RMB 15 Mln Net Profit Estimated for 2008

According to preliminary data released by the company's finance department, its net profit for 2008 is estimated to be RMB 15 mln, while net losses for 2007 were RMB 28.87 mln and basic losses per share were RMB 0.20.

Due to a guarantee contract dispute with the Bank of China, Shenzhen Nantou sub-branch and in accordance with relevant laws; the company was compelled to disperse 610,000 shares of China Ping An Insurance (Group) Company to Shenzhen Intermediate People's Court of China. The court, acting as the subrogee for the company, sold the shares to reimburse the bank for the amount of the company's debt.

As the company has made provisions for losses arising from the guarantee and there has been no adverse impact on the company's performance for 2008. On the contrary, the company achieved a profit from the close position of the aforementioned Ping An shares.

Detailed figures pertaining to the company's financial status can be found in its 3Q 2008 Report. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
22 Oct 2008


Source: Securities Times
23 Oct 2008

CN01/SS/MR/JE/KM