The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 31 Oct, 3 Nov and 4 Nov 2008, thus constituting an unusual price movement.

On 13 Oct 2008, the company announced that the State-owned Assets Supervision and Administration Commission of the Datong Municipal Government, its effective controller, intended to collaborate with Shanxi Guoxin Investment Group Co., Ltd. On 4 Nov 2008, the company disclosed a bankruptcy liquidation plan of its controlling shareholder. The board of directors confirms that apart from the above-mentioned issues, there are no significant undisclosed issues, negotiations, plans, intentions or agreements outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company's stock price.

The China Securities Journal and the China Info website (www.cninfo.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
4 Nov 2008

Source: Securities Times

Date: 5 Nov 2008

CN01/DC/LZ/NK/KM