European IFRS adoption equivalent to China GAAPs

Announcement 2012 No.65 by The Ministry of Finance, China

From January 1, 2005, listed companies in all EU member states are required to adopt the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) at the level of consolidated financial statements. Since then, the EU will consistently adopt IFRS as its compulsory binding accounting standard.

In 2011, the Ministry of Finance of the People's Republic of China assessed the IFRS adopted by the European Union and its implementation. As of December 31, 2010, it is considered that the IFRS issued and became in force by the International Accounting Standards Board (IASB) have been recognized by the European Union and have been implemented well by the Listed Companies in EU member countries at consolidation level.

Therefore, according to the “Accounting Law of the People's Republic of China” and other relevant provisions, it is hereby announced as follows:

With effect from 1st January 2012, the IFRS adopted by Listed Companies in EU member countries at the level of consolidated financial statements are equivalent to Chinese accounting standards.

The Ministry of Finance, China