On 22 Sept 2008, when the company's second-largest shareholder Shanghai Zendai Investment Development Co., Ltd. sold its 2.79 mln shares of the company, it also purchased 10,000 company shares by mistake. The transaction constituted same-day trading.

On 23 Sept 2008, the company released an announcement in the Shanghai Securities News, the China Securities Journal and on the China Info website (www.cninfo.com.cn), stating that the above-mentioned transaction was in compliance with relevant regulations, which was a misleading announcement.

As Shanghai Zendai's day trading has violated relevant regulations, the company will be credited with income generated during the transactions.

The company will tightened its supervision on shareholders and prevent such matters from recurring.

Board of Directors
23 Sept 2008


Source: Securities Times

Date: 24 Sept 2008

CN01/ZZ/SW/BT/KM