Riau Mine Mouth PQ 1-150

2150 MW RIAU MINE MOUTH CFSPP IPP PROJECT

PQ Application Documents

KAIDI CONSORTIUM Wuhan Kaidi Electric Power Co., Ltd.

Wuhan Kaidi Electric Power Engineering Co., Ltd.

PT. SAKTI MAS MULIA

July, 2008

ORIGINAL

II

Part I

Prequalification Application Documents of Wuhan Kaidi Electric Power Co., Ltd. and

Wuhan Kaidi Electric Power Engineering Co., Ltd.

III

CONTENTS

CHAPTER 1 LETTER OF APPLICATION ..................................................................................1

1.1 Legal License of Consortium Leader ..................................................................................3

1.2 Legal License of Consortium Member 1.............................................................................6

1.3 Other Qualifications ............................................................................................................9

CHAPTER 2 GENERAL INFORMATION.................................................................................23

CHAPTER 3 CONSORTIUM INTRUDUCTION ......................................................................25

3.1 Introduction of Consortium...............................................................................................25

3.2 Consortium Data ...............................................................................................................28

3.3 Power of Attorney .............................................................................................................29

CHAPTER 4 PROJECT EXPERIENCE .....................................................................................31

4.1 Project Experience ............................................................................................................31

4.2 Power Plant Experience ....................................................................................................33

CHAPTER 5 FINANCIAL INFORMATION..............................................................................39

5.1 Financial Capabilities........................................................................................................39

5.2 Annual Report of Wuhan Kaidi Electric Power Co., Ltd ..................................................40

5.2.1 2007Annual Report ................................................................................................40

5.2.2 2006 Annual Report ...............................................................................................61

5.2.3 2005 Annual Report .............................................................................................103

5.3 Annual Report of Wuhan Kaidi Electric Power Engineering Co., Ltd............................142

5.3.1 2007 Annual Report .............................................................................................142

5.3.2 2006 Annual Report .............................................................................................155

5.3.3 2005 Annual Report .............................................................................................172

5.4 Credit Certificate.............................................................................................................188

CHAPTER 6 OTHER STATEMENT ........................................................................................189

KAIDI CONSORTIUM 2150 MW RIAU MINE MOUTH CFSPP IPP PROJECT

KAIDI CONSORTIUM PQ Application Documents.

1

CHAPTER 1 LETTER OF APPLICATION

Kaidi Mansion, T1 Jiangxia Avenue, Eastlake Newtech Development Zone, Wuhan, 430223, Hubei, China Tel.: +86-027-67869089 Fax: +86-027-67869031 Email: [email protected] Date: July 9, 2008

To: Chairman of The IPP Sumsel Riau Procurement Committee PT. PLN (PERSERO) Jl. Trunojoyo Blok M I / 135 Main Building 13th Floor Kebayoran Baru Jakarta 12160 Indonesia

Dear Sir, 1. The undersigned duly authorized to represent KAIDI CONSORTIUM

comprising of Wuahn Kaidi Electric Power Co., Ltd., Wuhan Kaidi Electric Power Engineering Co., Ltd and PT. SAKTI MAS MULIA (the Applicant), hereby apply to be pre-qualified by PLN as a bidder for the BOO Development of 2 x 150 MW Riau Mine Mouth Coal Fired Steam Power Plant IPP Project.

2. Attached to this letter are copies of original documents defining: (a) the Applicants legal status; (b) the principal place of business; and (c) the place of incorporation (for applicants who are corporations); or the

place of registration. If any of the documents above are in a language other than English, please provide an authorized English translation. This translation will govern and be used for interpreting the information provided.

3. We hereby authorize PLN and/or its appointed representatives to conduct inquiries or investigations, as necessary, to verify the statements, documents, and information submitted in connection with this application. We are also hereby authorizing our bankers and clients we have named above to provide financial and technical information as sought by PLN with respect to the resources, experiences and competence of the Applicant as stated in this application.

4. We hereby irrevocably grant PLN the right to: verify, during the bidding process, the continued qualification of the

Applicants prequalified to bid amend the scope of this Project; in such event, bids will only be called from

prequalified bidders who meets the revised requirements; and reject or accept any application, cancel the prequalification process, and



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reject all applications. 5. This Application is made in the full understanding that:

(a) bids by pre-qualified applicant will be subject to verification of all information submitted for pre-qualification at the time of bidding;

(b) your agency reserves the right to: amend the scope and value of this Project; in such event, bids will only be

called form pre-qualified bidder who meets the revised requirements; and reject or accept any application, cancel the pre-qualification process and

reject the application. 6. Appended to this application, we give details of the participation of each

party including capital contribution and profit/loss agreements to the bidding consortium or association. We also specify the commitment of each member of the consortium or association in terms of: (a) The percentage of the equity in the Project Company to be contributed

by each member, and (b) The responsibility to be taken in the executing of the Project (e.g.

participation in the procurement, construction or operating contracts) 7. We confirm that in the event that we bid, that bid as well as any resulting

project agreement will be: (a) Signed so as legally bind all members, jointly and severally; and (b) submitted with a consortium agreement providing the joint and severally

liability of all members in the event the Project is awarded to us 8. The undersigned declare that statements made and the information submitted

herein and in the documents attached are complete, true, and correct in every detail.

Signed Name Gao Xiangping For and on behalf of KAIDI CONSORTIUM comprising of Wuhan Kaidi Electric Power Co., Ltd, Wuhan Kaidi Electric Power Engineering Co., Ltd, PT. SAKTI MAS MULIA



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1.1 Legal License of Consortium Leader 1.1.1 Business License

Business License Of Enterprise Legal Person

Registered No.4201001170309 Company Name: Wuhan Kaidi Electric Power Co., Ltd

Domicile: Kaidi Electric Mansion, NO.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech.

Development Zone, Wuhan, Hubei, China

Legal Representative: Jiang Hai

Type of Corporation: Public listed company

Registered capital: RMB 281,190,000 Yuan

Paicl-up Capital: RMB 281,190,000 Yuan

Business scope:. Electric power, new energy, chemical engineering, environmental

protection,water treatment, instrument & apparatus, thermal engineering, mechanical &

electrical integration , development, research and after-sales service on computer and EPC

general contracting of power station project; Installation and repairing of mechanical and

electrical equipments; Contracting and undertaking reconnaissance, consultation, design

and supervision of overseas projects; export of equipments and materials for the aforesaid

overseas projects; labor dispatch abroad for implementing the aforesaid constructions;

Import and export of goods and technology, agency for import and export of goods and

technology.****

Date of Incorporation: Feb 26, 1993

Business Term: from Feb 26, 1993 to Feb 25, 2043

June 19, 2006

(Seal of Wuhan Administration for Industry and Commerce)



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1.1.2 Institution Code Certificate

Institution Code Certificate of PRC Code: 30001902-9 Name of institution: Wuhan Kaidi Electric Power Co., Ltd Type of institution: Business legal representative Office Address: Kaidi Electric Building, NO.1 Jiangxia Street Wuhan Eastlake Hi-Tech. Development Zone, Wuhan City Period of Validity: From July 17, 2006 to July 17, 2010 License Issuer: Wuhan Quality and Technology Supervision Bureau Registration Number: Institution Agent 420100-221001599 Note: 1. Institution Code of PRC is the sole and invariable legal code identification for an institution in the domain of Peoples Republic of China. Institution Code Certificate of PRC is the legal evidence of identification code of an institution and it has an origin and a duplicate. 2. Institution Code Certificate of PRC shall not be hired, lent, imitated, transferred, mocked, altered or illegally traded. 3. In the event that item of the Institution Code Certificate of PRC is altered, it shall be reported applied to the license issuer for an alteration registration. 4. Holder of the Institution Code Certificate of PRC shall abide by relevant regulation in accepting annual authentication for this certificate. 5. In the case that an institution is revoked or cancelled legally, it shall apply to the license issuer for a cancellation registration and hand over the license.

