According to the statistics, as of 31 March 2016, the amount of accumulated new borrowings (based on actual withdrawal amount) of Beijing North Star Company Limited (hereinafter referred to as the “Company”) for the current year was approximately RMB1.654 billion. The above increase in borrowings was mainly due to normal withdrawal of bank credit facilities, acquisition of borrowings from minority shareholders and the increase in financing in other forms, which were regarded as normal operating activities.