The company plans to acquire Changchun Huatian Hotel Management Co., Ltd. for RMB 400 mln. Of the 100% stake, 98.8%, currently held by Changchun Ji'an Real Estate Development Co., Ltd., will be purchased for RMB 395.2 mln, while the remaining 1.2%, currently held by Zhang Xiaoming, will be purchased for RMB 4.8 mln.

The decision-making process was as follows:
1) In August 2008, the company began to study on the feasibility of the asset acquisition.
2) From August to September 2008, the Significant Asset Acquisition Report (Draft) was formulated following careful research and examination.
3) On 23 Oct 2008, at the 3rd Meeting of the 4th Board of Directors, proposals related to the Significant Asset Acquisition Report (Draft) were approved and the agreement on equity transfer was signed on the same day between the parties involved.

The company plans to convene its 8th 2008 Extraordinary General Meeting of Shareholders to examine the proposals related to the major asset acquisition.

Board of Directors
24 Oct 2008


Source: Securities Times

Date: 24 Oct 2008

CN01/FL/JL/JE/KM