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1 * CHINAINFO HOLDINGS LIMITED * *

2 i

3 ii

4 SA SA 1

5 SA 30,000,000 GH GameHi Inc. GameHi Inc. OL 160,000, ,863,000260,000, ,902,000150,000, ,059,000 2

6 SA 6 SA OL 40% SA 3

7 SA 425,000,000 2 Success Advantage Investments Limited SA 620,000,000 SA %

8 CHINAINFO HOLDINGS LIMITED * P.O. Box 309 GT Ugland House South Church Street Grand Cayman Cayman Islands SA620,000,000 SA * 5

9 SA SA OL 40% SA (a) (b) (c) 620,000,000 SA (i) 736,700, ,255,000 (ii)(iii) 6

10 620,000, ,700,000722,255, % 620,000,000 (a) 20,000,000 SA (b) 40,000,000 (c) 135,000,000 (d) 425,000,000 20,000,000 SA 60,000,000 30,000, % 4.47% 4.5 (i) % (ii) (5) % 7

11 (iii) (10) % (iv) ,143% SA425,000,000 2 SA SA 45 10SA 8

12 SA SA 160,000,000156,863,000260,000, ,902,000150,000,000147,059,000 SA45 (i) (ii) (iii) SA (a) SA (b) SA (c) SA 9

13 (d) 700,000,000 (e) (f) SA (g) OL (h) (b) (d) (e) SA SASA SA SASA GHOL GH OL SA SA SA 10

14 IP 75%13.34% 100% 13.34% 75% 25% OLFPS OLGameHi Inc. GameHi Inc.FPS Dekeron OL Paran GameGameHi Inc. 11

15 OL CJ Internet Corp. Netmarble CJ Internet Corp. OL160,000CJ Internet Corp. OL OL 11.33% GameHi Inc.GH GameHi Inc.OL GameHi Inc. GHGameHi Inc.GH GH GHGameHi Inc. GH OL SA GH OL SA CJ Internet Corp. GameHi Inc. OLOL OL OL OL 19.69(4)(b) OL FPS 12,000,000 OL OL 12

16 OL FPS OL OL (i) (ii) (iii) OL OL 13

17 1 85,542, ,542, ,660, ,660, Supreme System Investments Limited 2 79,001, ,001, Superhero Limited 3 74,979, ,979, ,905, ,905, ,998, ,998, ,086, ,086, Supreme System Investments Limited Superhero Limited 13.34% 19 14

18 SA 116,492,460 6,260, ,885,643400,738, %0.09% 368,147, % 15

19 6,260,540 3,270,

20 76 (a) (b) (c) (d) SA SA 17

21 CHINAINFO HOLDINGS LIMITED * SA SA SA SASA SA * 18

22 SA 60 7 SA SA 620,000,000 SA75% 25% OL 40% 13.34% 19

23 SA SA SA (i) SA (ii) (iii) SA SA SA 20

24 SA SA SA (i) (ii) (iii) SA OL 40% OL 21

25 OL The Korea Times OL 29,000,000 21,000,000 16,800, %22.3% 26.1% 81,000, % OL SA 620,000, ,000,000 (a) 20,000,000 SA (b) 40,000,000 (c) 135,000,000 (d) 425,000,000 22

26 SA(i) 736,700, ,255,000 (ii)(iii) SA (i)(ii) (iii) 23

27 736,700,000722,255, % SA 160,000, ,863,000260,000,000254,902, ,000,000147,059,000 SA 570,000,000558,824,000 SA 60,000, ,000, ,000,000SA 30,000, % 4.47% (i) % (ii) 24

28 % (iii) % (iv) ,143% (v) %

29 % 17.22% 51.63% 49.32% 425,000, ,000,

30 (1) SA (2) 14.2% (3) (4) (5) SA 6,260, ,490,000 SA SA 235,150, ,086, ,150, ,086,761 27

31 671,086, ,529,000 SA SA SA SA 28

32 10,411,138 1,286,907 7,765,796 4,569,961 2,693,048 (7,541,790) (226,500) (4,322,010) (1,451,860) (487,022) 2,869,348 1,060,407 3,443,786 3,118,101 2,206, ,818 1,020, , ,208 33,481 62,594 (154,348) (263,100) (331,496) (245,119) (5,773,781) (2,279,851) (5,881,756) (3,889,804) (3,575,242) (3,361,540) (632,855) (3,066,841) (1,648,508) (1,786,878) (4,551,300) (1,847,973) (5,371,703) (2,718,226) (3,338,619) (880,261) (70,968) (353,524) (496,846) (838,364) (1,650,448) (551,947) (5,928,407) (2,757,305) (7,375,675) (3,270,173) (3,338,619) 1,115,135 (5,928,407) (2,757,305) (6,260,540) (3,270,173) (3,338,619)

