Laws of the People's Republic of China

Supplementary Circular of Shenzhen Stock Exchange Concerning the Matters about the Equity Distribution of Listed Companies in the Rules of Shenzhen Stock Exchange for the Listing of Stocks

Each listed company,

For the purpose of regulating the suspension or termination of the listing of stocks of listed companies and clarifying the explicit requirements for the equity distribution of listed companies, relevant issues are hereby announced concerning the equity distribution of listed companies as described in Subparagraph (4) of Article 14 .1.1 and Subparagraph (10) of Article 14 .3.1 in the Rules of Shenzhen Stock Exchange for the Listing of Stocks (hereinafter referred to as the Rules for the Listing of Stocks) in accordance with Article 19 .2 of the Rules for the Listing of Stocks:

1.

The circumstance that a listed company fails to meet the listing requirements any more due to alterations of equity distribution means that: the shares held by the general public are not more than 25 percent of the total shares of the company; or are not more than 10 percent of the total shares of the company while the total stock capital of the company exceeds RMB 0.4 billion.

2.

The general public does not include:

(1)

a shareholder that holds 10 percent or more shares of a listed company as well as its coordinated actors; and

(2)

directors, supervisors, senior mangers of the listed company, as well as the related parties thereof.

3.

If a listed company has alterations of the equity distribution and then it does not satisfy the listing requirements any more for 20 successive trading days, the listing and trading of its shares shall be suspended by this Exchange. If the said company fails to meet the listing requirements within 12 months as of the date when the listing and trading of its shares is suspended by this Exchange, the listing and trading of its shares will be terminated by this Exchange. The said company can bring forward rectification plans within the aforesaid period and resume the listing and trading of its shares after reporting to this Exchange for approval so as to meet the listing requirements, nevertheless, a warning of delisting risk for the trading of its shares will be given. The related operational procedures shall be governed by the related provisions in the Rules for the Listing of Stocks.

Please abide hereby.

Shenzhen Stock Exchange

August 30, 2006