The company is the largest listed company in China's hotel and catering industry, mainly engaged in hotel management and catering business. The company has a total share capital of 600 million shares, net assets of 2.04 billion yuan, total assets of 2.53 billion yuan, and 92 star-rated hotels under management with 26,000 rooms. By implementing the development strategy of internationalization, branding and marketization, the company will take the star-level hotel management business as the direction of development, and will participate in the management business of economy hotels through Jinjiang Star Hotel Co., Ltd. and continue to expand the investment and operation of the chain of Chinese and Western fast-food, so as to further enhance the company's core competitiveness in the areas of management, branding, network, talents, and so on. The hotel management company has shown good development in talent building, brand building, network building and quality standard management.

Shanghai Jinjiang International Hotel Development Company Limited (the "Company") was established on June 9, 1993 in Shanghai. As at December 31, 2007, Shanghai Jinjiang International Hotel (Group) Company Limited ("Jinjiang Hotel Group") held 258,533,724 limited shares and 44,932,040 unlimited shares of the Company, accounting for 50.31% of the total share capital, and was the controlling shareholder of the Company. Jinjiang International (Group) Co. Jinjiang International (Group) Company Limited ("Jinjiang International") is the controlling shareholder of Jinjiang Hotel Group. As at December 31, 2007, the total share capital of the Company was RMB603,240,740. Share capital structure of the Company. On January 23, 2006, the Company carried out an equity distribution reform whereby all non-circulating shareholders paid 3.1 consideration shares for every 10 shares to the outstanding A shareholders registered on the share registration date (January 19, 2006) as stipulated in the equity distribution reform plan. As at December 31, 2007, 259,313,724 shares held by the former non-circulating shareholders with limited selling conditions were not yet outstanding in accordance with the agreed conditions of limited selling. As approved by the general meeting of the Company and the Board of Directors, during the year, the Company and Jinjiang Hotel Group increased their investment in Shanghai Jinjiang International Hotel Investment Company Limited ("Jinjiang Hotel Investment Company", an associate in which the Company has invested 20% of the total investment) in accordance with the proportion of their original capital contributions. The Company increased its investment in the Hotel Investment Company with part of the overall assets and equity of the economic hotels owned by the Company and part of the cash.