33 277, , , ,989 1,115,135 1,115, ,750, ,250,000 3,529,162 4,026,008 5,569,353 4,622, ,671, ,843,531 5,672,974 4,873,630 1,884,615 1,884,615 1,850,436 29,760 21,360 30,080 18,440 14,423,077 4,807,692 2,543, , , ,594 72,803,677 2,850,589 4,683,667 9,486,992 91,684,723 9,976,420 6,786,128 10,252,026 5,370 6, , , , ,187 4,805,083 41,497 41, ,905 1,113, ,718 4,993, ,562 1,264,602 91,483,005 4,982,651 6,416,566 8,987, ,154, ,826,182 12,089,540 13,861,054 69,733, ,154,925 87,092,556 12,089,540 13,861,054 6,350,868 5,135,520 4,000,000 4,000, ,804,057 81,957,036 8,089,540 9,861, ,154,925 87,092,556 12,089,540 13,861,054 30

34 5 7,765,796 4,569,961 (4,322,010) (1,451,860) 3,443,786 3,118, ,208 33,481 (263,100) (331,496) (5,881,756) (3,889,804) (3,066,841) (1,648,508) 6 (5,371,703) (2,718,226) 7 (353,524) (1,650,448) (551,947) (7,375,675) (3,270,173) 8 1,115,135 (6,260,540) (3,270,173) 10 (1.48 ) (0.82 ) 31

35 13 452, , ,115, ,250,000 16(a) 4,026,008 5,569, ,843,531 5,672,974 16(b) 1,884,615 1,850, ,360 30, ,807, , ,945 2,850,589 4,683,667 9,976,420 6,786, , , , ,805,083 41, ,905 4,993, ,562 4,982,651 6,416, ,826,182 12,089, ,733,626 87,092,556 12,089, ,135,520 4,000,000 81,957,036 8,089,540 87,092,556 12,089,540 32

36 17 48,134,229 10,585, ,556 3,922,647 22,969 24,000 4,805,083 4,828,052 24,000 (4,348,496) 3,898,647 43,785,733 14,484, ,135,520 4,000,000 38,650,213 10,484,441 43,785,733 14,484,441 33

37 4,000,000 15,195,487 8,320,333 (13,654,766) 13,861,054 (3,270,173) (3,270,173) 1,498,659 1,498,659 4,000,000 15,195,487 8,320,333 1,498,659 (16,924,939) 12,089,540 (6,260,540) (6,260,540) 1,118,420 33,353,340 34,471,760 34,179 34, , , , ,241 20,000 74,000 94,000 (100,000) (100,000) (329,582) (329,582) (2,900) (91,300) (94,200) 448, ,441 46,314,614 46,314,614 5,135,520 48,201,945 8,320,333 1,498,659 46,314, , , ,241 (23,185,479) 87,092,556 34

38 4,000,000 15,195,487 (2,143,313) 17,052,174 (2,567,733) (2,567,733) 4,000,000 15,195,487 (4,711,046) 14,484,441 (5,506,368) (5,506,368) 1,118,420 33,353,340 34,471, , ,241 20,000 74,000 94,000 (100,000) (100,000) (329,582) (329,582) (2,900) (91,300) (94,200) 448, ,441 5,135,520 48,201, , ,241 (10,217,414) 43,785,733 35

39 25 (6,433,824) (2,910,158) (100,000) (6,533,824) (2,910,158) (465,588) (44,361) (10,000,000) (1,850,436) 76,116 1,630 (10,389,472) (1,893,167) 263,000 (94,200) 10,257,000 94,000 (429,582) 5,000,000 15,090,218 (1,833,078) (4,803,325) 4,683,667 9,486,992 2,850,589 4,683,667 2,850,589 4,683, ,000, ,048,240 23,951,760 36

