Unusual Price Movement

The recent decrease in the closing price of the company's stock over three consecutive trading sessions on 11, 12 and 13 Aug 2008 represents a deviation of 20%, which according to the Stock Listing Rules of the Shanghai Stock Exchange constitutes an unusual price movement.

Following consultation, it is confirmed by both the controlling shareholder and effective controller of the company that there are neither any significant undisclosed matters outstanding, including private placements, asset reorganizations, business restructuring, asset stripping or asset injection, nor are there any foreseeable within the next three months. The company is operating normally at the present time.

In addition, the board of directors confirms that other than the above-mentioned, there are neither any significant undisclosed issues, nor any related plans, negotiations, intentions or agreements outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company’s stock price.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Stock Exchange (www.sse.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
14 Aug 2008


Source: Shanghai Stock Exchange

Date: 14 Aug 2008

CN01/SS/DM/BT/KM