General Administration of Quality Supervision, Inspection and Quarantine of

the Peoples Republic of China

2007 Annual Inspection May 10th



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1.1.3 Taxation Registration License

Taxation Registration License (State Taxation)

National and Local Taxation (Hubei Wuhan)No. 4201013000019029 Name of Tax Payer: Wuhan Kaidi Electric Power Co., Ltd Legal Representative: Jiang Hai Office Address: 22/ F, Jiangtian Building, No 586, Wuluo Road, Wuchang District, Wuhan City, PRC Type of Registration: Stock company Business Scope: Electric power, new energy, chemical engineering, environmental protection, water treatment, instrument & apparatus, thermal engineering, mechanical & electrical integration , development, research and after-sales service on computer; Installation and repairing of mechanical and electrical equipments; Organizing export of our sorts of mechanical & electrical products, chemical products, hardware products and reference technology; Organizing the raw auxiliary materials, machinery equipment, instrument & apparatus for our production and research

Authorizing Department: Wuhan Industry and Commerce Administration Bureau Pay Obligation: According to law

Taxation Registration License Issuer: (Seal) China Taxation Administration of Wuhan City, Hubei Province

and Local Taxation Bureauof Wuhan Nov. 16th 2006 Produced and Approved by State Administration of Taxation



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1.2 Legal License of Consortium Member 1 1.2.1 Business License

(English Version of translation for reference only)

Business License Of Enterprise Legal Person Registered No.420100000046380

Company Name: Wuhan Kaidi Electric Power Engineering Co., Ltd

Domicile: Kaidi Mansion, NO.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech. Development

Zone, Wuhan, Hubei, China

Legal Representative: Chen Yilong

Type of Corporation: Limited Company

Registered capital: RMB 200,000,000 Yuan

Paicl-up Capital: RMB 200,000,000 Yuan

Business scope : Management, consultation and technology support services of Electric

Power Engineering; Design, manufacturing and sales of Electric power

plant equipments; Import and export of goods and technology(excluding

import and export of the national forbidden goods and technology)

(Running with related permit certificate),*****

Date of Incorporation: Sep 29, 2004

Business Term: from Sep 29, 2004 to Sep 28, 2034

December 25, 2007 (Seal of Wuhan Administration for Industry and Commerce)



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1.2.2 Institution Code Certificate

(English Version of Translation for reference only)

Institution Code Certificate of PRC Code: 76464358-3

Name of institution: Wuhan Kaidi Electric Power Engineering Co., Ltd Type of institution: Business legal representative Office Address: Kaidi Electric Building, NO.1 Jiangxia Street Wuhan Eastlake Hi-Tech. Development Zone, Wuhan City Period of Validity: From Jan 03, 2008to Jan 02, 2012 License Issuer: Wuhan Quality and Technology Supervision Bureau Registration Number: Institution Agent 420100-21006596 (Please apply to annual inspection for this license in each Jan.! Un-inspected license shall be invalidated) Note: 1. Institution Code of PRC is the sole and invariable legal code identification for an institution in the domain of Peoples Republic of China. Institution Code Certificate of PRC is the legal evidence of identification code of an institution and it has an origin and a duplicate. 2. Institution Code Certificate of PRC shall not be hired, lent, imitated, transferred, mocked, altered or illegally traded. 3. In the event that item of the Institution Code Certificate of PRC is altered, it shall be reported applied to the license issuer for an alteration registration. 4. Holder of the Institution Code Certificate of PRC shall abide by relevant regulation in accepting annual authentication for this certificate. 5. In the case that an institution is revoked or cancelled legally, it shall apply to the license issuer for a cancellation registration and hand over the license.

General Administration of Quality Supervision, Inspection and Quarantine of the

Peoples Republic of China (seal)



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1.2.3 Taxation Registration License


Taxation Registration License

(State Taxation) National and Local Taxation (Hubei Wuhan)No. 420101764643583 Name of Tax Payer: Wuhan Kaidi Electric Power Engineering Co., Ltd Legal Representative: Liu Yali Office Address: Kaidi Building, NO.1 Jiangxia Street Wuhan Eastlake Hi-Tech. Development Zone, Wuhan City Type of Registration: Other limited company Business Scope: Management, consultation and technology support services of

Electric Power Engineering; Design, manufacture and selling of Electric Power Station Equipments; Import and export of goods and technology (excluding import and export of the national forbidden goods and technology) (Running with related permit certificate).

Authorizing Department: Wuhan Industry and Commerce Administration Bureau

Pay Obligation: According to law Taxation Registration License Issuer: (Seal) China Taxation Administration of Wuhan City, Hubei Province and Local Taxation Bureau of Wuhan Apr. 9t h 2007



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1.3 Other Qualifications 1.3.1 Engineering Design Qualification on Power Plant

(English Version of Translation for refference only)

Certificate of Engineering Design Scope of Work:

Electric Power Engineering (Thermal Power ) Grade A

Dept. of Issuance: Ministry of Construction of the Peoples Republic of China

Date of Issuance: July 2, 2007

Name of the Company: Wuhan Kaidi Electric Power Engineering Co., Ltd

Office Address: Kaidi Building, NO.1 Jiangxia Street Wuhan Eastlake Hi-Tech.

Development Zone, Wuhan City Year of Incorporation: 2004

Type of Corporation: Limited company

Grade of the Certificate: Grade A

Certificate Number170606-sj [4-3] Registered capital: RMB 20,000,000 Yuan

Valid Until: July 2, 2009

Legal Representative: Liu Yali (Chairman of the board)

Representative in charge: Liu Yali (Chairman of the board)



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1.3.2 Certificate of Quality Management System



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1.3.3 Certificate of Health & Safety Management



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1.3.4 Certificate of Environmental Management System



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1.3.5 Engineering Design Qualification on Water Gas


Certificate of Engineering Design

Grade A Name of Company: Wuhan Kaidi Electric Power Co., Ltd

Business Scope : Environmental engineering (waste gas)

Special engineering ign

Grade A

Certificate Number: 2434

Valid until: ****

Issued by: Ministry of Construction of

The Peoples Republic of China

June 25, 2004



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1.3.6 Certificate of Engineering Consulting



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Certificate of Engineering Consulting Name of Company: Wuhan Kaidi Electric Power Co., Ltd

Grade: A

Specialty service scope Environmental engineering (waste water): Compiling suggestion letter, feasibility

study, engineering design (temporary),

bidding consultation, management

consultation(after putting into

operation) ,

Environmental engineering (waste gas) : Compiling suggestion letter, feasibility

study, engineering design, bidding

consultation, management consultation

(after putting into operation) ,

Number : Engineering Consulting Grade No 2022722001 Valid term: Five years.

Issued by: Development andPlanning Committee of the Peoples Republic of China

2004.03.26 ---------------------------------------------------------------------

Certificate of Engineering Consulting Name of Company: Wuhan Kaidi Electric Power Co., Ltd

Grade: B Specialty service Scope

Environmental Engineering (Solid Waste):Compiling suggestion letter,

feasibility study, engineering design

(temporary), bidding consultation,

management consultation (after

putting into operation)

Number : Engineering Consulting Grade No 2022722001 Valid term: Five years.