40 P.O. Box 309GT, Ugland House, South Church Street, Grand Cayman, Cayman Islands a 19 b 21 b 39 b 39 b 39 b 4 6 b 7 a 4 b 5 b c 6 d

41 a b c d (a) (b) 20% 50% 38

42 33 1 / 3% 50% 25% 33 1 / 3% 39

43 (a) 40

44 (b) (a) (b) (c) 41

45 (a) (b) (c) 9% 42

46 43

47 : 4,807,692 1,482,712 1,344,068 1,381,392 2,572,493 94, ,400 7,765,796 4,569,961 1,057,692 1,334,792 1,153,408 1,059,742 1,928,693 (8,440) 36,000 3,443,786 3,118, ,208 33,481 (9,211,697) (5,869,808) (5,371,703) (2,718,226) (353,524 ) (1,650,448) (551,947 ) (7,375,675) (3,270,173) 1,115,135 (6,260,540) (3,270,173) 44

48 151,057,692 21,360 30, ,079,052 30,080 10,740,899 12,429, ,819,951 12,459,102 69,733,626 41,497 69,276 1,800 87,100 69,776, ,376 4,950, ,186 74,727, , ,588 44, , ,297 45

49 2,958,104 4,569,961 4,807,692 7,765,796 4,569,961 2,386,094 3,118,101 1,057,692 3,443,786 3,118, ,208 33,481 (9,211,697) (5,869,808) (5,371,703) (2,718,226) (353,524) (1,650,448) (551,947) (7,375,675) (3,270,173) 1,115,135 (6,260,540) (3,270,173) 4,650,420 4,838, ,169,531 7,621, ,819,951 12,459,102 4,993, ,562 69,733,626 74,727, , ,588 44, , ,297 46

50 76,116 1,630 90, , , , ,750, , , ,472,375 3,403, , % 17.5% (7,375,675) (3,270,173) 17.5% (1,290,743) (572,280) 34,423 (854,666) (42) (289,520) (1,305,442) 2,336, ,888 (1,088) (10,469) (1,115,135) 5,506,368 2,567,733 47

51 6,260,5403,270, ,933,836400,000,000 (6,260,540) (3,270,173) 423,933, ,000,000 (1.48) (0.82) 4,041,733 3,299, , , ,804 4,472,375 3,403,943 (a) (b) 198,710 3, ,710 1,200,000 12,000 1,212,000 (c) 342,000 12, ,000 (d) 500,000 10, ,000 2,240,710 37,000 2,277,710 48

52 1,200, ,000 12,000 1,312, ,400 24,000 9, ,320 (e) 68,000 2,400 70,400 (f) 66,000 2,000 68,000 1,574, ,000 26,320 1,724,720 (a) (b) (c) (d) (e) (f) 201, ,233 3,000 21, , ,393 1,000,

53 1,941, , ,500 2,358,473 45, ,271 58, ,588 (55,930) (250,059) (57,053) (363,042) 1,931, , ,207 2,461,019 1,868, , ,413 2,254,852 54,541 41,280 21, ,821 (55,930) (250,059) (57,053) (363,042) 1,866,992 41, ,360 2,008,631 64, ,991 67, ,388 73,534 30, ,621 8 (1,115,135) (1,115,135) 9,204 9,204 50

54 (1,124,339) (1,124,339) 7,304,000 1,124,000 15,505,00015,409,0002,713,000 2,696, ,000,000 6 (3,750,000) 146,250, ,000,000 (3,750,000) 146,250,000 3,750,000 51

55 5,569,353 4,622,641 1,498,659 (1,650,448) (551,947) 107,103 4,026,008 5,569,353 49% 5 3,293,008 3,293,008 45,019,015 8,157,816 (177,794) (865,030) 48,134,229 10,585,794 52

56 * HK6 Investment Limited 2, % 1, % % % * HK6 Investment China % (BVI) Limited Sino Key International Ltd % Pro-Concept Development % Ltd. 100% 1,000, * ,000,

57 9% 5,000,000 (448,441) 4,551, ,524 (100,000) 4,805,083 1,000,000, ,000,000 10,000, ,552, ,135,520 4,000, ,048,240 46,314,614 69,733,

