Administrative Division refers to the division of adminis trat ive areas by the state. The Const itut ion of the People's
Republic of China stipulates that the administrative areas in China are divided as: 1) The whole country is divided into
provinces, autonomous regions and municipalities directly under the central government;2) Provinces and autonomous
regions are divided into autonomous prefectures, counties, autonomous counties and cities ; 3) Autonomous prefectures are
divided into counties, autonomous counties and cities;4) Counties and autonomous counties are divided into townships,
nationality townships and towns;5) Municipalities and large cities are divided into districts and counties, 6) The state shall,
when necessary, establish special administrative regions.

Territory refers to territorial land, sea and air space under the administration of the People's Republic of China.

Climate refers to the natural environmental status formed by the long-term exchange of energy and mass between t he
earth and t he air, and is t he result s of interaction of many factors. Climate is both one of the environment factors and the
important resources for the living and production activities of t he human being. The average values across several years of
meteorological factors such as temperature, rainfall and humidity are used as important parameters t o describe the climate
of a region, while the average values (or tot al values) of a given y ear or month of met eorological factors reflect the key
characteris tics of climate for that period of time.

Natural Resources refer to material resources that could be obtained from the nature by human being and used for
production and living. Naturl resources in general can be classified as renewable resources and non-renewable resources .
Renewable resources refer to resources that could be renewed and recy cled during a relat ively short period of time, including
land resource, wat er resource, climate resource, biology resource and marine resource. Non-renewable resources include
resources that could not be renewed, such as minerals and geothermal resource.

Land Resource Land refers to t he surface of the earth, consist ing of mainly rocks and it s whethering and eart h. Land
resource can be classified, by its utiliz ation, as land for agriculture, land for construction and unused land. Land for
agriculture includes cultivated land, plantation land, forest land, grassland and waters. Land for construction includes land for
res ident ial purpose, for manufacturing and mining, for transport ation and for water-conservancy projects. Unused land
refers to land other than land for agriculture and construct ion, including beaches, desert s, Gobi, glaciers and rock
mountains.

Area of Cultivated Land refers to area of land reclaimed for the regular cultivation of various farm crops , including
cropcover land, fallow, newly reclaimed land and land laid idle for less than 3 years.

Area of Afforested Land refer to land for trees bamboo, bushes and mangrove, including fores t-cover land, bush-covered


land, sparse forest land, land planned for afforestation and nurseries of young t rees.

Area of Grassland refers to areas of gras sland, gras sslopes and grass-covered hills with a vegetation-covering rate of
over 5% that are used for animal husbandry or harvesting of grass . It includes natural, cultivated and improved grassland
areas.

Forest Resource refers to forests , trees, forestland and wild animals, plants and microorganism that live on forest and
trees. Trees include trees and bamboo. Forest refers to the population of clusters of trees and other plants, animals and
microorganism as well as the earth and climat e that have int eractions with the trees.

Total Standing Stock Volume refers to t he total stock volume of trees growing in land, including trees in forest, tress in
sp arse forest, scattered t rees and trees planted by t he side of villages, farm houses and along roads and rivers.

Forest Area refers to the area of forest where trees and bamboo grow with canopy density above 0.2, including land of
natural woods and plant ed woods, but excluding bush land and thin forest land. It reflects the tot al areas of afforest ation.

Stock Volume of Forest refers to t otal stock volume of wood growing in forest area, which shows the total size and level
of forest resources of a country or a region£® It is also an important indicator illustrat ing the richness of forest resource and
the status of fores t ecological environment.

Forest Coverage Rate refers to the rat io of area of afforested land to total land area. It is a very important indicator
that reflects the status of abundance of forest resource and ecosyst em balance. Forest area includes t he area of trees and
bamboo grow with canopy densit y above 0.2, the area of shrubby tree according to regulations of the government, t he area
of forest land inside farm land and the area of trees plant ed by the s ide of villages, farm houses and along roads and
rivers. The formula for calculating forest coverage rate is as follows:

Forestry coverage rate (%)= (Area of Afforested Land/Area of Total Land)× 100%

Mangroves are woody p lant or plant communities in tropical or sub- tropical zones which live between the sea and the land
in areas which are inundated by tides.

Water Resource Water exists in the nature in solid, liquid and gas eous states, is distribut ed in the ocean, land (including
earth) and air, and const itut es t he water resource t hrough t he circulat ion of water. Water resource includes the surface
water and underground water that is controlled by the human being for irrigat ion, power-generation, wat er supply, navigation
and cultivat ion. It also includes rivers, lakes , wells, springs, tides, gulf and water area for cultivation. Water resource as an
import ant natural resource is indispensable for the development of t he national economy.

