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<SEC-DOCUMENT>0001116502-06-002173.txt : 20061113
<SEC-HEADER>0001116502-06-002173.hdr.sgml : 20061110
<ACCEPTANCE-DATETIME>20061113115654
ACCESSION NUMBER:		0001116502-06-002173
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061113
FILED AS OF DATE:		20061113
DATE AS OF CHANGE:		20061113

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA NATURAL RESOURCES INC
		CENTRAL INDEX KEY:			0000793628
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING [7310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26046
		FILM NUMBER:		061206813

	BUSINESS ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN
		STATE:			K3
		ZIP:			-
		BUSINESS PHONE:		01185228107205

	MAIL ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN HONG KONG
		STATE:			K3
		ZIP:			-

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHINA RESOURCES DEVELOPMENT INC
		DATE OF NAME CHANGE:	19950104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MAGENTA CORP
		DATE OF NAME CHANGE:	19940217
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>chinanaturalresources6k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>United States Securities & Exchange Commission EDGAR Filing</TITLE>
<META NAME="keywords" CONTENT="Bassett Press, Inc. 888-805-9953">
<META NAME="date" CONTENT="11/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=center>&nbsp;</P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:24px; margin-top:21.333px; margin-bottom:0px; font-size:21.333px" align=center><B>FORM 6-K</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16<BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>
<P style="margin-top:8.867px; margin-bottom:0px" align=center><B>For the month of November&nbsp;2006.</B></P>
<P style="margin-top:13.333px; margin-bottom:0px" align=center><B>Commission File Number 0-26046</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:26.667px; margin-top:24px; margin-bottom:0px; font-size:24px" align=center><B>CHINA NATURAL RESOURCES, INC.</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>(Translation of registrant&#146;s name into English)</P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>Room 2105, West Tower, Shun Tak Centre,<BR>
200 Connaught Road C., Sheung Wan, Hong Kong</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>(Address of principal executive offices)</P>
<P style="margin-top:8.867px; margin-bottom:0px">Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. &nbsp;Form&nbsp;20-F&nbsp;<FONT FACE="Wingdings">&#253;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form&nbsp;40-F&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):&nbsp;&nbsp;&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):&nbsp;&nbsp;&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px">Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12b3-2(b) under the Securities Exchange Act of 1934.&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT FACE="Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT FACE="Wingdings">&#253;</FONT>.</P>
<P style="margin-top:8.867px; margin-bottom:0px">If &#147;Yes&#148; is marked, indicated below the file number assigned to the registrant in connection with Rule 12b3-2(b): 82-____________.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><B><U>Unaudited Results of Operations</U></B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">In furtherance of Nasdaq Marketplace Rule 4350(b)(4), furnished herewith on behalf of China Natural Resources, Inc. are the following:</P>
<P style="margin-top:8.867px; margin-bottom:-16px; text-indent:48px">(a)</P>
<P style="margin:0px; text-indent:96px">Unaudited Financial Statement:</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:128px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:128px">Condensed Consolidated Statements Of Operations And Comprehensive Income (Loss) (Unaudited) For The Three and Six Months Ended June&nbsp;30, 2006 and 2005</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:128px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:128px">Condensed Consolidated Balance Sheets as of June&nbsp;30, 2006 and December&nbsp;31, 2005</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:128px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:128px">Condensed Consolidated Statements Of Cash Flows (Unaudited) For The Six Months Ended June&nbsp;30, 2006 and 2005</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:128px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:128px">Notes to Condensed Consolidated Financial Statements (Unaudited)</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(b)</P>
<P style="margin:0px; padding-left:96px">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</P>
<P style="margin-top:13.333px; margin-bottom:0px"><B><U>Exhibits</U></B></P>
<P style="margin-top:8.867px; margin-bottom:-16px; color:#0000FF"><A HREF="exh991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
<P style="margin:0px; text-indent:48px"><FONT COLOR=#000000>Press Release dated November&nbsp;13, 2006.</FONT></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin-top:20px; margin-bottom:20px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunder duly authorized.</P>
<P style="margin-top:0px; margin-bottom:20px">Date:&nbsp;&nbsp;November&nbsp;13, 2006</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=335.467></TD><TD width=22.067></TD><TD width=266.467></TD></TR>
<TR><TD valign=top width=335.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=288.533 colspan=2><P style="margin:0px"><B>CHINA NATURAL RESOURCES, INC.</B></P>
</TD></TR>
<TR><TD valign=top width=335.467><P style="margin-top:26.667px; margin-bottom:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=22.067><P style="margin-top:26.667px; margin-bottom:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=266.467><P style="line-height:normal; margin-top:26.667px; margin-bottom:0px">/s/&nbsp;L<SMALL>I<BIG> F<SMALL>EILIE</SMALL></P>
</TD></TR>
<TR><TD valign=top width=335.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=266.467><P style="margin:0px">Li Feilie</P>
</TD></TR>
<TR><TD valign=top width=335.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=266.467><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND<BR>
COMPREHENSIVE INCOME (LOSS) (UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005</B></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=center>(Amounts in thousands, except share and per share data)</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=200></TD><TD width=15></TD><TD width=3></TD><TD width=54></TD><TD width=15></TD><TD width=3></TD><TD width=48></TD><TD width=15></TD><TD width=3></TD><TD width=54></TD><TD width=15></TD><TD width=3></TD><TD width=54></TD><TD width=15></TD><TD width=3></TD><TD width=48></TD><TD width=15></TD><TD width=3></TD><TD width=54></TD><TD width=4></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=195 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Three Months Ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=195 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Six Months Ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET SALES</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>32,526</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>20,947</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,066</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>51,664</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>43,150</P>
</TD><TD valign=bottom width=15><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,458</P>
</TD><TD valign=bottom width=4><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">COST OF SALES</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(8,961</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(8,873</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,120</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(17,042</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(17,309</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(2,130</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">GROSS PROFIT</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>23,565</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>12,074</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,946</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>34,622</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>25,841</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,328</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">SELLING, GENERAL AND ADMINISTRATIVE<BR>
EXPENSES</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,715</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,814</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(464</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(7,106</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(5,439</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(888</P>
