The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 30 Oct, 31 Oct and 3 Nov 2008, thus constituting an unusual price movement.

Because the company has not repaid its loans, creditors filed lawsuits against the company for priority repayment of collaterals. The company lost the case and, consequently, its assets will be auctioned. The company will be materially impacted and great uncertainty pervades its operating ability. Currently, the company has not yet secured any tentative or confirmed cooperator for asset restructuring.

Apart from the above-mentioned issue, there are no other stock price sensitive issues outstanding. The board of directors confirms that there are no significant undisclosed issues outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company's stock price or the prices of its derivatives.

Following consultation, the company's largest shareholder also confirms that there are no undisclosed significant issues outstanding so far, nor are there any such issues foreseeable within the next two weeks that require disclosure.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Sock Exchange (www.sse.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: Shanghai Stock Exchange

Date: 4 Nov 2008

CN01/DC/LZ/NK/KM