On 26 May 2008 the company was informed by Phenix Optical Holding Stock Co. Ltd, the largest shareholder of the company, that 8.4 million restricted shares of the company held by Phenix Optical were pledged to Bank of China, Shangrao Fenghuang sub-branch with a term from 21 May 2008 to 20 May 2009. On 21 May 2008 procedures regarding the pledge were completed in the China Securities Regulatory and Clearing Co. Ltd, Shanghai branch.

As of the date of this announcement, Phenix Optical held 93,712,694 shares or 39.46% of the company’s total issued shares, 84,839,072 shares of which are restricted shares.
As of the date of this announcement, Phenix Optical had pledged 36.4 million shares or 15.33% of the company’s total issued shares.

Board of Directors
26 May 2008


Source: Shanghai Stock Exchange

Date: 27 May 2008

CN01/SW/KM