The recent drop in the closing price of the company's shares represents a deviation of 20% in two consecutive trading sessions, constituting unusual price movement. In accordance with the Listing Rules of the Shenzhen Stock Exchange, trading in shares of the company will be suspended on 7 May 2008 from 9:30 am to 10:30 am.

Following consultation with XJ Group Co. Ltd, the controlling shareholder of the company, it has been learned that an agreement for the transfer of a 100% stake in XJ Group has been signed by related parties. Due to the fact that the transfer involves the indirect transfer of state-owned shares, in accordance with relevant regulations the transaction is required to be submitted to the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission for examination and approval. There exists uncertainty as to whether XJ Group will successfully bring in strategic investors. Information regarding progress in the matter will be disclosed by the company in a timely manner as it becomes available.

The board of directors confirms that there are no other issues that should be disclosed in accordance with relevant regulations but that remain undisclosed, nor are there any related plans, negotiations, intent or agreements to be disclosed.

The China Securities Journal, Securities Times and the website of www.cninfo.com.cn are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing with the company's shares.

Board of Directors
6 May 2008


Source: www.cninfo.com.cn

Date: 7 May 2008

CN01/MZ/KM/GB