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Five Awards of World Outstanding Chinese Entrepreneurs Concluded

China National Aviation Holding Co. honored Leadership Enterprise Prize of Chinese Entrepreneurs Mr. Li Jiaxiang and Mr. Kong Dong won prizes Mr. Kong Dong was present at the Convention and delivered speeches.

The second World Outstanding Chinese Entrepreneurs Convention jointly sponsored by the World Association of Outstanding Chinese Entrepreneurs and the China General Chamber of Commerce was kicked off at the Great Hall of China, Beijing on the morning of November 8th. State leaders including Gu Xiulian Vice Chairman of the Standing Committee of the National People's Congress, A Bu Lai Ti Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference and Sun Fuling Chairman of the World Association of Outstanding Chinese Entrepreneurs attended the Convention and presented awards. Over 800 representatives of the outstanding Chinese entrepreneurs from more than 30 countries and regions in the world were present at the Convention. Kong Dong, the General Party Secretary of China National Aviation Holding Co. (CNAH) was present at the Convention and delivered a speech titled Bearing in Mind Our Roles and Mission for Continuous Growth of CNAH.

Mr. Kong Dong highlighted the profile of CNAH and Air China in his speech. He pointed out that the group company has been sticking to its core value and corporate spirit to build itself into a leading enterprise in the world and has gained an appealing operational result. Especially with the soaring fuel prices in recent years, the proportion of fuel cost for Chinese airlines has increased from 20% to 40% of the total operating cost. In face of the tough operational environment, we have achieved the unique growth and performance miracle well-recognized by domestic and international industry. In this April, Air China was ranked in the global top 2000 most profitable enterprises awarded by Forbes in United States. In addition, according to the evaluations on 265 airlines conducted by the International Air Transportation Association, Air China was ranked the 9th in terms of profitability in 2005. Assessment of international professional institution also shows that the overall strength of Air China has already been ranked 14th among the top 20 global airlines. In recently years, the brand value of Air China has also surged with many awards given by authority institutions both at home and abroad. In 2006, Air China was awarded one of the 500 most valuable brands in China by the World Brand Lab with the brand value of RMB 18.896 billion, which is the No. one among the Chinese airlines. Since its restructuring, the group company has been in leading positions in the Chinese airline industry and is ranked the only A Category enterprise among the 6 civil aviation enterprises managed by the State-owned Assets Supervision and Administration Commission. Besides, the asset quality of the group company has been greatly improved with scale of assets and total profits increasing substantially compared with the same period last year. At the beginning of its establishment at the end of 2002, the total assets of CNAH is RMB 60.5 billion with the net assets of RMB 8 billion, the debt ratio of 87.3%, the total revenue of RMB 26.1 billion and profit of RMB 0.917 billion. By the end of 2005, the total assets of CNAH has reached RMB 76.7 billion, with the net assets of RMB 17.97 billion, the debt ratio of 76.4%, the total revenue of RMB 37.69 billion and profit of RMB 2.92 billion. Not long ago, Air China has just released its business result for the first three quarters of 2006. The total assets is amounted to RMB87.6 billion, with the net assets of RMB 31.5 billion, the debt ratio of 76.4% and the net profit of RMB 3.34 billion.

Mr. Kong Dong pointed out that the business results gained is attributable to the reform and opening up policy of China and to the rapid and continuous economic growth of China. The data also reflected the natural outcome of CNAH and Air China's adherence to the thoughts of scientific operation and comprehensive development of the enterprises. In his speech, Mr. Kong has also outlined the alliance development strategy adopted by CNAH and Air China in recent years. He said, in this May, Air China has signed the Memorandum of Understanding with Star Alliance—the largest airline alliance in the world. At present, Air China is undertaking integration with Star Alliance and this will further expand the influence of Air China in the global marketplace. Recently, Air China reached shareholding realignment and operating agreement with Cathy Pacific Airways, with 43.29% share in Dragon Air transferred to Cathy Pacific Airways and cross-shareholding of 17.5%. At the same time, the commercial cooperation among the three parties on the Hong Kong-Mainland China market is advanced, which is of profound strategic significance to the long-term development of Air China.

It is reported that the five awards initiated by the World Association of Outstanding Chinese Entrepreneurs were released recently with CNAH honored the 2006 Leadership Enterprise Prize of Chinese Entrepreneurs and Mr. Li Jiaxiang and Mr. Kongdong awarded the 2006 Top 100 Most Prestigious Chinese Entrepreneurs. Among the awards, the 2006 Leadership Enterprise Prize of Chinese Entrepreneurs contest is based on a series of economic indicators such as company assets, market value, sales volume in 2005 and etc. Besides, many other factors are also taken into account during the comprehensive evaluation process by the Chinese Entrepreneurs Appraisal Committee including the internationalization of the company, influence, growth potential and etc. The 2006 Top 100 Most Prestigious Chinese Entrepreneurs contest is based on major criteria of personal capabilities, overall strength, experience as well as social influence.