公司章程英文本

ArticlesofAssociationOfChongqing,Date:[],

TableofContentsTOC\o"1-3"\h\zArticle1-NameofCompany 3Article2-NameofInvestor 3Article3-TheCompany 3Article4-PurposeandScopeofBusinessoftheCompany 4Article5-TotalAmountofInvestmentandRegisteredCapital 5Article6-EncumbranceofInvestment 6Article7-BoardofDirectors 6Article8-ManagementOrganisation 9Article9-LabourManagement 11Article10-TradeUnion 13Article11-Taxes,Finance,AuditandDistributionofProfits 13Article12-BankAccountsandForeignExchange 14Article13-Term 15Article14-EarlyTermination 16Article15-Liquidation 17Article16-Insurance 18Article17-RulesandRegulations 18Article18-Miscellaneous 19

Thepresentarticlesareherebyformulatedby.(hereinafterreferredtoasthe“Investor”)inaccordancewiththeLawofthePeople’sRepublicofChina(“PRC”)onWhollyForeign-OwnedEnterprisesandotherapplicableChineselawsandregulations,fortheestablishmentofthewhollyforeign-ownedenterprise(the“Company”)inChongqing,PRC.Article1-NameofCompanyNameoftheCompanyinEnglish: NameoftheCompanyinChinese: LegalAddress: LegalRepresentative: Position: Nationality: Article2-NameofInvestorNameoftheInvestorinEnglish: .LegalAddress: LegalRepresentative: Position: Nationality: Article3 -TheCompany3.1 LegalPerson

TheCompanyshallbealegalpersonunderthelawsofthePRCsubjecttotheprotectionandjurisdictionofPRClaw.AlloftheactivitiesoftheCompanyshallcomplywithapplicablePRClawsandregulations.

3.2 LimitedLiabilityCompany

TheCompanyshallbealimitedliabilitycompanyunderthelawsofthePRC.TheliabilityoftheInvestorforthelosses,risks,liabilitiesandanyotherobligationswhatsoeveroftheCompanyshallbelimitedtotheregisteredcapitaloftheCompany.

3.3 DateofEstablishment

ThedateoftheestablishmentoftheCompanyshallbethedateonwhichtheCompanyisissueditsBusinessLicense.

3.4 Branches

TheCompanymayestablishbranchofficesandsubsidiariesanywhereinthePRCandabroadupontheapprovaloftheBoardofDirectorsandtheChongqingForeignTradeandEconomicCommissionoritssuccessorandanyothergovernmentalagencieswhoseapprovalmayberequiredbylawwithrespecttothemattersherein(“ExaminationandApprovalAuthority”).Article4 -PurposeandScopeofBusinessoftheCompany4.1 Purpose

ThepurposeoftheCompanyshallbetostrengtheneconomiccooperationandtechnicalexchange,toimproveandpromoteretailservicesinChongqingandothercitiesinChinabyadoptingadvancedandappropriatetechnologiesandscientificmanagementmethodsandtobringsatisfactoryeconomicbenefitstotheinvestor.BusinessScope

(Thebusinessscopementionedaboveshallbesubjecttotheapprovaloftherelatedindustrialandcommercialauthority.)Article5 -TotalAmountofInvestmentandRegisteredCapital5.1 TotalAmountofInvestment

ThetotalamountofinvestmentoftheCompanyshallbe.

5.2 RegisteredCapital

TheregisteredcapitaloftheCompanyshallbe.

