Pursuant to the civil judgment received on 3 Nov 2008 from the Datong Intermediate People's Court of Shanxi, the court has declared the bankruptcy of Datong Cement Group Co., Ltd., the controlling shareholder of the company, and designated a liquidation team to take over the controlling shareholder. The court order is to take effect immediately.

As on 31 Dec 2007, 122.4 mln shares of the company, equal to a 49.21% stake, previously held by Datong Cement Group Co., Ltd., were auctioned by Shanxi Jinde Auction Co., Ltd. Of the 122.4 mln shares, Nanjing Meiqiang Special Steel Co., Ltd. won 102.4 mln shares and Chu Hui, a natural person, won 20 mln. Chu Hui has completed relevant procedures regarding the equity transfer, but Nanjing Meiqiang has not yet done so.

In September 2008, the State-owned Assets Supervision and Administration Commission of Datong and Shanxi Guoxin Investment Group Corporation signed a letter of intent (LOI). Under the terms of LOI, Shanxi Guoxin will restructure the company by acquiring its equity.

Investors are advised to exercise caution when dealing in the shares of the company.

Board of Directors
3 Nov 2008


Source: Securities Times

Date: 4 Nov 2008

CN01/FL/JL/JE/KM