview on China’s Small & Medium-sized Enterprises (SME) Board 1) Introduction: China’s Small

‘Your PAth to China’

Ping An Securities Company Ltd.

PING AN SECURITIES

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PING AN SECURITIES COMPANY LTD.

PING AN SECURITIES This is prepared for clients of Ping An Securities Company Ltd. and other professionals. The information and points contained herein do not form bids or inquiries of the said securities and are only for reference.


PING AN SECURITIES This is prepared for clients of Ping An Securities Company Ltd. and other professionals. The information and points contained herein do not form bids or inquiries of the said securities and are only for reference.

Contents

A) Overview on China’s Small & Medium-sized Enterprises (SME) Board……...….1

B) List of All Shares in China’s SME Board……………………………………...…….3

C) Ping An Research ~ SME Coverage…………………………………………………7

D) Ping An Securities ~ Research Institute Directory………………………………….8

E) Ping An Securities ~ Investment Banking Division…………………………………9

F) The 10 SME IPOs Underwritten in 2007…………………………………………...11

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Overview on China’s Small & Medium-sized Enterprises (SME) Board

1) Introduction:

China’s Small and Medium-sized Enterprises (SME) Board was formally launched in May 2004. As at 31 Dec, 2007, there were totally 202 listed companies with tradable market cap of approx. RMB 380 billion and total market cap of approx. RMB 1 trillion, of which, 4 listed companies saw their respective tradable market cap top RMB 10 billion. Since establishment of the SME Board, accumulated proceeds raised from IPO amounted to RMB 63.4 billion. SME Board Data (Jan’2008):

Indicator Today High of Year Date of High

New Listings 0 No. of Listed Companies 202 202 Jan. 11, 2008Stock Issued Capital 34,197,132,793 34,197,132,793 Jan. 11, 2008Stock Negotiable Capital 12,915,158,414 12,915,158,414 Jan. 11, 2008Stock Market Value (Yuan) 1,111,853,195,978 1,112,743,161,743 Jan. 9, 2008Stock Negotiable Market Value (Yuan) 402,154,121,308 402,154,121,308 Jan. 11, 2008Stock Trading Value (Yuan) 10,450,384,196.53 10,340,635,152.97 Jan. 7, 2008Shares Traded 383,636,951 503,239,289 Jan. 7, 2008Deals Traded 559,223 719,518 Jan. 8, 2008Average P/E Ratio 88.81 88.88 Jan. 9, 2008SSE SME Price Index – High 6,447.83 6,493.87 Jan. 3, 2008

Low 6,343.54 6,415.21 Jan. 10, 2008Closing 6,447.83 6,447.83 Jan. 11, 2008

2) Ping An Analysis a) Top 9 Sector Distribution

Sector No. of Listed Companies Newly Listed No. in 2007

Machinery, Equipments & Instruments 42 23 Petroleum, Chemicals & Plastics 26 10 Metals & Nonmetals 25 14 Electronics 21 13 Textiles, Apparel & Coat 14 4 Pharmaceuticals & Biological Products 11 4 Computer Application Services 8 3 Papermaking & Printing 6 3 Food & Beverages 5 4

In terms of sector distribution, listed companies in the SME Board were mainly in machinery, equipments, petrochemicals, metals and electronics categories, accounting for 56% of all listed companies in the SME Board.

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b) Top 8 Regional Distribution Region No. of Listed Companies Total Mkt Cap (RMB 100m; as at 28Dec 2007)

Zhejiang 42 2276.64 Guangdong 24 814.03 Jiangsu 25 1857.61 Shenzhen 18 799.20 Shandong 13 523.51 Shanghai 9 360.21 Beijing 8 406.56 Anhui 8 247.45

Three provinces: Zhejiang, Guangdong & Jiangsu accounted for about 50% of the whole SME Board. c) Issue Premium Year Average First-day Premium IPO Raised Amount (RMB 100m)