Issued by: Development and Planning Committee of the Peoples Republic of China

2004.03.26



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1.3.7 Certificate of Approval for Foreign Trade



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CERTIFICATE OF APPROVAL FOR ENTERPISES

WITH FOREIGN TRADE RIGHTS IN THE PEOPLES REPUBLIC OF CHINA

Enterprise Code: 4201300019029

Number of Approval: [1999] Executive authentication Dep. Of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) of PRC No. 897 (with seal of MOFTEC)

Date of Approval; April 9, 1999

Date of Issuance: May 18, 1999

--------------------------------------------------------------------------------------------------------------------- No. 0019386 Enterprise name: Chinese name:

English name: Wuhan Kaidi Electric Power Co., Ltd Address: Wuchang District, Wuhan City, Hubei , PRC Type of enterprise: production enterprise Legal representative: Chen Yilong Management organ: Management Commission of East-lake Hi-tech Development

Zone of Wuhan City Registered capital: RMB 116,100,000 Yuan (with seal of special stamp for alteration of qualification certificate of Wuhan City Foreign Economy and Trade Committee) Business scope: export of independently produced production and relevant technologies of

the company and its affiliates (exported commodities that should be united organized for sale by nation are not included); import of raw material, supplementary material, machinery, equipment, apparatus, instrument, component, spare part and relevant technology that needed for production and scientific research for this company and its affiliates (imported commodities that should be checked and rectified by nation are not included); management of processing with imported materials and processing with supplied materials, processing with supplied sample, assembling with supplied parts and compensation trade.

1. Content for exported commodity (exported commodities that should be united organized

for sale by nation are not included) Various mechanical and electric products, chemical products, hardware mineral products and relevant technologies that produced independently by this company and its affiliates

2.Content for imported commodity (imported commodities that should be checked and

rectified by nation are not included) Raw material, supplementary material, machinery , equipment, apparatus, instrument, component, spare part and relevant technology that needed for production and scientific research for this company



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1.3.8 Certificate of Operation Qualification on Foreign Economic Cooperation



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Certificate of Operation Qualification

On Foreign Economic Cooperation According to the relevant national management regulations, the company

holding this certificate, after being verified, is approved to carry out the foreign

economic cooperation activities within the business scope specified in this certificate.

Ministry of Commerce of


Certificate Number: 4200200300071

------------------------------------------------------------------------------------------------ Name of Company Chinese:

English: Wuhan Kaidi Electric Power Co., Ltd Type of Enterprise: share-limited company Legal Representative: Chen Yilong Company code: 4200300019029 Registered place: Wuhan, Hubei,China Company Address: F/22 Jiangtian Building, No.586 Wuluolu roadWuchang District,

Whan, Hubei, China Registered Capital: RMB 216,300,000 Yuan Approval Number: Business Approval No[2003] No.345 Business Scope: 1 Undertaking exploration survey, consultation, design and supervision for

environmental & engineering projects abroad 2. Exporting of equipments and materials needed for the above projects abroad ; 3. Dispatching labors needed for above projects abroad Operation area: global world Valid Duration: 2004.03.05 to 2009.03.05 Issued by: Department of Commerce of Hubei Province.(Seal) Issued on: 2004.03.05



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1.3.9 Certificate of China National Torch Program



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Qualified Certificate for Projects of

China National Torch Program

Project Name: Complete installation of Power Plant Boiler and FGD

Project Executants: Wuhan Kaidi Electric Power Co., Ltd

Project Number: 00D231D7610748

Ratification Organ: Torch program High-tech Industry Development Center of

Ministry of Science and Technology

(Seal of THIDCMST)

Date of Issuance: June 18, 2003

--------------------------------------------------------------------------

Project Certificate of China National Torch Program

Project Name: New Dry FGD Aborbing System

Of High Efficiency and Low Cost

Project Executants: Wuhan Kaidi Electric Power Co., Ltd

Project Number: 2003EB061182

Ratification Organ: Ministry of Science and Technology, PRC

Ratification Number: MST circular [2003] 98

Certificate Issuance Organ: Torch program High-tech Industry Development

Center of Ministry of Science and Technology

(Seal of THIDCMST)

Date of Issuance: April 2003



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1.3.10 Certificate for Key Hi-tech Enterprise

Certificate for Key Hi-tech Enterprise

Through reviewing,

Wuhan Kaidi Electric Power Co., Ltd is ratified as

Key Hi-tech Enterprise of National Torch Program

Hi-tech Industry Development Center of

Ministry of Science and Technology

(Seal of THIDCMST)

March 2003



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CHAPTER 2 GENERAL INFORMATION

Consortium leader Wuhan Kaidi Electric Power Co., Ltd. 1. Name of firm

Wuhan Kaidi Electric Power Co., Ltd. 2. Head office address Kaidi Mansion, No.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech. Development

Zone ,Wuhan City, Hubei Province, P.R.C. 3 Office Address in Indonesia

4. Telephone

+86-027-67869089 Contact Gao Xiangping

5. Fax +86-027-67869031

E-mail [email protected]

6. Place of incorporation / registration No.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech. Development Zone ,Wuhan City, Hubei Province, P.R.C.

Year of incorporation / registration Feb 26 1993

7. Brief description of activity and/or specialized input: Investment, EPC of Power Plant; Waste water treatment; renewable energy.

Consortium member 1 Wuhan Kaidi Electric Power Engineering Co., Ltd. 1 Name of Firm

Wuhan Kaidi Electric Power Engineering Co.,Ltd 2 Head Office Address

Kaidi Mansion, No.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech. Development Zone ,Wuhan City, Hubei Province, P.R.C.

3 Office Address in Indonesia

4 Telephone +86-027-67869085

Contact Person Wang Haibo

5 Facsimile +86-027-67869031

Mobile Phone NO +86-13659864352 Email [email protected]

6 Place of Incorporation/Registration No.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech. Development Zone ,Wuhan City, Hubei Province,

Year of Incorporation/Registration



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P.R.C. Sep 29 2004

7 Main line of Business as related to the subject of prequalification herein 1. Management, EPC power plant, consultation and technology support

services of Electric Power 2. Engineering, design, manufacturing and sales of Electric power plant

equipments; 3. Import and export of goods and technology(excluding import and export of

the national forbidden goods and technology, running with related permit certificate)



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CHAPTER 3 CONSORTIUM INTRUDUCTION

3.1 Introduction of Consortium 3.1.1 Introduction of Consortium Leader

Wuhan Kaidi Electric Power Co., Ltd. (hereinafter called as KAIDI ELECTRIC) is registered in Wuhan Eastlake Hi-tech. Development Zone, Wuhan City, Hubei Province. P.R. of China. In 1997, KAIDI ELECTRIC was recognized as a national key hi-tech enterprise (group) by Chinese National Science Committee. KAIDI ELECTRIC was public listed in Shenzhen Security Exchange on Sep.23, 1999 and became the first listed electric environmental company recommended by original China National Electrical Company.

