On 14 Jul 2008, the company learned from Phenix Optical Holding Co., Ltd., the largest shareholder of the company with a 39.46% stake, that the company's 9.7 mln restricted shares have been pledged by Phenix Optical to Bank of China, Shangrao Phenix sub-branch for one year, effective from 11 Jul 2008 to 30 Jun 2009.

On 11 Jul 2008 relevant procedures for the pledge were completed through the China Securities Depository and Clearing Corporation Limited, Shanghai branch. As of the date of this announcement, 30.1 mln restricted shares of the company, equal to a 12.68% stake have been pledged by Phenix Optical.

Board of Directors
14 Jul 2008

Source: Shanghai Stock Exchange

Date: 15 Jul 2008

CN01/SS/DM/AR/KM