58 4,807,692 16(b) 1,884,615 1,850, ,733, ,807,692 (7,375,675) (3,270,173) , , ,750, ,241 6 (76,116) (1,630) 7 353,524 16(a) 1,650, ,947 (1,263,757) (2,528,127) 8,720 (11,640) (4,807,692) (190,219) 524,649 (5,370) (1,496) (92,098) 95,100 (83,408) (988,644) (6,433,824) (2,910,158) 806, , ,552 1,095, ,845 55

59 800,000 (a) (b) 5,000, ,904,761 Superhero Limited Superhero Superhero ,000,000 85,540,000 Superhero 14,460,000 Superhero Superhero ,230,000 97,230,000 56

60 3 10,411,138 1,286,907 (7,541,790) (226,500) 2,869,348 1,060, , ,020, ,674 (154,348) (5,773,781) (2,279,851) (3,361,540) (632,855) 4 (4,551,300) (1,847,973) 5 (880,261) (70,968) (496,846) (838,364) (5,928,407) (2,757,305) 6 (5,928,407) (2,757,305)

61 9 277, ,388 1,115,135 1,115, ,750, ,250,000 11(a) 3,529,162 4,026, ,671, ,843,531 11(b) 1,884,615 1,884, ,760 21,360 14,423,077 4,807,692 2,543, ,164 72,803,677 2,850,589 91,684,723 9,976, , , ,805,083 41,497 41, ,718 4,993,769 91,483,005 4,982, ,154, ,826, ,733, ,154,925 87,092, ,350,868 5,135, ,804,057 81,957, ,154,925 87,092,556 58

62 (6,850,721) (12,969,240) 1,020, ,297 75,782,982 15,076,118 69,953,088 2,921,175 2,850,589 4,683,667 72,803,677 7,604,842 72,803,677 7,604,842 59

63 4,000,000 15,195,487 8,320,333 1,498,659 (16,924,939 ) 12,089,540 (2,757,305 ) (2,757,305 ) 263,000 10,257,000 10,520,000 17,000 62,900 79,900 (100,000 ) (100,000 ) (329,582 ) (329,582 ) (2,900 ) (91,300 ) (94,200 ) 448, ,441 4,277,100 25,094,505 8,320,333 1,498, ,441 (19,682,244 ) 19,856,794 5,135,520 48,201,945 8,320,333 1,498,659 46,314, , , ,241 (23,185,479 ) 87,092,556 (5,928,407 ) (5,928,407 ) ,048 4,963,509 (348,441 ) 4,734, , ,872, ,845,000 (3,077,340 ) (3,077,340 ) 3,562,200 3,562, ,000 4,071,763 (1,268,963 ) 2,926,800 6,350, ,032,577 8,320,333 1,498,659 46,314, ,282 2,610,478 (29,113,886 ) 235,154,925 60

64 P.O. Box 309GT, Ugland House, South Church Street, Grand Cayman, Cayman Islands

65 1 a 7 a b 2 8 c 9 c 10 a b c 9,615, , , ,960 29,172 10,411,138 1,286,907 2,115, , , ,660 29,172 2,869,348 1,060, ,818 1,020, ,674 (9,135,321) (3,067,054) (4,551,300) (1,847,973) (880,261) (70,968) (496,846) (838,364) (5,928,407) (2,757,305) (5,928,407) (2,757,305) 62

66 795,753 1,286,907 9,615,385 10,411,138 1,286, ,963 1,060,407 2,115,385 2,869,348 1,060, ,818 1,020, ,674 (9,135,321) (3,067,054) (4,551,300) (1,847,973) (880,261) (70,968) (496,846) (838,364) (5,928,407) (2,757,305) (5,928,407) (2,757,305) 558,810 25,971 1,020,827 34, ,818 66, ,500 3,750,000 7,500,000 30,000 22,500 60,000 45,000 86,027 17, ,765 34,055 2,137, ,000 4,168, , , , , , , , , ,812 63

67 871,671 50,000 8,590 70,968 50, ,261 70, % 4,020,480 1,348,549 5,928,407 2,757,305629,865,022427,885, ,073,417420,148, , , ,588 (174,765) (116,821) 277, ,388 64

