Progress in Major Asset Restructuring

Due to ongoing preparations for major asset restructuring, trading in shares of the company has been suspended, in compliance with relevant regulations.

To date, the company is negotiating with relevant government authorities and preparing for the preliminary work of a merger, thus there exists uncertainty in the matter. In order to protect investors' equity and to avoid stock price fluctuations, the company has applied with the Shenzhen Stock Exchange to maintain the trading suspension. During the suspension period, relevant information pertaining to restructuring progress was to be disclosed in a timely manner.

Following consultation with governmental authorities, however, it is confirmed that because the restructuring is regarded as an innovative merger between listed companies, the company's trading suspension will be maintained. As such, the company cannot disclose additional related information during the suspension.

Board of Directors
12 Nov 2008


Source: Securities Times

Date: 13 Nov 2008

CN01/RP/JL/JE/KM