</TD><TD valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INTEREST INCOME</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>135</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>240</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>235</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>270</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>29</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">OTHER INCOME/ (EXPENSE), NET</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>1,083</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>16</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>135</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,958</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(24</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>620</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME FROM CONTINUING<BR>
OPERATIONS BEFORE<BR>
INCOME TAXES</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>21,068</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>10,516</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,634</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>32,709</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>20,648</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,089</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME TAXES</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,338</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,570</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(417</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(4,906</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,430</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(613</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME FROM CONTINUING<BR>
OPERATIONS</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,730</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,217</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,803</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,476</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">DISCONTINUED OPERATIONS</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Loss from discontinued advertising and HARC operations, net<BR>
of taxes of nil</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(212</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(27</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(486</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(61</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET INCOME</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,518</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,190</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,317</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,415</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">Other comprehensive income/(loss):</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Foreign currency translation<BR>
adjustments</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">COMPREHENSIVE INCOME</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,515</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,190</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,306</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,414</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.54</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.19</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.87</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.36</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.02</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.05</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.01</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.52</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.19</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.82</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.35</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.27</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.16</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.27</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.29</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.02</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.04</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.01</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.25</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.16</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.23</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.28</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">WEIGHTED AVERAGE NUMBER<BR>
OF SHARES OUTSTANDING </P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom 
width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,670,407</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,670,407</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,959,662</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,959,662</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,240,535</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,240,535</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:20px; margin-bottom:0px">See notes to condensed consolidated financial statements.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin:0px" align=center><B>AS OF JUNE 30, 2006 AND DECEMBER 31, 2005</B></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=center>(Amounts in thousands, except share and per share data)</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=319.8></TD><TD width=18></TD><TD width=3.6></TD><TD width=27.6></TD><TD width=18></TD><TD width=3.6></TD><TD width=59.667></TD><TD width=18></TD><TD width=3.6></TD><TD width=67.267></TD><TD width=18></TD><TD width=3.6></TD><TD width=59.667></TD><TD width=3.6></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=63.267 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=63.267 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Notes</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Note)</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">ASSETS</P>
</TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT ASSETS:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>72,453</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>41,202</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>9,057</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Trade receivables</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>502</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>4,622</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>63</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Bills receivable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>450</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Other receivables, deposits and prepayments</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,055</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>422</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>132</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due from a related company</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>5</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>20,503</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Inventories</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>3</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>3,584</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>3,788</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>448</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Assets held for sale</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>6</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>25,647</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>3,205</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>103,241</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>70,987</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>12,905</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">PROPERTY AND EQUIPMENT</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>4</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>36,294</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>33,656</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,537</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">GOODWILL</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>2</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>21,915</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>2,739</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL ASSETS</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>161,450</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>20,181</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT LIABILITIES:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,011</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>934</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>126</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Other payables</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>20,380</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>18,881</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,548</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances from customers</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>7,040</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>1,174</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>880</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accrued