I. Project name: Project toward producing auto power components

II. Project address: Huancheng Science&Technology Industrial Park of Ningyang County

III. Ways of cooperation: Joint venture

IV. Total investment: 1 billion yuan ($158.6 million)

V. Brief introduction to the project: This project plans to cover an area of 16 hectares, and it mainly researches, develops and produces auto piston, piston pin, cylinder, connecting rod and engine. The project will be built into two phases. The first phase plans to invest 200 million yuan and build two brick buildings with 20,000 square meters, and purchase over 500 equipments. It began to build in March, 2012, and would be finished and put into use at the end of this year. The second phase plans to invest 800 million yuan, and build research building, warehouse and two steel-frame plants.

VI. Construction conditions of the project: At present, the FSR of this project has been finished, and Tai’an City Architecture Design Institute is making overall design. All the preparations are almost completed, and the project will be constructed after the land formalities complete.

VII. Analysis of the economic benefit: After the project puts into operation, it can newly increase the sales income of 1.2 billion yuan, and profit and tax of 250 million yuan annually as well.

VIII. Cooperation unit of the project: Shandong Zhenting Jinggong Piston Co Ltd was established in July, 1998. It covers an area of 6 hectares with a building area of 42,000 sq m. The company is a private-owned and solely-funded enterprise, which can professionally produce auto, motorbicycle, general machinery, diesel engine, and all kinds of internal-combustion engine, air compressor, piston compressor and piston pin. The partner, Lifan Group is one of China’s largest private enterprises. Established in 1992, the company has a national technology center, and has been listed into China Top 500 Enterprises for many years. It mainly engages in the research&development, production and sale (include export) of auto and motorbicycle, as well as investment for financial industry.

IX. Contact ways:

Contact unit: Wenmiao Street Office of Ningyang County

Person to contact: Zhao Lina

Tel: 0086-538-5621328/5621858

E-mail: ningyangddk@163.com