As approved at the 2nd 2007 Extraordinary General Meeting of Shareholders, the company has been authorized to terminate the power generating business of Zhongshan Zhongfa Power Co., Ltd., a subsidiary in which the company holds a 75% stake, and Zhongshan Power Plant Co., Ltd., another subsidiary of the company. In addition, the company will proceed to restructure the assets and transform the corporate structure of Zhongshan Zhongfa after governmental approval of the closedown of the two subsidiaries.

As part of an effort to restructure the assets and transform the corporate structure of Zhongshan Zhongfa, On 2 Feb 2008, Zhongshan Zhongfa, China National Electric Wire & Cable Import & Export Corporation and Sinoway Trading & Engineering Corp. set up a consortium and signed a contract. Under the terms of the contract, Zhongshan Zhongfa will sell its power generating equipments and supporting facilities to the consortium for RMB 123.22 mln. The deal is expected to contribute up to RMB 20 mln in earnings to the company.

Board of Directors
31 Oct 2008


Source: Securities Times

Date: 31 Oct 2008

CN01/FL/JL/JE/KM

The deal is expected to contribute up to RMB 20 mln in earnings to the company.

Board of Directors
31 Oct 2008