As of the date of this announcement, the company has received a written proposal from certain holders of non-tradable shares of the company regarding implementation of its share reform. The company will launch its share reform as soon as holders of non-tradable shares who put forth the share reform have met the two-thirds majority threshold and a final scheme is settled and approved. The company has retained Citic Securities Co., Ltd. as its sponsoring institution for its prospective share reform.

It is uncertain whether the share reform scheme can be disclosed within the next month. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
1 Sept 2008


Source: Shanghai Stock Exchange

Date: 1 Sept 2008

CN01/RL/JL/BT/KM