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<SEC-DOCUMENT>0001116502-07-000051.txt : 20070108
<SEC-HEADER>0001116502-07-000051.hdr.sgml : 20070108
<ACCEPTANCE-DATETIME>20070108120506
ACCESSION NUMBER:		0001116502-07-000051
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070105
FILED AS OF DATE:		20070108
DATE AS OF CHANGE:		20070108

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:		07516577

	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>f6k.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<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="01/04/2007">
</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</B></P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>Form&nbsp;6-K</B></P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin: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:0px"><BR></P>
<P style="margin:0px" align=center><B>For the month of January&nbsp;2007</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Commission File Number 0-26046</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="line-height:26.667px; margin: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's name into English)</P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Room 2105, West Tower, Shun Tak Centre,</B></P>
<P style="margin:0px" align=center><B>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:0px"><BR></P>
<P style="margin:0px">Indicate by check mark whether the registrant files or will file annual reports under cover of Form&nbsp;20-F or Form&nbsp;40-F. <FONT FACE="Wingdings">&#253;</FONT>&nbsp;Form&nbsp;20-F <FONT FACE="Wingdings">&#168;</FONT>&nbsp;Form&nbsp;40-F</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form&nbsp;6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(1):&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form&nbsp;6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(7):&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark whether the registrant by furnishing the information contained in this Form&nbsp;is also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12b3-2(b) under the Securities Exchange Act of 1934. Yes&nbsp;<FONT FACE="Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT FACE="Wingdings">&#253;</FONT>.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">If &quot;Yes&quot; is marked, indicated below the file number assigned to the registrant in connection with Rule&nbsp;12b3-2(b): 82-_________.</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></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>Unaudited Results of Operations</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">China Natural Resources, Inc. furnishes herewith the following:</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px">(a)</P>
<P style="margin:0px; text-indent:48px">Unaudited Financial Statements:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-size:14.667px">-</P>
<P style="margin:0px; padding-left:96px">Condensed Consolidated Statements Of Operations And Comprehensive Income (Unaudited) For The Three and Nine Months Ended September&nbsp;30, 2006 and 2005</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-size:14.667px">-</P>
<P style="margin:0px; padding-left:96px">Condensed Consolidated Balance Sheets as of September&nbsp;30, 2006 (unaudited) and December&nbsp;31, 2005</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-size:14.667px">-</P>
<P style="margin:0px; padding-left:96px">Condensed Consolidated Statements Of Cash Flows (Unaudited) For The Nine Months Ended September&nbsp;30, 2006 and 2005</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-size:14.667px">-</P>
<P style="margin:0px; padding-left:96px">Notes to Condensed Consolidated Financial Statements (Unaudited)</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px">(b)</P>
<P style="margin:0px; padding-left:48px">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px"><B>Exhibits</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=53.333></TD><TD width=16.667></TD><TD width=460></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=53.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Exhibit<BR>
Number</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=460><P style="line-height:13.333px; margin:0px; font-size:10.667px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=53.333><P style="margin:0px" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=460><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=53.333><P style="margin:0px; color:#0000FF" align=center><A HREF="ex991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
</TD><TD valign=top width=16.667><P style="margin:0px"><FONT COLOR=#000000>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD><TD valign=top width=460><P style="margin:0px">Press&nbsp;Release&nbsp;dated&nbsp;January&nbsp;8,&nbsp;2007</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><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>SIGNATURES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; 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:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=280.067></TD><TD width=22.2></TD><TD width=321.733></TD></TR>
<TR><TD valign=bottom width=280.067><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=343.933 colspan=2><P style="margin:0px"><B>CHINA NATURAL RESOURCES, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=280.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=280.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="margin:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=321.733><P style="line-height:normal; margin:0px">/s/&nbsp;<SMALL>&nbsp;<BIG>L<SMALL>I<BIG> F<SMALL>EILIE<BIG> </P>
</TD></TR>
<TR><TD valign=bottom width=280.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="margin:0px">Li Feilie</P>
</TD></TR>
<TR><TD valign=bottom width=280.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>Date: January&nbsp;8, 2007</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><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 COMPREHENSIVE INCOME</B></P>
<P style="margin:0px" align=center><B>(UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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=221></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=14.2></TD><TD width=1.333></TD><TD width=51></TD><TD width=3.8></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=184.067 colspan=7><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>Three Months Ended September&nbsp;30,</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=184.067 colspan=7><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>Nine Months Ended September&nbsp;30,</B></P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="margin:0px; font-size:11.333px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">NET SALES</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>40,776</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>32,736</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>5,162</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>92,440</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>75,886</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>11,701</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">COST OF SALES</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(9,084</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(11,788</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,150</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(26,126</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(29,097</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(3,307</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">GROSS PROFIT</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>31,692</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>20,948</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>4,012</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>66,314</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>46,789</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>8,394</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(3,239</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,479</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(410</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(10,345</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(6,918</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,309</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INTEREST INCOME</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>138</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>589</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>17</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>373</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>859</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>47</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">OTHER INCOME/(EXPENSE), NET</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(21</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(2</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>4,937</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(23</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>625</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>28,570</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>20,059</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3,617</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>61,279</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>40,707</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>7,757</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INCOME TAXES</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(4,471</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(3,182</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(566</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(9,377</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(6,612</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,187</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INCOME FROM CONTINUING OPERATIONS</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>24,099</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>16,877</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3,051</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>51,902</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>34,095</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>6,570</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">DISCONTINUED OPERATIONS</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Loss from discontinued advertising and HARC operations, net of taxes of nil</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(173</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(22</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(659</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(83</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Loss on disposal of discontinued operations, net of taxes of nil</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(11,733</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,485</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(11,733</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,485</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">LOSS