At the 5th Meeting of the 6th Board of Directors, held on 31 Oct 2008, a proposal to adjust a scheme to increase the capital of Zhuhai HIGRAND Electronics Technology Co., Ltd. was examined and approved.

At the 3rd Meeting of the 6th Board of Directors, held on 14 Aug 2008, a proposal for Shenzhen Leaguer Venture Capital Co., Ltd., Zhuhai Liguantong Investment Consultancy Co., Ltd. and Maxyee Technology (China) Co., Ltd. to increase their respective capital investment in Zhuhai HIGRAND Electronics Technology Co., Ltd. was examined and approved.

The resolution of the 3rd Meeting of the 6th Board of Directors was modified at the 5th Meeting of the 6th Board of Directors as follows: the total amount to be invested in Zhuhai HIGRAND was decreased from RMB 62,632,200 to RMB 61,492,200 and the names of the above-mentioned investors were changed to, Shenzhen Leaguer Venture Capital and Maxyee Technology (China), respectively.

The company will contribute RMB 12 mln to Zhuhai HIGRAND, of which RMB 4,210,500 is allocated as registered capital and RMB 7,789,500 is to be allocated as capital reserve. Shenzhen Leaguer Venture Capital will contribute RMB 30,482,700, of which RMB 10,695,700 is to be distributed as registered capital and RMB 19,787,000 is to be distributed as capital reserve. Maxyee Technology (China) will contribute RMB 19,009,500, of which RMB 6.67 mln is to be provided as registered capital and RMB 12,339,500 is to be provided as capital reserve.

Following the capital injection, the company will hold a 38.05% stake in Zhuhai HIGRAND, Shenzhen Leaguer Venture Capital a 16.16% stake, Maxyee Technology (China) a 10.08% stake, Zhuhai Liguantong Investment Consultancy a 5.34% stake, Zhuhai Tsinghua Science & Technology Park Venture Capital Co., Ltd. a 13.60% stake and other shareholders a 16.77% stake. The company and Zhuhai Tsinghua Science & Technology Park Venture Capital, a subsidiary of the company, will jointly hold a 51.65% stake in Zhuhai HIGRAND. Thus Zhuhai HIGRAND Electronics Technology continues to be a subsidiary of the company.

Independent directors of the company has approved the above-mentioned proposal.

Board of Directors
31 Oct 2008


Source: Securities Times

Date: 1 Nov 2008

CN01/DC/LZ/JE/KM