Recently, the extraordinary shareholders’ general meeting of Everbright Securities Co., Ltd reviewed and approved the Proposal on Initial Public Offering, according to which Everbright Securities will issue no more than 520 million A shares during the public offering.

　　According to Mr. Tang Shuangning, Chairman of China Everbright Group and Everbright Securities Co., Ltd, the approval of IPO plan and relevant proposals marks a significant stride toward the public offering of Everbright Securities. The decision to approve the public offering of Everbright Securities is an important strategic deployment of China Everbright Group in building the first China-invested financial holding company of comprehensive operation, and has great significance for the fast and steady development of China Everbright Group and for the construction of financial holding companies in Chinese financial sector. Mr. Tang requests Everbright Securities to pressingly participate in the issuance tutorship and prepare the IPO application materials to achieve early listing.

　　According to the proposal, the Shareholders’ General Meeting authorizes the Board of Directors of Everbright Securities to adjust the concrete placement arrangement in accordance with the requirement of regulatory authorities, the actual situation in the securities market, the subscription intentions of investors, the regulations newly issued and the funding needs of Everbright Securities. Funds raised during IPO will be used to replenish the share capital of Everbright Securities after deduction of relevant expenses. The above plan shall be reported to China Securities Regulatory Commission for approval.

　　【Background: Incorporated in 1996, Everbright Securities Co., Ltd is a nationwide comprehensive securities company invested and controlled by China Everbright Group and has registered capital of RMB2,898 million after the capital injection in the first half of 2007. According to the unaudited financial statements of Everbright Securities, in the first six months, Everbright Securities realized operating income (inclusive of investment revenues) of RMB4,658 million and profit before tax of RMB3,247 million, representing an increase of 5.43 and 9 times respectively year on year. In the first half, the Company completed RMB170 million-worth transaction of equity fund warrants, and posted an income of RMB1,696 million, with the market share reaching 3.25%. Currently, the Company manages RMB7.2 billion assets under custody, accounting for 19% of the total market scale. It realized RMB119 million of operating income and investment revenue from January to June, and posted operating profits of RMB104 million. As of June 30, 2007, Sunshine No.1 reported accumulated net value of RMB2.45 and a scale of RMB3,322 million; while Sunshine No.2 posted accumulated net value of RMB2.18 and a scale of RMB3,678 million. Everbright Securities realized income of RMB234 million on warrants in 2005, RMB221 million in 2006 and RMB796 million in the first six month of 2007 since it was approved to issue warrants.】