FROM DISCONTINUED OPERATIONS</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(11,906</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,507</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(12,392</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1,568</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">NET INCOME</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>12,193</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>16,877</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1,544</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>39,510</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>34,095</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>5,002</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">Other comprehensive income:</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Foreign currency translation adjustments</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>48</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>6</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>37</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>4</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">COMPREHENSIVE INCOME</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>12,241</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>16,877</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1,550</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>39,547</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>34,095</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>5,006</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Basic</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:40px; text-indent:-8px; font-size:11.333px">Income from continuing operations</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>2.09</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.70</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.27</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>4.57</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.41</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.58</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:40px; text-indent:-8px; font-size:11.333px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1.03</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.13</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(1.09</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.14</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.06</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.70</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.14</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.48</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.41</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.44</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Diluted</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:40px; text-indent:-8px; font-size:11.333px">Income from continuing operations</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.81</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.67</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.23</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.78</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.35</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.48</P>
</TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:40px; text-indent:-8px; font-size:11.333px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.89</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.11</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.90</P>
</TD><TD valign=bottom width=14.2><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>&#151;</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>(0.11</P>
</TD><TD valign=bottom width=3.8><P style="line-height:14px; margin:0px; font-size:11.333px">)</P>
</TD></TR>
<TR><TD valign=bottom width=221><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.92</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>1.67</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.12</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>2.88</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>3.35</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>0.37</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:8px; text-indent:-8px; font-size:11.333px">WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nb
sp;</P></TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Basic</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>9,980,593</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>11,358,899</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>9,980,593</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>11,358,899</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=221><P style="line-height:14px; margin:0px; padding-left:24px; text-indent:-8px; font-size:11.333px">Diluted</P>
</TD><TD valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>13,287,465</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>10,093,801</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>13,287,465</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>13,712,520</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>10,164,486</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=14.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=51><P style="line-height:14px; margin:0px; font-size:11.333px" align=right>13,712,520</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin-top:6.667px; margin-bottom:0px" align=center>See notes to condensed consolidated financial statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px"><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><BR></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin:0px" align=center><B>AS OF SEPTEMBER 30, 2006 (UNAUDITED) 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=317.2></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=33.333></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=66.667></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=66.667></TD><TD width=16.733></TD><TD width=1.4></TD><TD width=66.667></TD><TD width=1.333></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Notes</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Note)</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="margin:0px" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.733><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px">ASSETS</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">CURRENT ASSETS:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>79,736</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>41,202</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>10,093</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Trade receivables</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>541</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>4,622</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>69</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Bills receivable</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>450</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Other receivables, deposits and prepayments</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>560</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>422</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>71</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due from a related company</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>6</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>20,503</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>4</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>4,030</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>3,788</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>510</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Assets held for sale</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>3</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>33,053</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>4,184</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin-top:6.667px; margin-bottom:0px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>117,920</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>70,987</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>14,927</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px">PROPERTY AND EQUIPMENT</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>5</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>36,689</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>33,656</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>4,644</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin-top:6.667px; margin-bottom:0px">TOTAL ASSETS</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>154,609</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin-top:6.667px; margin-bottom:0px" align=right>19,571</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">CURRENT LIABILITIES:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts payable</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>926</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>934</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>117</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Other payables</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>24,181</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>18,881</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>3,061</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances from customers</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>1,237</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>1,174</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>157</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Accrued liabilities</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>2,054</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>1,319</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>260</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Current portion of capital lease</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>28</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>4</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to related parties</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>6</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>3,933</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>498</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Amounts due to a director</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>6</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>13,600</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>23,644</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>1,721</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Dividends payable</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>105</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>5</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>13</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Taxes payable</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>8,389</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>2,545</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>1,062</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Liabilities