Share Reform Implementation Delayed

Ten days after the suspension of trading in the company's shares on 5 Jan 2008, a corporate share reform scheme was examined and approved at a general meeting of shareholders.

Since 2 Mar 2007, the company has published a series of statements related to progress made in its share reform in the Securities Times and on the China Info website (www.cninfo.com.cn), in compliance with relevant regulations.

In accordance with the share reform scheme, Shenzhen Lionda Group Co., Ltd., the controlling shareholder of the company, is to pay 18,473,734 shares as consideration to its shareholders. The successful buyer of 191.4 mln shares currently held by Shenzhen Lionda Group, including the 18,473,734 consideration shares, must assume Shenzhen Lionda Group's responsibility for the payment.

Implementation of the company's share reform plan will be delayed by the acquisition, requiring the maintenance of the share trading suspension. Additional information will be disclosed in a timely manner as it becomes available.

The board of directors confirms that there are no significant undisclosed issues outstanding and that the company is operating normally. Investors are advised to exercise caution when trading in the company's shares.

Board of Directors
3 Nov 2008


Source: Securities Times

Date: 4 Nov 2008

CN01/FL/JL/JE/KM