liabilities</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,437</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>1,319</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>305</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Current portion of capital lease</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>70</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>9</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to related parties</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>5</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>809</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to a director</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="margin:0px" align=center>5</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>13,482</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>23,644</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,685</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Dividends payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>18,040</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>5</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,255</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Taxes payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,224</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>2,545</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>528</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Liabilities related to assets held for sale</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>2,528</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>316</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>75,688</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>54,978</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>9,461</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Common shares, no par:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Authorized &#150; 200,000,000 shares <BR>
Issued and outstanding &#150;11,548,416 and 1,247,823<BR>
shares in 2006 and 2005, respectively</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>19,222</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,403</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Additional paid-in capital</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Reserves</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>35,359</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>3,912</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,420</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Retained earnings</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>30,952</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>45,513</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>3,869</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accumulated other comprehensive income</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>229</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>240</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>28</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>85,762</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>49,665</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>10,720</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL LIABILITIES AND SHAREHOLDERS&#146;<BR>
EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>161,450</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>20,181</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px">Note: The balance sheet at December&nbsp;31, 2005 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.</P>
<P style="margin-top:8.867px; margin-bottom:0px">See notes to condensed consolidated financial statements.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005</B></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=center>(Amounts in thousands)</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=421.333></TD><TD width=18.6></TD><TD width=3.733></TD><TD width=46.067></TD><TD width=18.6></TD><TD width=3.733></TD><TD width=46.067></TD><TD width=18.6></TD><TD width=3.733></TD><TD width=38.533></TD><TD width=5></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=179.067 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Six months ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=49.8 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=49.8 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=42.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=49.8 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=49.8 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=42.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Net cash provided by operating activities</P>
</TD><TD valign=bottom width=18.6><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>43,847</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>23,600</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,481</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">INVESTING ACTIVITIES</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Purchases of property and equipment</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3,566</P>
</TD><TD valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,375</P>
</TD><TD valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(446</P>
</TD><TD valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Advances to related companies</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(20,097</P>
</TD><TD valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Repayment to a director</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10,162</P>
</TD><TD valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,270</P>
</TD><TD valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Advances from a director</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,440</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Net cash provided by/(used in) investing activities</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13,728</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10,032</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,716</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">FINANCING ACTIVITIES</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Cash received in acquisition of subsidiaries</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,207</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>151</P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Repayment of principal of capital leases</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(75</P>
</TD><TD valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9</P>
</TD><TD valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Net cash used in financing activities by discontinued operations</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Net cash provided by financing activities</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,141</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>143</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Effect of exchange rate changes on cash</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET INCREASE IN CASH AND CASH <BR>
EQUIVALENTS</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>31,251</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,568</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3,907</P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Cash and cash equivalents, at beginning of period</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>41,202</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>19,647</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,150</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Cash and cash equivalents, at end of period</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>72,453</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>33,215</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,057</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Supplemental disclosure of non-cash investing and financing activities</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Business acquisition:</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Fair value of assets acquired</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>50,558</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,320</P>
</TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Liabilities assumed</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3,308</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(414</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=421.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=38.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=421.333><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">Common shares issued</P>
</TD><TD valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>47,250</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=18.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=38.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,906</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:20px; margin-bottom:0px">See notes to condensed consolidated financial statements.</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:17.8px; margin-bottom:0px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES</B></P>
