The company is mainly engaged in the manufacture and sale of steel wire products, with a full range of varieties and specifications. Previous announcements have stated that the company has bought an additional 4,307,692 shares in Lanzhou City Commercial Bank for RMB 1.00 per share, increasing its holdings in Lanzhou City Commercial Bank to a total of 62 mln shares. The transaction was approved by the China Banking Regulatory Commission and relevant procedures have been completed.

The company's stock price declined sharply amid a market correction, thereby increasing short-selling risks. As the stock price has rebounded with moderate turnover volume, it is expected to maintain an upward trend. Investors have been advised to pay due attention.

Source: China Securities Journal

Date: 24 Jun 2008

CN01/MZ/BT/MM