Asset Purchase via Private Placement Approved

At the 1st Extraordinary General Meeting of Shareholders, held on 22 Jul 2008, the following proposals were examined and approved:

1. a proposal related to the company's qualifications for a private placement
2. a proposal related to a related-party transaction involving an asset purchase and a major asset sale via private placement
3. to approve a waiver of tender offer obligation for Zhongnan Real Estate Co., Ltd. and Chen Lin
4. a report (draft) on a related-party transaction involving an asset purchase and a major asset sale via private placement
5. to sign an agreement, subject to certain conditions, with Zhongnan Real Estate Co., Ltd. and Chen Lin, related to the subscription to company shares via private placement
6. to sign an asset sale agreement, subject to certain conditions, with Dongbei Special Steel Group Co., Ltd.
7. to request a general meeting of shareholders to authorise the board of directors to address issues related to an asset purchase via private placement

Board of Directors
22 Jul 2008


Source: Securities Times

Date: 24 Jul 2008

CN01/NW/JL/WH/MM