5.3 ContributiontoRegisteredCapital

Investor’scontributiontotheregisteredcapitaloftheCompanyshallbeincash.TheregisteredcapitaloftheCompanyshallbepaidbytheInvestorininstalments.Fifteenpercent(15%)ofthetotalamountoftheregisteredcapitalshallbepaidbytheInvestorwithinthree(3)monthsaftertheDateofEstablishment.Thebalanceoftheregisteredcapitalshallbefullypaidwiththree(3)yearsaftertheDateofEstablishmentaccordingtorelevantChineselawsandregulations. 5.4 InvestmentCertificates

TheCompanyshallretainatitsexpenseacertifiedpublicaccountantregisteredinChinatoverifythecapitalcontributionbytheInvestorandissueacapitalverificationreport.TheCompanyshallthenissueaninvestmentcertificatetotheInvestorevidencingthecontributionbytheInvestoronthebasisofsuchreport.5.5 DifferencesbetweenTotalAmountofInvestmentandRegisteredCapital

ThedifferencebetweenthetotalamountofinvestmentandregisteredcapitaloftheCompanymay,pursuanttothedecisionoftheBoardinaccordancewiththebusinessneedsoftheCompany,beraisedbytheCompanythroughloansfromdomesticand/orforeignfinancialinstitutions.

5.6 ChangesofRegisteredCapitalandTotalAmountofInvestment

Anychangesintheregisteredcapitaland/ortotalamountofinvestmentintheCompanyshallbeapprovedbyaunanimousvoteofalloftheBoardofDirectorspresentinperson,bytelephoneorbyproxyatadulyconvenedmeetingoftheBoardandsubmitted,ifrequiredbylaw,totheExaminationandApprovalAuthorityforapproval.Uponreceiptofsuchapproval,theCompanyshallregisterthechangesintheregisteredcapitaland/ortotalamountofinvestmentwiththeoriginaldepartmentofadministrationofindustryandcommerce.Article6 -EncumbranceofInvestmentTheInvestorshallhavetherighttoassign,sellorotherwisedisposeofalloranypartofitsregisteredcapitalintheCompanyupontheunanimousapprovaloftheBoardofDirectorsandthecarryingoutproceduretochangeregistrationwiththeoriginalregistrationbody.Article7 -BoardofDirectors7.1 FormationofBoard

(a) ThedateofissuanceoftheCompany’sBusinessLicenseshallbethedateoftheestablishmentoftheBoardofDirectors(“Board”).

(b) TheBoardofDirectorsshallbecomposedofthree(3)DirectorswhoshallbeallappointedbytheInvestor.TheDirectorsshalleachhaveatermofofficeoffour(4)years,andeachshallbeeligibleforconsecutivetermsofofficeuponreappointmentbytheInvestor.AnyvacancycreatedintheBoardofDirectorsshallbeimmediatelyfilledbytheInvestor.TheInvestormayatanytimeremovewithorwithoutcauseanyDirectorandappointinlieuthereofanyotherpersontoservetheremainderoftheremovedDirector’sterm.TheInvestorwillappointthechairmanoftheboardfromamongtheDirectors.

(c) SubjecttoArticle15,thechairmanoftheBoardshallbethelegalrepresentativeoftheCompanyandshallhavethepowertorepresentandactonbehalfoftheCompany.Wheneverthechairmanisunableorfailstodischargehisduties,theDirectorhavingservedthelongestontheBoardshallrepresenttheCompanyandperformthechairman’sduties.7.2 PowersofBoard

(a) TheBoardofDirectorsshallbethehighestauthorityoftheCompanyandshallhavetherighttomakedecisionsonallmattersoftheCompany.

(b) ResolutionsinvolvingthefollowingmattersshallbeadoptedonlybytheunanimousaffirmativevoteofallDirectorspresentinperson,bytelephoneorbyproxyatadulyconvenedBoardmeeting:

(i) amendmentoftheArticlesofAssociation;

(ii) increaseorassignmentofregisteredcapitalorthetotalamountofinvestment;

(iii) mergeroftheCompanywithanyothereconomicorganisation;and

(iv) termination,dissolutionorliquidationoftheCompany,orfilingfordebtorrelieforotherrelatedprotectionbyoronbehalfoftheCompanyundertheChinesebankruptcylawsoranalogouslawsorregulations.

(c) ResolutionsinvolvingthefollowingmattersshallbesubjecttoandadoptedbythesimplemajorityaffirmativevoteofallDirectorspresentinperson,bytelephoneorbyproxyatadulyconvenedBoardmeeting:(i) issuanceofanyguaranteesforthepaymentobligationsofanypersonorentityorthemakingofanyotherfinancingarrangements,theamountofwhichismorethanRMB1million;

(ii) mortgage,pledgeorgrantingofasecurityinterestorothertypesofliensinanybuilding,officespaceorotherfixedassetsorcapitalequipmentoftheCompany,theamountofwhichismorethanRMB1million;

loanand/orborrowing,theamountofwhichismorethanRMB1million;rentalagreements,theamountofwhichismorethanRMB1million;investmentand/ordisposaloftangibleandintangibleassets,theamountofwhichismorethanRMB1million;additionofitemstoorchangeofthescopeofbusinessoftheCompany;

(vii) establishmentofbranchofficesand/orsubsidiaries;(viii) changeofthelegaladdressoftheCompany;

(ix) distributionandpaymentoftheCompany’sprofits;

(x) appointment,suspensionanddismissalofthegeneralmanager,deputygeneralmanagerandchieffinancialofficer,aswellaseachoftheirscopeofauthority;

(xi) approvalofremunerationandbenefitsofthegeneralmanager,deputygeneralmanagerandchieffinancialofficerunderArticle8.1(b);

(xii) approvalofequityinvestmentwiththeamountmorethanRMB1millionbytheCompany;(xiii) contribution,useorexpenditureofthegeneralreservefund,thebonusandwelfarefundandtheenterpriseexpansionfundtobeestablishedunderPRClaw;

(xiv) approvaloftheannualbusinessplanandannualbudgetoftheCompany;

(xv) approvaloftheannualauditingreportoftheCompany;and

(xvi) othermatterstheBoardconsiderssubjecttoitsapproval.

7.3 Meetings

(a) ThefirstBoardmeetingshallbeheldwithinsixty(60)daysfromthedateoftheissuanceoftheBusinessLicense.

(b) TheBoardshallmeetatleastonceayear.BoardmeetingsshallbeheldatthelegaladdressoftheCompanyunlessotherwisedeterminedbytheBoardofDirectors.Two-thirdsofalloftheDirectorsshallconstituteaquorumforanyBoardmeeting.Ifatanyproperlyconvenedmeeting,noquorumispresent,thentheBoardshallreconveneatthesametimeandplaceoneweeklaterunlessotherwisenotifiedbythechairman.

(c) ThechairmanoftheBoardshallsettheagendaofBoardmeetingsandshallberesponsibleforconveningandpresidingoversuchmeetings.

(d) ThechairmanoftheBoardshallcallaninterimmeetingoftheBoardunderarequestthereforfromnofewerthanoneDirectorspecifyingthematterstobediscussed,andshallnotifyallDirectorsinwritingtheagendaandsubjectofthemeeting.

(e) ThechairmanoftheBoardshallsendwrittennoticetoallDirectorsatleastfourteen(14)dayspriortoanyregular,seven(7)daysinthecaseofaninterimmeetingtobeheld,statingtheagenda,timeandplaceofthemeeting.Suchnoticemay,however,bewaivedbytheunanimousconsentofallDirectorspriororatthemeetinginperson,bytelephoneorbyproxy.IfnoticeisnotwaivedbytheDirectors,aBoardmeetingshallbeconvenednolessthanfourteen(14)daysandnomorethantwentyeight(28)daysfromthedateofissuanceofthenoticeinthecaseofaregularmeeting,andnolessthanseven(7)daysandnomorethanfourteen(14)daysfromthedateofissuanceofthenoticeinthecaseofaninterimmeeting.

(f) ShouldaDirectorbeunabletoattendaBoardmeetingforanyreason,hemayappointaproxyinwritingbymailorfacsimileorhand-deliverytobepresentandtovoteatthemeetingonhisbehalf.AproxymayrepresentoneormoreDirectors.AproxyshallhavethesamerightsandpowersastheDirectorwhoappointedhim.