2004 68.02% 85.76 2005 37.72% 27.11 2006 96.54% 151.73 2007 208.96% 369.69

Excellent performance in the secondary market: ORIENT ZIRCONIC ( -002167) up more than fivefold at its first-day close. In terms of premium on first day of trading, in four years, only SUPOR (

-002032) and MIZUDA ( -002034), both listed in 2004, dipped below their respective issue price. d) Valuation Level (Overall) Sector 2005PE 2006PE 2007 (Q3) PE 2006PB 2007 (Q3) PB

SME Board 21.25 34.01 68.36 3.73 7.6 All A Shares 15.31 26.75 41.05 3.1 6.29

SME had slightly high valuation due to better growth: Data released in 3rd quarterly results 2007 showed the SME Board’s overall PE level was approximately 1.6 times of the average level of all A shares, and its PB was approximately 1.2 times of the average level of all A shares. e) Growth Rate (Unit: %) Sector Net Profit Growth Rate Core Revenue Growth Rate Total Assets Growth Rate

SME Board (2005) 13.63 29.3 25.93 All A Shares (2005) 13.86 22.54 19.16 SME Board (2006) 30.03 29.97 33.57 All A Shares (2006) 27.44 21.8 18.22 SME Board (2007) 41.42 31.83 38.02 All A Shares (2007) 67.37 25.48 26.04

SME had higher growth rate: Core revenue growth rate was obviously higher than the average level of A shares, and a similar situation also existed in terms of total assets growth rate.

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List of All Shares in China’s SME Board (as of Dec. 28, 2007) (1-50)

Name (E) Name (C) Code Total Mkt Cap

(RMB 100m)

Price

(4Jan, 2007)

Price

(28Dec, 2007)

Change

(%)

ZHEJIANG NHU 002001 111.17 4.98 32.5 552.61JIANGSU QIONGHUA 002002 9.6 5.14 7.48 45.53WEIXING INDUSTRIAL 002003 42.55 16.82 30.38 80.62HUAPONT PHARM. 002004 51.61 9.84 39.1 297.36ELEC-TECH INTERNATIONAL 002005 28.12 4.58 17.4 279.91JINGGONG TECHNOLOGY 002006 16.66 5.06 17.35 242.89HUALAN BIOLOGICAL 002007 115.68 21.5 53.29 147.86HAN'S LASER 002008 116.68 19.28 30.7 59.23MIRACLE LOGISTICS 002009 48.62 10.56 44 316.67ZHEJIANG TRANSFAR 002010 38.66 12.44 24.78 99.20DUN’AN ENVIRONMENTAL 002011 20.29 6.53 28.5 336.45KAN SPECIALITIES 002012 16.67 3.86 8.56 121.76HUBEI AVIATION PRECISION 002013 15.26 7.69 21.37 177.89HUANGSHAN NOVEL 002014 21.19 8.84 15.4 74.21XIAKE COLOR SPINNING 002015 15.38 6.26 15.28 144.09WELL MEDICINE TECHNOLOGY 002016 14.97 5.25 23.65 350.48EASTCOMPEACE SMART 002017 19.62 7.15 16.62 132.45HUAXING CHEMICAL 002018 40.56 10.22 32.3 216.05XINFU PHARMACEUTICAL 002019 83.63 9.53 43.76 359.18JINGXIN PHARMACEUTICAL 002020 13.51 5.74 13.3 131.71ZOJE SEWING MACHINE 002021 39.09 7.95 16.11 102.64KEHUA BIO-ENGINEERING 002022 74.68 16.94 35.5 109.56HAITE HIGH-TECH 002023 17.71 9.36 15.06 60.90SUNING APPLIANCE 002024 1,035.72 47 71.85 52.87SPACE APPLIANCE 002025 44.2 19.86 26.79 34.89SHANDONG WEIDA 002026 12.84 5.03 9.51 89.07HEDY HOLDING 002027 22.04 4.82 7.29 51.24SIYUAN ELECTRIC 002028 101.33 30.18 59 95.49SEPTWOLVES 002029 51.04 18.45 27.06 46.67DA AN GENE 002030 26.75 7.25 21.33 194.21GREATOO MOLDS 002031 38.06 10.92 15.83 44.96SUPOR 002032 105.98 18.55 49.06 164.47LIJIANG YULONG TOURISM 002033 27.6 13.02 27.79 113.44MIZUDA 002034 10.11 6.94 12.46 79.54VANTAGE GAS APPLIANCE 002035 14.58 5.85 8.49 45.13YAK TECHNOLOGY 002036 28.45 7.82 21.1 169.82JIULIAN INDUSTRIAL 002037 22.65 8.75 20.59 135.31SL Pharmaceutical 002038 75.14 14.25 60.5 324.56Qianyuan Power 002039 23.2 7.61 16.54 117.35NANJING PORT 002040 34.25 4.86 13.93 186.63DENGHAI SEEDS 002041 21.12 8.1 12 48.15FEIYA TEXTILE 002042 11.15 3.45 11.15 223.19TB NEW DECORATION 002043 13.91 5.69 11.4 100.35JIANGSU SANYOU 002044 11.71 4.34 9.37 115.90GUOGUANG ELECTRIC 002045 28.26 13.46 14.13 4.98BEARING TECHNOLOGY 002046 15.54 13.64 15.94 16.86GLOBE UNION INDUSTRIAL 002047 22.04 4.73 8.94 89.01NINGBO HUAXIANG 002048 71.59 12.05 26.1 116.60JINGYUAN ELECTRONICS 002049 13.88 11.65 15.42 32.36ZHEJIANG SANHUA 002050 34.07 7.86 30.15 283.59

