Pursuant to a framework agreement to establish Sino-foreign joint ventures, signed between the company and Hongkong Veolia China Limited, on 29 Aug 2008 the company established Nanjing Zhongbei Veolia Transport Co., Ltd., a wholly-owned subsidiary of the company.

The registered capital of Nanjing Zhongbei is RMB 96.9 mln, of which the assets of Nanjing Zhongbei (Group) Co., Ltd., Pukou branch, and Nanjing Zhongbei (Group) Co., Ltd. Liuhe branch, two wholly-owned subsidiaries of the company, as capital contribution in non-currency properties with an assessed value of RMB 29.97 mln, was borne by the company, as well as a capital contribution of RMB 66.93 mln. An assessment report has been submitted to the State-owned Assets Supervision and Administration Commission of the Nanjing People's Government for examination.

The above-mentioned transaction, which does not constitute a related-party transaction, has been approved at the 19th Meeting of the 6th Board of Directors and does not require the approval of a general meeting of the shareholders. It is projected that the transaction will improve the company's overall management of urban passenger transportation and boost its development in the transportation industry, as well as reduce management costs.

Board of Directors
4 Sept 2008


Source: Securities Times

Date: 5 Sept 2008

CN01/VW/DM/BT/KM