According to relevant regulations and requirements, the company hereby discloses progress pertaining to its significant asset restructuring as follows:

Zhuhai Gree Group Corporation, the controlling shareholder of the company, and Xi'an Seastar Technology Investment Holding (Group) Co., Ltd., the former controlling shareholder of the company, maintain a positive stance with regards to the company's significant asset restructuring.

The company is negotiating with related parties on an existing major lawsuit. Xi'an Seastar Technology Investment Holdings is actively addressing relevant lawsuits and has showed its readiness to assume all of its responsibilities.

There exists a great amount of uncertainty as to the potential impact of the lawsuits on the company's major asset restructuring.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Stock Exchange (www.sse.com.cn) are the company's designated media for information disclosure.

Board of Directors
11 Nov 2008


Source: Shanghai Stock Exchange

Date: 11 Nov 2008

CN01/CJ/JL/JE/KM