The company's stock price reached its minimum intraday limit over three consecutive trading sessions on 8, 11 and 12 Aug 2008, which according to the Listing Rules of the Shenzhen Stock Exchange constitutes an unusual price movement.

Following consultation, the board of directors confirms that the company is operating normally.

The company released a projection for its 1H 2008 performance on 26 Apr 2008, forecasting a turnaround by achieving RMB 30 mln in profit, compared with a loss a year earlier.

The board of directors confirms that, except for the above-mentioned information, there are no significant undisclosed issues outstanding, pursuant to relevant regulations, nor are there any plans, negotiations, intentions, agreements or remaining undisclosed information outstanding that would materially impact the company's stock price.

The Securities Times, the China Securities Journal, the Hong Kong Wen Wei Po and the China Info website (www.cninfo.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
13 Aug 2008


Source: Securities Times

Date: 13 Aug 2008

CN01/ZZ /SW/BT/KM