related to assets held for sale</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>2,153</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>272</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>56,606</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>54,978</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>7,165</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">Common shares, no par:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px; padding-left:24px; text-indent:-8px">Authorized &#150; 200,000,000 shares; Issued and outstanding &#150;11,548,416 shares in 2006</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="margin:0px" align=center>7</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>2,433</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px">Reserves</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>35,359</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>3,912</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>4,476</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px">Retained earnings</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>15,117</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>45,513</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="margin:0px" align=right>5,462</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="margin:0px">Accumulated other comprehensive income</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>277</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>240</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>35</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px">TOTAL SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>98,003</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>49,665</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.667><P style="margin:0px" align=right>12,406</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=317.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=66.667><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=317.2><P style="margin:0px; padding-left:8px; text-indent:-8px">TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin:0px" align=right>154,609</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=66.667><P style="margin:0px" align=right>19,571</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:6.667px; 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:0px" align=center><BR>
<BR></P>
<P style="margin-top:6.667px; margin-bottom:0px" align=center>See notes to condensed consolidated financial statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>5</P>
<P style="margin:0px"><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><BR></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 NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005</B></P>
<P style="margin:0px" align=center>(Amounts in thousands)</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=424.4></TD><TD width=18.733></TD><TD width=1.467></TD><TD width=46.333></TD><TD width=18.733></TD><TD width=1.467></TD><TD width=46.333></TD><TD width=18.733></TD><TD width=1.467></TD><TD width=41.333></TD><TD width=5></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=174.4 colspan=7><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Nine months ended September&nbsp;30,</B></P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Net cash provided by operating activities</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>70,756</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>40,194</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>8,957</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px">INVESTING ACTIVITIES</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Purchases of property and equipment</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(4,718</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(1,687</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>(597</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Net proceeds from disposal of a subsidiary</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>1,957</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>248</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances to related companies</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(22,295</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances from related companies</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>68</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Repayment to related companies</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(2,610</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>(331</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Repayment to a director</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(10,162</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>(1,286</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances from a director</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>118</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>11,213</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>15</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash received in acquisition of subsidiaries</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>1,207</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>153</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Net cash used in investing activities</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(14,208</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(12,701</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>(1,798</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px">FINANCING ACTIVITIES</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Repayment of principal of capital leases</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(108</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>(14</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Dividends paid</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>(17,859</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>(2,261</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Net cash used in financing activities of discontinued &nbsp;operations</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(10</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>(1</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Net cash used in financing activities</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(17,977</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>(2,276</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Effect of exchange rate changes on cash</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(37</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>(5</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">NET INCREASE IN CASH AND CASH EQUIVALENTS</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>38,534</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>27,493</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>4,878</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Cash and cash equivalents, at beginning of period</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>41,202</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>19,647</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>5,215</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Cash and cash equivalents, at end of period</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>79,736</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>47,140</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=41.333><P style="margin:0px" align=right>10,093</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Supplemental disclosure of non-cash investing and financing activities</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; text-indent:13.333px">Business acquisition:</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Fair value of assets acquired</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>50,558</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="margin:0px" align=right>6,400</P>
</TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:24px; text-indent:-8px">Liabilities assumed</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>(3,308</P>
</TD><TD valign=top width=18.733><P style="margin:0px">)</P>
</TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=41.333><P style="margin:0px" align=right>(419</P>
</TD><TD valign=top width=5><P style="margin:0px" align=right>)</P>
</TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px">Common shares issued</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>47,250</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=41.333><P style="margin:0px" align=right>5,981</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=46.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=41.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.4><P style="margin:0px; padding-left:8px; text-indent:-8px">Amounts due from related companies offset against dividends</P>
</TD><TD valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>20,503</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=46.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=18.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=41.333><P style="margin:0px" align=right>2,595</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=5><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin-top:6.667px; margin-bottom:0px" align=center>See notes to condensed consolidated financial statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>6</P>
<P style="margin:0px"><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><BR></P>
<P style="margin:0px" align=center><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</B></P>
<P style="margin:0px" align=center>(Amounts in thousands of RMB, except share and per share data)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify><B>1.</B></P>
<P style="margin:0px; padding-left:48px" align=justify><B>BASIS OF PRESENTATION</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin: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 nine-month periods ended September&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:0px"><BR></P>
<P style="margin: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&nbsp;20-F for the year ended December&nbsp;31, 2005, and to the Company&#146;s Form&nbsp;6-K filed on June&nbsp;19, 2006.</P>
<P style="margin:0px"><BR></P>
<P style="margin: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$1.00 = RMB7.90 quoted by the People&#146;s Bank of China as at September&nbsp;30, 2006. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:48px">Certain comparative amounts have been reclassified to conform with the current period classifications.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; 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:0px"><BR></P>
<P style="margin: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 purchase: 2,000,000 common share
s 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:0px"><BR></P>
<P style="margin: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" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>7</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px; page-break-before:always" align=justify><B>2.</B></P>