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(51-100)


(RMB 100m)

Price

(4Jan, 2007)

Price

(28Dec, 2007)

Change

(%)

CHINA CAMC ENGINEERING 002051 51.85 15.04 27.29 81.45 COSHIP ELECTRONICS 002052 45.07 20.6 19.95 -3.16 YUNNAN SALT &CHEMICAL 002053 42.28 11.4 22.75 99.56 DYMATIC CHEMICALS 002054 33.34 9.16 24.88 171.62 DEREN ELECTRONIC 002055 19.87 13.98 25 78.83 HENGDIAN GROUP DMEGC MAGNETICS 002056 74.66 19.66 36.34 84.84 SINOSTEEL ANHUI TIANYUAN 002057 11.78 8.55 14.02 63.98 WELLTECH 002058 8.63 9.9 13.83 39.70 HORTI-EXPO GARDEN 002059 23.99 7.06 11.16 58.07 GUANGDONG NO.2 HYDROPOWER 002060 24.31 6.8 11.05 62.50 JIANGSHAN CHEMICAL 002061 30.45 12.76 21.75 70.45 HONGRUN CONSTRUCTION 002062 34.41 12.26 20.7 68.84 GUANGDONG YGSOFT 002063 22.18 13.08 20.2 54.43 HUAFENG SPANDEX 002064 98.72 13.28 53.48 302.71 DHC DIGITAL TECHNOLOGY 002065 50.15 26.98 38.77 43.70 RUITAI HIGH-TEMPERATURE 002066 12.08 12.03 20.14 67.41 JINGXING PAPER 002067 58.64 6.34 14.96 135.96 BLACK CAT 002068 32 11.98 35.95 200.08 ZHANGZIDAO 002069 108.21 71.92 95.68 33.04 ZHONGHE 002070 21.73 13.87 16.77 20.91 JIANGSU HONGBAO 002071 10.84 6.95 8.84 27.19 DEMIAN 002072 13.66 5.09 8.54 67.78 QINGDAO MESNAC 002073 63.3 46.5 44.43 -4.45 Dongyuan Electrical 002074 18.13 13.98 21.9 56.65 GAOXIN ZHANGTONG 002075 53.38 9.22 13.48 46.20 BRIGHT STAR 002076 29.13 18.76 15.81 -15.72 DAGANG 002077 36.44 8.58 14.46 68.53 SUN PAPER 002078 130.27 18.74 36.3 93.70 SUZHOU GOOD-ARK 002079 21.58 10.18 15.64 53.63 SINOMA SCIENCE & TECHNOLOGY 002080 45.67 19.02 30.45 60.09 GOLD MANTIS 002081 54.46 23.51 57.94 146.45 DONGLIANG NEW BUILDING MATERIALS 002082 21.84 12.4 16.41 32.34 SUNVIM GROUP 002083 79.79 8.66 15.18 75.29 SEAGULL 002084 41.58 21.7 23.55 8.53 WANFENG AUTO WHEEL 002085 29.4 7.24 10.34 42.82 ORIENTAL OCEAN 002086 16.83 11.73 19.5 66.24 XINYE TEXTILE 002087 21.52 6.1 9.18 50.49 SHANDONG LUYANG 002088 59.93 27.56 44.65 62.01 NEW SEA UNION 002089 14.27 13.36 16.8 25.75 WISCOM SYSTEM 002090 19.51 21.8 19.13 -12.25 JIANGSU GUOTAI 002091 24.16 11.95 15.1 26.36 ZHONGTAI CHEMICAL 002092 89.92 10.8 38.1 252.78 GUOMAI TECHNOLOGIES 002093 63.01 19.7 47.2 139.59 QINGDAO KINGKING 002094 23.07 11.71 21.5 83.60 NETSUN CO. 002095 40.13 55.16 66.88 21.25 NANLING INDUSTRY 002096 18.07 14.7 30.76 109.25 NANLING INDUSTRY 002097 151.53 31.2 57.15 83.17 SBS ZIPPER 002098 33.33 11.36 21.5 89.26 HISOAR PHARMACEUTICAL 002099 24.03 15.24 14.97 -1.77 TIANKANG BIO-TECHNOLOGY 002100 21.9 17.92 22.81 27.29

