Response to Unusual Share Price Movement

The recent movement in the company’s closing stock price over three consecutive trading sessions on 24, 25 and 26 Nov 2008 represents a deviation of 15%, thus constituting an unusual price movement, in compliance with relevant regulations of the Shenzhen Stock Exchange.

Following an internal review and verification with the company's controlling shareholder, effective controller and senior management, the board of directors confirms that, apart from previously disclosed announcements of the termination of a major asset restructuring, the company's trading resumption and its transfer of equity, there are no significant undisclosed plans, negotiations, intentions or agreements currently outstanding, pursuant to the Stock Listing Rules of the Shenzhen Stock Exchange, nor are such issues planned for the next three months that would materially impact the company's stock price or the prices of its derivatives. Currently, the company is operating normally.

The Securities Times, the Shanghai Securities News 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
26 Nov 2008


Source: Securities Times

Date: 27 Nov 2008

CN01/RP/JL/VW/JW