Pursuant to notices from the China Securities Regulatory Commission, regarding the possible misappropriation of funds by the controlling shareholder and related parties as well as external guarantees provided by the company, independent directors of the company issued the following special remarks in compliance with relevant regulations:

All independent directors assert that the company has avoided risks of external guarantees and misappropriation of funds by related parties effectively. As of 30 Jun 2008, of the company's funds appropriated by related parties, all were appropriated for operational use except for certain funds appropriated by a computer company. The misappropriated funds balance at the end of the reporting period is less than those at the beginning. There is no misappropriation of funds by the controlling shareholder or its related-parties. In addition, there were no irregular external guarantees provided by the company during the period.

Independent Directors: Zeng Xianzhang, Chen Shengtian, Ye Yuejian and Ding Yuan
19 Aug 2008


Source: Securities Times

Date: 21 Aug 2008

CN01/ZZ/SW/BT/KM