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COMPANY INTRODUCTION

In order to satisfy the requirements of National Telecom System Reform and adapt to the open tendency of telecom industry since China joined WTO, after About Decisions to Enhance Management on Shanghai Foundation Communication Pipeline was issued in August 1st, 2000, Shanghai Municipal People's Congress decides to implement uniform planning, uniform construction and uniform management on foundation communication pipeline construction within city, and to create a favorable network resource environment for various communications, wired televisions and information service operators for them to start fair and square business, so as to better meet the requirements of Shanghai economy and social development, more reasonably exploit underground pipeline resources and reduce repeated excavations of urban roads. As a result, Shanghai Information Pipeline Co., Ltd emerges.

Company is invested and set up by Shanghai Information Investment Inc., founded in September, 2000, current registered capital reaches RMB 218.18 million. Company focuses on the investment construction and operating management of Shanghai integrated information pipeline, main business scope includes construction, sales, lease, operation maintenance and emergency repair of communication pipeline, communication machine room and fiber line; communication engineering construction in the form of overall contract on engineering construction, pipeline engineering construction in form of professional contract on engineering construction; engineering design of integrated information pipeline professional field, technical contract, development and consultation.

For the past twelve years, as the first explorer on the system reform of domestic information infrastructure investment and construction, company dares to innovate, practices with scientific basis, and on conditions of government franchise, strives to explore in the way of marketization an approach for the investment, establishment and operating management of urban information infrastructure. Look in the past, company has walked an extraordinary road of development.

For the past twelve years, company has, through integrated construction, successfully built over 7,100 km information communication pipeline in Shanghai, has connected pipeline to more than 4,400 places, like business buildings, residential communities and mobile base stations. Company has carried out synchronous construction of urban public fiber network with help of metro, Huangpu River cross-river tunnel and other urban infrastructure, and has built fiber line of over 2,200 km. Now, integrated information pipeline has reached almost every corner of districts, counties and main towns within entire Shanghai city, network transmission and access have basically covered main business circles and industrial parks (development zone). Company has provided foundation pipeline network and fiber for communications, wired televisions and information service operators, and has satisfied the demands of Shanghai economy and social development. By the end of 2011, total asset scale of company has reached RMB 1.946 billion, net asset scale RMB 1.087 billion, and accumulated taxes paid for state reaches RMB 593 million.

At present, under the guide of corporate "twelfth five-year plan" development strategy and planning outline, company is actively conducting investment construction and operating management of a fair, open, proper and advanced public information communication infrastructure platform in Shanghai, company is committed to convert its role of a main Shanghai enterprise specialized in investment construction and operating management of information pipeline, urban fiber, shared machine room and other public information infrastructure, into a role of an enterprise that provides various types of users with public information foundation transmission resources and third-party professional services. Company is making continual efforts to become one of the major forces that spur the "smart city" information construction of Shanghai.

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