Surface Water and Underground Water Water on earth can be divided into surface water and underground water
according t o its distribution. Surface water refers to moist ure exis ts in rivers, lakes, swamps, glaciers, icecaps and so on. It
is also called land water. The underground water refers to wat er dep osit ed underground in the cranny and the hole of
saturat ed rock soil and in the water-eroded cave.

Inland Water Area refers to water area of rivers, lakes, ponds, reservoir, etc.

Ocean is the general name for sea and ocean. Ocean refers to the main body of large salt water connected with the earth.
Sea refers to the edge areas of the salt water on t he eart h that are comparted or surrounded by land, island, reef or
peninsula.

Marine Cultivatable Areas refer to water areas in beach, shallow sea and lough that are used t o breed marine cash
propagation, such as fish, shrimp, crab, shellfish, alga and so on.

Runoff refers to the water gathered at the way out of the cross section of drainage area either from the surface or
underground after deducting the wast age of the precipit ation on the land. Runoff can be divided into surface runoff,
underground runoff and within soil runoff. Surface runoff refers to water flow to the rivers, lakes, swamps, and seas on the
surface of the earth. Underground runoff refers to water flow to rivers, lakes, swamps, and s eas through the water-bearing
strat um of confined lay er or unconfined layer.

Volume of Runoff refers to the total volume of water running through a certain cross section of a river during a certain
period of time, reflecting the water resource condition in a country or a region. The formula for calculating volume or runoff is
as follows:

Runoff =Precipitation-Evaporation

Mineral Resources refer to us eful minerals that can be used for indust rial or agricultural purp oses enriched in lithosphere
or on eart h due to t he geological proces s. Minerals are import ant natural resources , and important material base for social
development.

Basic reserves are part of total identified mineral resources, including indicated and measured, economic and marginal
economic,by feasibilit y assessment or prefeasibility study, mineral resources, which are not taken off the loss of designing
and mining. Bas ic res erves can meet the index of p res ent mining and production demand.

Drainage Area Each river has its own main stream and branches to form the water system of the river. Each river has its
own catchment area, which is also called as the drainage area of the river.

Out-flowing Rivers refer to rivers directly or indirectly flowing int o the sea. The area providing water to the out-flowing
rivers is called as out-flowing area.

Inland Rivers refer to rivers in inland dry areas that die away in des ert on the way or infuse into inland lakes. The area
providing water to the inland rivers is called as inland area.

Continental Shelf refers to seabed and subsoil of sea floor area that beyond the marginal sea of the coastal count ries
which stretches naturally of its land territory t o continent edge, and its width is defined by the nited Nations Marine
Convention. The continental shelf area is rich in aquatic products, and its seabed contains petroleum, natural gas and other
mineral resources, which belong to the coas tal countries. The continental shelf of our country is the natural st ret ch of it s
land territory t o t he continent edge besides the marginal sea of our country. It expands to the seabed and subsoil of the
sea floor area to the edge of the continent. If the distance from the baseline of the marginal sea t o the cont inent edge is
les s t han 200 sea miles, it can be expanded to 200 sea miles.

Shallow Sea Cultivation refers to the breeding of marine cash propagation in the cultivatable shallow sea.

Sea-breaches Cultivation refers to the level off the ooze and mud in tideland to bank up and build dam to conduct
marine cultivation.

Lough Cultivation refers to marine cultivation conducted in harbors, bends, or t he sea-beaches or marshes around seaside

and bayou by blocking the gate and banking up the dam.

Temperature refers to the air temperature. China uses centigrade as the unit. The thermometry used for weather
observation is put in a breezy shutter, which is 1.5 meters high from the ground. Therefore, the commonly used temperature
refers to the temperature in the breezy shutter 1.5 meters away from the ground. The calculation method is as follows:

Monthly average temperature is t he summat ion of average daily t emperature of one month divided by the act ual days of
that p articular month.

Annual average temperature is t he summat ion of monthly average of a year divided by 12 months.

Relative Humidity refers to t he ratio of actual wat er vapor pressure to the saturation water vap or density under the
current temperature. The statistical method is the same as that of temperature.

Volume of Precipitation refers to the deepness of liquid state or solid stat e (t hawed) water falling from the sky to the
ground that has not been evaporated, infiltrated or run off. The calculation method is as follows:

Monthly precipitation is t he summat ion of daily precipitation of a month.

Annual precipitation is the summation of 12 months p recipitation of a year.

Sunshine Hours refer to the actual hours of sun irradiating the earth. The calculation method is the same as that of the
precipitation.