<P style="margin-top:13.333px; margin-bottom:0px" align=center><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center>(Amounts in thousands of RMB, except share and per share data)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px"><B>1.</B></P>
<P style="margin:0px; padding-left:48px"><B>BASIS OF PRESENTATION</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month and six-month periods ended June&nbsp;30, 2006, are not necessarily indicative of the results that may be expected for the year ending December&nbsp;31, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">The balance sheet at December&nbsp;31, 2005 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company&#146;s annual report on Form 20-F for the year ended December&nbsp;31, 2005, and to the Company&#146;s Form 6-K filed on June&nbsp;19, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">For the convenience of the reader, amounts in Renminbi (&#147;RMB&#148;) have been translated into United States dollars (&#147;US$&#148;) at the rate of US$1.00 = RMB8.00 quoted by the People&#146;s Bank of China as at June&nbsp;30, 2006. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate.</P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">Certain comparative amounts have been reclassified to conform with the current period classifications.</P>
<P style="margin-top:8.867px; margin-bottom:-16px; padding-left:48px; text-indent:-48px"><B>2.</B></P>
<P style="margin:0px; padding-left:48px"><B>ACQUISITION</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">On February&nbsp;3, 2006 (the &#147;Acquisition Date&#148;), the Company consummated the acquisition of all of the issued and outstanding capital stock of Feishang Mining Holdings Limited (&#147;FMH&#148;), a British Virgin Islands corporation (the &#147;Acquisition&#148;). FMH, through its wholly owned subsidiary, Wuhu Feishang Mining Development Co. Ltd., is principally engaged in the mining of zinc, iron and other minerals for distribution in the PRC. The transaction was structured as a reorganization of FMH with and into the Company. As consideration for the Acquisition, the Company issued to the former FMH shareholder 9,980,593 of the Company&#146;s common shares, as well as warrants (the &#147;Warrants&#148;) to purchase an additional 4,500,000 of the Company&#146;s common shares. In connection with the Acquisition, the 320,000 series B preferred shares were converted into 320,000 common shares. The Warrants entitle the holder to purch
ase: 2,000,000 common shares of the Company at an exercise price of US$4.00 per share for a period of two years from the Acquisition Date; 1,500,000 common shares at an exercise price of US$4.50 per share for a period of three years from the Acquisition Date; and 1,000,000 common shares at an exercise price of US$5.00 per share for a period of four years from the Acquisition Date. Other than the exercise price and exercise period, all other terms and conditions of the Warrants are identical.</P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">The acquisition of FMH by the Company was accounted for using the purchase method of accounting and is treated as a reverse acquisition because on a post-merger basis, the former FMH shareholder holds 86.4% of the outstanding common shares of the Company. As a result, FMH is deemed to be the acquirer for accounting purposes.</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; page-break-before:always"><B>2.</B></P>
<P style="margin:0px; text-indent:48px"><B>ACQUISITION (Continued)</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">Accordingly, the accompanying financial statements represent the operations of FMH through February&nbsp;2, 2006 and the consolidated operations of FMH and the Company subsequent to February&nbsp;2, 2006. We have retroactively restated our issued share capital to reflect the acquisition by FMH.</P>
<P style="margin-top:8.867px; margin-bottom:8.867px; padding-left:48px">The following table summarizes the initial estimated fair values of the Company&#146;s assets and liabilities acquired by FMH at the Acquisition Date. The purchase price was determined by multiplying the number of outstanding shares immediately prior to consummating the acquisition of 1,567,823 by the closing price of our common shares the day prior to the public announcement of the Acquisition Agreement between the Company and FMH. The allocation of the purchase price is preliminary and subject to refinement:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=478.267></TD><TD width=17.2></TD><TD width=3.467></TD><TD width=51.533></TD><TD width=17.2></TD><TD width=3.467></TD><TD width=51.533></TD><TD width=1.333></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">(In thousands)</P>
</TD><TD valign=bottom width=17.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Purchase price (including direct costs)&nbsp;</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Current assets</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="margin:0px" align=right>3,074</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Property and equipment</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="margin:0px" align=right>869</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Investments</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51.533><P style="margin:0px" align=right>24,700</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Total assets</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="margin:0px" align=right>28,643</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Total liabilities assumed</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51.533><P style="margin:0px" align=right>(3,308</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.2><P style="margin:0px">)</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Net assets acquired</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51.533><P style="margin:0px" align=right>25,335</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=478.267><P style="margin:0px">Goodwill resulting from the acquisition</P>
</TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51.533><P style="margin:0px" align=right>21,915</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">The goodwill resulting from the acquisition is not expected to be deductible for tax purposes.</P>
<P style="margin-top:8.867px; margin-bottom:8.867px; padding-left:48px">The following unaudited proforma financial information presents results of operations as if the above acquisitions had occurred at the beginning of the respective three and six-month periods ended June&nbsp;30, 2006 and 2005:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=279.667></TD><TD width=19.6></TD><TD width=5.333></TD><TD width=59.8></TD><TD width=27.067></TD><TD width=5.333></TD><TD width=59.933></TD><TD width=19.6></TD><TD width=4.867></TD><TD width=54.067></TD><TD width=24.6></TD><TD width=4.867></TD><TD width=54.133></TD><TD width=5.133></TD></TR>
<TR><TD valign=bottom width=279.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=157.467 colspan=5><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Three months ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=142.533 colspan=5><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Six months ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.133 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=27.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=58.933 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Net sales</P>
</TD><TD valign=bottom width=19.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>32,526</P>
</TD><TD valign=bottom width=27.067><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>20,947</P>
</TD><TD valign=bottom width=19.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=4.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>51,664</P>
</TD><TD valign=bottom width=24.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=4.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>43,150</P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Income from continuing operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>17,730</P>
</TD><TD valign=bottom width=27.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>7,384</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>24,939</P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>14,159</P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>(212</P>
</TD><TD valign=bottom width=27.067><P style="margin:0px">)</P>
</TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>(6,476</P>
</TD><TD valign=bottom width=19.6><P style="margin:0px">)</P>
</TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>(530)</P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>(6,649</P>
</TD><TD valign=bottom width=5.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Net income</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>17,518</P>
</TD><TD valign=bottom width=27.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>908</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>24,409</P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>7,510</P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Basic income per share</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>1.52</P>
