The Company held the special meeting of the 6th directorate by way of communication on January 14, 2009, which discussed and agreed to provide RMB0.35 billion loan line for its subsidiary Hunan Xiwo Construction Development Co., Ltd. (with 80% shares controlled by the Company). The loan line will be used for project development and construction, with the annual interest rate being not lower than the interest rate of the bank loan in the same period.

The Company learnt that its largest shareholder Meidu Group Co., Ltd. (the Group, holding a total of 151,127,597 floating shares with sales limit in the Company, accounting for 43.92% of the Company's total issued shares) signed the "Contract on Equity Pledge" with Hangzhou Branch of Bank of Shanghai Co., Ltd. (Hangzhou Branch). The Group pledged its 20 million floating shares with sales limit in the Company to Hangzhou Branch. Relevant pledge procedures have been completed at Shanghai Branch of China Securities Depository and Clearing Corporation Limited, with the pledge term calculated since January 13, 2009.

The Company held the 32nd session of the 5th directorate meeting on January 14, 2009, which discussed and agreed that the Company's subsidiary Shanghai CoRun Venture Capital Co., Ltd. (Shanghai CoRun, with 80% equity controlled by the Company) plans to jointly establish Hangzhou Internet Venture Capital Co., Ltd. (temporary name) with Hangzhou Hi-Tech Venture Capital Co., Ltd. and Hangzhou Hi-Tech Venture Capital Management Co., Ltd., with the registered capital of RMB100 million. Thereinto, Shanghai CoRun contributes RMB75 million in cash, accounting for 75% of the total shares of the newly established company. Relevant agreement has not been signed yet.

As of December 31, 2008, in accordance with relevant resolution of its 4th special Shareholders' Meeting of 2006, the Company had totally paid RMB492,291,120 for purchasing one building (with the developer of Union Land Property Development Co., Ltd. [Union Land]) of Chaoyang Square project in Beijing.

The Company held the 1st special Shareholders' Meeting of 2009 on January 14, 2009, which discussed and approved the proposal of providing a guarantee for the loan applied for by its holding subsidiary

According to relevant notice jointly issued by the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce and the State Administration of Taxation of the People's Republic of China on December 31, 2008, the Company was recognized as a "Key Software Enterprise within National Program and Overall Arrangement in 2008".

According to relevant requirements, if a key software enterprise doesn't enjoy the tax-free preference in the very year, the corporate income of it tax will be levied at the reduced rate of 10%. As the Company's corporate income tax was levied at the rate of 10% in 2007, the obtained recognition will not have any effect on the operation performance in 2008.