1. May,2009 Innovation of Business Models Promote the Rapid Development of Yingkou Port Yingkou Port Group Co., Ltd. Xiuli Zhang Tel:86-417-6268758 E-mail ： zxl@ykport.com.cn

2. Yingkou Port, a dragon flying along the Chinese coast, arises from the beautiful Bohai Bay and richful East Liaoning Peninsula. Within 20 years, Yingkou Port developed very quickly and has created a miracle of rapid development in ports. from a river port with less than 1 million tons annual turnover to a international port with 170 million tons annual turnover.

3. Yingkou Port —— the Most Convenient Seaport in Northeast China Innovation of Business Models Yingkou Port Introduction

4. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port Introduction Yingkou Port is the nearest seaport to Northeast China and east Inner Mongolia. It has three port area, Yingkou Port area, Bayuquan Port area and Fairy Island Port area, with 34 square kilometers land area, 80 square kilometers planning land area, and 61 productive berths. Bayuquan Port has a 230 meters ship channel, ﹣ 18.5 meters water depth and can handle more than 10,000 vessels per year. In the year of 2007, the handing capacity of Yingkou Port reached 122 million tons, the port ranked 10th among national coastal harbors. In 2008, the handling capacity reached 150 million tons. In 2010, it is expected to be 200 million tons.

5. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port Introduction The domestic container line of Yingkou Port has already covered all the main coastal seaports of China. Meanwhile, It has opened several direct international regular container ship lines to Japan, South Korea and Southeast Asia. Containers can also be transhipped to any other international ports through domestic branch ship lines. In the year 2008, its container turnover reached 2,036,000 TEU. In 2010, it is expected to reach 3 million TEU.

6. Yingkou Port —— the Most Convenient Seaport in Northeast China Development History Port Area Constitution Advantage in Location Main Function Matching Function Yingkou Port Introduction

7. Yingkou Port —— the Most Convenient Seaport in Northeast China Development History Yingkou Port Introduction

8. Yingkou Port —— the Most Convenient Seaport in Northeast China Development History The handling capacity reached 937,000 tons. The berthing of "Arctic Star" Ferry is the token of Bayuquan port ’ s putting into use. The handling capacity reached 937,000 tons. The berthing of "Arctic Star" Ferry is the token of Bayuquan port ’ s putting into use. —— In 1986 The handling capacity reached 11,350,000 tons. The handling capacity firstly was over one hundred thousand tons since Yingkou port opened its doors to trade. The handling capacity reached 11,350,000 tons. The handling capacity firstly was over one hundred thousand tons since Yingkou port opened its doors to trade. —— In 1995 The handling capacity reached 59,770,000 tons. Container turnover reached 584,000 TEU. The handling capacity reached 59,770,000 tons. Container turnover reached 584,000 TEU. —— In 2004 —— In 2004 The handling capacity reached 122 million tons. Container turnover reached 1,371,000 TEU. Yingkou Port became the 10th coastal seaport with hundred million tons turnover in China 。 The handling capacity reached 122 million tons. Container turnover reached 1,371,000 TEU. Yingkou Port became the 10th coastal seaport with hundred million tons turnover in China 。 —— In 2007

9. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port opened its door to trade in April 3, 1861 and already has more than 140 years history. It is the first foreign port opened in Northeast China. Bayuquan Port area stared construction in 1984 and has created a new situation of Yingkou Port development. Development History

10. Yingkou Port —— the Most Convenient Seaport in Northeast China In the 21st century, Yingkou Port has entered a new stage of rapid development through advanced planning and advanced development. Port function is approaching perfection day by day. Synthetic logistics service is becoming better steadily. The handling capacity is growing sharply at the same time. In the year 2007, its turnover reached 122 million tons, ranked the 10th port among the coastal seaports in China. It has become a vigorous dragon in Chinese coastal seaports. Development History

11. Yingkou Port —— the Most Convenient Seaport in Northeast China Table of Yingkou Port Turnover and Growth Rate in Recent Years Development History

12. Yingkou Port —— the Most Convenient Seaport in Northeast China

13. Yingkou Port has opened its door to trade for more than 140 years and has established transportation business relationship with more than 50 countries and 140 regions. Development History

14. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port Introduction

15. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port area (old port area of Yingkou Port) located in the entrance of Liaohe River, with 1 square kilometer land area and 1.1 square kilometers water area. It can berth 7000 tons ship. The main cargo handled in Yingkou Port area is ceramics, steel, grain, coal, iron ore, fertilizer and so on. It ’ s the largest ceramic transit base in Northeast China. ◆ Yingkou Port Area ◆ Port Area Constitution

16. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Bayuquan Port Area ◆ Bayuquan Port area got government ’ s construction ratification in 1982 and stared construction in 1984. More than 20 years development has made it a main port area of Yingkou Port, with 18 square kilometers land area, 21.3 square kilometers planning water area. Now it possesses 8 dedicated wharves, i.e. container, iron ore, coal, grain, automobile (rolling), refined oil, liquid chemicals, large equipment and crude oil. Port Area Constitution

17. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Fairy island port area ◆ The Fairy Island Port area with 15 square kilometers land area and 12.7 square kilometers planning water area is under construction and has put into use partly, which carry the ball of transiting crude oil, refined oil and liquid chemicals in Northeast China. Port Area Constitution

18. Yingkou Port —— the Most Convenient Seaport in Northeast China Advantage in Location Yingkou Port Introduction

19. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port is the nearest seaport to most area of Northeast China and east Inner Mongolia. Advantage in Location 160 km from Dalian 200 km from Shenyang 520 km from Changchun 720 km from Harbin Core economic hinterland 蒙 古蒙 古 Radius include three provinces in Northeast China, east Inner Mongolia, Russia and Mongolia

20. Yingkou Port —— the Most Convenient Seaport in Northeast China Main Function Yingkou Port Introduction

21. Yingkou Port —— the Most Convenient Seaport in Northeast China The main cargo handled in Yingkou Port is: fertilizer, non-metal, steel, iron ore, coal, grain, refined oil, chemical products, domestic trade vehicles, container and so on. There among: Market shares of fertilizer, non- metal, domestic trade container, steel, and iron ore rank first among the ports of Northeast China. Main Function

22. Yingkou Port —— the Most Convenient Seaport in Northeast China Main Function Container Wharf Dedicated Ore Wharf Dedicated Coal Wharf Dedicated Grain Wharf Automobile (rolling) Wharf Refined Oil and Liquid Chemicals Wharf Large Equipment Wharf Dedicated Crude Oil Wharf Bulk Cargo Wharf

23. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Container Wharf ◆ The dockside water depth of the container terminal is ﹣ 15.5 meters, with facilities to load and unload the fifth- generation container ships and handle 200 vessels per month. The domestic container turnover of Yingkou Port ranks the second among Chinese coastal ports. It has become the hub port of Chinese container transportation and turnover is expected to reach more than 3 million TEU in 2010.

24. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 4 million square meters container yard ◆

25. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 200 thousand tonnage ore wharf ◆ The dockside water depth of ore wharf is ﹣ 20 meters and 250,000 tons ship can berth there. It has 7 sets of gantry crane and 3 sets of ship unloader with average unloading rate of 7000 tons per hour. Annual turnover of ore wharf is 30 million tons.

26. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 1 million square meters storage yard for ore ◆

27. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Dedicated Coal Wharf ◆ The Dedicated Coal Wharf has 7 coal berths. Automatic self-unload coal berth was fully designed by Chinese ( dockside water depth is ﹣ 15.5 meters, production rate is 2300 tons per hour); 200 thousand tonnage berth can load and unload CAPE ships ( dockside water depth is ﹣ 20 meters); The other 5 berths can load and unload 150 thousand tonnage coal ships. Annual turnover of coal wharf is 40 million tons.

28. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 2 million square meters storage yard for coal ◆

29. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Dedicated Grain Wharf ◆ The dockside water depth of the ore wharf is ﹣ 13.5 meters and it can berth 80,000 tonnage ship. 2 sets of ship loader, 1 set of ship unloader( transmission capacity is 3000 ton/h ),400 thousand tonnage grain silo and common warehouse stand beside the berth. The general bulk cargo wharf can also operate grain. The annual turnover of ore wharf is 10 million tons.

30. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Grain silo ◆ ◆ Storage situation of grain warehouse ◆ ◆ Dedicated bulk grain transporter ◆ ◆ Bag grain operation alongside ship ◆

31. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Automobile (rolling) wharf has 200 thousand sets annual capacity ◆

32. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 100 thousand square meters storage yard for commercial automobile ◆

33. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Refined Oil and Liquid Chemicals Wharf ◆ 80,000-ton, for oil and chemicals, 30,000 tons for oil and 30,000 tons for oil chemical each a berth, it will also use for operating diesel, petrol, alcohol, sulfuric acid, xylene, ethanol and other refined oil and liquid chemicals. An annual handling capacity is more than 10 million tons and may increase every year.

34. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Refined oil tank terminal ◆

35. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Large Equipment Wharf ◆ Port area currently has each a floating cranes of 350 tons and 520 tons, thirteen offshore cranes of 68 tons and one gantry crane of 350 tons.It can be used for hoisting equipment on shore side and assemblying equipment on the site.

36. Yingkou Port —— the Most Convenient Seaport in Northeast China Fairy Island area of Yingkou port is in process of developing and constructing of an immortal crude oil terminal, which should have the capacity of 300,000 tonnage, and crude oil, refined oil and liquid chemicals tank terminal. These tanks should have ability to become an important base for storage and transit of oil and chemicals and should have the capacity to handle twenty million tons/year. ◆ Dedicated Crude Oil Wharf ◆

37. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Bulk Cargo Wharf ◆ Yingkou Port has 30 general-purpose bulk terminals, operation cargo types including :steel, timber, grain,fertilizer and so on, transport capacity of bulk and miscellaneous cargo is increasing year by year

38. Yingkou Port —— the Most Convenient Seaport in Northeast China Matching Function Yingkou Port Introduction

39. Yingkou Port —— the Most Convenient Seaport in Northeast China Matching Function International logistics business in bonded mode Futures commodity exchange designated delivery business Logistics Park to carry out diversified logistics service Container train to promote unite of ocean shipping and rail transport Information technology to enhance the capacity of port services

40. Yingkou Port —— the Most Convenient Seaport in Northeast China Carry out international logistics business in bonded mode Aim at the demand of enterprises at home and abroad for international logistics model, Yingkou port give full functional advantages of Bonded logistics Center of 500,000 square meters,to carry out bonded warehousing, international logistics and distribution, simple processing and value-added services,import and export trade and port function, Logistics information processing and advisory services business and so on, providing a wide range of international logistics services.

41. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Corn futures ◆◆ sugar futures ◆ Futures commodity exchange designated delivery business To be delivery database of corn futures of Dalian Commodity Exchange and of sugar futures of Zhengzhou Commodity Exchange.

42. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Logistics park of 300 million square meters ◆ Logistics Park to carry out diversified logistics services

43. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ 300 万平方米的物流园区 ◆ ◆ Thermostat, refrigeration,freezer and Processing base ◆ ◆ warehouse shelf ◆ ◆ General bulk grain storage warehouse ◆ ◆ Specialized steel base ◆ Logistics Park to carry out diversified logistics services

44. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou port actively promotes international multimodal transport logistic in modern mode of use, now open for more than 30 train containers, providing wide range of services in three main province, these three province are Northeast China, Mongolia, four league east, Russia and Other places and form a hinterland unite transportation network. It ’ s effective for customers to reduce logistics costs. Container train to promote unite business of ocean shipping and railage

45. Yingkou Port —— the Most Convenient Seaport in Northeast China ◆ Information platform of E-commerce, E-port and E- port business ◆ Structure platform to provide logistics information service

46. Yingkou Port —— the Most Convenient Seaport in Northeast China Innovation of Business Models Yingkou Port Introduction

47. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port developed from a small river port, which was not known for hundred years and was primarily used for domestic propose, into an international port with throughput capacity of more than 100 millions. Time change from single warehouse, where products were Loaded and unloaded in an undeveloped warehouse system to a developed big international port, which benefit from the norm of management with complete hardware, powerful advantages, and development strategic of advance planning, construction, development and from business model innovation. Business model innovation

48. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port,through inland points, strengthen strategic cooperation and structures, such as trading platform business model and realize the logistics chain source control, and participate in supply chain management, and form mass of the cargo flow, capital flow, information flow of the assembly. Yingkou Port has gradually become node which supply chain must pass through. Business model innovation

49. Yingkou Port —— the Most Convenient Seaport in Northeast China Construction of inland logistics network points 适度超前提高港口服务能力 With clients to participate in supply chain management Construction of market platform to participate in the supply chain Business model innovation

50. Yingkou Port —— the Most Convenient Seaport in Northeast China Construction of inland logistics network points With the improvement of dry port features, Shenyang dry port will have the functions of port, international and domestic Container transport and transit and the third-party logistics, where the port related businesses of domestic and international container can be handle at one time, including all operating procedures of logistics service of Yingkou Port to be carry out in Shenyang dry port. Realization of extension of Yingkou Port function to the inner land

51. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port forwards the port functions, establishment dry ports in Changchun, which marking Yingkou Port has truly become its own port in Jilin Province. This will reduce the customer ’ s integrated logistics costs, from the source to participate in supply chain management is important. Construction of inland logistics network points

52. Yingkou Port —— the Most Convenient Seaport in Northeast China April 2007,Yingkou Port acquisition of 710 acres in offshore Shenyang Economic Zone and began building a dry port logistics, including two warehouses of 5200 square meters and supporting mechanical equipment,which has been put into operation at the end of 2008 to use. For improvement of economic construction and opening-up services of the north-east and eastern regions of inner Mongolia and reduction of cost of integrated logistics, Yingkou Port moved onward port function,constructing in succession dry ports in Harbin, Tong Liao, Jilin and other places too. Construction of inland logistics network points

53. Yingkou Port —— the Most Convenient Seaport in Northeast China The rapid development of Yingkou Port is inseparable from the innovation of the business model and from continuously strengthen cooperation in the course of business with large enterprise groups in various fields. Strategic cooperation with major clients of the main cargo category of port. With clients to participate in supply chain management

54. Yingkou Port —— the Most Convenient Seaport in Northeast China ★ Coal The special coal joint venture company of Yingkou Port and Huaneng Group has put into use, which act as an important distribution center, gathering transportation and transit of coal into Yingkou Port from Eastern Inner Mongolia, northeast to southward coastal region, which has played an important role for the growth of Yingkou Port throughput 。 With clients to participate in supply chain management

55. Yingkou Port —— the Most Convenient Seaport in Northeast China Huaneng Power International Co Ltd. establish joint venture company with Yingkou Port Group named as Huaneng Yingkou Port Co., Ltd., which gather the coal transported from Northeast China, Inner Mongolia to coastal region of southward into Yingkou Port and bring more than 1,000 tons increase of cargo. With clients to participate in supply chain management

56. Yingkou Port —— the Most Convenient Seaport in Northeast China ★ Steel Mine In 2008, Yingkou Port signed a strategic cooperation framework agreement with Anshan Iron and Steel Group and signed a Anshan Iron and Steel Pier cooperation agreement.As a result, the Yingkou Port throughput of foreign trade, in 2008,got 52 percent increase over the same period last year. With clients to participate in supply chain management

57. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port Group establishes strategic cooperative relationship with Anshan Iron and Steel Group for the full use of the port logistics industry to promote port development. The establishment of Iron and Steel factory adjacent to Port area bring into Yingkou Port increase by more than 3,000 million tons of throughput. With clients to participate in supply chain management

58. Yingkou Port —— the Most Convenient Seaport in Northeast China ★ Container Yingkou Port Group cooperate with COSCO and other large Shipping Container Company and set up in joint venture mode Yingkou Container terminals Company and Yingkou New Century Container Terminal Company, which played positive role in promotion of fast growth of container throughput. With clients to participate in supply chain management

