The Group had suffered a net loss attributable to shareholders of the Company of RMB 23.3 million

for the quarter as compared to a net profit of RMB 14.7 million in 4Q2008. This decrease was mainly

attributed to:

(a) Decrease in gross profit of RMB 5.6 million mainly resulted from further cost over-run

identified during the project commissioning (

(b) Increase in distribution expenses of RMB 1.5 million;

(c) Increase in administrative expenses of RMB 3.9 million is primarily due to the increase in loan

administration and guarantee fee from additional loans secured in 4Q2009 and legal and

professional expenses for debt collection;

(d) Increase in other operating expenses of RMB 12.7 million is due to additional allowance made

for doubtful receivables and impairment of the Group’s investment in Pizhou and allowance for

non-trade receivables from Pizhou;

(e) Increase in finance cost of RMB 5.2 million mainly due to additional loans undertaken by the

Group to finance its turnkey projects;

(f) Discounting implicit for interest-free non-current receivables of RMB 7.0 million in accordance

to FRS 39; and These are offset by