</TD><TD valign=bottom width=27.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>0.08</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>2.52</P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>0.65</P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=279.667><P style="margin:0px">Diluted income per share</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.8><P style="margin:0px" align=right>1.25</P>
</TD><TD valign=bottom width=27.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.933><P style="margin:0px" align=right>0.08</P>
</TD><TD valign=bottom width=19.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>1.99</P>
</TD><TD valign=bottom width=24.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="margin:0px" align=right>0.64</P>
</TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; page-break-before:always"><B>3.</B></P>
<P style="margin:0px; text-indent:48px"><B>INVENTORIES</B></P>
<P style="margin-top:8.867px; margin-bottom:8.867px; text-indent:48px">At June&nbsp;30, 2006, inventories consisted of:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=453.2></TD><TD width=16.733></TD><TD width=3.4></TD><TD width=63.267></TD><TD width=16.733></TD><TD width=3.467></TD><TD width=63.867></TD><TD width=3.333></TD></TR>
<TR><TD valign=bottom width=453.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.333 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
</TD><TD valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=67.333 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.333 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="margin:0px">Raw materials&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>2,142</P>
</TD><TD valign=top width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>2,425</P>
</TD><TD valign=top width=3.333><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=453.2><P style="margin:0px">Work in progress</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>392</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>392</P>
</TD><TD valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="margin:0px">Finished goods</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>1,050</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.867><P style="margin:0px" align=right>971</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>3,584</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.867><P style="margin:0px" align=right>3,788</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:-16px"><B>4.</B></P>
<P style="margin:0px; text-indent:48px"><B>PROPERTY AND EQUIPMENT</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=452.8></TD><TD width=16.667></TD><TD width=3.4></TD><TD width=63.267></TD><TD width=16.733></TD><TD width=3.4></TD><TD width=63.267></TD><TD width=4.467></TD></TR>
<TR><TD valign=bottom width=452.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px">At cost:</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=4.467><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Buildings</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>25,008</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>24,009</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Machinery and equipment&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>4,522</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>4,860</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Motor vehicles</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>2,426</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>1,473</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Mining rights</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>11,982</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>9,229</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>43,938</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>39,571</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=452.8><P style="margin:0px">Accumulated depreciation</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>(7,644</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=16.733><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>(5,915</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=452.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>36,294</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>33,656</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">As at June&nbsp;30, 2006, property and equipment included one leased motor vehicle with cost and accumulated depreciation of RMB963 (US$120) and RMB625 (US$78), respectively.</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; page-break-before:always"><B>5.</B></P>
<P style="margin:0px; text-indent:48px"><B>RELATED PARTY BALANCES AND TRANSACTIONS</B></P>
<P style="margin-top:8.867px; margin-bottom:8.867px; padding-left:48px">At June&nbsp;30, 2006, amounted due to a related company and to a director comprise:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=453.067></TD><TD width=16.733></TD><TD width=3.4></TD><TD width=63.267></TD><TD width=16.733></TD><TD width=3.4></TD><TD width=64></TD><TD width=3.4></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
</TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=67.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:8px; text-indent:-8px">Due from a related company:</P>
</TD><TD valign=top width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:24px; text-indent:-8px">Anhui Xinke New Materials Co. Ltd. (&#147;Xinke&#148;)</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=64><P style="margin:0px" align=right>20,503</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:8px; text-indent:-8px">Due to a related company:</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:24px; text-indent:-8px">Wuhu Feishang Non-Metal Material Co. Ltd. (&#147;WFNM&#148;)</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>6,476</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=64><P style="margin:0px" align=right>6,476</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:8px; text-indent:-8px">Due to a director:</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="margin:0px; padding-left:24px; text-indent:-8px">Mr.&nbsp;Li Feilie</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=453.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>13,482</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=64><P style="margin:0px" align=right>23,644</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">During the period ended June&nbsp;30, 2006, the amount due from Xinke was fully paid by offsetting the dividends payable to Mr.&nbsp;Li Feilie. The amount due to a director represents advances made by Mr.&nbsp;Li Feilie to the Company and expenses he paid on behalf of the Company. During the period ended June&nbsp;30, 2006, RMB10,162 was repaid.</P>
<P style="margin-top:8.867px; margin-bottom:-16px"><B>6.</B></P>
<P style="margin:0px; text-indent:48px"><B>SUBSEQUENT EVENTS</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; padding-left:48px">On July&nbsp;31, 2006, the Company disposed of its 100% equity interest in iSense Limited (&#145;iSense&#148;) to the director and former shareholder of iSense for consideration of RMB2,060 (US$257). On October&nbsp;3, 2006, the Company consummated the sale of its 100% equity interest in Hainan Cihui Industrial Co. Ltd. (&#147;HARC&#148;) to an unaffiliated third party for total consideration of RMB30,900 (US$3,862). The assets and liabilities of iSense and HARC have been classified as held for sale as of June&nbsp;30, 2006 and consisted of fixed assets of RMB452 (US$56), cash of RMB344 (US$43), trade receivables of RMB127 (US$16), other receivables of RMB24 (US$3), investment of RMB24,700 (US$3,087), accounts payable of RMB40 (US$5), other payables of RMB1,010 (US$126), tax payables of RMB19 (US$2), finance lease of RMB40 (US$5) and amounts due to related parties of RMB1,419 (US$178). The results of operations of iSense and HARC have been r