(g) Boardresolutionsmayalsobepassedthroughawrittencircularvoteviamailorfacsimileexchange.SuchwrittenresolutionsshallbefiledwiththeminutesoftheBoardandshallhavethesameforceandeffectasavotetakenbytheDirectorsphysicallypresentatameeting.

(h) BoardmeetingsmayalsobeheldbytelephoneorotherelectronicaudiomeanssuchthateveryonecanheareachotheratalltimesandparticipationbyaDirectororhisproxyinameetingbysuchmeansshallconstitutepresenceofsuchDirectororhisproxyinpersonatameeting.

(i) DirectorsshallserveasDirectorswithoutremunerationunlessotherwiseapprovedbytheBoard.Allreasonablecosts,includinground-tripairplaneticketsandreasonableaccommodationincurredbyanyDirectororhisproxyforattendingaBoardmeetingandforperformanceofdutiesassignedbytheBoard,shallbereimbursedbytheCompany.RemunerationandotherexpensesofeachDirectorunrelatedtoCompanybusinessshallnotbebornebytheCompany.IfaDirectoralsoassumesapositionasamanagerorstaffemployeeintheCompany,heshallbecompensatedbytheCompanyaccordingtothatposition.

(j) EachDirectorshallhaveonevote.7.4 Secretary MinutesofBoardmeetingsshallbesignedbythechairmanatthenextmeetingofDirectorsafterhavingbeenconfirmedasatrueandcorrectrecordofthepriormeetingbyamajorityoftheDirectorspresentatthepriormeetinginperson,bytelephoneorbyproxy.InordertofacilitatethesmoothconductofBoardbusiness,thechairmanor,inthechairman’sabsence,aDirectorappointedbythechairmantoactonhisbehalf,mayappointasecretaryforthepurposeofanyBoardmeeting.Thedutiesofthesecretaryshallincludetakingminutesofthemeeting,translatingorarrangingforthetranslationofdocuments,anddeliveringdocumentsrelatingtothemeetingtotheDirectors.MinutesofBoardmeetingsshallbekeptinKoreanandalsoChineseifrequestedbyanyDirector,andbeplacedonfileattheCompany’sheadoffice.

Article8 -ManagementOrganisation

8.1 ManagementOrganisation

(a) TheBoardofDirectorsoftheCompanyshallestablishamanagementorganisation,whichshallberesponsibletoandundertheleadershipoftheBoardandinchargeoftheday-to-dayoperationandmanagementoftheCompany.UnlessotherwisedecidedbytheBoard,theoperationandmanagementorganisationshallbemadeofonegeneralmanager,onedeputygeneralmanagerandonechieffinancialofficer(collectively,the“SeniorCorporateOfficers”).

(b) TheappointmentoftheSeniorCorporateOfficersandtheirremunerationandbenefitsshallbeapprovedbyamajorityaffirmativevoteoftheDirectorspresentatameetingoftheBoardinperson,bytelephoneorbyproxy.

(c) ThetermofofficefortheSeniorCorporateOfficersshallbefouryears,whichtermsmayberenewed.

(d) IfanyoftheSeniorCorporateOfficersshallresign,retire,becomeincapacitated,orisremovedfromofficebytheBoardofDirectors,theBoardshallappointareplacement.

(e) TheBoardofDirectorsmayremoveanySeniorCorporateOfficeratanytime,notwithstandinganyemploymentorservicecontractbetweentheCompanyandsuchSeniorCorporateOfficerbutwithoutprejudicetotheSeniorCorporateOfficer’scompensationfortermination(ifany).

(f) ThechairmanoftheBoardofDirectorsandotherDirectorsmayconcurrentlyserveasaSeniorCorporateOfficeraswellasanyotherofficeroftheCompany.