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(101-150)


(RMB 100m)

Price

(4Jan, 2007)

Price

(28Dec, 2007)

Change

(%)

GUANGDONG HONGTU 002101 17.15 17.37 25.6 47.38 FUJIAN GUANFU 002102 32.74 11.63 28.8 147.64 GUANGBO GROUP 002103 28.48 11.15* 13.04 16.95 HENGBAO CO. 002104 41.87 13.8* 21.38 54.93 HL CORP. 002105 24.47 8.85* 9.13 3.16 LAIBAO HI-TECH 002106 86.66 31.68* 34.15 7.80 WOHUA PHARMACEUTICAL 002107 18.41 21.05* 26.3 24.94 CANGZHOU MINGZHU 002108 12.71 18.7* 18.48 -1.18 XINGHUA CHEMISTRY 002109 31.26 16.31* 19.54 19.80 SANSTEEL MINGUANG 002110 96.89 10.54* 18.12 71.92 WEIHAI GUANGTAI 002111 43.9 33* 51.83 57.06 SAN BIAN SCI-TECH 002112 16.31 17.59* 20.39 15.92 TIANRUN CHEMICAL 002113 13.51 14.9* 18.25 22.48 LUOPING ZINC AND ELECTRICITY 002114 42.69 30.94* 41.8 35.10 SUNWAVE COMMUNICATIONS 002115 20.71 19.65* 25.89 31.76 CHINA HAISUM 002116 31 19.16* 27.19 41.91 TUNGKONG SECURITY 002117 21.11 16.88* 19.19 13.68 ZIXIN PHARMACEUTICAL 002118 22.88 16.8* 33.88 101.67 KANGQIANG ELECTRONICS 002119 24.26 21.95* 24.98 13.80 XINHAI ELECTRIC 002120 21.59 28.5* 18.68 -34.46 CLOU ELECTRONICS 002121 49.63 28.26* 41.36 46.36 TIANMA BEARING 002122 203.85 70.01* 149.89 114.10 RONGXIN POWER 002123 59.53 51.9* 93.02 79.23 TECH-BANK CO. 002124 21.42 23.88* 31.27 30.95 XIANGTAN ELECTROCHEMICAL 002125 11.48 21.6* 15.22 -29.54 YINLUN MACHINERY 002126 17.06 20.44* 17.06 -16.54 XINMIN TEXTILE 002127 20.45 20.82* 18.8 -9.70 OPENCUT COAL 002128 323.89 26.3* 49.51 88.25 ZHONGHUAN SEMICONDUCTOR 002129 75.76 17.37* 20.89 20.26 WOER HEAT-SHRINKABLE MATERIAL 002130 25.94 52.5* 47.73 -9.09 LEO CO. 002131 26.33 29.78* 34.98 17.46 HENGXING SCIENCE & TECHNOLOGY 002132 41.37 16.99* 25.37 49.32 COSMOS GROUP 002133 62.03 19* 24.88 30.95 TIANJIN PRINTRONICS 002134 31.69 17.8* 16.11 -9.49 SOUTHEAST SPACE FRAME 002135 36.44 24.45* 18.22 -25.48 ANNADA 002136 14.86 28.1* 18.83 -32.99 SEA STAR 002137 43.76 32.15* 32.8 2.02 SUNLORD ELECTRONICS 002138 28.29 34.3* 30.1 -12.24 TOPBAND ELECTRONICS 002139 15.29 60* 30.57 -49.05 EAST CHINA ENGINEERING 002140 65.14 49.52* 97.2 96.28 RONSEN SUPER MICRO-WIRE 002141 16.15 25.35* 19.89 -21.54 BANK OF NINGBO 002142 548.25 22.13* 21.93 -0.90 GAOJIN FOOD 002143 30.28 30.04* 28.3 -5.79 HONGDA WARP 002144 28.28 34.65* 26.35 -23.95 CNNC HUA YUAN 002145 40.39 33.53* 21.26 -36.59 RISESUN REAL ESTATE 002146 144.92 50.8* 36.23 -28.68 FANGYUAN SLEWING RING 002147 41.92 47* 44.6 -5.11 BEWINNER COMMUNICATIONS 002148 24.9 65.6* 49.4 -24.70 WESTERN METAL MATERIALS 002149 33.66 43.71* 36.82 -15.76 JIANGSU TONGRUN 002150 25.51 45* 36.7 -18.44