etroactively restated as discontinued operations. Revenues from discontinued operations were RMB212 (US$27) and RMB306 (US$38) for the three months and six months ended June&nbsp;30, 2006. Loss before income taxes from discontinued operations were RMB212 (US$27) and RMB486 (US$61) for the three and six months ended June&nbsp;30, 2006, respectively.</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px"><B>NET SALES AND GROSS PROFIT</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Sales for the six months ended June&nbsp;30, 2006 increased by 20% compared to June&nbsp;30, 2005. The increase was mainly due to the 100% increase in the average selling price of zinc, partly offset by the decrease in the sales volume of zinc as actual zinc mined was 41% lower during the current period.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Sales for the second quarter of 2006 increased by 55% compared to the corresponding period in 2005. The increase was mainly due to the increase in the average selling price of zinc of 153%, partly offset by the decrease in the sales volume of zinc of 15% as the actual zinc mined was lower during the current period.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The gross profit margin for the three months and six months ended June&nbsp;30, 2006 was 72% and 67%, respectively, compared to 58% and 60% for the corresponding period in 2005. The increase was primarily due to the increase in selling price of zinc as a result of increased demand.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px"><B>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Selling, general and administrative expenses increased by RMB1,667,000 (US$208,000) or 31% to RMB7,106,000 (US$888,000) for the six months ended June&nbsp;30, 2006 from RMB5,439,000 (US$680,000) for the six months ended June&nbsp;30, 2005. The increase was primarily attributable to the consolidation of CHNR&#146;s expenses following the reverse acquisition.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Selling, general and administrative expenses increased by RMB1,901,000 (US$238,000) or 105% to RMB3,715,000 (US$464,000) for the second quarter of 2006 from RMB1,814,000 (US$227,000) for the second quarter of 2005. The increase was primarily attributable to consolidation of CHNR&#146;s expenses following the reverse acquisition.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px"><B>INTEREST INCOME, NET</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Interest income decreased by RMB35,000 (US$4,000) or 13% to RMB235,000 (US$29,000) for the six months ended June&nbsp;30, 2006 from RMB270,000 (US$34,000) for the six months ended June&nbsp;30, 2005. The decrease was primarily due to a decrease in interest income earned on loans and advances to related parties in 2005 of RMB190,000 (US$24,000), partly offset by an increase in cash balances in 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Interest income decreased by RMB105,000 (US$13,000) or 44% to RMB135,000 (US$17,000) for the second quarter of 2006 from RMB240,000 (US$30,000) for the second quarter of 2005. The decrease was primarily due to a decrease in interest income earned on loans and advances to related parties in 2005 of RMB133,000 (US$17,000).</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px"><B>OTHER (EXPENSE)/INCOME, NET</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Other income, net for the three and six months ended June&nbsp;30, 2006 primarily consisted of a net gain on trading of marketable securities of RMB1,083,000 (US$135,000) and RMB4,958,000 (US$620,000), respectively.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px"><B>INCOME TAXES</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Management believes that the Company is not subject to US taxes.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Under the current laws of the BVI, dividends and capital gains arising from the Company&#146;s investments in the BVI are not subject to income taxes and no withholding tax is imposed on payments of dividends to the Company.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The Company&#146;s subsidiaries in the PRC are subject to PRC federal statutory tax rate applicable to foreign investment enterprises in Hainan and Wuhu of 15%.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The Company&#146;s primary liquidity needs are to fund operating expenses and to expand business operations. The Company has financed its working capital requirements primarily through internally generated cash.</P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; text-indent:48px; page-break-before:always">Net cash provided by operating activities for the six months ended June&nbsp;30, 2006 was approximately RMB43,847,000 (US$5,481,000), as compared to RMB23,600,000 (US$2,950,000) for the corresponding period in 2005. Net cash inflows/outflows from the Company&#146;s operating activities are attributable to the Company&#146;s net income and changes in operating assets and liabilities. Net cash used in investing activities for the six months ended June&nbsp;30, 2006 was primarily attributable to purchases of fixed assets and repayments of amounts due to a director.</P>
<P style="margin-top:8.867px; margin-bottom:8.867px; text-indent:48px">The following summarizes the Company&#146;s financial condition and liquidity at the dates indicated:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=428.2></TD><TD width=16.867></TD><TD width=2.733></TD><TD width=77.6></TD><TD width=16.867></TD><TD width=2.733></TD><TD width=77.6></TD><TD width=1.4></TD></TR>
<TR><TD valign=bottom width=428.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30, <BR>
2006</B></P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31, <BR>
2005</B></P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=428.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=428.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=428.2><P style="margin:0px">Current ratio</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1.36x</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1.29x</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=428.2><P style="margin:0px">Working capital&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>27,553,000</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>16,009,000</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=428.2><P style="margin:0px; padding-left:8px; text-indent:-8px">Ratio of long-term debt to <BR>
total shareholders&#146; equity</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>0x</P>
</TD><TD valign=bottom width=16.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=2.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>0x</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:8.867px; text-indent:48px">The Company has the following contractual obligations and commercial commitments as at June&nbsp;30, 2006:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=400.2></TD><TD width=17.333></TD><TD width=1.4></TD><TD width=55.4></TD><TD width=17.333></TD><TD width=1.4></TD><TD width=55.4></TD><TD width=17.333></TD><TD width=1.4></TD><TD width=55.4></TD><TD width=1.4></TD></TR>
<TR><TD valign=top width=400.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Total</B></P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>&lt; 1 year</B></P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2-5 years</B></P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=400.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=400.2><P style="margin:0px">Operating lease</P>
</TD><TD valign=top width=17.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>48,000</P>
</TD><TD valign=top width=17.333><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>48,000</P>
</TD><TD valign=top width=17.333><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=400.2><P style="margin:0px">Capital lease&nbsp;</P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>110,000</P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>88,000</P>
</TD><TD valign=top width=17.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55.4><P style="margin:0px" align=right>22,000</P>
</TD><TD valign=top width=1.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Except as disclosed above, there have been no other significant changes in financial condition and liquidity since the fiscal year ended December&nbsp;31, 2005. The Company believes that internally generated funds will be sufficient to satisfy its anticipated working capital needs for at least the next twelve months.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>OFF BALANCE SHEET ARRANGEMENTS</B></P>
<P style="margin-top:9.8px; margin-bottom:0px; text-indent:48px">The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.</P>
<P style="margin-top:9.8px; margin-bottom:0px"><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>United States Securities & Exchange Commission EDGAR Filing</TITLE>
<META NAME="keywords" CONTENT="Bassett Press, Inc. 888-805-9953">
<META NAME="author" CONTENT="Anka Consultants Limited">
<META NAME="date" CONTENT="11/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px" align=right><B>Exhibit&nbsp;99.1</B></P>
<P style="margin:0px" align=justify><B>CONTACT</B></P>
<P style="margin:0px" align=justify>Edward Wong, Financial Controller</P>
<P style="margin:0px" align=justify>011-852-2810-7205 or fc@chrb.com</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CHINA NATURAL RESOURCES RELEASES</B></P>
<P style="margin:0px" align=center><B>INTERIM RESULTS OF OPERATIONS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>HONG KONG, November&nbsp;13, 2006 &#150; CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People&#146;s Republic of China, today released unaudited interim financial statements for the six months ended June&nbsp;30, 2006 as follows.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND <BR>
COMPREHENSIVE INCOME (LOSS) (UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005</B></P>