8.2 ResponsibilitiesandPowersofSeniorCorporateOfficers

(a) TheBoardofDirectorsshallhavethepowerbymajoritydecisiontodetermine,qualify,andchangeinanywaythepower,responsibilityandauthorityoftheSeniorCorporateOfficers.TheSeniorCorporateOfficersshallimplementthedecisionsoftheBoardofDirectorswithoutanycondition.

(b) SubjecttoanyqualificationsandlimitationsasmaybesetbytheBoardfromtimetotime,thegeneralmanagershallberesponsibleforthedailymanagementandoperationoftheCompany;thedeputygeneralmanagershall,undertheleadershipofthegeneralmanager,assistthegeneralmanagerinthedailymanagementandoperationoftheCompany;andthechieffinancialofficershall,undertheleadershipofthegeneralmanager,beresponsibleforthefinancialandaccountingmattersoftheCompany.

(c) ThegeneralmanagershallpreparetheannualbusinessplanandbudgetforeachyearforBoardapproval.UnlesstheBoardshalldecideotherwise,thegeneralmanagershallsubmiteachyear’sbusinessplanandbudgettotheBoardforapprovalnolaterthantwomonthspriortothecommencementofthefiscalyear.

8.3 Non-competition

(a) NoSeniorCorporateOfficersshallinanywayservefor,oractforthebenefitorinterestof,anyotherperson,company,unit,entityororganisationorparticipateinanyactivitiesconductedbysuchperson,company,entity,unitororganisationwhichmay,directlyorindirectly,conflictorcompetewiththeinterestorbusinessoftheCompanyortheInvestorGroupinChina,andforthepurposesoftheseArticles“InvestorGroup”meansthegroupconstitutedbytheInvestor,itssubsidiaries,itsholdingcompanies,andsubsidiariesofitsholdingcompanies.

(b) AllothermanagementpersonneloftheCompanyshallbeforbiddenfromconcurrentlyservingfororworkingatanyothercompany,unit,entityororganisationwhatsoeverunlessauthorizedbythegeneralmanagerandapprovedorratifiedbytheBoard.AnypersonnelinviolationofsuchprohibitionshallbesubjecttoimmediatedismissalbythegeneralmanagerunlesstheBoardshalldecideotherwise.8.4 Dismissal

AnySeniorCorporateOfficerwhomisusesorabuseshispositionforpersonalends,engagesingraftorbriberyinconnectionwiththeCompany’sbusiness,actsinviolationofanyBoarddecisionsorlaws,actsinanywayincompetitionwiththeCompanyasprohibitedhereunder,isseriouslyderelictinhisduties,orfailstoperformanyassignedtaskswithoutduecauseshallbedismissedbytheBoardofDirectorswithoutanycompensation.Uponsuchdismissal,theBoardshallimmediatelyappointareplacement.Anyothermanagementpersonnelwhoengageinsuchimproperactivitiesshallbeimmediatelydismissedbythegeneralmanager.

Article9 -LabourManagement9.1 GoverningPrinciple

TheCompanyshallbeentitledtofullenterpriseautonomygrantedtoforeigninvestmententerprisesandshallhavecompleteauthorityoverthehiringanddismissalofitsemployees.Therecruitment,employment,discipline,dismissalandresignationoftheemployeesoftheCompanyandtheirwages,salaries,insurance,welfarebenefitsandothermattersshallbehandledinaccordancewiththerelevantPRClaws.

9.2 LabourContract

TheCompanyshallconcludeindividualemploymentcontractswithstaffandworkersdirectly.TheCompanyshallfilesuchcontractswiththeLabourDepartmentfortherecord.9.3 LabourPlan

Thelabourplan,includingthenumberofemployeesoftheCompanyandthejobdescriptions,shallbepreparedanddeterminedbythegeneralmanager.TheemployeesoftheCompanyshallberequiredtostrictlyobservetherulesandregulationsoftheCompany.TheCompanyshallrecruitandemployonlysuchnumberofemployeesasisnecessaryforitsoperations.IncreaseordecreaseinthetotalnumberofemployeesoftheCompany,duetosuchfactorsasexpansionorreductionofbusinessorincreasedordecreasedefficiency,shallrequiretheapprovalofthegeneralmanager.