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(151-202)


(RMB 100m)

Price

(4Jan, 2007)

Price

(28Dec, 2007)

Change

(%)

BDSTAR NAVIGATION 002151 31.03 58.55* 58 -0.94 GRG BANKING EQUIPMENT 002152 153.27 78.28* 107.51 37.34 SHIJI INFORMATION 002153 77.84 83.31* 139 66.85 BAOXINIAO 002154 33.12 48* 34.5 -28.13 CHENZHOU MINING 002155 196.28 66* 50.2 -23.94 FUJITSU MICROELECTRONICS 002156 57.7 31.4* 21.61 -31.18 ZHENGBANG TECHNOLOGY 002157 24.71 40.14* 32.82 -18.24 HANBELL PRECISE MACHINERY 002158 36.04 33* 23.95 -27.42 SANTE CABLEWAYS 002159 17.1 27.31* 21.38 -21.71 ALCHA ALUMINUM 002160 42.48 33.9* 24.99 -26.28 YUANWANGGU 002161 27.73 57.1* 43.2 -24.34 CIMIC TILE 002162 45.79 16.03* 12.05 -24.83 SHENZHEN SANXIN 002163 25.19 23.94* 18.52 -22.64 DONLY TRANSMISSION EQUIPMENT 002164 32.05 31.78* 26.71 -15.95 HONGBAOLI 002165 39.34 48.04* 52.45 9.18 LAYN NATURAL INGREDIGENTS 002166 18.92 37.3* 29.21 -21.69 ORIENT ZIRCONIC 002167 19.86 53.11* 39.71 -25.23 SHENZHEN HIFUTURE 002168 24.05 50.8* 48.02 -5.47 ZHIGUANG ELECTRIC 002169 21.03 33.11* 30.45 -8.03 BATIAN ECOLOGICAL 002170 31.51 29.2* 33.52 14.79 JINGCHENG COPPER 002171 40.85 42* 30.07 -28.40 AOYANG TECHNOLOGY 002172 97.39 40.18* 55.97 39.30 SHANXIAHU 002173 20.4 37.6* 30.45 -19.02 SUSINO UMBRELLA 002174 16.11 17* 19.42 14.24 GUANGLU MEASURING INSTRUMENT 002175 20.04 52.03* 35.2 -32.35 JIANGXI SPECIAL ELECTRIC 002176 23.78 51.5* 35.08 -31.88 KINGTELLER TECHNOLOGY 002177 50.71 64.88* 68 4.81 YANHUA SMARTECH 002178 18.56 26.25* 23.2 -11.62 CHINA AVIATION OPTICAL-ELECTRICAL 002179 54.56 45.56* 45.85 0.64 WANLIDA 002180 19.1 36.58* 34.39 -5.99 GUANGDONG MEDIA 002181 71.86 23* 26.68 16.00 YUNHAI SPECIAL METALS 002182 53.63 21.64* 27.93 29.07 ETERNAL ASIA 002183 96.33 52.52* 77.95 48.42 HI-TECH CONTROL 002184 25.31 23.78* 23.01 -3.24 HUATIAN TECHNOLOGY 002185 37.31 21.62* 21.44 -0.83 QUANJUDE 002186 