小天鹅Ｂ2006年度中期报告摘要（英文版）

current capital and capital occupation with Nanjing SVT Group Cooperation, the actual controller of the Company before the Company purchased the aforesaid two companies:

1. The current capital between Ningbo Xinle Electrical Appliance Co., Ltd. and Nanjing SVT Group Cooperation (the principal shareholder of the Company) has happened in Dec. 2004 and May 2005, which Nanjing SVT Group Cooperation borrowed RMB 45 million from Ningbo Xinle Electrical Appliance Co., Ltd.. As at the end of the report period, the balance of capital occupied by Nanjing SVT Group Cooperation was RMB 45 million.

2. The current capital between Little Swan (Jingzhou) Sanjin Electrical Appliance Co., Ltd. and Nanjing SVT Group Cooperation has happened in Apr. 2005 and Jun. 2005, which Nanjing SVT Group Cooperation borrowed RMB 51 million from Little Swan (Jingzhou) Sanjin Electrical Appliance Co., Ltd.. As at the end of the report period, the balance of capital occupied by Nanjing SVT Group Cooperation was RMB 51 million.

The Board of Directors of the Company adopted the measures aiming at the above current capital:

The Board of Directors of the Company has came to the following common understanding after the Board received the investigation report of the Company on capitals of Jingzhou Sanjin and Ningbo Xinle occupied by SVT Group

1. In view of RMB 51 million of Jingzhou Sanjin and RMB 45 million of Ningbo Xinle borrowed by SVT Group, the Board of Directors of the Company has asked for Little Swan Group to charge SVT Group to refund the aforesaid borrowings before the time limit (namely Oct. 31, 2006). In case of SVT Group can not repay during the time limit, then Little Swan Group purchased back equity of Ningbo Xinle and Jingzhou Sanjin, and returned the purchasing payment to the said two companies. Little Swan Group issued the written commitment with the aforesaid event and was willing all legal responsibility.

2. The Board of Directors demanded the Company’s executive management team to conduct the all-around self inspection with non-operating current capital between Little Swan Group, SVT Grout and its subsidiaries and the Company and its subsidiaries. The management team has submitted the relevant written commitment to the Board of Directors: as at present, the Company had no other capital occupation except for the above current capital.

6.1.2 Sales of assets or assets sold

□Applicable √Inapplicable

6.1.3 Progress of these events after the publication of the Assets Reorganization Report or public notices on the purchases or sales of assets, as well as the influences of these events on the operation results and financial status of the Company in the report period

□Applicable √Inapplicable

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