At a general meeting of shareholders of the company held on 15 July 2008, the company's scheme for a share reform, different from previous schemes of 'share reform and restructuring', was rejected, holders of common shares voting in favor of the scheme represented only 35.14% of voting rights.

The share reform constitutes the company's fourth share reform scheme, according to which, based on 67,793,846 total shares outstanding as of 31 March 2008, holders of non-tradeable shares would be alloted two shares for every 10 shares held to holders of common shares, and the company would distribute two shares for every 10 shares from its capital reserve to holders of common shares.


Source: Shanghai Securities News

Date: 16 Jul 2008

CN01/BG/MZ/BT/KM