75% Stake in Jiulongshan Golf Sold for RMB 37.5 Mln

The company plans to sell its 75% stake in Zhejiang Jiulongshan International Golf Club Co., Ltd. (Jiulongshan Golf), of which the registered capital is USD 7 mln and the net asset value as of 30 Apr 2008 was RMB 35,526,072, to Jiulongshan Yacht Club (Pinghu) Co., Ltd. (JYT Pinghu), with registered capital of USD 620,300 and negative net asset value as of 30 Apr 2008 of RMB (2,059,672), for RMB 37.5 mln.

Huamao Hong Kong Co., Ltd., a wholly-owned subsidiary of the company, which has been renamed Jiulongshan (Hong Kong) Co., Ltd., plans to sell its 50% stake in JYT Pinghu to Hong Kong Wealth Holdings Limited, for USD 310,150.

In addition, Huamao Hong Kong will purchase a 29.5% stake in Zhejiang Jiulongshan Development Co., Ltd. (Jiulongshan Development), with a registered capital of USD 20 mln, from Longhui Development Co., Ltd. for USD 20 mln, based on RMB 458,316,255 in net assets of Jiulongshan Development as of 30 Apr 2008.

Following the above-mentioned equity transfers, the company will no longer hold any shares of Jiulongshan Golf and Pinghu Company. The company and Huamao Hong Kong hold a total of 80% in Jiulongshan Development.

Proposals related to the above-mentioned issues have been examined and approved by the 4th Meeting of the 4th Board of Directors. Relevant equity transfer agreements were signed on 23 Sept 2008.

Board of Directors
24 Sept 2008


Source: Shanghai Stock Exchange

Date: 25 Sept 2008

CN01/TW/LZ/BT/KM