It is a commonly accepted fact that reorganisation can rapidly change or promote a listed company's fundamentals. Stocks, including the company's stock have experienced irrational sell-offs following a long suspension due to the drastic fall of blue chips during their suspension. Major funds have taken the opportunity to buy the above-mentioned stocks, hoping to gain profits later during a rebound.

Following the signing of a stake transfer agreement, Xuzhou Zhongnan Real Estate Development Co., Ltd. has become the potential controlling shareholder of the company. Zhongnan Real Estate is a famous real estate enterprise in Jiangsu Province and has developed rapidly with the industry. Following a long suspension, the company's share price has fallen substantially, making it undervalued.

Source: Shanghai Securities News

Date: 17 Jul 2008

CN01/NW/MZ/BT/WH