The company has announced that as negotiations with its controlling shareholder, Shenzhen Chunda Investment Co., Ltd., itself, and a potential partner regarding an asset reorganisation are ongoing and, thus, the outcome remains uncertain, trading in the company's shares will be suspended as of 16 July 2008 in compliance with regulations of the Shenzhen Stock Exchange. The company pledged that within 30 trading days, an asset reorganisation scheme will be disclosed and trading in its shares will resume.

In the afternoon of 8 Jul 2008, the company received a notice from Shenzhen Chunda that Shenzhen Chunda will negotiate with relevant partners on certain significant issues. Trading in shares of the company was suspended as of 9 Jul 2008 and had is projected to resume prior to or on 16 July when the relevant results are to be announced.


Source: China Securities Journal

Date: 16 Jul 2008

CN01/RL/MZ/BT/KM