In the first quarter of 2007, China's power demand grew by 14.9% year-on-year, of which the growth rate of power demand from the secondary industry was 16.9%.

In 2006, Jilin's newly-increased power installed capacity rose by 10.6%, much lower than China's average level (20.3%). And the growth rates of newly-increased power installed capacity in other regions of northeast China including Liaoning province were all lower than China's average level in 2006.

Growth Rate of China's Power Installed Capacity by Region, 2006

Attributable Installed Capacity of the Company, 2006-2010

2 Power demand in the company's serving regions
2.1 Remarkably increased GDP of the secondary industry in serving regions
2.2 Utilization hours in serving regions rebounds
2.2.1 Rate of decline in utilization hours
2.2.2 China's generator set utilization hours are expectable to rebound in 2007
2.2.3 Utilization hours in the company's serving regions can be expected to rebound and keep ahead in China

3 Prospect of the company
3.1 Attributable installed capacity in the forthcoming 4 years
3.2 Profitability of the company's current power plants
3.3 Income from main business

4 Analysis of enterprise risk