KAIDI ELECTRIC is mainly professional in coal-fired thermal power, new energy, chemical engineering, environmental protection, waste water treatment etc.. Major business of KAIDI ELECTRIC include general contracting constructions of coal-fired power plant project, FGD project, biomass energy and wind power plant project and refined treatment of condensed water in thermal power plant. Up to now, the total amount of general contracting constructions of FGD project completed or under construction reaches 50, overall installed capacity reaches 23000MW, the ratio of marketing occupation in China reaches up to 20 and which ranks number one in the circle. In the field of clean coal-fired electricity generation KAIDI ELECTRIC has possessed experience and achievements on supplying and general contracting construction for circulation fluid bed CFBboiler with capacity of 100MW and more. The Henan Yexian Languang Environmental Power Plant No.1 unit in phase 1(1135MW) established in the mode of EPC by KAIDI ELECTRIC was put officially into commercial operation on November of 2004 and won NO.2 prize in the All China CFB Boiler Units Contest of Electric Power Industry. Key Advantages Overall Project Management

General contracting construction has being all along major business of KAIDI ELECTRIC. Up to now, projects completed or under construction which implemented or carried out construction by KAIDI ELECTRIC exceed 150, covering general contracting construction of overall power plant as well as separated systems and plants such as, dust elimination and FGD , boiler island , treatment on chemical water and waste water for power plant, automation system for power plant, and so on. By implementing of these constructions, the company has accumulated rich experiences on implementation of general contracting construction and obtained systematic management edges on power plant project.

As a company engaged in general contracting construction for years, KAIDI ELECTRIC adopts matured international management model and carries out efficient programming, organization and coordination in accordance with intrinsic logic laws of various sections including design, procurement and construction.

As for design, overall and versatile professionals of the company make it possible to realize systematic optimization combination with implementation of project from the preliminary stage of design. Focusing upon advanced technology,



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determining scientific and reasonable construction program and construction technique, reasonably and coordinately arranging production elements during construction process to ensure high quality, low cost, technology advantages and realization of maximum value of the project, then KAIDI ELECTRIC can deliver project construction of low cost and high quality to the tenderee.

In terms of procurement and supply of materials and goods, KAIDI ELECTRIC, through professional team, realizes the combination of actual business operation, with the market as a tie, and virtual management through broad participation of sub-contractors and also integrates broad resources as a whole. So far, KAIDI ELECTRIC has established desirable and stable cooperation with electric power constructors, electric power design institutes, equipment manufacturers and suppliers of raw materials all around China, which can guarantees allocation or devotion of producction elements timely, appropriately, proportionately and in proper location so as to make the schedule, expenses and quality control of the construction satisfying requirements on project management.

Regarding management and implementation of project, KAIDI ELECTRIC carries out dynamic management during the whole process of the project. In detail, it utilizes matured international software such as P3 for project management, combines experience on project implementation, establishes in a proper manner for resource plans on manpower, assets and materials that needed for implementation of project, and furthermore determines resources consumption of various works and corresponding construction term, quality and requirements on safety production, by means of these procedures, schemed implementation for the whole course of project and reasonable flow of project resources are realized, thus adequate, reasonable and effective utilization of resources are ensured, project term is controlled reasonably, risks during implementation of project is prevented, understanding and cooperation between parties including tenderee, general contractor, sub-contractors and supervisors are reinforced in a united frame and project tasks are completed in a coordinated manner. As a result, comprehensive benefits for project management are realized and promoted. Professional Financing for Project

Its an important means for KAIDI ELECTRIC to adopt proper mode to finance for implementation of project in light of real condition of the project and requirement of the tenderee. KAIDI ELECTRIC has been kept favorable yielding ratio all the time and possesses qualification to finance directly from public market; Ever since its registered as a public company, KAIDI ELECTRIC has being appraised and awarded as AAA credit reputation for consecutive years and became high-quality customer of Industrial and Commercial Bank of China, China Merchants Bank and Mingsheng Bank with authorized loan credit up to a total amount of RMB 1 billion Yuan; In the same time, KAIDI ELECTRIC established broad contact with professional trust investors and other civil investment institutions, in return, more flexible financing support can be constructed in collaboration to the tenderee. Extensive financing channels render KAIDI ELECTRIC with more space for project financing, and the company will carry out professionalized project financing activity in the view of beneficial to decreasing the tenderees project capital cost, reducing financing risks and promoting project implementation headway to meet capital demand for various stages of project construction and eventually reduce capital puzzle for the tenderee.

3.1.2 Introduction of Consortium Member 1

Wuhan Kaidi Electric Power Engineering Co., Ltd. is a high-tech corporation



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registered in Wuhan East-Lake Hi-tech Development Zone, and a member of Wuhan Kaidi Holding Investment Co. Ltd. Kaidi Power Engineering is mainly engaged in electric power engineeringsuch as coal-fired power generation, biomass power generation, wind power, hydropower, and also city water supply, sewage treatment, Its work scope covers project consultation, design, equipment procurement, construction, installationcommissioning, commercial operation, and etc.

Wuhan Kaidi Electric Power Engineering Co., Ltd. possesses competition forces in design, procurement, construction, installation, commissioning, and operation, and especially possesses stronger competition forces with a group of nation-renowned experts in the field of biomass-to-energy power generation and coal-rejects burning power generation.

Wuhan Kaidi is exactly formed in the mode of EPC, BOT, PPP Contract. It sets up departments in compliance with systematic integration request for the project implementation as following: Project Development Department, Boiler Technology Department, Design Department, Procurement Department, Engineering Department, Systematic Operation Department, Business Department, Human Resource Department, G.M. Executive Department, Finance Department, and each Project Department. And project management adopts matrix mode, comprising three grades: corporation, function department and project department, with specific work for each grade. Business Main Scope

Kaidi Engineering is mainly engaged in EPC construction of electric power plant and waste water treatment projects, which comprises pre-planning of project, program optimization, feasibility study, project approval report application , and the whole construction processs design, equipment procurement ,civil work and construction, equipment installation, commissioning, trial operation, and necessary financing for projects. Characteristics as following: Member company of Hubei Electric Power Environmental Protection Technology

Research Center. Successful developed the 132MWsuper high pressure CFB technology, and it is

the only corporation in China that owns independent intellectual property rights of CFB technology and puts it into projects successfully.

Technical advantage and application Research on coal-reject

Research on co-operated with relative research institutes, burning feature and ash-forming feature in CFB boiler of coal gangue, coal slurry , oil shale, rubbish, straw, and rice husk, and etc.

Investigation and research to coal-reject burning power plant, summarizing their successful experience, especially analyzing their imported boilers and then mastering their technology.

Having possessed our independent CFB boiler technology low quality fuel.

Assimilation and development of imported technology We have carried out lots of investigation and research on imported units, especially on their function and structure; subsequently we have possessed independent CFB boiler technology of treating low quality fuel. coal-reject after-burning technology



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decreasing flying-ash and bottom-ashs carbonaceous quality temperature adjust technology anti-transmutation of screen-style overheater technology anti-abrasion technology anti-booster technology Optimal design of CFB power plant optimization of crush system optimization of affording-coal system optimization of air duct optimization of limestone system optimization of removing\dregs system optimization of Auxiliary machine Application of technology Successful technology improvement on Langguang1#unit technical improvement of crude oil bin technical improvement of secondary overheater technical improvement of boilers airproof technical improvement of dregs-cooling unit technical improvement of coal slurry dope-burning Technology of design 410t/h boiler for Yongji thermal power plant 410t/h boiler for Hua Rongshan power plant design for Languang 2# unit

3.2 Consortium Data 2150 MW RIAU MINE MOUTH CFSPP IPP PROJECT

CONSORTIUM DATA

Parties to Bidding Consortium

Projected Equity Participation in Consortium (%) Country of incorporation

1. Lead Member Wuhan Kaidi Electric Power Co.,Ltd

China

2. Member Wuhan Kaidi Electric Engineering Power Co.,Ltd

China

3. Member PT. SAKTI MAS MULIA

4. Member



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3.3 Power of Attorney

Power of Attorney

The undersigned company, Wuhan Kaidi Electric Power Co., Ltd and

Wuhan Kaidi Electric Power Engineering Co., Ltd located Kaidi

Mansion, No.T1 Jiangxia Avenue Wuhan Eastlake Hi-tech.