<P style="margin:0px; padding-left:48px" align=justify><B>ACQUISITION (Continued)</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px" align=justify>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:0px" align=justify><BR></P>
<P style="margin:0px; 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>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=437.2></TD><TD width=28.067></TD><TD width=2.267></TD><TD width=61.933></TD><TD width=28.067></TD><TD width=2.267></TD><TD width=61.933></TD><TD width=2.267></TD></TR>
<TR><TD valign=top width=437.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.933><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.933><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Purchase price (including direct costs)</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Current assets</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="margin:0px" align=right>3,074</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Property and equipment</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="margin:0px" align=right>869</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Investments</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.933><P style="margin:0px" align=right>24,700</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Total assets</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="margin:0px" align=right>28,643</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Total liabilities assumed</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.933><P style="margin:0px" align=right>(3,308</P>
</TD><TD valign=top width=28.067><P style="margin:0px">)</P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Net assets acquired</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.933><P style="margin:0px" align=right>25,335</P>
</TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=437.2><P style="margin:0px; padding-left:56px; text-indent:-8px">Goodwill resulting from the acquisition</P>
</TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=28.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=61.933><P style="margin:0px" align=right>21,915</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=2.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:51.533px">The goodwill resulting from the acquisition is not expected to be deductible for tax purposes. During the third quarter ended September&nbsp;30, 2006, goodwill of RMB14,051 (US$1,778) was eliminated upon the disposal of the reporting units to which the goodwill had been assigned.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:51.533px">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 nine-month periods ended September&nbsp;30, 2006 and 2005:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=315.533></TD><TD width=22.267></TD><TD width=1.733></TD><TD width=54.8></TD><TD width=22.2></TD><TD width=1.733></TD><TD width=48.8></TD><TD width=22.2></TD><TD width=1.733></TD><TD width=54.8></TD><TD width=22.2></TD><TD width=1.733></TD><TD width=48.8></TD><TD width=5.467></TD></TR>
<TR><TD valign=bottom width=315.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.533 colspan=4 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Three months ended<BR>
September&nbsp;30,</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=133 colspan=5 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Nine months ended<BR>
September&nbsp;30,</B></P>
</TD></TR>
<TR><TD valign=bottom width=315.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=54.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2006</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=48.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>2005</B></P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.267><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=22.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Net sales</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>40,776</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>32,736</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>92,440</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>75,886</P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Income from continuing operations</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>24,099</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>17,173</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>48,208</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>31,332</P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>(11,906</P>
</TD><TD valign=bottom width=22.2><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>(141</P>
</TD><TD valign=bottom width=22.2><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>(12,346</P>
</TD><TD valign=bottom width=22.2><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>(6,790</P>
</TD><TD valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Net income</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>12,193</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>17,032</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>35,772</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>24,542</P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Basic income per share</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>1.06</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>1.47</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>3.10</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>2.13</P>
</TD><TD valign=bottom width=5.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.533><P style="margin:0px; padding-left:56px; text-indent:-8px">Diluted income per share</P>
</TD><TD valign=bottom width=22.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>0.92</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>1.46</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.8><P style="margin:0px" align=right>2.57</P>
</TD><TD valign=bottom width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=48.8><P style="margin:0px" align=right>2.09</P>
</TD><TD valign=bottom width=5.467><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>
<BR></P>
<P style="margin:0px" align=center>8</P>
<P style="margin:0px"><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" align=justify><B>3.</B></P>
<P style="margin:0px; text-indent:48px" align=justify><B>DISPOSITION OF ASSETS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:49.733px">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$261). 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$3,911). The Company recognized a loss of approximately RMB11,733 (US$1,485) from the dispositions which was recorded in the third quarter of 2006. As a result of the dispositions, the Company has ceased its advertising operation effective July&nbsp;31, 2006 and its copper trading operation effective October&nbsp;3, 2006. Revenues from discontinued iSense operations were nil and RMB189 (US$24) for the three months and nine months ended September&nbsp;30, 2006, respectively. Revenues from discontinued HARC operations were nil and RMB117 (US$15) for the three mo
nths and nine months ended September&nbsp;30, 2006. Loss before income taxes for discontinued iSense operations were nil and RMB271 (US$34) for the three and nine months ended September&nbsp;30, 2006, respectively. Loss before income taxes from discontinued HARC operations were RMB173 (US$22) and RMB659 (US$82) for the three and nine months ended September&nbsp;30, 2006, respectively. The assets and liabilities of HARC have been classified as held for sale as of September&nbsp;30, 2006 and consisted of fixed assets of RMB387 (US$49), cash of RMB62 (US$8), other receivables of RMB40 (US$5), investment of RMB24,700 (US$3,127), goodwill of RMB7,864 (US$995), other payables of RMB1,006 (US$127) and amounts due to related parties of RMB1,147 (US$145).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify><B>4.</B></P>
<P style="margin:0px; text-indent:48px" align=justify><B>INVENTORIES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>At September&nbsp;30, 2006 and December&nbsp;31, 2005, inventories consisted of:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=408></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=90></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=90></TD><TD width=1.333></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,<BR>
2006</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><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=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">Raw materials</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>2,787</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>2,425</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">Work in progress</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>466</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>392</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">Finished goods</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>777</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>971</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=90><P style="margin:0px" align=right>4,030</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=90><P style="margin:0px" align=right>3,788</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify><B>5.</B></P>
<P style="margin:0px; padding-left:48px" align=justify><B>PROPERTY AND EQUIPMENT</B></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=408></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=90></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=90></TD><TD width=4.467></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,<BR>
2006</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><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=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">At cost:</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><P style="margin:0px; padding-left:72px; text-indent:-8px">Buildings</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>25,397</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=top width=408><P style="margin:0px; padding-left:72px; text-indent:-8px">Machinery and equipment</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>5,350</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=top width=408><P style="margin:0px; padding-left:72px; 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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>2,426</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=top width=408><P style="margin:0px; padding-left:72px; text-indent:-8px">Mining rights</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>11,982</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>9,229</P>
</TD><TD valign=top width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><P style="margin:0px" align=right>45,155</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=90><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=top width=408><P style="margin:0px; padding-left:56px; text-indent:-8px">Accumulated depreciation</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>(8,466</P>
</TD><TD valign=top width=16.667><P style="margin:0px">)</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right>(5,915</P>
