2.16 Guangxi Zhuang Autonomous Region Guangxi Huasheng Group Co., Ltd.1, affiliated with Guangxi Zhuang Autonomous Region Prison Administration Bureau, has 18 wholly-owned subsidiaries (some information indicates that there are 21 prison enterprises) Legal representative of the prison company: Qu Guohua, Chairman of Guangxi Huasheng Group Co, Ltd. His official positions in the prison system: Director and Communist Party Committee Secretary of the Guangxi Zhuang Autonomous Region Prison Administration Bureau2 The autonomous region prison administration bureau has 134 administrative staff members, and 22 staff members have been delegated to Guangxi Huasheng Group Co., Ltd. as political and legal officers. The company is an entirely state-owned company approved by the government of the Guangxi Zhuang Autonomous Region in 1996, with a registered capital of 300 million yuan and fixed assets of 1.5 billion yuan. The group enterprise has 18 subsidiaries with an existing land area of 370,000 mu, including more than 350,000 mu of farm lands and more than 10,000 mu of industrial lands. Its total industrial and agricultural output value is about 900 million yuan. Business areas: The company operates three sugar manufacturing companies that produce 150,000 tons of machine processed sugar, one diesel engine factory that produces 3,000 diesel engines and generator sets, one auto part factory that produces 10,000 tons of parts, four fruit production bases that produce 15 million kilograms of fruits, and seven breeding bases that have 150,000 pigs. It also processes tea leaves, customer-supplied materials and machines. No. Company Name of the Prison, Legal Person Legal Registered Business Scope Company Notes on the Prison Name to which the and representative / Capital Address Company Belongs Shareholder(s) Title 1 Guangxi Guangxi Zhuang Guangxi Zhuang Qu Guohua 2.77 Investment to establish, 171 Dongge “Guangxi Zhuang Autonomous Region Huasheng Autonomous Region Autonomous million purchase shares and control Road, Qingxiu Prison Administration Bureau4” is one of Chairman of Group Co., Ltd. Prison Region Prison yuan enterprises producing District, the institutions of the government of the Guangxi Huasheng Administration Administration machinery, building Nanning City Guangxi Zhuang Autonomous Region. Bureau Bureau Group Co, Ltd.; materials or in the metallurgy The main responsibility of the prison Director and and coal industries; administration bureau is to plan the Communist Party supplying and marketing of layout and configuration of the prisons Committee Secretary commodities and materials in the whole region, to prepare and take of the Guangxi and trading within the the responsibility of implementing long Zhuang Autonomous domestic market. and medium-term plans and annual plans Region Prison for the entire region’s prison-related Administration 3 work; and to organize and implement the Bureau reform of the prison system in the whole No. Company Name of the Prison, Legal Person Legal Registered Business Scope Company Notes on the Prison Name to which the and representative / Capital Address Company Belongs Shareholder(s) Title region. It is equipped with a reform through labor management office, to compile, organize and implement policies, systems and regulations. In the prison system of the whole region, to guide, supervise and inspect the “reform through labor” of the detainees, labor management of the detainees and the safety of production. It is also in charge of preparing plans for the labor arrangement of the prisoners in the entire region; it also coordinates affaires between prisons and the companies under Guangxi Huasheng Group Co., Ltd. in the entire region. The number of administrative personnel of the Prison Administration Bureau is authorized to be 134. The Prison Administration Bureau has designated 22 special political and legal affairs personnel to Guangxi Huasheng Group Co., Ltd. 2 Beihai Guixin Beihai Transfer Guangxi Lu Zhen 2.7257 Hotel industry, catering 83 Guangdong Beihai Transfer Station6 of the Guangxi Hotel Co., Ltd. Station of the Huasheng Group General manager of million services (limited to 40 seats Road, Beihai Zhuang Autonomous Region Prison Of Guangxi Guangxi Zhuang Co., Ltd. Beihai Guixin Hotel yuan or less), travel agency City Administration Bureau is located in 83 Huasheng Autonomous Region Co., Ltd. Of Guangxi services, conference services, Guangdong Road, Beihai City. Group Prison Huasheng Group; commercial services, car Administration works at Beihai rental (excluding taxi Bureau passenger service and road Transfer Station of transport), self-owned house the Guangxi Zhuang and venue rental, parking Autonomous Region services, massage services, Prison singing and dancing Administration entertainment services, No. Company Name of the Prison, Legal Person Legal Registered Business Scope Company Notes on the Prison Name to which the and representative / Capital Address Company Belongs Shareholder(s) Title Bureau5 fitness services, chess and card services; sale of clothing, pre-packaged foods and daily necessities. 