68 146,250, ,000,000 (7,500,000) (3,750,000) 138,750, ,250,000 49% ,000, % 65

69 4,805,083 4,551, ,524 (70,967) (100,000) (4,734,116) 4,805,083 5,000, ,904,761 69,733, ,048, ,671 (46,314,614) (69,911,479) (693,818) 69,733,626 5% 69,911, ,000,000,000 10,000,000 1,000,000,000 10,000, ,086,761 6,350, ,552,000 5,135,520 66

70 4,807,692 9,615,385 SA 620,000,000 67

71 2,693,000 5,383, % 7.0% 53.0% 40.0% 62.2% 26.4% 11.4% 2,206,000 2,982, %81.9% 55.4% 26.5% 95.3% 33.1%5,607,000 4,212,000 3,339,000 1,203,000 68

72 8,987,000 17,056,000 9,487,000 16,713,000 18, , , ,000 7,000 31, , ,000 1,114, , % 2.5% ,900,000 2,159,000 69

73 4,570,000 2,693, % 14.3% 29.4% 56.3% 7.0% 53.0% 40.0% 3,118,000 2,206, %68.2% 81.9% 13.7% 5,870,000 5,607,000 3,270,000 3,339,000 70

74 800,000 6,417,000 8,987,000 4,684,000 9,487,000 1,850,00030,000 18, , ,000 5,000 7, , , ,000 1,114, % 8.4% 23 71

75 1717 3,404,000 2,900,000 7,766,000 4,570, % 61.9% 19.1% 17.8%0% 29.4% 56.3% 3,444,000 3,118, %44.3% 68.2%35.0% 9,212,000 5,870,000 72

76 6,261,0003,270,000 5,000,000 4,800, ,000,000 69,700, ,983,000 6,417,000 4,808,000 2,851,000 4,684,0001,885,000 1,850,00021,000 30, , , , ,000 41, ,000 4,805, %3.0% 116,000, ,842,00026,300,000 85,542,000 2,000, ,000 73

77 5,000, ,000,000 11,904, ,472,000 3,404,000 74

78 10,411,000 1,287, % 92.4% 7.4% 0% 56.4% 2,869,000 1,060, % 27.6% 82.4% 54.8% 9,135,000 3,067,000 5,928,000 2,757,000 5,000,0004,800, ,000,00069,700,000 75

79 Pro-Concept Development Limited Pro-Concept Pro-Concept Pro-Concept116,050,000 69,911,478 69,911,478 69,730, ,483,000 4,983,000 72,804,0002,851,000 14,423,000 4,808,0001,884,000 1,884,000 2,544, ,00030,000 21,000160, ,000 41,00041, %46.2% 121,534,76197,230,000 12,400,000 11,904,761 76

80 Superhero Limited Superhero Superhero ,000,000 Superhero Superhero ,230, ,800, ,000,000 11,904, ,082,000 1,834,000 SA 620,000,000 77

81 SA 78

82 12 79

83 OL 40% GameHi Inc. GameHi GH GameHi GH GameHi Inc. GH GH 80

84 (1) (2)(3) (4) 25% 75% GameHiGH OL GHGameHi IC OL DWDM SDH IP 81

85 75% 13.34% GameHi1,500,000 GameHi MMORPGFPS Dekeron OL Paran Game OL GameHi CJ Internet CJ Internet CJ Internet CJ CJ Internet Netmarble Netmarble22,000,00060 MYM CJ Internet 93.3% CJ Internet Sina Corp. Softbank MMORPG iresearch 1 62% MMORPG 55% Shanda NetEase Webzen NCSoft Shandall NCSoft 1 iresearch Consulting Group, China Online Game Research Report 2005, 13 82

86 MMORPG 2,000,000 5,000,000 10,000,000 40% 22,700,000, % 41.26% 43.40% % % 50.00% 40.00% 30.00% % 10.00% % GAPP GAPP , 44 83

87 FPS GameHiCJ Internet FPS 12,000,000 OL 20 40FPS 6,500,000 CJ Internet 70, ,000GameHi CJ Internet 20,000,000 11% 84

88 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% OL 0.00% Gametrics.com game.sina.com.cn OL 85