</TD><TD valign=top width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=408><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=90><P style="margin:0px" align=right>36,689</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=90><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:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px" align=justify>As at September&nbsp;30, 2006, property and equipment included one leased motor vehicle with cost and accumulated depreciation of RMB963 (US$122) and RMB664 (US$84), respectively.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>9</P>
<P style="margin:0px"><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=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48.067px; text-indent:-48.067px" align=justify><B>6.</B></P>
<P style="margin:0px; padding-left:48.067px" align=justify><B>RELATED PARTY BALANCES AND TRANSACTIONS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px" align=justify>At September&nbsp;30, 2006 and December&nbsp;31, 2005, amounts due to and from related companies and to a director comprise:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=410></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=90></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=86.667></TD><TD width=1.333></TD></TR>
<TR><TD valign=bottom width=410><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,<BR>
2006</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=86.667><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=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=410><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=410><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=410><P style="margin:0px; padding-left:56px; text-indent:-8px">Due from a related company:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="margin:0px; padding-left:72px; text-indent:-8px">Anhui Xinke New Materials Co. Ltd. (&#147;Xinke&#148;)</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=90><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=86.667><P style="margin:0px" align=right>20,503</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=410><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="margin:0px; padding-left:56px; text-indent:-8px">Due to a related company:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="margin:0px; padding-left:72px; text-indent:-8px">Wuhu Feishang Non-Metal Material Co. Ltd. (&#147;WFNM&#148;)</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=90><P style="margin:0px" align=right>3,933</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=86.667><P style="margin:0px" align=right>6,476</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=410><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="margin:0px; padding-left:56px; text-indent:-8px">Due to a director:</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="margin:0px; padding-left:72px; text-indent:-8px">Mr.&nbsp;Li Feilie</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=90><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=86.667><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=410><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=90><P style="margin:0px" align=right>13,600</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=86.667><P style="margin:0px" align=right>23,644</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:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px">During the period ended September&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 September&nbsp;30, 2006, RMB10,162 was repaid and an additional advance of RMB118 was made.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify><B>7</B></P>
<P style="margin:0px; text-indent:48px" align=justify><B>CHANGES IN SHAREHOLDERS&#146; EQUITY AND PER SHARE DATA</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The following represents changes in shareholders&#146; equity for the nine months ended September&nbsp;30, 2006:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=178></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=60></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=46.667></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=46.667></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=53.333></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=83.333></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=50></TD><TD width=4.467></TD></TR>
<TR><TD valign=bottom width=178><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=18 colspan=2 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=124.667 colspan=4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=bottom width=16.667 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Reserves</B></P>
</TD><TD valign=bottom width=16.667 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Retained<BR>
Earnings</B></P>
</TD><TD valign=bottom width=16.667 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Other<BR>
Comprehensive<BR>
Income</B></P>
</TD><TD valign=bottom width=16.667 rowspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.467 colspan=2 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Total</B></P>
</TD></TR>
<TR><TD valign=bottom width=178><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=60><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Shares</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Amount</B></P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><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=178><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=46.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=53.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=83.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=50><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Balance at December&nbsp;31, 2005</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="margin:0px" align=right>1</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>3,912</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>45,513</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>240</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>49,665</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Acquisition of the Company by FMH</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="margin:0px" align=right>11,548,415</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>28,028</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>(28,028</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Dividends</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>(38,459</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>(38,459</P>
</TD><TD valign=bottom width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Appropriation of reserves</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>3,419</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>(3,419</P>
</TD><TD valign=bottom width=16.667><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Net income</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=60><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=53.333><P style="margin:0px" align=right>39,510</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50><P style="margin:0px" align=right>39,510</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="margin:0px; padding-left:56px; text-indent:-8px">Currency translation adjustments</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=60><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=46.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=53.333><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.333><P style="margin:0px" align=right>37</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=50><P style="margin:0px" align=right>37</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=60><P style="margin:0px" align=right>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.667><P style="margin:0px" align=right>47,250</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=46.667><P style="margin:0px" align=right>35,359</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=53.333><P style="margin:0px" align=right>15,117</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=83.333><P style="margin:0px" align=right>277</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=50><P style="margin:0px" align=right>98,003</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:49.733px">In accordance with accounting requirements for reverse acquisitions, the historical income per share of FMH prior to the acquisition has been retroactively restated to reflect the Company&#146;s capital structure. Accordingly, for income per share calculations prior to the acquisition, 9,980,593 shares were considered to be outstanding.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>10</P>
<P style="margin:0px"><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>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND</B></P>
<P style="margin:0px; padding-left:48px; text-indent:-48px" align=center><B>RESULTS OF OPERATIONS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">This report includes forward-looking statements within the meaning of federal securities laws.&nbsp; 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.&nbsp; 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: our business operations and operating results; 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 and metal price volatility; uncertainties associated with the Company&#146;s reliance on third-party contractors; uncertainties associated with continued customers for minerals; and, other ris
ks detailed from time to time in the Company&#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></P>
<P style="margin:0px; text-indent:48px" align=justify><B>NET SALES AND GROSS PROFIT</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Sales for the nine months ended September&nbsp;30, 2006 increased by 22% compared to September&nbsp;30, 2005. The increase was mainly due to the 122% increase in the average selling price of zinc, partly offset by the decrease in the sales volume of zinc as actual zinc mined was 39% lower during the current period.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Sales for the third quarter of 2006 increased by 25% compared to the corresponding period in 2005. The increase was mainly due to the increase in the average selling price of zinc of 171%, partly offset by the decrease in the sales volume of zinc of 51% as the actual zinc mined was lower during the current period.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">The gross profit margin for the three months and nine months ended September&nbsp;30, 2006 was 78% and 72%, respectively, compared to 64% and 62% 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:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Selling, general and administrative expenses increased by RMB3,427,000 (US$434,000) or 49% to RMB10,345,000 (US$1,309,000) for the nine months ended September&nbsp;30, 2006 from RMB6,918,000 (US$876,000) for the nine months ended September&nbsp;30, 2005. The increase was primarily attributable to the consolidation of CHNR&#146;s expenses, including legal, accounting, filing fees and other expenses of public company operations, following the reverse acquisition. &nbsp;These expenses are recurring. It is anticipated that these expenses will increase moderately in the future years in line with the general inflation.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Selling, general and administrative expenses increased by RMB1,760,000 (US$223,000) or 119% to RMB3,239,000 (US$410,000) for the third quarter of 2006 from RMB1,479,000 (US$187,000) for the third quarter of 2005. The increase was primarily attributable to consolidation of CHNR&#146;s expenses, including legal, accounting, filing fees and other expenses of public company operations, following the reverse acquisition. These expenses are recurring. It is anticipated that these expenses will increase moderately in the future years in line with the general inflation.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>INTEREST INCOME, NET</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Interest income decreased by RMB486,000 (US$62,000) or 57% to RMB373,000 (US$47,000) for the nine months ended September&nbsp;30, 2006 from RMB859,000 (US$109,000) for the nine months ended September&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 RMB515,000 (US$65,000), partly offset by an increase in cash balances in 2006.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Interest income decreased by RMB451,000 (US$57,000) or 77% to RMB138,000 (US$17,000) for the third quarter of 2006 from RMB589,000 (US$75,000) for the third 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 RMB450,000 (US$57,000).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>11</P>