Development Zone, Wuhan, Hubei, P.R.of China, and PT.SAKTI MAS

MULIA located at Komplek Wijaya Graha Puri Blok G-18 JI. Wijaya

II, Kebayoran Baru, Jakarta 12160, Indonesia.

Hereby grants

Gao Xiangping/ Bidding Manager

Full power of attorney to represent and act on behalf of KAIDI CONSORTIUM

comprising of

Wuhan Kaidi Electric Power Co., Ltd

Wuhan Kaidi Electric Power Engineering Co., Ltd

PT.SAKTI MAS MULIA

And to bind the undersigned company by his single signature in all matters regarding

the bidding and negotiations on

2150 MW RIAU MINE MOUTH CFSPP IPP PROJECT

Made on July 9, 2008.

Seals and signatures are as follows:



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Signed by Signed by

Chairman of the Board Chairman of the Board

On behalf of On behalf of

Wuhan Kaidi Electric Power Wuhan Kaidi Electric Power

Co., Ltd Engineering Co., Ltd

Signed by

President Director

On behalf of

PT.SAKTI MAS MULIA

Co., Ltd



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CHAPTER 4 PROJECT EXPERIENCE

4.1 Project Experience GENERAL PROJECT/POWER PROJECT EXPERIENCE

Wuhan Kaidi Electric Power Engneering Co., Ltd Please fill out this form completely for each individual firm and each party to the bidding consortium. Please include all relevant experience over the past ten years as an equity member with a shareholding not less than 10%. Use a separate sheet for each party to the bidding consortium. Your experience in the power sector:

- As an EPC contractor : 6 years Your experience in:

- Indonesia : years - Elsewhere (China) : 6 years

Your experience for successfully commercial operation at least 1 (one) year: - Indonesia : years - Elsewhere (China) : 4 years

Number of employees at the present time: - Total employees : 1000 - Professional engineers : 800 - Professional financial staff : 30 - Legal staff : 8

Number of Permanent Offices: - In Indonesia : - In South-East Asia : 1 - Elsewhere (China) : 1



32

Completed successfully of Projects over the last ten Years of Min size 100 MW per unit for Coal Fired Power Plant: Description of Project

Percentage Share Participation (10%)

Function (EPC Contractor)

Project Size (US $ equiv)

Henan Languang 2x135MW Environmental Power Plant

100% EPC Contractor 197 million

Shanxi Yuncheng Guanlv 2x200MW Thermal Power Plant


Henan Yima 2x155MW Environmental Power Plant




33

4.2 Power Plant Experience

Wuhan Kaidi Electric Power Engneering Co., Ltd Please complete the information in this form for each individual firm or member of a bidding consortium. Use a separate sheet for each project in which the party has participated as developer, EPC contractor, operator, principal plant supplier. Your may include reference for satisfactory completion or performance. Project I

Name and short description of Project: Henan Languang 2x135MW Environmental Power Plant

1.

Location, Country: Henan, China

2. Name and contact details of employer/grantor of project, where relevant: Name: Henan Languang Environmental Power Generation Co., Ltd. TEL.: 0086 371 65740785 General Manager: Mr. Zhu Liming

3. Nature of relevant works and special features: Two super-high pressure CFB boilers, two super-high pressure turbines, low-grade coal, in-furnace deSOx

4. Contract role (check boxes as appropriate)

EPC contractor

Other-please specify: 5. Value of the contract (total construction cost or annual operating revenues, as

appropriate, in equivalent USD) USD 197 million

6. Date of award: June 15th, 2006

7. Date of completion and year of expiry of project contract period, as appropriate:Completed on Jan. 3rd, 2007, expired on March 31st, 2007

8. Project specifics: Type of Plant: environmental power plant Installed capacity (MW): 2x135MW



34



35

Project II

Name and short description of Project: Shanxi Yuncheng Guanlv 2x200MW Thermal Power Plant

1.

Location, Country: Shanxi, China

2. Name and contact details of employer/grantor of project, where relevant: Name: Shanxi Guanglv Group Co., Ltd. TEL.: 0086 359 2235083 General Manger: Mr. Hu Jianbin

3. Nature of relevant works and special features: Two super-high pressure boilers, two super-high pressure turbines, wet deSOx


EPC contractor



6. Date of award: Jan. 8th, 2003

7. Date of completion and year of expiry of project contract period, as appropriate:Completed on Oct. 28th, 2007, expired on Dec. 28th, 2007

8. Project specifics: Type of Plant: thermal power plant Installed capacity (MW): 2x200MW



36



37

Project III

Name and short description of Project: Henan Yima 2x155MW Environmental Power Plant

1.

Location, Country: Henan, China

2. Name and contact details of employer/grantor of project, where relevant: Name: Wuhan Kaidi Electric Power Environmental Co., Ltd. TEL.: 0086 27 6786 9302 General Manager: Mr. Xu Yinsheng

3. Nature of relevant works and special features: Three high-temp high-pressure boilers, two high-temp high-pressure turbines, coal mixed with chromium slag, Flue Gas DeSOx


EPC contractor



6. Date of award: Dec. 31st, 2006

7. Date of completion and year of expiry of project contract period, as appropriate:Completed on March 31st, 2008, expired on May 1st, 2008

8. Project specifics: Type of Plant: environmental power plant Installed capacity (MW): 2x155MW



38



39

CHAPTER 5 FINANCIAL INFORMATION

5.1 Financial Capabilities

Wuhan Kaidi Electric Power Co., Ltd. Reference Banker

Name of Bank Bank of China Wuhan Hongshan Branch

Address of Bank Zhongshan Road 43, Wuchang District Wuhan

Telephone 027-88216914

Contact name and title Tian Jun (Manager)

Facsimile 027-88216914

Email [email protected]

Financial information in US$ equivalent 2005 2006 2007 1. Total assets 554,187,511.93 573,277,296.86 642,684,683.992. Current assets 265,681,278.46 230,385,095.24 177,188,476.513. Total liabilities 379,100,641.68 383,511,435.15 396,670,507.754. Current liabilities 309,109,491.17 326,930,018.94 315,976,753.005. Share holders Equity 97,646,485.41 111,589,376.70 246,014,176.256. Net Profit 12,711,157.97 14,744,888.53 47,608,387.96

Wuhan Kaidi Electric Power Engineering Co., Ltd Financial information in US$ equivalent 2005 2006 2007 1. Total assets 52,329,093.86 56,468,908.62 134,469,792.202. Current assets 43,841,052.44 44,500,263.8 114,338,062.493. Total liabilities 47,381,999.86 48,696,207.01 93,875,102.114. Current liabilities 47,381,999.86 48,696,207.01 93,875,102.115. Share holders Equity 4,947,094.00 7,772,701.61 40,594,690.096. Net Profit 2,321,880.89 2,659,937.89 7,643,577.77 Attached are the audited financial statements for each of the last 3 years.



