Pursuant to a resolution of the 1st 2008 Extraordinary General Meeting of Shareholders, following approval by the China Securities Regulatory Commission, the company plans to sell accounts receivable and inventories with a total book value of RMB 163,272,501 to Chongqing Silver Star Economic and Technological Development Co., Ltd., a subsidiary of the company's controlling shareholder.

To date, certain inventories have not yet been verified and the company is hastening to speed up progress.

Board of Directors
2 Sept 2008


Source: Shanghai Stock Exchange

Date: 3 Sept 2008

CN01/IS/LZ/BT/KM