Net Profit Decrease Projected for 3Q 2008

According to preliminary data released by its finance department, the company may suffer losses in 3Q 2008, compared with its net profit (loss) of RMB (23,830,000) and EPS of RMB (0.15) over the same period in 2007. Detailed information pertaining to the company's financial status can be found in its 3Q Report.

The decrease is mainly attributable to a drop in its international engineering business, the disequilibrium of progress in implementation of projects, the appreciation of the Renminbi (RMB), a slide in the export tax rebates rate as well as spiralling bank interest rates and costs of raw materials.

Board of Directors
23 Jul 2008


Source: Securities Times

Date: 25 Jul 2008

CN01/VL/JL/BT/KM