40

5.2 Annual Report of Wuhan Kaidi Electric Power Co., Ltd

5.2.1 2007Annual Report



41

01 :

20071231 20061231 ()1 373,504,544.49 717,818,182.16 ()2 196,410.00 122,865.00 ()3 33,447,635.00 23,795,363.12 ()4 294,710,804.00 338,088,276.73 ()6 210,690,771.28 267,697,611.14 ()5 180,698,334.33 226,377,843.55 ()7 200,917,079.96 222,792,251.22 125,366.42 125,366.42 1,294,290,945.48 1,796,817,759.34 ()8 815,855,633.44 548,330,294.78 ()9 14,794,742.75 15,252,665.47 ()10 1,696,780,111.88 1,016,196,014.20 ()11 767,031,452.83 989,747,899.60 ()12 36,473,269.95 73,584,669.17 ()13 60,137,461.46 32,228,714.26 ()14 184,450.00 9,414,341.90 ()15 9,006,474.91 6,352,956.56 3,400,263,597.22 2,691,107,555.94 4,694,554,542.69 4,487,925,315.28

: : :

()



42

01 :

20071231 20061231 ()18 1,245,100,000.00 1,005,100,000.00 ()19 292,525,838.96 435,956,250.53 ()20 316,313,201.71 504,000,868.52 ()21 82,068,729.28 371,423,866.98 ()22 3,653,250.87 13,105,950.77 ()23 -19,933,355.74 -3,555,921.40 - ()25 301,308,551.42 177,794,020.49 ()26 80,000,000.00 40,000,000.00 ()24 7,047,573.44 9,222,903.00 2,308,083,789.94 2,553,047,938.89 ()27 580,000,000.00 440,000,000.00 ()28 1,356,204.77 1,677,804.77 ()15 5,619,396.17 2,369,432.90 ()29 2,460,000.00 589,435,600.94 444,047,237.67 2,897,519,390.88 2,997,095,176.56 ()30 281,190,000.00 281,190,000.00 ()31 77,145,914.38 77,779,604.03 ()32 134,906,724.82 96,335,025.41 ()33 681,027,622.33 425,736,397.01 1,174,270,261.53 881,041,026.45 ()5 622,764,890.28 609,789,112.27 1,797,035,151.81 1,490,830,138.72 4,694,554,542.69 4,487,925,315.28

: : :

()



43

02 :

2007 2006 1,756,928,870.11 1,713,182,980.16 ()34 1,756,928,870.11 1,713,182,980.16 1,676,944,838.62 1,602,324,165.37 ()34 1,459,987,962.10 1,397,002,621.22 ()35 30,876,320.20 32,939,204.27 8,218,783.34 12,833,876.53 76,799,386.38 91,554,804.75 ()36 79,485,861.93 65,917,964.01 ()39 21,576,524.67 2,075,694.59 - ()37 73,545.00 58,165.00 - ()38 328,888,083.99 35,300,491.70 94,690,140.51 31,543,289.62 -- 408,945,660.48 146,217,471.49 ()40 363,298.57 771,055.00 ()41 1,722,011.83 1,116,862.65 55,261.57 - 407,586,947.22 145,871,663.84 ()42 59,826,716.53 23,342,499.51 - 347,760,230.69 122,529,164.33 - 321,981,924.73 111,897,926.76 25,778,305.96 10,631,237.57 1.15 0.40 1.15 0.40

: : :



44

03 :

2007 2006 1,395,613,593.86 2,380,836,553.02 37,467.22 540,672.18 ()44(1) 25,914,381.89 113,610,576.86 1,421,565,442.97 2,494,987,802.06 1,166,641,987.31 1,355,424,502.85 52,249,187.36 77,516,315.32 79,837,043.10 93,412,254.19 ()44(2) 90,312,817.13 127,600,936.05 1,389,041,034.90 1,653,954,008.41 32,524,408.07 841,033,793.65 27,387,357.16 57,613,944.74 3,029,750.00 182,000.00 207,908,284.81 1,387,048.17 1,473,662.92 236,864,690.14 62,117,357.66 592,093,945.59 271,125,755.08 294,753,026.08 42,721,600.00 1,795,294.24 886,846,971.67 315,642,649.32 -649,982,281.53 -253,525,291.66 1,785,000,000.00 1,401,000,000.00 1,785,000,000.00 1,401,000,000.00 1,365,000,000.00 1,600,140,400.00 146,855,764.21 114,821,259.70 1,353,393.12 1,511,855,764.21 1,716,315,052.82 273,144,235.79 -315,315,052.82 -21,267.58 -344,313,637.67 272,172,181.59 717,818,182.16 445,646,000.57 373,504,544.49 717,818,182.16

: : :



45

01 :

20071231 20061231 186,288,154.31 442,782,360.36 33,127,635.00 17,835,363.12 ()1 179,589,652.45 196,230,104.68 148,728,903.85 153,356,554.55 ()2 983,502,704.46 404,479,469.73 36,278,807.03 15,409,730.70 1,567,515,857.10 1,230,093,583.14 ()3 1,043,281,984.09 819,844,447.33 137,239,920.76 146,703,166.63 35,093,053.35 37,335,795.54 2,297,925.50 1,205,457.72 1,217,912,883.70 1,005,088,867.22 2,785,428,740.80 2,235,182,450.36

: : :

()



46

01

: 20071231 20061231

820,000,000.00 605,000,000.00 274,747,839.96 346,355,716.44 212,200,335.74 345,987,461.35 26,350,124.25 42,032,233.63 1,489,159.51 -31,523,175.98 -12,103,531.37 233,410,790.62 22,090,106.18 5,222,773.44 6,739,908.00 1,541,897,847.54 1,356,101,894.23 1,356,204.77 1,677,804.77 5,619,396.17 2,369,432.90 2,460,000.00 9,435,600.94 4,047,237.67 1,551,333,448.48 1,360,149,131.90 281,190,000.00 281,190,000.00 72,819,657.50 72,819,657.50 134,906,724.82 96,335,025.41 745,178,910.00 424,688,635.55 1,234,095,292.32 875,033,318.46 2,785,428,740.80 2,235,182,450.36

: : :

()



47

02 :

2007 2006

()4 953,064,531.94 1,074,778,084.23

()4 812,076,687.60 909,417,803.27

17,904,389.48 12,883,372.36

817,735.30

43,325,610.59 38,524,497.68

31,289,681.70 32,933,239.45

13,353,157.04

-

- ()5 396,712,937.33 28,480,383.70

70,220,530.93 25,034,474.98

- 431,827,942.86 108,681,819.87

52,392.82 516,505.00

242,899.73 2,813,504.86

- 431,637,435.95 106,384,820.01

45,920,441.84 17,284,188.20

- 385,716,994.11 89,100,631.81

: : :



48

03:

2007 2006 830,484,340.56 1,421,557,026.19 516,505.00 77,170,728.56 5,606,842.54 907,655,069.12 1,427,680,373.73 774,355,838.31 951,891,957.95 9,645,465.76 25,391,293.51 39,563,574.44 53,652,762.90 71,859,492.86 178,698,764.70 895,424,371.37 1,209,634,779.06 12,230,697.75 218,045,594.67

13,447,144.74 3,029,750.00 79,500.00 207,908,284.81 21,781,659.24 207,987,784.81 38,258,553.98 319,692,865.13 3,420,926.06 286,753,026.08 606,445,891.21 3,420,926.06 -398,458,106.40 34,837,627.92

990,000,000.00 920,000,000.00 990,000,000.00 920,000,000.00 775,000,000.00 936,140,400.00 85,266,797.40 88,308,694.84 561,218.86 860,266,797.40 1,025,010,313.70 129,733,202.60 -105,010,313.70

