Lawsuit Petitions Rejected

On 7 Apr 2005, the company filed a lawsuit against Gansu Security Co., Ltd., Lanzhou Hezheng Road sub-branch and Shenzhen Huizhen Science and Technology Development Co., Ltd. with the Higher People's Court of Gansu Province (HPCG) on the grounds that the aforementioned companies had not fulfilled their obligations to maintain a RMB 137,659,400 investment fund properly and they disposed of the company's assets casually. HPCG suspended the lawsuit in October 2005, but it was resumed in 2008.

The company recently received a civil ruling issued by the HPCG stating that the company's petitions had been rejected and the company has to assume RMB 817,600 in litigation fees and RMB 690,000 in preservation fees.

Board of Directors
24 Oct 2008


Source: Shanghai Stock Exchange

Date: 27 Oct 2008

CN01/MZ/VW/LZ/JE/KM