9.4 LabourandPersonnelPolicies

(a) Matterssuchasemployment,dismissal,resignation,wages,insurance,welfarebenefits,rewardanddisciplineofstaffandworkersoftheCompanyaswellastitletoandtherighttoapplyforcopyrightprotection,patentprotectionandotherrightsregardinginventionsandworksofauthorshipinthecourseofemploymentshallbesetbydecisionoftheBoardandstipulatedinthelabourandpersonnelpoliciesoftheCompanyandthelabourcontractsbetweentheCompanyandtheemployees.

(b) TheinitiallabourandpersonnelpoliciesoftheCompanyshallbepreparedbythegeneralmanagerforapprovalbytheBoard.ThesepoliciesshallbeconsistentwithapplicablelawsandregulationsofChina.

(c) ThegeneralmanagershallimplementhiringpolicieswherebyallPRCemployeesoftheCompanyshallbeselectedonthebasisofexaminationandshallhavethemostcompetitivemeritsandqualifications.Inthisregard,uponthereceiptofnecessaryapprovals,theCompanymayhirequalifiedpersonnelfromanywherewithinChinaand,ifnecessary,fromforeigncountries.

(d) TheCompanyshallsignnon-competitionandconfidentialityagreementswithitsemployeesinaccordancewiththeprinciplesherein.

9.5 PowerofGeneralManager

SubjecttoanylimitationstheBoardmayset,thegeneralmanagershallhavethepowerto,accordingtothedegreeofseriousnessofthecase,givewarnings,recorddemerits,deductwages,dismissorotherwiseremove,anystaffmemberorworkerappointedbyhimwhohasviolatedthetermsofthelabourcontractortherules,regulationsorlabourdisciplineoftheCompanyorapplicablelaw.

Article10- TradeUnionThestaffandworkersoftheCompanymayestablishatradeunioninaccordancewiththeLawofthePeople’sRepublicofChinaonWhollyForeign-OwnedEnterprisesandtheTradeUnionLawofthePRC.Activitiesofthetradeunionshallbeconductedafternormalworkinghours,shallnotinterferewiththenormaloperationsoftheCompanyandshallconformwiththerelevantregulations.IfatradeunionisestablishedbythestaffandworkersoftheCompany,theCompanyshallpaytwopercent(2%)ofthetotalamountofwagesreceivedbytheemployeesoftheCompanyintotheCompany’stradeunionfundforsuchtradeunion’suseinaccordancewithapplicablelawsofthePRConthemanagementoftradeunionfunds.

Article11-Taxes,Finance,AuditandDistributionofProfits11.1 Taxes

(a) TheCompanyshallpaytaxesinaccordancewithrelevantPRClawsandregulations.TheCompanyshallapplyforallpreferentialtaxandcustomstreatmentavailableunderthePRClaw.(b) TheCompanyshallapplyforallreductionsoforexemptionsfromrelevanttaxes,dutiesandotherlevieswhicharenowavailableorwillbecomeavailableforsuchwhollyforeignownedenterprisessuchastheCompanyorfortheInvestorunderanylawsandregulationsofthePRC.11.2 Finances