83.56 42.3* 59.03 39.55 GRANDBUY CO. 002187 68.78 38.9* 42.99 10.51 NEW JIALIAN 002188 17.17 24.63* 21.46 -12.87 LIDA OPTICAL 002189 29.29 11.05* 14.7 33.03 CHENGFEI INTEGRATION TECHNOLOGY 002190 22.73 18.5* 21.16 14.38 JINJIA COLOR PRINTING 002191 88.81 30.9* 33.2 7.44 LUXIANG CO. 002192 13.93 22.75* 22.95 0.88 SHANDONG JINING RUYI 002193 19.28 24.62* 24.1 -2.11 WUHAN FINGU 002194 110.98 43.52* 51.91 19.28 HYRON SOFTWARE 002195 18.86 35.05* 32.86 -6.25 FOUNDER MOTOR 002196 18.81 23.52* 24.38 3.66 ZHENGTONG ELECTRONICS 002197 27.89 31.2* 31.9 2.24 JIAYING PHARMACEUTICAL 002198 19.1 22* 23.29 5.86 EAST CRYSTAL ELECTRONIC 002199 15.81 23.81* 25.5 7.10 GREEN-LAND BIOLOGICAL 002200 41.72 45.82* 49.7 8.47 JIUDING NEW MATERIAL 002201 25.5 33.8* 31.87 -5.71 GOLDWIND SCIENCE&TECHNOLOGY 002202 702.25 131* 140.45 7.21

Note: Prices with * refer to the closing prices on their respective first day of trading.

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Ping An Research ~ SME Coverage Name (E) Name (C) Code Rating (Jan. 2008) Information Technology

GUOGUANG ELECTRIC 002045 Strong Buy HAN’S LASER TECHNOLOGY 002008 Buy

Machinery GUANGDONG GREATOO MOLDS 002031 Strong Buy

Power Equipments SIYUAN ELECTRIC 002028 Strong Buy

Agriculture ZHANGZIDAO 002069 Neutral

Nonferrous Metals DONGLIANG NEW BUILDING MATERIALS 002082 Buy

Travel & Hotels LIJIANG YULONG TOURISM 002033 Buy SANTE CABLEWAYS 002159 Neutral

Papermaking JINGXING PAPER 002067 Buy

Textiles SUNVIM GROUP 002083 Strong Buy WEIXING INDUSTRIAL 002003 Strong Buy

Telecommunications NEW SEA UNION TELECOM 002089 Neutral

Petrochemicals LUYANG SHARE 002088 Strong Buy HUAXING CHEMICAL 002018 Strong Buy

Home Appliances BRIGHT STAR LIGHT&ELECTRICITY 002076 Buy ELEC-TECH INTERNATIONAL 002005 Buy LAIBAO HI-TECH 002106 Strong Buy NANTONG FUJITSU MICROELECTRONICS 002156 Neutral ZHEJIANG SUPOR 002032 Neutral

