The company announced on 14 Aug and 14 Oct 2008 that:
'If the debt settlement can be fulfilled within the reporting term, the company is expected to gain RMB 40,446,500 from the land, the usage rights of which have been pledged with Agricultural Bank of China, Suzhou branch, Huaihai Road sub-branch.'
However, as the related taxes and expenses totaling approximately RMB 147.8 mln that would be incurred in the transfer of the land were not included in the relevant calculations, there must be a reduction of RMB 147.8 mln in the aforementioned gains.

There exist uncertainties in the implementation of the debt settlement. Thus, the final earnings are unavailable. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
16 Oct 2008


Source: Securities Times

Date: 17 Oct 2008

CN01/FL/JL/JE/KM