On 12 Mar 2008, Sharp Vision Holdings Limited, the company's wholly-owned subsidiary, signed an agreement with Leung Kee Holdings Limited and Yantai Raffles Shipyard Limited. According to the agreement, Sharp Vision Holdings Limited will acquire 81,776,500 shares of Yantai Raffles Shipyard Limited, equal to 29.9% of total shares outstanding held by Leung Kee Holdings Limited and Yantai Raffles Shipyard Limited.

Following negotiations, both parties of the above-mentioned transaction signed a supplementary agreement on 27 Aug 2008, under which the acquisition price of the transaction will decrease to USD 4.00 per share from USD 6.92 per share, at which price the total transaction will amount to approximately USD 32.71 mln.

The above-mentioned transaction was approved by the 11th 2008 Meeting of the 5th Board of Directors and must be submitted to a general meeting of shareholders and relevant authorities for examination and consideration for approval.

Board of Directors
1 Sept 2008


Source: Shanghai Stock Exchange

Date: 1 Sept 2008

CN01/CJ/JL/BT/KM