Jinan Diesel Engine Co., Ltd. (hereinafter referred to as "the company") received the "Treasury Department of the People's Republic of China" issued by the controlling shareholder China National Petroleum Corporation's Jichai Power Plant on December 31, 2010. It issued a major technical innovation and industrialization of the central state-owned capital in 2010. Notice of Capital Budget (Appropriation) (No. 209, Caiqi Enterprise [2010]), China National Petroleum Corporation (CNPC) as the project undertaker, and the company as one of the implementation units, the related R&D projects received financial subsidies of 22.27 million yuan. The subsidy funds have been allocated on December 31, 2010 and are mainly used for the company's R&D projects, which will speed up the progress of research and development for each project.

At the same time, the company received the "Notice on Transferring the Central Government's Budgetary Investment Plan for Revitalizing and Technologically Renovating Major Industries in the Third Batch" issued by Jinan City (Zifagonggonggao [2010] No. 639). The notification states that the company's central budget investment plan for 2010 will be 4.6 million yuan for industrial restructuring and revitalization and technological transformation, and the funds have been allocated on December 31, 2010.

According to the “Accounting Standards for Business Enterprises”, the company will communicate with the accountants and the above-mentioned government grants will be included in the current non-operating income, which will have a positive impact on the company's 2010 earnings.

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