An article was recently published in certain media, asserting that according to an unidentified individual of the company, the company is considering to compensating certain homeowners as long as it does not harm the property market.

To clarify:
A Shanghai-based subsidiary of the company had conducted a series of promotional activities during a Welcoming of the Mid-autumn Day Festival and had received positive responses from the market. As of 10 Sept 2008, 360 apartment units had been purchased, for which the total sales amount was RMB 616 mln.

As such, customers who had bought housing properties prior to the promotion were dissatisfied with their purchases and have asked the company's Shanghai subsidiary for compensation or return of their housing purchases.

The Shanghai subsidiary has noted the sentiments of the customers, but has asserted that it is impossible for the company to make any compensation or refunds without legal contracts.

The China Securities Journal, the Securities Times, the Shanghai Securities News and the China Info website (www.cninfo.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
12 Sept 2008


Source: Securities Times

Date: 12 Sept 2008

CN01/SC/LZ/BT/KM