Co., Ltd. et al. and Relevant Directors by China Securities Regulatory Commission

July 26, 2001

Recently the China Securities Regulatory Commission has decided to give criticism through circulation of a public notice on the following companies and relevant directors for their illegal activities conducted in the process of major purchase and sale of assets: five listed companies, including Wuliangye (Yibin) Co., Ltd, Shanghai Goods &Materials Trade Center Plc, Xiamen Eagle Group Co., Ltd, Xiamen Marine Industry (Group) Co., Ltd and Shanghai Hongsheng Technology Co., Ltd, and Wang Guochun, the chairman of Wuliangye (Yibin) Co., Ltd, Peng Zhifu, the secretary of the Board of Directors of Wuliangye (Yibin) Co., Ltd, Zhu Minglian, the chairman of Shanghai Goods &Materials Trade Center Plc, Fu Shaoping, the secretary of the Board of Directors of Shanghai Goods &Materials Trade Center Plc, Yao Xiongjie, the chairman of Xiamen Eagle Group Co., Ltd, Ding Xiao, the secretary of the Board of Directors of Shanghai Goods &Materials Trade Center Plc, Zheng Yanan, the chairman of Xiamen Marine Industry (Group) Co., Ltd, Wang Hua, the secretary of the Board of Directors of Xiamen Marine Industry (Group) Co., Ltd, Long Changsheng, the chairman of Shanghai Hongsheng Technology Co., Ltd, and Huang Defeng, the secretary of Shanghai Hongsheng Technology Co., Ltd.

Since the issuance of Circular on Major Purchases or Sales of Assets by Listed Companies, the China Securities Regulatory Commission has given criticism through circulation of a public notice on 12 listed companies for the illegal activities in the process of major purchase and sale of assets on March 27, 2001. The five companies criticized by the China Securities Regulatory Commission do not carry out filing procedures immediately in accordance with the relevant regulations, nor do they disclose adequate information. Some companies submit relevant filing documents only several days before or even after the shareholders meeting. The relevant personnel of the five companies are directly responsible for the above illegal activities for they do not perform their duties in the process of major purchase and sale of assets.

Compared with the criticism given on the 12 companies in March of this year, the China Securities Regulatory Commission gives criticism through circulation of a public notice not only on the listed companies, but also on the chairman and the Board of Directors of these companies who are directly responsible for the above illegal activities. At the same time, it is required that the other directors of these companies who participate in the resolution of the Board of Directors should play the supervision role to ensure the operations are conducted according to law.

The China Securities Regulatory Commission gives criticism through circulation of a public notice on these companies and relevant directors for the purpose of increasing the awareness of standardizing the major purchase and sale of assets, prompting the directors to seriously perform their duties, urging the listed companies to disclose adequate information, protecting the benefits of the large, middle and small shareholders, and thus promoting the healthy development of the securities market.

The China Securities Regulatory Commission