Subsidiary Registration Cancellation Approved

At the 12th Meeting of the 3rd Board of Directors, held on 15 Oct 2008, the following proposals were examined and approved:

1. the 3Q 2008 Report
2. to give up the right of first refusal
Shandong Tianhai Electric Fitting Co., Ltd. plans to transfer its 49% stake in Shandong Hangtian Fenghua Auto Electric Appliance Co., Ltd. to Shandong Tairui Auto Machinery Electric Appliance Co., Ltd. for RMB 2.45 mln.
Shandong Hangtian will be renamed "Shandong Tairui Fenghua Auto Electric Appliance Co., Ltd." Moreover, its operations and registered location will be changed to 'Zhucheng Economic Technology Development Zone, Weifang, Shandong'.
The company decides to give up the right of first refusal in the acquisition of a 49% stake in Shandong Hangtian, a subsidiary of the company, with the remaining 51% stake, belonging to Shandong Tianhai.

3. to cancel the registration of Harbin Bohong Software Technology Co., Ltd., a wholly-owned subsidiary of the company
Upon completion of the cancellation, the entirety of the subsidiary's assets, liabilities and business will be injected into the company and the consolidation statements of the company will be updated to agree with the corresponding changes.

Board of Directors
16 Oct 2008


Source: Securities Times

Date: 16 Oct 2008

CN01/FL/JL/JE/KM