"We have not obtained the relevant approvals from the PRC authorities to permit

foreign ownership in Yichang Changjiang and Liupanshui Shuangyuan which own the Yichang Plant

and the Liupanshui Plant, respectively. Accordingly, 100.0% of the equity interest in Yichang

Changjiang and Liupanshui Shuangyuan are owned by members of the Zeng Family. In relation to

Yichang Changjiang, Mr. Zeng Chaolin, Mr. Zeng Xiaoqiao @ Zeng Xiaoshan, Mdm. Deng Eying, Ms.

Zeng Mingliu, Ms. Zeng Yiliu and Ms. Zeng Hong (the “Yichang Shareholders”) own 49.5%, 16.5%,

16.5%, 6.5%, 5.5% and 5.5%, respectively of the equity interest in Yichang Changjiang. In relation to

Liupanshui Shuangyuan, Mr. Zeng Chaoyi and Ms. Li Yazhou (the “Liupanshui Shareholders”) own

90.0% and 10.0%, respectively of the equity interest of Liupanshui Shuangyuan. We have entered into

the Contractual Arrangements with Yichang Changjiang and Liupanshui Shuangyuan, pursuant to

which our wholly owned subsidiaries, Yichang Xinren and Shuicheng Xinren, provide management and

consulting services to Yichang Changjiang and Liupanshui Shuangyuan, respectively. In addition, we

have entered into agreements with the Zeng Family, which provide us with substantial ability to

effectively control Yichang Changjiang and Liupanshui Shuangyuan. The control arrangements are

principally intended to allow us to effectively control the business operations of Yichang Changjiang and

Liupanshui Shuangyuan and receive 100.0% of the economic benefits from the operations of Yichang

Changjiang and Liupanshui Shuangyuan. For a detailed description of these Contractual

Arrangements, see “The Corporate Reorganization and our Corporate Structure — The Corporate

Reorganization — The Contractual Arrangements”