Typhoon Morakot badly hit China's south eastern coastal provinces in Fujian and Zhejiang yesterday (9th August 2009), topplings houses, flooding villages and has forced 1 million people in these provinces to evacuate for safety reason. According to Xinhua News Agency, 300 houses and thousand of acres of farmland in the provinces were inundated. Dozens of China's domestic flights were canceled and delayed in Fujian and Zhejiang respectively and it was reported that bus services in Fuzhou (Capital city of Fujian) was suspended.

We wish to clarify that Typhoon Morakot does not affect and interrupt Sino Hua-An's business operations in any way as our wholly-owned subsidiary, Linyi Yehua Coking Co., Ltd. is located in Shandong Province (closer to Northern China) which is more than 1,000 km away from Fujian Province and more than 500 km from Zhejiang Province. It is noted that none of our coal suppliers & steel maker customers are affected as most of them are located in Shandong Province. In short, are business as usual.