Pharmaceuticals ZHEJIANG NHU 002001 Buy HUAPONT PHARM. 002004 Buy HUALAN BIOLOGICAL ENGINEERING 002007 Strong Buy JINGXIN PHARMACEUTICAL 002020 Neutral KEHUA BIO-ENGINEERING 002022 Strong Buy DA AN GENE 002030 Strong Buy HISOAR PHARMACEUTICAL 002099 Buy WOHUA PHARMACEUTICAL 002107 Buy

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Ping An Securities ~ Research Institute Directory (Jan. 2008) Name (E) Name Position

Research Institute Gao Li HEAD Research Institute Yang Gang DEPUTY HEAD Macro Economic Section Macro Economics Sun Fanghong Head Topic Research Cai Dagui Analyst Financial Engineering Li Hongrong Analyst Policy Research He Qingming Analyst Bonds Ye Ying Analyst Investment Strategy Section Strategy Research & New Share Pricing Luo Xiaoming Head Strategy Research Li Xianming Analyst Funds Xin Jiantao Analyst Sector & Company Section 1) Financials & Real Estate Financials Shao Ziqin Head & Leader Banking Li Jing Assistant Insurance Tong Chengdun Assistant Financials Tian Liang Assistant Real Estate Liu Xihui Analyst 2) Energy Petrochemicals & Chemicals Fu Yunfeng Team Leader Chemicals Cheng Lei Analyst Chemicals Zhang Guojun Assistant Power Dou Zeyun Analyst 3) Transportation Transportation Zheng Wu Chief Analyst Cai Bin Assistant Ling Jun Assistant 4) Materials Nonferrous Metals Peng Bo Team Leader Steel & New Materials Nie Xiuxin Analyst Materials Wang Xin Analyst 5) Machinery & Automobiles Zheng Wu Deputy & Leader Machinery Wang Hexu Analyst Autos Yu Bing Analyst Autos Qin Xuwen Analyst Gan Yiwu Assistant Power Equipments He Benhu Analyst 6) Information Technology Home Appliances Shao Qing Team Leader Ye Guoji Assistant Electronic Components Duan Yingsheng Analyst IT Li Zhongzhi Analyst Gui Zhiqiang Assistant Computers & Networks Zeng Shi Analyst Telecommunications Liu Jun Analyst 7) Pharmaceuticals Pharmaceuticals Du Dongsong Team Leader Pharmaceuticals Ni Wenhao Analyst 8) Consumer Products & Services Food & Beverages and Agriculture Chen Xun Team Leader Commerce & Trade Qu Yongxiang Analyst Travel & Hotels Wen Xian Analyst Textiles & Papermaking Ou Zhihang Analyst Research Product Promotion Section Liu Hong Head

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Ping An Securities ~ Investment Banking Division

Organization Structure

Profile

� Lead domestic investment banking business for consecutively many years � Rank the 1st nationwide by number of sponsored and lead underwritten IPOs in 2004 � Rank the 1st nationwide by number of sponsored and lead underwritten IPOs in 2006 � Rank the 2nd nationwide by number of sponsored and lead underwritten IPOs in 2007 � Have approximately 50 sponsor representatives � Be one of brokers with the highest effective turnover rate under the channels system � Be one of brokers with the highest rate for project approval under the sponsors system � Lead the industry in terms of customer stability Honor

� Be awarded as “Best Innovative Investment Banking Team” in 2007 by Shanghai Securities News � Be awarded as “Best Sponsor of SME Board” in 2006 by Shenzhen Stock Exchange � Be awarded as “Best Investment Banking Team of SME Board” and “Most Powerful Sponsor

Team” in 2006 by 21 Century Business Herald � Be awarded as “Best Investment Banking Team” in 2005 by Shenzhen Sub-association of the

Securities Association of China and Capital Circle � Be awarded as “Excellent Chinese Investment Banking Team” with 3 sponsor representatives be

titled “Sponsor Stars” in 2005 by Securities Times

Recognition Highlight

� Rank the 2nd nationwide by number of underwritten IPOs in China’s SME Board in 2007

�IB Management Dept. �Shenzhen Head Dept. �Capital Market Dept. �Corporate M&A Head Dept. �Direct Investment Dept.