3 Liuzhou Guixin Liuzhou Transfer Guangxi Chen Wei 1.8855 Accommodation services; 88 Sanzhong Liuzhou Transfer Station7 of the Hotel Co., Ltd. Station of the Huasheng Group Works at Liuzhou million Conference services; Road, Liuzhou Guangxi Zhuang Autonomous Region of Guangxi Guangxi Zhuang Co., Ltd. Guixin Hotel Co., yuan Vocational training; sale of City Prison Administration Bureau is located Huasheng Autonomous Region Ltd. of Guangxi prepackaged foods; Self- in 88 Sanzhong Road, Liuzhou City Group Prison Huasheng Group owned venue and site rental. Administration Bureau 4 Guisheng Guizhong Prison Guangxi Tang Zhi’an 5 million Planting and sale of sugar Nanqing Guizhong Prison8 of the Guangxi Agricultural Huasheng Group Worked at Guisheng yuan canes, fruits and flowers; Village, Zhuang Autonomous Region is located Development Co., Ltd. Agricultural Forest planting; Breeding Luorong in Xiushui, Luorong Town, Luzhai Co., Ltd. of Development Co., and sales of live pigs and Town, Luzhai County, Liuzhou District. Guangxi Ltd. of Guangxi silkworms; Sale of white County, sugar and brown sugar. Guangxi Huasheng Huasheng Group (inside (Closed) Group (Closed) Guizhong Prison) 5 Xinyu Yizhou Prison Guangxi Fu Ning 2 million Processing of crafts, Chengxi Yizhou Prison is located at Qingyuan Technology Co., Huasheng Group General manager of yuan electronic components, toys, Economic Town, Yizhou District, Hechi City Ltd. of Guangxi Co., Ltd. Xinyu arts and Crafts woolen knitwear and Development Huasheng Co., Ltd.; General customer-supplied materials Zone, Group manager and for garments. Qingyuan Communist Party Town, Yizhou Committee’s Deputy District, Hechi Secretary of Yizhou City Prison9 6 Jinhai Crafts Qinzhou Prison Guangxi Li Changmu 6.696 Tea planting, tea 1 Beiying Qinzhou Prison is located in Qinbei Co., Ltd. of Huasheng Group General manager of million manufacturing; Knitting Road, Qinbei District, Qinzhou City. This prison’s Guangxi Co., Ltd. Jinhai Crafts Co., yuan processing; Production, District, predecessor was Baise Prison. In 2001, No. Company Name of the Prison, Legal Person Legal Registered Business Scope Company Notes on the Prison Name to which the and representative / Capital Address Company Belongs Shareholder(s) Title Huasheng Ltd.; General processing and sale of Qinzhou City approved by the government of the Group manager of Qinzhou clothing and beddings; Autonomous Region, Baise Prison Prison’s enterprise10 Sewing processing; Weaving moved to Qinzhou City. The relocation processing; Straw and construction project consisted of the processing; Decorative prison areas, an armed police area, an lighting product processing; office area and the living quarters of the Craft processing; Sale of policemen and other staff members. daily necessities, fruits; Land Approved by the Ministry of Justice, the development and prison name was changed to Qinzhou management; House rental Prison after its relocation on November 16, 2007. Qinzhou Prison has 16 sections, 3 departments directly under the prison’s management, and 7 prison areas. The prison’s enterprise is Jinhai Crafts Co., Ltd. of Guangxi Huasheng Group.11 7 Xinqiao Pingnan Prison of Guangxi Liao Meihua 8 million Processing of knitwear, North side of After Pingnan Prison was moved to Agriculture, Guangxi Zhuang Huasheng Group General manager of yuan clothing, footwear and 324 National Guigang City13, it was renamed as Xijian Industry and Autonomous Region Co., Ltd. Xinqiao Agriculture, electronic products; Road, Genzhu Prison. Commerce Co., Industry and comprehensive agricultural Village, Ltd. of Guangxi Commerce Co., Ltd.; development; pig breeding Guigang City, Huasheng General manager and and sale; sugar cane Guangxi Group Communist Party cultivation and sale; property Committee’s Deputy management services. Secretary of Xijiang Prison12 8 Jinzhong Crafts Zhongshan Prison Guangxi Tang Renwang 3.57 Processing customer- 356 North- Established in 1952, Zhongshan Prison15 Co., Ltd. of Huasheng Group General manager of million supplied materials for Ring East is located in Zhongshan Town, Hezhou Guangxi Co., Ltd. Jinzhong Crafts Co., yuan handmade products, such as Road, City, Guangxi. It is a state organ that Huasheng Ltd.; General sweaters, gemstones, Zhongshan executes penalties according to law. In Group manager of clothing and toys; Town, 2003, the prison had three Zhongshan Prison14 Machining, transformations: the detainees’ work