-21,267.58

-256,494,206.05 147,851,641.31 442,782,360.36 294,930,719.05

186,288,154.31 442,782,360.36

: : :



49


Annual Report

2007

WUHAN ZHONG HUAN CERTIFIED PUBLIC ACCOUNTANTS

Consolidated Balance Sheet Accounting Table No. 01

Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan Assets Note At 31Dec, 2007 At 31Dec, 2006

Current asset: Monetary fund VIII1 373,504 ,544.49 717,818 ,182.16Clearing provisionInter-Bank lendingExchange financial assets VIII(2) 196,410.00 122,865.00Bills receivable VIII(3) 33,447,635.00 23,795,363.12Accounts receivable VIII(4) 294,710 ,804.00 338,088 ,276.73Accounts prepaid VIII(6) 210,690,771.28 267,697 ,611.14Premiums receivable



50

Reinsurance receivable Reinsurance premium receivable

Interest receivableReceivable others VIII(5) 180,698,334.33 226,377,843.55

Buying resell financial

Stock VIII(7) 200,917,079.96 222,792,251.22Noncurrent assets within Current assets others 125,366.42 125,366.42

Total current assets 1,294,290.945.48 1,796,817,759.34Noncurrent assets: Offer loans and

Long-term equity VIII(8) 815,855,633.44 548,330,294.78Investment Real Estate VIII(9) 14,794,742.75 15,252,665347Fixed assets VIII(10) 1,696,780,111.88 1,016,196,014.20Construction in progress VIII(11) 767,031,452.83 989,747,899.60Intangible assets VIII(12) 36,473,269.95 73,584,669.17Goodwill VIII(13) 60,137,461.46 32,228,714.26Deferred assets VIII(14) 180,450.00 9,414,341.90Deferred tax asset VIII(15) 9,006,474.91 6,352,956.56Total noncurrent assets 3,400,263,597.22 2,691,107,555.94Total assets 4,694,554,542.69 4,487,925,315.28Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming Person in charge of accountingMr. Xu Yinglin

Consolidated Balance Sheet (Liabilities and Shareholders equity)

Accounting Table No. 01 Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan

Liabilities and Owners Equity (or

Shareholders Equity) Note At 31Dec, 2007 At 31Dec, 2006

Current liabilities:

Short term loan VIII 18 1,245,100,000.00 1,005,100,000.00Bank loans-Short term Notes payable VIII 19 292,525,838.96 435,956,250.53Account payable VIII 20 316,313,201.71 504,000,868.52Advance receipts VIII 21 82,068,729.28 371,423,866.98



51

Wages owed to VIII 22 3,653,250.87 13,105,950.77Liable to duty VIII 23 -19,933,355.74 -3,555,921.40Payables others VIII 25 301,308,551.42 177,794,020.49Noncurrent liabilities within 1 year

VIII 26 80,000,000.00 40,000,000.00

Noncurrent liabilities VIII 24 7,047,573.44 9,222,903.00Total current liabilities 2,308,083,789.94 2,553,047,938.89Long-run Loans VIII 27 580,000,000.00 440,000,000.00Long term payable VIII 28 1,356,204.77 1,677,804.77Deferred income tax li biliti

VIII 15 5,619,396.17 2,369,432.90

Noncurrent liability VIII 29 2,460,000.00Total noncurrent 589,435,600.94 444,047,237.67Total liability 2,897,519,390.88 2,997,095,176.56Capital stock VIII 30 281,190,000.00 281,190,000.00Capital surplus VIII 31 77,145,914.38 77,779,604.03Surplus reserves VIII 32 134,906,724.82 96,335,025.41Undistributed profit VIII 33 681,027,622.33 425,736,397.01Total Stockholders' equity Of th h ldi

1,174,270,261.53 881,041,026.45

Minority interest VII 5 622,764,890.28 609,789,112.27Total Stockholders' 1,797,035,151.81 1,490,830,138.72Total liability and stockholders equity

4,694,554,542.69 4,487,925,315.28

Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming Person in charge of accountingMr. Xu Yinglin



52

Consolidated Profit Sheet Accounting Table No. 02

Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan Item Note Year 2007 Year 2006

I. Total business income

1,756,928 ,870.11 1,713 ,182 ,980.16

Including: operating income

VIII 34 1,756 ,928,870.11 1,713 ,182 ,980.16

II. Total business cost 1,676,944,838.62 1,602,324,165.37

Including: operating cost VIII 34 1,459,987,962.10 1,397,002,621.22

Sales tax and extra charges VIII 35 30,876,320.20 32,939,204.27

Selling expenses 8,218,783.34 12,833,876.53

Administration expense 76,799,386.38 91,554,804.75

Financial expense VIII 36 79,485,861.93 65,917,964.01

Asset impairment losses VIII 39 21,576,524.67 2,075,694.59

Fair value fluctuation Net Income (use - to mark loses)

VIII 37 73,545.00 58,165.00

Investment income

(use - to mark loses)

VIII 38 328,888,083.99 35,300,491.70

Investment income of affiliated business joint venture

94,690,140.51 31,543,289.62

III Business profit (use - to mark loses)

408,945,660.48 146,217,471.49

Plus: unrelated business income

VIII 40 363,298,57 771,055.00

Less: non-operating expenditure

VIII 41 1,722,011.83 1,116,862.65

Nonliquid assets loses 55,261.57

IV. Total profit (use - to mark loses)

407,586,947.22 145,871,663.84

Less: income tax VIII 42 59,826,716.53 23,342,499.51

V. Net profit (use - to mark loses)

347,760,230.69 122,529,164.33

The combined partys -



53

net profit before combination

Net profits belong to the holding company

321,981,924.73

111,897,926.76

Minority interest income

25,778,305.96 10,631,237.57

VI, EPS 1. Basic EPS 1.15 0.40

2. Diluted EPS 1.15 0.40Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming Person in charge of accountingMr. Xu Yinglin

Consolidated Cash Flow Statement

Accounting Table No. 03

Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan Item Note 2007 2006

I. Cash flows from operating activities

Cash received from sales of goods or rendering for services

1,395,613,593.86 2,380,836,553.02

Received refunds of taxes

37,467.22 540,672.18

Other cash received relating to operating activities

44(1) 25,914,381.89 113,610,576.86

Sub-total of cash inflows

1,421,565,442.97 2,494,987,802.06

Cash paid for goods and services

1,166,641,987.31 1,355,424,502.85

Cash paid to and on behalf of employees

52,249,187.36 77,516,315.32

Payments of all types of taxes

79,837,043.10 93,412,254.19

Other cash received relating to operating activities

( )44(2) 90,312,817.13 127,600,936.05



54

Sub-total of cash outflows

1,389,041,034.90 1,653,954,008.41

Net cash flows from operating activities

32,524,408.07 841,033,793.65

II. Cash flows from investing activities:

Cash received from return of investments

27,387,357.16 57,613,944.74

Cash received from return on investments

3,029,750.00

Net cash received from selling fixed assets, intangible assets and other long-term assets

182,000.00

Cash received from selling subsidiaries and other business units

207,908,284.81

Cash received relating to other investing activities

1,387,048.17 1,473,662.92


236,864,690.14 62,117,357.66

Cash paid to acquire fixed assets, intangible assets and other long-term assets

592,093,945.59 271,125,755.08

Cash paid to acquire investments

294,753,026.08 42,721,600.00

Among it: Cash paid to purchase of sub-company

Cash paid relating to other investing activities

1,795,294.24

Sub-total of cash outflows

886,846,971.67 315,642,649.32

Net cash flows from investing activities

-649,982,281.53 -253,525,291.66



55

III. Cash flows from financing activities

Cash received from investment by others

Among it: Cash received from investment by sub-branch acquire equity investment from minority interest

