The stock price of the company reached its maximum intraday limit in three consecutive trading sessions on 5, 6 and 7 Jan 2009, thus constituting an unusual price movement.

The company and its controlling shareholder are cooperating with intermediary agency to promote and carry out relevant work on related transaction of assets purchases through issuing shares and preparing the official report.

As of date, there does not exist any modification and supplementation to the disclosed issues, and there are no action about undisclosed information disclosure by the company or the staffs. The company now is in the progress of terminating the remaining outward guarantees and foresees that certain substantial progress shall be made in the near feature, and corresponding guarantee loss, provision of which was been retained in past years, shall be offset. All the production and operation of the company and its controlling shareholder are on a normal track.

The board of directors confirms that, as of date and within the foreseeable two weeks, there are no significant undisclosed issues, nor plans, negotiations, intentions or agreements to relevant regulations that materially impact the company's stock price.

The China Securities Journal, the Shanghai Securities News and the Shanghai Stock Exchange website (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.



Source: Shanghai Stock Exchange

Date: 8 Jan 2008

CN01/JW/VW/JW