Xinhu Holding Sells Stake in Company

The company received a notice from Xinhu Holding Co., Ltd., the controlling shareholder of the company, stating that on 27 Oct 2008, Xinhu Holding signed a share transfer agreement with Zhejiang Xinhu Group Co., Ltd. to sell 110,493,993 shares of the company, equal to a 30.59% stake, to Zhejiang Xinhu.

Following this transaction, Xinhu Holding will no longer hold any stake in the company.

The implementation of the transaction requires an approval of the China Securities Regulatory Commission on the exemption of Zhejiang Xinhu's tender offer obligation.

Board of Directors
28 Oct 2008


Source: Shanghai Stock Exchange

Date: 29 Oct 2008

CN01/NQ/RL/DM/JE/KM