On 21 Aug 2008, the company received a notice from Tangshan Jingyuan Technology Co., Ltd., the controlling shareholder of the company, stating that Jingyuan Technology will extend the lock-up on shares of the company that it holds to 7 Nov 2010. In addition, Jingyuan Technology committed not to release the above-mentioned shares into the secondary market at a price lower than RMB 12.85 per share within 12 months after 7 Nov 2010, but if there is any change in equity caused by a dividend distribution, rights issuance or stock dividend distribution from capital reserve, the selling price will be adjusted accordingly.

The aforementioned issue, plus the following facts make investors bullish on the company's stock.

The company is a leading enterprise in the domestic piezoelectric quartz crystal industry, with an annual production capacity of 100 mln pieces of piezoelectric quartz crystal components. It is also the only enterprise that has succeeded in developing core technology in SMD electronic components, which was listed by relevant government authorities as one of the main technology focuses in the next 5 to 15 years. In addition, one of the company's products, the quartz crystal oscillator, as one of the main components for 3G mobile phones, is projected to be a new growth engine for the company's net profit in the next 3 to 5 years.

Source: www.topcj.com

Date: 25 Aug 2008

CN01/VL/LZ/BT/KM