On 31 Oct 2008, the company signed an agreement with Fujian Guomai Technologies Development Co., Ltd. to acquire Fujian Guomai Technologies Development's entire capital contribution and corresponding rights in the Fuzhou Strait Vocational & Technological College for RMB 20 mln. Following the acquisition, the company will become organizer of the college.

As Fujian Guomai Technologies Development was a wholly-owned subsidiary of Fujian Guomai (Holdings) Co., Ltd., which is controlled by the company's effective controller Chen Guoying, the above-mentioned deal constitutes a related-party transaction.

At the 23rd Meeting of the 3rd Board of Directors, held on 31 Oct 2008, a proposal to acquire the Fuzhou Strait Vocational & Technological College was examined and approved. The transaction was also approved by the independent directors and sponsoring institution of the company, but it is still subject to approval by the Fujian Provincial Department of Education.

The payment will be made by the company in two installments: RMB 11 mln will be deposited into Fujian Guomai Technologies Development's dedicated account within five days from the date when the agreement is put into force, and the remaining RMB 9 mln will be paid within five days from the date procedures for the re-registration of the Fuzhou Strait Vocational & Technological College are completed.

Board of Directors
31 Oct 2008


Source: Securities Times

Date: 3 Nov 2008

CN01/DC/LZ/JE/KM