In order to guarantee a RMB 230 mln loan for the company with Industrial and Commercial Bank, Chongqing Shapingba branch, China South Industries Group Co. Ltd, the controlling shareholder of the company, has pledged 67,000,000 previously-restricted shares of the company, or a 9.75% stake, to ICBC Chongqing Shapingba branch with a guarantee period from 29 May 2008 to 15 Apr 2013.

Source: Shanghai Stock Exchange

Date: 4 Jun 2008

CN01/DM/MM/KM