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CHINA SOUTH PUBILISHING & MEDIA GROUP

1 Financial company affiliated to China South Publishing&Media Group, namely Hunan Publishing Investment Holding Group Financial Co., Ltd.

The financial company, established with a total investment of RMB 1 billion from Hunan Publishing Investment Holding Group and China South Publishing&Media Group,is the first financial company in the cultural industry of China. Aiming to provide professional financial service for the Group, the financial company is making effort to build itself into the Group’s capital center, accounting center as well as capital operation center. Currently, it has been qualified to handle businesses including deposit inducement, loan, financing lease, bill acceptance, discounting of bill, guarantees, entrusted loans and investment, insurance agents, financial and financing consultancy, etc. The financial company will synthetically employ multiple financial instruments and optimize allocation of resource and funds to boost the overall strategic development of the whole Group.