(a) ThefinancialandaccountingaffairsoftheCompanyshallbehandledconsistentlywiththefinancialandaccountingaffairsoftheInvestorGrouptotheextentnotinconsistentwiththeForeignInvestmentEnterpriseAccountingSystemofthePRCandFinancialAdministrationRulesofForeignInvestmentEnterprisesofthePRC,whichareformulatedbytheMinistryofFinanceofthePRC.TheCompanyshallpayalltaxationaccordingtorelevantlawsandregulationsofthePRC.(b) ThefiscalyearoftheCompanyshallstartonJanuary1ofeachcalendaryearandendonDecember31ofthesameyear.ThelastfiscalyearoftheCompanyshallstartonJanuary1oftheyearofterminationorexpirationandendonthedateofterminationorexpirationoftheCompany.(c) TheCompanyshalladopttheinternationallyrecognizedaccrualbasisanddebitandcreditaccountingsystem.Allaccountingrecords,vouchers,booksandstatementsoftheCompanyshallbepreparedandkeptbothinChineseand,ifnecessary,Koreanaswell.TheCompanyshalluseRenminbiasthebasebookkeepingcurrenciesforitsfinancialstatements.Theannual,quarterlyandmonthlyreportsshallbeapprovedandjointlysignedbythegeneralmanagerandthechieffinancialofficerandshallbepreparedandkeptinbothChineseandKorean.ThechieffinancialofficershallberesponsibleforformulatingtheaccountingandadministrativemeasuresregardingtheCompany’sfinancialaffairs,whichshallbesubmittedtotheBoardforapproval.

11.3 Audit

TheCompanyshallengagetheaccounting/auditingfirmengagedbytheInvestorGrouporotherwiseselectedbytheBoardtoexamineandverifytheaccountsandbooksoftheCompanywithinthree(3)monthsfollowingtheendofeachfiscalyear.TheannualauditreportissuedbysuchfirmshallbesubmittedtotheBoard.TheCompanyshallmakeavailableallofitsaccountingbooksandrecordstosuchauditorandprovideconveniencefortheauditing.

11.4 AllocationtoThreeFunds

AfterpaymentoftaxationbytheCompany,theBoardshalldeterminetheamountfromtheafter-taxnetprofitstobeallocatedintotheCompany’sreservefund,enterpriseexpansionfund,andtheemployeebonusandwelfarefundtobesetupinaccordancewithPRClawsandregulations.Theannualallocationstoandprescriptionofanylimitfortheaforesaidfundstobepaidoutoftheafter-taxnetprofitsshallbedeterminedbytheBoardinlightofthebusinessandfinancialconditionsoftheCompany.11.5 DistributionofProfits(a) TheBoardofDirectorsmaydistributetheprofitsoftheCompanyasandwhentheydeemappropriate.(b) IftheCompanycarriesanylossfromanypreviousyear,theprofitsofthecurrentyearshallfirstbeusedtocoversuchloss.Noprofitsshallbedistributedorre-investedunlessanduntilalldeficitsfromanypreviousyearsisfullymadeup.AnydistributableprofitsretainedbytheCompanyandcarriedoverfromanypreviousyearsthatarenotre-investedmaybedistributedtogetherwiththedistributableprofitsofthecurrentyear.Article12- BankAccountsandForeignExchange12.1 Accounts

TheCompanyshallopenRenminbidepositaccountsandforeignexchangedepositaccountswithfinancialinstitutionsinChina.TheCompanymayalsoopenforeignexchangedepositaccountswithforeignfinancialinstitutionsinforeigncountriesasdesignatedbytheBoardofDirectorsuponapprovalbytheExaminationandApprovalAuthority,ifrequired.

12.2 ForeignExchange

(a) TheCompanyshallhandleitsforeignexchangemattersinaccordancewithapplicablePRCforeignexchangelawsandregulations.

(b) InordertobalancetheforeignexchangeneedsoftheCompany,theCompanymayadoptanymeasureandengageinanyactivitypermittedunderChineselaw.

(c) TheCompanyshalluseitsforeignexchangeaccordingtothefollowingpriorityunlessotherwisedeterminedbytheBoardofDirectors:

(i) PaymentofcompensationtotheCompany’sexpatriatestaff;

(ii) Paymentformaterials,equipment,andservicestheCompanyimportsfromabroad;

(iii) PaymentforanyadministrativeexpensestheCompanyincurswhichrequirefo