<P style="margin:0px"><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" align=justify><B>OTHER (EXPENSE)/INCOME, NET</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Other income, net for the nine months ended September&nbsp;30, 2006 primarily consisted of a net gain on trading of marketable securities of RMB4,958,000 (US$627,000).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>DISCONTINUED OPEARATIONS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Discontinued operations for the three and nine months ended September&nbsp;30, 2006 consisted of a loss on disposal of iSense and HARC of RMB11,733,000 (US$1,485,000).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48.067px" align=justify><B>INCOME TAXES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Management believes that the Company is not subject to US taxes.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin: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:0px" align=justify><BR></P>
<P style="margin: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:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>NET INCOME</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Net income increased by RMB5,415,000 (US$685,000) or 16% to RMB39,510,000 (US$5,002,000) for the nine months ended September&nbsp;30, 2006 from RMB34,095,000 (US$4,316,000) for the nine months ended September&nbsp;30, 2005. The increase was primarily attributable to the increase in gross profit by 42% in 2006 compared to 2005, partly offset by the increase in selling, general and administrative expenses and the loss on disposal of discontinued operations of RMB11,733,000 (US$1,485,000).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Net income decreased by RMB4,684,000 (US$593,000) or 28% to RMB12,193,000 (US$1,544,000) for the third quarter of 2006 from RMB16,877,000 (US$2,136,000) for the third quarter of 2005. Despite the increase in gross profit by 51% in the third quarter of 2006 compared to the corresponding period in 2005, the increase in selling, general and administrative expenses and the loss on disposal of discontinued operations of RMB11,733,000 (US$1,485,000) caused the overall decrease in net income in the third quarter of 2006.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin: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" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Net cash provided by operating activities for the nine months ended September&nbsp;30, 2006 was approximately RMB70,756,000 (US$8,957,000), as compared to RMB40,194,000 (US$5,088,000) 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 nine months ended September&nbsp;30, 2006 was primarily attributable to purchases of fixed assets and repayments of amounts due to a director. Net cash used in financing activities for the nine months ended September&nbsp;30, 2006 was primarily attributable to dividends paid.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>12</P>
<P style="margin:0px"><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=justify><BR></P>
<P style="margin:0px; text-indent:48px">The following summarizes the Company&#146;s financial condition and liquidity at the dates indicated:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=414.667></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=76.667></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=96.667></TD><TD width=1.333></TD></TR>
<TR><TD valign=top width=414.667><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>June&nbsp;30,&nbsp;2006</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=96.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31,&nbsp;2005</B></P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=414.667><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=414.667><P style="margin:0px; padding-left:56px; text-indent:-8px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=414.667><P style="margin:0px; padding-left:56px; text-indent:-8px">Current ratio</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76.667><P style="margin:0px" align=right>2.08x</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.667><P style="margin:0px" align=right>1.29x</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=414.667><P style="margin:0px; padding-left:56px; text-indent:-8px">Working capital</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76.667><P style="margin:0px" align=right>61,314,000</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.667><P style="margin:0px" align=right>16,009,000</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=414.667><P style="margin:0px; padding-left:56px; text-indent:-8px">Ratio of long-term debt to total shareholders&#146; equity</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76.667><P style="margin:0px" align=right>0x</P>
</TD><TD valign=bottom width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.667><P style="margin:0px" align=right>0x</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The Company has the following contractual obligations and commercial commitments as at September&nbsp;30, 2006:</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=401.333></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=50></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=53.333></TD><TD width=16.667></TD><TD width=1.333></TD><TD width=66.667></TD><TD width=1.333></TD></TR>
<TR><TD valign=top width=401.333><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=50><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Total</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=53.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>&lt;&nbsp;1&nbsp;Year</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.667><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=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=401.333><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=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=401.333><P style="margin:0px; padding-left:56px; text-indent:-8px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=401.333><P style="margin:0px; padding-left:56px; text-indent:-8px">Operating lease</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50><P style="margin:0px" align=right>36,000</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.333><P style="margin:0px" align=right>36,000</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=401.333><P style="margin:0px; padding-left:56px; text-indent:-8px">Capital lease</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50><P style="margin:0px" align=right>28,000</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.333><P style="margin:0px" align=right>28,000</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.667><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=1.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin: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:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>OFF BALANCE SHEET ARRANGEMENTS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin: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:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>13</P>
<P style="margin:0px"><BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991.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="date" CONTENT="01/04/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>CONTACT</B></P>
<P style="margin:0px">Edward Wong, Financial Controller</P>
<P style="margin:0px">011-852-2810-7205 or fc@chrb.com</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>CHINA NATURAL RESOURCES RELEASES<BR>
QUARTERLY RESULTS OF OPERATIONS</B></P>
<P style="margin-top:8.867px; margin-bottom:0px">HONG KONG, January&nbsp;8, 2007 &#150; CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People&#146;s Republic of China, today released unaudited financial statements for the nine months ended September&nbsp;30, 2006 as follows.</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>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME<BR>
(UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>(Amounts in thousands, except share and per share data)</B></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=186.267></TD><TD width=15.067></TD><TD width=3></TD><TD width=54.067></TD><TD width=15.133></TD><TD width=3></TD><TD width=54.133></TD><TD width=15.133></TD><TD width=3></TD><TD width=54.267></TD><TD width=15.133></TD><TD width=3></TD><TD width=54.133></TD><TD width=15.133></TD><TD width=3></TD><TD width=54.133></TD><TD width=15.133></TD><TD width=3></TD><TD width=54.267></TD><TD width=4></TD></TR>
<TR><TD valign=bottom width=186.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=201.733 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Three Months Ended September&nbsp;30,</B></P>
</TD><TD valign=bottom width=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=201.8 colspan=8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Nine Months Ended September&nbsp;30,</B></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.067><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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.267 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=57.267 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=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.067><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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.267 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.133 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=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=57.267 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=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">NET SALES</P>