Cash received from borrowings

1,785,000,000.00 1,401,000,000.00

Cash received relating to other financing activities


1,785,000,000.00 1,401,000,000.00

Cash payments of amounts borrowed

1,365,000,000.00 1,600,140,400.00

Cash paid for distribution of dividends or profits and for interest expenses

146,855,764.21 114,821,259.70

Among it: dividend paid for minority shareholders by sub-branch

Cash paid relating to other financing activities

1,353,393.12

Sub-total of cash out flows

1,511,855,764.21 1,716,315,052.82

Net cash flows from financing activities

273,144,235.79 -315,315,052.82

IV. Effect of foreign exchange rate changes on cash

-21,267.58

V. Net increase in -344,313,637.67 272,172,181.59



56

cash and cash equivalents

Added: Initial balance of cash and equivalent

717,818,182.16 445,646,000.57

. Ending balance of cash and equivalent

373,504,544.49 717,818,182.16


Balance Sheet

Accounting Table No. 01 Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan

Assets Note At 31Dec, 2007 At 31Dec, 2006

Current asset:

Monetary fund 182,288,154.31 442,782,360.36

Short-term investment

Bills receivable 33,127,635.00 17,835,363.12

Accounts receivable

( )1 179,589,652.45 196,230,104.68

Accounts prepaid 148,728,903.85 153,356,554.55

Other accounts receivables

( )2 983,502,704.46 404,479,469.73

Stock 36,278,807.03 15,409,730.70

Other current assets

Total current assets 1,567,515,857.10 1,230,093,583.14

Non-current assets

Long-term share investment:

1,043,281,984.09 819,844,447.33

Fixed assets: 137,239,920.76 146,703,166.63

Invisible asset 35,093,053.35 37,335,795.54

Deferred income tax assets

2,297,925.50 1,205,457.72

Total non-current assets 1,217,912,883.70 1,005,088,867.22



57

Total assets 2,785,428,740.80 2,235,182,450.36Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming Person in charge of accountingMr. Xu Yinglin

Balance Sheet (Liabilities and owners equity)


Compiled By(Seal)Wuhan Kaidi Electric Power Co., Ltd. Unit: RMB Yuan Liabilities and Owner Equity (or Shareholder Equity)

At 31Dec, 2007 At 31Dec, 2006

Current liabilities:

Bank loans-Short term 820,000,000.00 605,500,000.00

Notes payable 274,747,839.96 346,355,716.44

Trade creditors 212,200,335.74 345,987,461.35

Advances from customers 26,350,124.25 42,032,233.63

Payroll payable 1,489,159.51

Tax payable -31,523,175.98 -12,103,531.37

Other payable 233,410,790.62 22,090,106.18

Other current liabilities 5,222,773.44 6,739,908.00

Total current liabilities 1,541,897,847.54 1,356,101,894.23

Long term liabilities:

Long term loans

Bond payable

Long term payable 1,356,204.77 1,677,804.77

Deferred income tax liabilites

5,619,396.17 2,369,432.90

Other non-current liabilities 2,460,000.00

Total noncurrent liabilities 9,435,600.94 4,047,237.67

Total liabilities 1,551,333,448.48 1,360,149,131.90

Owners Equity (or Shareholder Equity)

Net paid-up share capital (or equity)

281,190,000.00 281,190,000.00



58

Capital surplus 72,928,197.50 72,928,197.50

Surplus reserve 134,906,724.82 96,335,025.41

Undistributed profit 745,178,910.00 424,688,635.55

Total owners equity (shareholder equity)

1,234,095,292.32 875,033,318.46

Total liabilities and owners equity (or shareholder equity)

2,785,428,740.80 2,235,182,450.36


Statement for Profit


Compiled By(Seal)Wuhan Kaidi Electric Power Co., Ltd. Unit: RMB Yuan Item Note Year 2007 Year 2006

I. Principal business income

4 953,064,531.94 1,074,778,084.23

Less: Cost of principal business

3 812,076,687.60 909,417,803.27

Taxes for principal business and additional tax

17,904,389.48 12,883,372.36

Sales expense 817,737.30

Administration expense

43,325,610.59 38,524,497.68

Financial expense

31,289,681.70 32,933,239.45

Assets loss 133,353,157.04

Plus: investment profit 396,712,937.33 28,480,383.70

Among which investment profit of co-operated enterprises

70,220,530.93 25,034,474.98

III Business profit 431,827,942.86 108,681,819.87

Plus: Non-operating revenue

52,392.82 516,505.00

Less: non-operating 242,899.73 2,813,504.86



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expenditure

IV. Total profit 431,637,435.95 106,384,820.01

Less: income tax 45,920,441.84 17,284,188.20

V. Net profit 385,716,994.11 89,100,631.81Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming Person in charge of accountingMr. Xu Yinglin

Cash Flow Statement

Year 2007 Accounting Table No. 03

Compiled By(Seal)Wuhan Kaidi Electric Power Co.,Ltd. Unit: RMB Yuan Item 2007 2006

I. Cash flows from operating activities

Cash received from l f d d i

830,484,340.56 1,421,557,026.19

Refunds of taxes 516,505.00 Other cash received 77,170,728.56 5,606,842.54 Sub-total of 907,655,069.12 1,427,680,373.73 Cash paid for goods 774,355,838.31 951,891,957.95 Cash paid to and on 9,645,465.76 25,391,293.51 Payments of all 39,563,574.44 53,652,762.90 Cash paid relating 71,859,492.86 178,698,764.70 Sub-total of 895,424,371.37 1,209,634,779.06 Net cash from 12,230,697.75 218,045,594.67II. Cash flow from Cash received from 13,447,144.74 Cash received from 3,029,750.00 Net cash received

from the sale of fixed assets, intangible assets and other long term assets

79,500.00

Net cash received from the sale of subsidiaries and other business units

207,908,284.81

Cash received relating to other investing activities 21,781,659.24



60

Sub-total of cash inflows 207,987,784.81 38,258,553.98

Cash paid to acquire fixed assets, intangible assets and other long term assets

319,692,865.133,420,926.06

Cash paid to acquire investments 286,753,026.08

Cash paid relating to other investing activities

Sub-total of 606,445,891.21 3,420,926.06 Net cash flows from -398,458,106.40 34,837,627.92III. Cash flow from

financing activities Cash received from

investing activities

Cash received from borrowings 990,000,000.00 920,000,000.00

Cash received relating to other financing

i i i Sub-total of

cash inflows 990,000,000.00 920,000,000.00

Cash repayments of 775,000,000.00 936,140,400.00 Cash paid for

distribution of dividends or profits and for interest expenses

85,266,797.40

88,308,694.84

Cash paid relating 561,218.86 Sub-total of 860,266,797.40 1,025,010,313.70 Net cash flows from 129,733,202.60 -105,010,313.70

IV. Effect of foreign -21,267.58V. Net increase in cash -256,494,206.05 147,851,641.31Added: initial balance of cash and equivalent 442,782,360.36 294,930,719.05

Ending balance of cash and equivalent 186,288,154.31 442,782,360.36



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Legal representativeMr.Jiang Hai Supervisor in charge of accounting Mr. Tang Hongming