This announcement is made pursuant to Rule 13.09 of the Listing Rules.
The Company is pleased to announce that, on December 18, 2010, Shenzhen Leoch (an indirectly wholly-owned subsidiary of the Company) entered into the JV Agreement with Shenhua Electric Vehicles for the formation of the JV Company in Chengdu, Sichuan, the PRC to enhance the production capacity and sales volume in motive power batteries of the Group as well as expanding into the market in western China.

Pursuant to the JV Agreement, Shenzhen Leoch and Shenhua Electric Vehicles will jointly invest and establish a joint venture company in Chengdu, Sichuan, the PRC, which will be principally engaged in manufacture and sales of motive power batteries and related products, subject to the approval by competent authorities of the PRC.

Registered capital of the JV Company will be RMB23,800,000. Shenzhen Leoch will make its part of contribution of RMB20,000,000 to the JV Company in cash, while Shenhua Electric Vehicles will make its part of contribution of RMB3,800,000 to the JV Company in the form of physical assets. Upon its establishment, the JV Company will be owned as to its 84.04% equity interest by Shenzhen Leoch and as to 15.96% by Shenhua Electric Vehicles.