<P style="margin:0px" align=center>(Amounts in thousands, except share and per share data)</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=200></TD><TD width=14.933></TD><TD width=3></TD><TD width=54></TD><TD width=14.933></TD><TD width=3></TD><TD width=48></TD><TD width=14.933></TD><TD width=3></TD><TD width=54></TD><TD width=15></TD><TD width=3></TD><TD width=54.067></TD><TD width=15></TD><TD width=3></TD><TD width=48.067></TD><TD width=15></TD><TD width=3></TD><TD width=54.067></TD><TD width=4></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=194.867 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Three Months Ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=195.2 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Six Months Ended June&nbsp;30,</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.067 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET SALES</P>
</TD><TD valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>32,526</P>
</TD><TD valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>20,947</P>
</TD><TD valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,066</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>51,664</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>43,150</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,458</P>
</TD><TD valign=bottom width=4><P style="margin:0px; font-size:12px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">COST OF SALES</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(8,961</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(8,873</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,120</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(17,042</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(17,309</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(2,130</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">GROSS PROFIT</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>23,565</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>12,074</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,946</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>34,622</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>25,841</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,328</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">SELLING, GENERAL AND ADMINISTRATIVE<BR>
EXPENSES</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,715</P>
</TD><TD valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,814</P>
</TD><TD valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(464</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(7,106</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(5,439</P>
</TD><TD valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(888</P>
</TD><TD valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INTEREST INCOME</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>135</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>240</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>235</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>270</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>29</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">OTHER INCOME/ (EXPENSE), NET</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>1,083</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>16</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>135</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,958</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(24</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>620</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME FROM CONTINUING<BR>
OPERATIONS BEFORE<BR>
INCOME TAXES</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>21,068</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>10,516</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,634</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>32,709</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>20,648</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin-top:6px; margin-bottom:0px" align=right><BR></P>
<P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,089</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME TAXES</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,338</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,570</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(417</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(4,906</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,430</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(613</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME FROM CONTINUING<BR>
OPERATIONS</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,730</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,217</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,803</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,476</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">DISCONTINUED OPERATIONS</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Loss from discontinued advertising and HARC operations, net<BR>
of taxes of nil</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(212</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(27</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(486</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(61</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET INCOME</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,518</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,190</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,317</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,415</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">Other comprehensive income/(loss):</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Foreign currency translation<BR>
adjustments</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">COMPREHENSIVE INCOME</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,515</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,946</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>2,190</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>27,306</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>17,218</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>3,414</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.54</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.19</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.87</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.36</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.02</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.05</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.01</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.52</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.19</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.82</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.35</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.27</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.16</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.27</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.29</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:40px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.02</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.04</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.01</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.25</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.17</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.16</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.23</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13.80</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.28</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><T
D valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">WEIGHTED AVERAGE NUMBER<BR>
OF SHARES OUTSTANDING </P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.067><P style="font-size:2pt">&nbsp;</P></T
D><TD valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,670,407</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,670,407</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=200><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,959,662</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,959,662</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,240,535</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=48.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,247,823</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,240,535</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin:0px" align=center><B>AS OF JUNE 30, 2006 AND DECEMBER 31, 2005</B></P>
<P style="margin:0px" align=center>(Amounts in thousands, except share and per share data)</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=319.8></TD><TD width=18></TD><TD width=3.6></TD><TD width=27.6></TD><TD width=18></TD><TD width=3.6></TD><TD width=59.667></TD><TD width=18></TD><TD width=3.6></TD><TD width=67.267></TD><TD width=18></TD><TD width=3.6></TD><TD width=59.667></TD><TD width=3.6></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=63.267 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=63.267 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Note)</B></P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=63.267 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">ASSETS</P>
</TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="margin:0px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT ASSETS:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>72,453</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>41,202</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>9,057</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Trade receivables</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>502</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>4,622</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>63</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Bills receivable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>450</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Other receivables, deposits and prepayments</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,055</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>422</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>132</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due from a related company</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>20,503</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Inventories</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>3,584</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>3,788</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>448</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Assets held for sale</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>25,647</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>3,205</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>103,241</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>70,987</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>12,905</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">PROPERTY AND EQUIPMENT</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>36,294</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>33,656</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,537</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">GOODWILL</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>21,915</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>2,739</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL ASSETS</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>161,450</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>20,181</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT LIABILITIES:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,011</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>934</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>126</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Other payables</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>20,380</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>18,881</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,548</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances from customers</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>7,040</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>1,174</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>880</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accrued liabilities</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,437</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>1,319</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>305</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Current portion of capital lease</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>70</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>9</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to related parties</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>809</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to a director</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>13,482</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>23,644</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>1,685</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Dividends payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>18,040</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>5</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,255</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Taxes payable</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,224</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>2,545</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>528</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Liabilities related to assets held for sale</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>2,528</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>316</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>75,688</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>54,978</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>9,461</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Common shares, no par:</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Authorized &#150; 200,000,000 shares <BR>
Issued and outstanding &#150;11,548,416 and 1,247,823<BR>
shares in 2006 and 2005, respectively</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>19,222</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>2,403</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Additional paid-in capital</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Reserves</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>35,359</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>3,912</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>4,420</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Retained earnings</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>30,952</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.267><P style="margin:0px" align=right>45,513</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=59.667><P style="margin:0px" align=right>3,869</P>
</TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accumulated other comprehensive income</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>229</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin:0px" align=right>240</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin:0px" align=right>28</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>85,762</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>49,665</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>10,720</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=319.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL LIABILITIES AND SHAREHOLDERS&#146;<BR>
EQUITY</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>161,450</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=67.267><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=59.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>20,181</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=3.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The condensed consolidated statement of operations and comprehensive income (loss) for the six months ended June&nbsp;30, 2006 (unaudited) and the condensed consolidated balance sheet as of June&nbsp;30, 2006 (unaudited) have been prepared in accordance with generally accepted accounting principles in the United States but omit certain financial statements and footnote disclosure that would be included in full financial statements prepared in accordance with GAAP. The condensed consolidated statement of operations and comprehensive income (loss) for the six months ended June&nbsp;30, 2006 (unaudited) and the condensed consolidated balance sheet as of June&nbsp;30, 2006 (unaudited) are derived from, and should be read in conjunction with, the Company&#146;s unaudited condensed consolidated financial statements for the six months ended June&nbsp;30, 2006 and 2005, which was filed with the Securities and Exchange Commission on November&nbsp;13, 2006 under cover of Form&nbsp;6
- -K. The results of operations for the six months ended June&nbsp;30, 2006 are not necessarily indicative of the results of operations that may be expected for the year ending December&nbsp;31, 2006.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>This press release includes forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based upon assumptions believed to be reliable, but involve risks and uncertainties that may cause actual results of operations to differ materially from the forward-looking statements. Among the risks and uncertainties that could cause our actual results to differ from our forward-looking statements are our intent, belief and current expectations as to business operations and operating results of the Company, uncertainties regarding the governmental, economic and political circumstances in the People&#146;s Republic of China, risks and hazards associated with the Company&#146;s mining activities, uncertainties associated with ore reserve estimates, uncertainties associated with metal price volatility, uncertainties associated with the Company&#146;s reliance on third-party contractors and other risks detailed from time to time in the C
ompany&#146;s Securities and Exchange Commission filings. Although the Company&#146;s management believes that the expectations reflected in forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to be accurate.</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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