---- Liaoning Energy (Group) Co., Ltd.

1.  Basics

The time of establishment: Oct17, 2003

Address: 106 Qiangnian Str. Shenhe District, Shenyang, P.R.China

Corporate type: large-scaled/ wholly state-owned

The industry affiliated: electricity generation and investment

The scope of operation: energy investment and development, project investment and management, science and technology development, new agricultural model zone, coal, construction material, steel and chemistry material for energy development; main products: electricity generation and project investment;  installed capacity: 2,335,900 kilowatt-hour

Intangible assets: usufruct of ground, software

Staff: 1576 (1547 on the posts, 29 retired, all the staff are not free from state-owned status.

2.     Corporate representative: Shuyuan Liu

3.     Capitalization:

Registered capital: 2,650,000,000(100% shareholder: State-owned Assets Supervision and Administration Commission of Liaoning Province,)

.   9 subsidiary companies:

   ---Tieling Power Plant, hold 65%

   ---Liaoning Nenggang Power Co., ltd. hold 67.03%

   ---Suizhong Power Plant, hold 25%

   ---Yuanbaoshan Power Co., ltd. hold 11.66%

   ---Liaoning Construction Materials of Saving Energy Co.,ltd. hold 100%

   ---Liaoning Key Project Investment Co., ltd. hold 100%

   ---Liaoning Agriculture Investment Co., ltd. hold 100%

   ---Liaoning Liaoneng Co., ltd. hold 100%

   ---Liaoning Tianli Wind Energy Investment Co., ltd. hold 100%

4. Operation state:

In 2004, sales revenue: 575,000,000 profit: 2,607,000, accumulative electricity generated by all the power plants: 21,500,000,000kw-h,  net profit: 76,000,000

First half year in 2005, sales revenue: 320,000,000 Profit: 93,000,000

5.     Financial state:

By 2004, total assets: 5,608,000,000, total debts: 258,000,000, ownership interests: 5,014,000,000, (paicl-up capital: 2,650,000,000, capital accumulation fund: 1,909,000,000, surplus accumulation fund: 106,000,000, retained earnings: 349,000,000), minority ownership interests: 236,000,000, account receivables: 116,000,000 account payables: 29,000,000, salary and bonus payable: 7,070,000, stock interest payable: 18,000,000, accumulative depreciation: 690,000,000 tax: 68,360,000

6.     Developing State: no construction in process.

7.     State of transferring ownership right: intending to alter this group as an investment stock-controlled and assets operation enterprise, looking for partners for financing cooperation.

8.     Requests to buyer: strong capitals, experiences in investment management and assets operation.

9.     Contact to us:

a. Enterprise: Zhiyong Zhang

Tel: +86 024 22704307

Fax: +86 024 22701119

Address: 106 Qiangnian Str. Shenhe District, Shenyang, P.R.China

Post code: 110014

E-mail: zhangzy@chinalec.com

b. State-owned Assets Supervision and Administration Commission of Liaoning Province:

Qiong Wu, Renhe Zhao

Tel: +86 024 86903276

Fax: +86 024 86903276

Address: 45-22 Beiling Str., Huanggu District, Shenyang, P.R.China

Post code: 110032

E-mail: zcjyc@163.com

10.Declaration: all the data in this specification are shown in the account books in RMB. The net assets value of transferring stock ownership must be actual number after evaluation. This actual number will be the main basis of bottom price of market trade.