</TD><TD valign=bottom width=15.067><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=54.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>40,776</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>32,736</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,162</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>92,440</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>75,886</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,701</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><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=15.067><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>(9,084</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(11,788</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(1,150</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(26,126</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(29,097</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>(3,307</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=186.267><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=15.067><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>31,692</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>20,948</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>4,012</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>66,314</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>46,789</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=right>8,394</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">SELLING, GENERAL AND <BR>
ADMINISTRATIVE EXPENSES</P>
</TD><TD valign=bottom width=15.067><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>(3,239</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,479</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(410</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10,345</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6,918</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,309</P>
</TD><TD valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=186.267><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=15.067><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>138</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>589</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>17</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>373</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>859</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>47</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><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=15.067><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>(21</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(2</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,937</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(23</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>625</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=186.267><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 INCOME<BR>
TAXES</P>
</TD><TD valign=bottom width=15.067><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>28,570</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>20,059</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3,617</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>61,279</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>40,707</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7,757</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><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=15.067><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>(4,471</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3,182</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(566</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9,377</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6,612</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,187</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=186.267><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=15.067><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>24,099</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16,877</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3,051</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>51,902</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>34,095</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,570</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=186.267><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=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Loss from discontinued advertising<BR>
and HARC operations, net of<BR>
taxes of nil</P>
</TD><TD valign=bottom width=15.067><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:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(173</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><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 valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(22</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(659</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(83</P>
</TD><TD valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Loss on disposal of discontinued<BR>
operations, net of taxes of nil</P>
</TD><TD valign=bottom width=15.067><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>(11,733</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,485</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11,733</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,485</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=186.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">LOSS FROM DISCONTINUED<BR>
OPERATIONS</P>
</TD><TD valign=bottom width=15.067><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>(11,906</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,507</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(12,392</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,568</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=186.267><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=15.067><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>12,193</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16,877</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,544</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>39,510</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>34,095</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,002</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">Other comprehensive income:</P>
</TD><TD valign=bottom width=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Foreign currency translation<BR>
adjustments</P>
</TD><TD valign=bottom width=15.067><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>48</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>37</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4</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=186.267><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=15.067><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>12,241</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16,877</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,550</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>39,547</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>34,095</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,006</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=186.267><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=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=15.067><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>2.09</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.70</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.27</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4.57</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.41</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.58</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=15.067><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>(1.03</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.13</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.09</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=15.133><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=54.133><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=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.14</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=186.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.067><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>1.06</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.70</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.14</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.48</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.41</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.44</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=186.267><P style="line-height:14.667px; margin:0px; padding-left:8px; text-indent:-8px; font-size:12px">INCOME PER SHARE:</P>
</TD><TD valign=bottom width=15.067><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:0px" align=right><BR></P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="margin:0px" align=right><BR></P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="margin:0px" align=right><BR></P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Income from continuing operations</P>
</TD><TD valign=bottom width=15.067><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>1.81</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.67</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.23</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.78</P>
</TD><TD valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.35</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.48</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=186.267><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-8px; font-size:12px">Loss from discontinued operations</P>
</TD><TD valign=bottom width=15.067><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>(0.89</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.11</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.90</P>
</TD><TD valign=bottom width=15.133><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD><TD valign=bottom width=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.11</P>
</TD><TD valign=bottom width=4><P style="line-height:14.667px; margin:0px; font-size:12px">)</P>
</TD></TR>
<TR><TD valign=bottom width=186.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.067><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>0.92</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.67</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.12</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2.88</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.35</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.37</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=186.267><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; padding-left:8px; text-indent:-8px; font-size:12px">WEIGHTED AVERAGE NUMBER<BR>
OF SHARES OUTSTANDING</P>
</TD><TD valign=bottom width=15.067><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=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.133><P style="font-siz
