Notice on Exercise of Put Warrants and Other Related Matters (2006-03-13)

Notice on the Exercise of Put Warrants and Other Related Matters

All member units:

In order to ensure the smooth implementation of the exercise business of put warrants, in accordance with the Interim Measures of Shanghai Stock Exchange for the Administration of Warrants, the Detailed Rules of China Securities Depository and Clearing Corporation Limited for the Implementation of the Registration and Clearing Business of Listed Warrants in Shanghai Stock Exchange and the relevant provisions of the relevant business notices, the matters related to the exercise of put warrants are hereby notified as follows.

1、 The Issuer shall publish the indicative announcement of warrant exercise twice on the designated newspaper and website on T-3 and T-1 days before the exercise period (T day is the starting date of the exercise period).

2、 For the creation, cancellation and exercise declaration of warrants on the same trading day, relevant businesses shall be handled in the order of cancellation over exercise and exercise over creation.

3、 In the case of multiple creation by the same founder, the warrants created by the same founder shall be cancelled in the order of "later creation shall be cancelled first" when applying for cancellation.

4、 When the warrant is exercised, the creator shall perform its obligations before the issuer. If there is more than one founder, each founder shall perform its obligations in the order of "later creation, first exercise".

5、 The trading direction of warrant exercise declaration is "buy", and the declared quantity is an integral multiple of 100. If the balance of the account warrants is less than 100 on the last trading day of the exercise period, the exercise may be declared.

6、 For a single exercise declaration, the exercise is split to multiple creators in the actual exercise settlement and formed during the split calculation

7、 If the former order person is unable to perform due to insufficient exercise performance collateral or its performance collateral has been fully exercised, the corresponding exercise obligations shall be completed by the latter order person until the exercise obligations are performed to all warrant holders who apply for exercise. If the collateral submitted by all issuers and creators is insufficient to fulfill all the obligations of declaration and exercise, the exercise of the insufficient collateral will fail.

8、 If the issuer or creator foresees that its performance collateral may be pledged, judicial frozen or have other rights defects, it must notify Shanghai Stock Exchange and China Securities Depository and Clearing Co., Ltd. at the first time.

9、 If the performance security of the issuer or creator is insufficient, it shall be supplemented in a timely manner, and relevant advisory announcements shall be published on the designated newspapers and websites.

10、 The issuer or creator with insufficient performance security will be punished according to relevant regulations.

11、 The warrant exercise does not provide delivery guarantee. If the exercise fails due to insufficient performance collateral, the issuer or creator shall bear relevant legal liabilities.

12、 Matters not covered in this notice shall be stipulated separately.

Shanghai Stock Exchange

China Securities Depository and Clearing Corporation Limited

March 13, 2006