In order to expand production, in 2000, Huizhou Desay Power Technology Co., Ltd, the Company's controlling shareholder, invested 5,840,483 RMB to purchase the No.2 industrial plant at Gutangao Industrial Area. As the plant's performance failed to meet the needs of energy production, the Company proposed to sell it to Huizhou Jinhu Real-estate Co., Ltd for 10.6 Mln RMB.

At the 4th Meeting of the 5th Board of Directors on 13 Nov 2007, the sale was approved. The sale is not a related party transaction and need not require the approval of shareholders.

The Board of Directors Shenzhen Desay Battery Technology Co., Ltd.
16 Nov 2007

Source: Securities Times

Date: 16 Oct 2007