e:2pt">&nbsp;</P></TD><TD valign=bottom width=15.133><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=54.267><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=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Basic</P>
</TD><TD valign=bottom width=15.067><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>11,548,416</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,980,593</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><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=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,358,899</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,980,593</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11,358,899</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=186.267><P style="line-height:14.667px; margin:0px; padding-left:16px; text-indent:-8px; font-size:12px">Diluted</P>
</TD><TD valign=bottom width=15.067><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>13,287,465</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>10,093,801</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,287,465</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,712,520</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>10,164,486</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=15.133><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=54.267><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>13,712,520</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 SEPTEMBER 30, 2006 (UNAUDITED) AND DECEMBER 31, 2005</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>(Amounts in thousands, except share and per share data)</B></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=290.333></TD><TD width=17.667></TD><TD width=3.533></TD><TD width=27></TD><TD width=17.6></TD><TD width=5></TD><TD width=64></TD><TD width=17.6></TD><TD width=6.6></TD><TD width=84.6></TD><TD width=17.6></TD><TD width=5.133></TD><TD width=63.867></TD><TD width=3.467></TD></TR>
<TR><TD valign=bottom width=290.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=69 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,<BR>
2006</B></P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=91.2 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>December&nbsp;31, <BR>
2005</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=69 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>September&nbsp;30,<BR>
2006</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=69 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD style="border-top:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=69 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">ASSETS</P>
</TD><TD valign=bottom width=17.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3.533><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=5><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=6.6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=5.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT ASSETS:</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>79,736</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>41,202</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>10,093</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Trade receivables</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>541</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>4,622</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>69</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Bills receivable</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>450</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Other receivables, deposits and prepayments</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>560</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>422</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>71</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Amounts due from a related company</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>20,503</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>4,030</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>3,788</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>510</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Assets held for sale</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin:0px" align=right>33,053</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><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>4,184</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>117,920</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>70,987</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>14,927</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">PROPERTY AND EQUIPMENT</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>36,689</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>33,656</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>4,644</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL ASSETS</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>154,609</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>19,571</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">CURRENT LIABILITIES:</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Accounts payable</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>926</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>934</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>117</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Other payables</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>24,181</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>18,881</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>3,061</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Advances from customers</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>1,237</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>1,174</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>157</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Accrued liabilities</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>2,054</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>1,319</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>260</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Current portion of capital lease</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>28</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>4</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Amounts due to related parties</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>3,933</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>6,476</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>498</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Amounts due to a director</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>13,600</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>23,644</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>1,721</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Dividends payable</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>105</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>5</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>13</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Taxes payable</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>8,389</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>2,545</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>1,062</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:16px; text-indent:-8px">Liabilities related to assets held for sale</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin:0px" align=right>2,153</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><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>272</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>56,606</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>54,978</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>7,165</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">Common shares, no par:<BR>
Authorized &#150; 200,000,000 shares; Issued and<BR>
outstanding &#150;11,548,416 shares in 2006</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>47,250</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>2,433</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">Reserves</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>35,359</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>3,912</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>4,476</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">Retained earnings</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64><P style="margin:0px" align=right>15,117</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84.6><P style="margin:0px" align=right>45,513</P>
</TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.867><P style="margin:0px" align=right>5,462</P>
</TD><TD valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin:0px; padding-left:8px; text-indent:-8px">Accumulated other comprehensive income</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin:0px" align=right>277</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin:0px" align=right>240</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><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>35</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>98,003</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>49,665</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>12,406</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=290.333><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=bottom width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=3.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=27><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=64><P style="margin-top:6.667px; margin-bottom:0px" align=right>154,609</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=6.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=84.6><P style="margin-top:6.667px; margin-bottom:0px" align=right>104,643</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=17.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=5.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.867><P style="margin-top:6.667px; margin-bottom:0px" align=right>19,571</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=3.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px"><BR></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">The condensed consolidated statement of operations and comprehensive income for the nine months ended September&nbsp;30, 2006 (unaudited) and the condensed consolidated balance sheet as of September&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 for the nine months ended September&nbsp;30, 2006 (unaudited) and the condensed consolidated balance sheet as of September&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 nine months ended September&nbsp;30, 2006 and 2005, which was filed with the Securities and Exchange Commission on Janua
ry&nbsp;5, 2007 under cover of Form 6-K. The results of operations for the nine months ended September&nbsp;30, 2006 are not necessarily indicative of the results of operations that may be expected for the year ended December&nbsp;31, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">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 deta
iled from time to time in the Company&#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>
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