Shenzhen

�Shanghai Dept. I �Shanghai Dept. II �Shanghai Dept. III �Innovative Business Dept. �Corporate M&A Shanghai Dept.

Shanghai

Beijing

�Beijing Head Dept. �Corporate M&A Beijing Dept.

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Good Achievements

7Industrial Securities5

China Merchants Securities

Everbright Securities

GF Securities

Ping An Securities

Guosen Securities

Name

75

84

143

192

231

Number Rank

Note: As of Nov. 30, 2007

Ranking by Number of Lead Underwritten

Shares in SME Board

Ranking by Number of Lead Underwritten Ranking by Number of Lead Underwritten

Shares in SME BoardShares in SME BoardMarket Share by Number of Lead

Underwritten Shares in SME Board

Market Share by Number of Lead Market Share by Number of Lead

Underwritten Shares in SME BoardUnderwritten Shares in SME Board

GF7%

ChinaMerchants

4%

Industrial4%

Everbright4%

Ping An10%

Guosen12%

Others59%

Note: Financing business in the primary market was suspended in 2005.

2006

2004

2003No. 8

No. 1

No. 1

Ranking by Number of

Underwritten IPOs

Ranking by Number of

Underwritten IPOs

2003 20062004

Gold Mantis 002081

Luyang 002088Huaxing 002018

Homey 600467

Hefei Sanyo 600983

Demian 002072

Hengtong 600487

Huafang 600273

Zhangzidao 002069

Dongyuan 002074

New Sea Union 002089

HL Corp. 002105

Hualan 002007

2007

Wohua 002107

Tianrun 002113

Tech-bank 002124

East China 002140

Bewinner 002148

Hongbaoli 002165

Jingcheng Copper 002171

Yanhua 002178

Hi-tech Control 002184

Wuhan Fingu 002194

Publishing 601999

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The 10 SME IPOs Underwritten by Ping An Investment Banking Division in 2007

Shandong Wohua Pharmaceutical Co., Ltd. ( )

Code: 002107 Sector: Pharmaceuticals

Logo: Website: www.wohua.cn

Hunan Tianrun Chemical Industry Development Co., Ltd. ( )

Code: 002113 Sector: Petrochemicals

Logo: Website: www.trfz.cn

Ningbo Tech-bank Co., Ltd. ( )

Code: 002124 Sector: Food & Agriculture

Logo: Website: www.tianbang.com

East China Engineering Science and Technology Co., Ltd. ( )

Code: 002140 Sector: Chemicals

Logo: Website: www.chinaecec.com

Beijing Bewinner Communications Co., Ltd. ( )

Code: 002148 Sector: Telecoms

Logo: Website: www.bisp.com

Nanjing Hongbaoli Co., Ltd. ( )

Code: 002165 Sector: Chemicals

Logo: Website: www.hongbaoli.com

Anhui Jingcheng Copper Share Co., Ltd. ( )

Code: 002171 Sector: Nonferrous Metals

Logo: Website: www.jcty.cn

Shanghai Yanhua Smartech Co., Ltd. ( )

Code: 002178 Sector: IT

Logo: Website: www.chinaforwards.com

Shanghai Hi-tech Control System Co., Ltd. ( )

Code: 002184 Sector: IT

Logo: Website: www.hite.com.cn

Wuhan Fingu Electronic Technology Co., Ltd. ( )

Code: 002194 Sector: Telecoms

Logo: Website: www.fingu.com

Documents

Ping An Securities Company Ltd. PING AN SECURITIES 1 PING AN SECURITIES COMPANY LTD. Overview on China’s Small & Medium-sized Enterprises (SME) Board 1) Introduction: China’s Small