Company Involved in Case with Debt Assignee

On February 2000, Industrial & Commercial Bank of China, Nanjing branch filed a lawsuit with the Nanjing Intermediate People's Court against the company for the recovery of loan principal of RMB 22 mln and related interest.

On 25 Jul 2005, ICBC, Jiangsu branch signed a debt assignment agreement with China Orient Asset Management Corporation (Nanjing Office).

On 28 Jul 2008, China Orient Asset filed a lawsuit with the court against the company for the recovery of loan principal of RMB 22 mln and interest of RMB 22,287,159. On 5 Aug 2008, the company received a summons from the court and the case will be heard by the court on 5 Sep 2008.

Board of Directors
12 Aug 2008


Source: Shanghai Stock Exchange

Date: 12 Aug 2008

CN01/SS/DM/BT/KM