(“INTERPRETATION”)(关于印发《企业会计准则解释第 6 号》的通知), ISSUED BY THE MINISTRY OF FINANCE (“MOF”)

In the context of a merger of enterprises under common control (i.e. both the merged and the acquiring companies are controlled by the same entity –“the ultimate controller”- before and after the merger, and this control is not temporary), t he Interpretation clarifies how to value the assets and liabilities of the merged entity in the accounts of the company resulting from the merger.

In line with "Accounting Standards for Enterprises No. 20 – Enterprises’ Merger”, when the merged entity was under common control since its incorporation, its assets and liabilities shall be assessed at their value in the merged entities’ books on the date of the merger.

Under the scenario that the ultimate controller had acquired its stake in the merged entity from a third party, the merged entity’s assets and liabilities shall be assessed at their value in the consolidated books.

Date of issue: January 17, 2014. Effective date: January 17, 2014.