59. Yingkou Port —— the Most Convenient Seaport in Northeast China Set up in joint venture mode Yingkou Container Terminal Company by China Ocean Shipping Corporation and Yingkou Port Group. （ＹＫＣ Ｔ） Set up in joint venture mode Yingkou New Century Terminal Company (NCCT) by the China Shipping Group and Yingkou Port Group. （ＮＣＣ Ｔ） With clients to participate in supply chain management

60. Yingkou Port —— the Most Convenient Seaport in Northeast China ★ Grain In the past few years, Yingkou Port in cooperation with the China Grain Reserve Corporation, the rear of the grain terminal and the utilization of the grain silo markedly improved.2008, as a result of rotation of the national grain reserves, Grain storage of the Northeast and Inner Mongolia are transferred to the South in succession. The grain throughput of Yingkou Port, therefore, got growth of 67.9 percent over the same period last year. With clients to participate in supply chain management

61. Yingkou Port —— the Most Convenient Seaport in Northeast China Set the strategic transportation system Yinkou Port cooperate with the Harbin Railway Bureau and Shenyang Railway Bureau in opening more than 30 container train and open a major thoroughfare from Manchuria to Europe,which construct railway network for Economic hinterland. With clients to participate in supply chain management

62. Yingkou Port —— the Most Convenient Seaport in Northeast China In order to carry out the international multimodal transportation, Yingkou Port had a strategic cooperate with Dalian International Airport in setting up a Bayuquan goods station for Dalian airport to achieve an extension of the airport function and improve inter- modal function. With clients to participate in supply chain managerment

63. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port, in the last decade of development, by exploring,insists in cooperating with large enterprise group,complementary advantages and common developments. Following cooperation with COSCO Group,Huajin Group, Heilongjiang Agricultural Rection Group and other large enterprises, establish strategic cooperative partnership in 2008, with Anshan Iron and Steel Group, Shenyang Railway Bureau, Harbin Railway Bureau to develop and construct and operation of Yingkou Port. It is by virtue of the strategic partnership of these heavyweight, the Yingkou port, when the financial crisis to hit calmly. With clients to participate in supply chain managerment

64. Yingkou Port —— the Most Convenient Seaport in Northeast China With clients to participate in supply chain managerment

65. Yingkou Port —— the Most Convenient Seaport in Northeast China Market structures to participate in the supply chain platform Construction of steel, coal, fruits, vegetables, wood products and other key market categories, are ready for trading platforms. The formation of cargo flow, capital flow and information flow of the assembly, so that Yingkou port gradually become an essential mode.

66. Yingkou Port —— the Most Convenient Seaport in Northeast China Yingkou Port steel market will be built from the four centers (Trading center information center, logistics center and service center). The functions module to build will become integrated professional procurement base. Market structures to participate in the supply chain platform

67. Yingkou Port —— the Most Convenient Seaport in Northeast China Steel market mode of commercial operation ： 1.The northeastern region to attract iron and steel production and processing enterprises in setting up order of goods agency in International Steel purchase base constructed in steel market. Market structures to participate in the supply chain platform

68. Yingkou Port —— the Most Convenient Seaport in Northeast China 2. Set up Central Business District of International Iron and Steel circulation to promote the use of steel market trade platform by the large number of steel companies, production enterprise, end user for completion of ordering, distribution, direct marketing, transportation, distribution,Delivery, billing transactions and the achievement of logistics, business flow,information flow, capital flow to all- round flow and the formation of an open platform for public service. Market structures to participate in the supply chain platform

69. Yingkou Port —— the Most Convenient Seaport in Northeast China 3.Through the industrial chain of operations,realization of value-added services and generate economic benefits, while improving the capacity of Yingkou Port transportation to enhance the core competitiveness of the port operations. Market structures to participate in the supply chain platform

70. Yingkou Port —— the Most Convenient Seaport in Northeast China Contact us http://www.ykport.com.cn Yingkou Port Group Co., Ltd. Tel ： 86-417-6269335 Fax ： 86-417-6151523 E-mail:ykplc@ykport.com.cn Yinkou Port Group Logistics Company Tel ： 86-417-6268750 Fax ： 86-417-6268750 E-mail:bswl@ykport.com.cn