Shenfa SFC2 Warrant Expiration Risk Alert

Sina Financial News SFC2 warrants are about to expire, and Shenzhen Stock Exchange reminds the holders to pay attention to risks, and the announcement is as follows:

1. The duration of the "Shenfa SFC2" warrant is from June 29, 2007 to June 27, 2008.

2. The last trading day of "Shenfa SFC2" warrants is June 20, 2008 (Friday), and the trading will be terminated from June 23, 2008 (Monday).

3. The exercise period of the "SFC2" warrants is the last 30 trading days of the duration of the warrants, that is, the trading days from May 16, 2008 (Friday) to June 27, 2008 (Friday), of which the exercise period from June 23, 2008 (Monday) to June 27, 2008 (Friday) is non tradable.

4. The exercise price of the "Shenfa SFC2" warrants is 19.00 yuan.

5. On the trading day before this announcement, the closing price of "Shenzhen Development A" was 27.89 yuan, and the exercise price of "Shenzhen Development SFC2" warrants was 19.00 yuan, so the intrinsic value of "Shenzhen Development SFC2" warrants was 8.89 yuan.

6. Using the Black Sholes formula, the theoretical value of the "Shenzhen Development A" warrant is 9.05 yuan based on the closing price of 27.89 yuan, the stock price volatility of 36.83% (the historical stock price volatility of 120 trading days before this announcement), and the risk-free interest rate of 4.14% (with reference to the one-year fixed deposit interest rate) on the trading day before this announcement.

7. On the trading day prior to this announcement, the closing price of the "Shenfa SFC2" warrants was 10.686 yuan, with a premium rate of 6.44%.

The "Shenfa SFC2" warrants not exercised on the termination date of exercise will be cancelled.