According to a court summons received on 14 Oct 2008 from Guangzhou Intermediate People's Court of Guangdong, as a result of four lawsuits filed by Liao Zhao Wen, Lin Xi Tao, Bao He Peng, Lu Xiao Xia against the company, Deloitte Touche Tohmatsu, Gu Chu Jun, Yan You Song, Zhang Hong and Liu Cong Meng claiming false securities information, the court will hold a hearing on all the four lawsuits. A total of RMB 193,627 is involved in the lawsuits.

To date, the company has been informed of 152 lawsuits, including the aforementioned four lawsuits over false securities information that have been disclosed since 2005. The 152 lawsuits, involving a cumulative total of RMB 22,076,787.17, have been filed by investors concerning contingencies.

Board of Directors
15 Oct 2008


Source: Securities Times

Date: 16 Oct 2008

CN01/FL/JL/JE/KM