In accordance with the "Measures for the Approval and Supervision and Administration of Asset Valuation Agencies" (Ministry of Finance Order No. 64), In accordance with the requirements of the Ministry of Finance’s “Guiding Opinions on Promoting Evaluation Agencies to Grow Stronger, Bigger, and Better” (Cai Qi [2009] No. 453), the China Association of Asset Appraisers (hereinafter referred to as “CAAA”) conducted the comprehensive evaluation of asset appraisal agencies for 2014. Based on the “Notice on Issuing the Measures for the Comprehensive Evaluation of Asset Appraisal Agencies” (CAAA [2014] No. 58, hereinafter referred to as the “Evaluation Measures”) and the “Notice on Reporting Data Related to the 2014 Comprehensive Evaluation of Asset Appraisal Agencies” (CAAA [2014] No. 99), the CAAA publicly announced on December 19, 2014, the list of the top 100 asset appraisal agencies as determined by the 2014 comprehensive evaluation. The public notice period has now expired. In light of feedback received during the public notice period, the CAAA has verified the relevant information and made adjustments to the corresponding data. We hereby announce the following: the list of the top 100 asset appraisal agencies ranked in the 2014 comprehensive evaluation (Attachment 1); the list of the top 100 asset appraisal agencies ranked by annual business revenue in the 2014 comprehensive evaluation (Attachment 2); the list of the top 100 asset appraisal agencies ranked by headquarters revenue in the 2014 comprehensive evaluation (Attachment 3); the list of the top 100 asset appraisal agencies ranked by total annual business revenue (including related-party business revenue) in the 2014 comprehensive evaluation (Attachment 4); and the explanatory notes regarding the ranking results of the 2014 comprehensive evaluation of asset appraisal agencies (Attachment 5).

                                                                                                  January 22, 2015

Attachment 5

Explanation Regarding the Comprehensive Evaluation Rankings of Asset Valuation Agencies for 2014

In accordance with the “Measures for the Approval and Supervision and Administration of Asset Valuation Agencies” (Ministry of Finance Order No. 64), In accordance with the requirements of the Ministry of Finance’s “Guiding Opinions on Promoting the Growth, Strength, and Excellence of Valuation Agencies” (Cai Qi [2009] No. 453), the China Association of Asset Appraisers conducted the comprehensive evaluation of asset valuation agencies for 2014. Based on the “Notice on Issuing the ‘Measures for the Comprehensive Evaluation of Asset Valuation Agencies’” (Zhong Ping Xie [2014] No. 58, hereinafter referred to as the “Evaluation Measures”) and the “Notice on Submitting Relevant Data for the 2014 Comprehensive Evaluation of Asset Valuation Agencies” (Zhong Ping Xie [2014] No. 99), the list of the top 100 institutions in the 2014 comprehensive evaluation of asset valuation agencies has been compiled. The relevant details are as follows:

I. Indicator System and Weights

    This evaluation is based on December 2013. As of the 31st of the month, the scores for each individual evaluation indicator—namely, the annual business revenue indicator, the number of registered asset appraisers, the per capita annual income of registered asset appraisers, the average years of practice among registered asset appraisers, the talent development indicator, the practice quality indicator, and the industry contribution indicator—as stipulated in the “Evaluation Measures,” were calculated using the method of comparing the average values of the top 100 institutions for each individual indicator. The overall evaluation score for each appraisal agency was then determined by taking a weighted average based on the respective weights assigned to each individual indicator. The weights for these seven indicators remain the same as those used in the 2013 comprehensive evaluation, with the weights allocated as follows: 35%, 13%, 7%, 3%, 2%, 30%, and 10%.

II. Data Sources and Basis

The underlying data are derived from reports submitted by appraisal agencies and data from the Registration and Management Information System for the Asset Valuation Industry, which are finalized after review by local associations and the China Association of Appraisers. The review criteria are as follows: annual business revenue is based on the base amount for membership fee payments by appraisal agencies, adjusted with reference to audit reports; practice quality is assessed according to the penalties and disciplinary actions imposed on appraisal agencies and registered asset appraisers; industry contribution is evaluated in accordance with the relevant provisions on industry contribution set forth in the "Evaluation Measures"; talent development is determined based on information reported by appraisal agencies and verified accordingly; and the number of registered asset appraisers and their average years of practice are based on data from the Registration and Management Information System for the Asset Valuation Industry.

III. Calculation Scope and Ranking

According to the “Evaluation Method,” the China Appraisal Society has calculated, aggregated, and reviewed the scores of various institutions and compiled a comprehensive ranking based on these scores, arranged from highest to lowest. For institutions with branch offices, the data of their branch offices have been consolidated and included in the respective parent companies. For institutions participating in the parent-subsidiary pilot program, the data of their subsidiaries have been consolidated into their respective parent companies; meanwhile, the subsidiaries also participate separately in the ranking.