On 20 June 2008, the company released its fourth share reform scheme, which does not include restructuring, contrary to its three previous reform schemes, which each included restructuring.

According to the new share reform scheme, two shares will be transferred by holders of non-tradeable shares for every 10 shares held on the record date of the scheme to holders of tradeable shares as compensation for their commitment to the share reform. Meanwhile, the company will issue one share from its capital reserve for every 10 shares held to holders of tradeable shares. A total of 13.56 mln non-tradeable shares and 6.78 mln shares from the capital reserve will be distributed to tradeable share holders. A total of 20.34 mln shares will thus be available for holders of tradeable shares. Following the implementation of the share reform scheme, the company will have 88.13 mln tradeable shares.

The scheme has been agreed upon by twelve out of thirteen holders of non-tradeable shares of the company. The company will do its best to win over the remaining dissenter. Trading in the company's shares will resume on 30 June 2008 at the latest.


Source: Shanghai Securities News

Date: 20 Jun 2008

CN01/MZ/BT/MM