JV Established with RMB 190 Mln

Pursuant to a capital increase agreement and joint management contract signed by the company with Veolia Transport China Limited on 22 Sept 2008, Nanjing Zhongbei Passenger Transportation Co., Ltd., a wholly-owned subsidiary of the company with initial registered capital of RMB 96.9 mln will increase its registered capital by RMB 93.1 mln, all of which will be contributed by Veolia Transport.

Following the increase, Zhongbei Passenger will become a Sino-foreign joint venture, in which the company and Veolia Transport will hold 51% and 49% of its stake respectively with registered capital totaling RMB 190 mln, following which its name will be changed to Nanjing Zhongbei Veolia Transport Co., Ltd.

Further information pertaining to the new joint venture will be disclosed in a timely manner as it becomes available.

Board of Directors
24 Sept 2008


Source: Securities Times

Date: 26 Sept 2008

CN01/BJ/JL/BT/KM