89 40% GH SA GH GameHi GH GH GH 86

90 DCF CAPM CAPM CAPM beta CAPM 20.71% 87

91 CAPM Ibbotson Associates 3 SBBI Valuation Edition 2006 Yearbook Ibbotson Ibbotson 3.95% 3% 3% CAPM WACC WACC WACC WACC = E k e + D k d (1 T c ), E + D E + D E= k e = D= k d = T c = 3 Ibbotson Associates, SBBI Valuation Edition 2006 Yearbook,

92 100% 20.71% WACC ASA ASA Ph.D. MA. 89

93 SA OL (Hong Kong Standard on Related Services) 4400 ( Engagements to Perform Agreed-upon Procedures Regarding Financial Information ) (2) 90

94 a. 1 b. 2 c. (Hong Kong Standards on Review Engagements) (Hong Kong Standards on Assurance Engagements)

95 OL 40% 19.62(3) 19.64(3)

96 93

97 277, ,623 1,115,135 1,115, ,750, ,750,000 3,529,162 3,529,162 (a) 60,000, ,529,000 (b) 135,000,000 (c) 358,529, ,671, ,200,920 1,884,615 1,884,615 29,760 29,760 14,423,077 14,423,077 2,543,594 2,543,594 72,803,677 (a) (20,000,000) 52,803,677 91,684,723 71,684, ,221 (d) 1,970,000 2,167,721 (e) 37,500 41,497 (a) 40,000,000 40,041, ,718 42,209,218 91,483,005 29,475, ,154, ,676,425 (c) 358,529, ,529, ,154, ,147,425 6,350,868 (b) 300,000 6,650, ,804,057 (b) 134,700, ,496,557 (d) (1,970,000) (e) (37,500) 235,154, ,147,425 94

98 SA 620,000,000 (a) (b) (c) (d) (e) SA 20,000,000 40,000,000 30,000, SASA 95

99 7,765,796 7,765,796 (4,322,010) (4,322,010) 3,443,786 3,443, ,208 (a) 156,863, ,259,208 (263,100) (263,100) (5,881,756) (5,881,756) (3,066,841) (b) (1,970,000) (5,036,841) 149,521,297 (5,371,703) (353,524) (c) (32,140,000) (32,493,524) (1,650,448) (1,650,448) (7,375,675) 115,377,325 1,115,135 1,115,135 (6,260,540) 116,492,460 (a) (b) (c) (d) OL SA SASA OL 96

100 (7) 97

101 Hong Kong Standard on Investment Circular Reporting Engagements 300 Accountants Reports on Pro Forma Financial Information in Investment Circulars 731(1) (a) (b) (c) 7 31(1)

102 (1) (2) (3) 1,000,000,000 10,000, ,086,761 6,410, ,000,000 SA 300, ,086,761 6,710, ,900,000 11,500,000 99

103 XV (i)xv 7 8 (ii)352 (iii) ,000, ,000, ,

104 XV (i)xv7 8 (ii)352 (iii) XV2 3 10% (i) 1 85,542, % 85,542, % 2 80,661, % Supreme System 79,001, % Investments Limited 3 74,979, % Superhero Limited 74,979, % 68,905, % 101

105 (1) (2) Supreme System Investments Limited 1,660,000 Supreme System Investments Limited79,001,144 (3) Superhero Limited XV %

106 RBC Capital Markets RBC Capital Markets Pacific Group RBC RBC 103

107 University of Central Lancashire ,

108 True Corporation Public Company Limited TeleCard Limited XV Pandora Interactive Studio Pte. Ltd.Pandora i-stt Hong Kong Limitedi-STTPandorai-STT Pandora 1,250,000i-STT 100,000, (2)(h) (v) 105

109 (a) Pro-Concept Development Limited ( Pro-Concept ) (b) Pro-Concept Pro-Concept 106

110 (c) 5,000,000 (d) Superhero Limited Superhero Superhero Superhero ,000,000 26,300,000 (e) Superhero 100,000, ,230,000 (f) SA (a) P.O. Box 309 GT, Ugland House, South Church Street, Grand Cayman, Cayman Islands (b) (c) Bank of Butterfield International (Cayman) LimitedButterfield House, 68 Fort Street P.O. Box 705, George Town, Grand Cayman, Cayman Islands (d) (e) CPA (f)

111 (a) (b) 18 (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) 108

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