Chardan North China Acquisition Corp. Announces Audited Fiscal 2006 Financial Results of Acquisition Candidate; Comprehensive Income Increases 40% to $19.2 Million from $13.7 Million.

SAN DIEGO & BEIJING -- Chardan North China Acquisition Corp. (OTCBB: CNCA, CNCAU, CNCAW) ("Chardan North"), a SPAC(R) organized for the purpose of acquiring an operating entity in the PRC, and its wholly-owned subsidiary, HLS Systems International Ltd., announced today the audited financial results for the twelve months ended June 30, 2006 for its acquisition candidate, Gifted Time Holdings, Limited (see attached tables).

Gifted Time Holdings had comprehensive income of $19.2 million for the fiscal year ended June 30, 2006, a 40% increase from comprehensive income of $13.7 million for the fiscal year ended June 30, 2005. Net income for fiscal year 2006 was $18.1 million, the difference reflecting adjustments related to currency translations that created a positive effect of approximately $1.1 million due to the appreciation of the RMB against the dollar. Net income for fiscal year 2005 was $13.7 million. Total revenues for the fiscal year ended June 30, 2006 increased 13% to $89.9 million from $79.6 million in fiscal year 2005.

Gifted Time Holdings is the majority stockholder of Chinese operating companies that do business under the HollySys trademark and together form the leading Chinese domestic automation control systems company.

Additional information regarding Chardan North, Gifted Time Holdings, and HollySys is available in the Form S-4/A that Chardan North filed with the Securities and Exchange Commission on September 1, 2006.

About Chardan North and HollySys

Chardan North China Acquisition Corp. is a blank check company incorporated in March 2005 to acquire an operating business based north of the Yangtze River in the People's Republic of China ("PRC"). On February 2, 2006, the Company announced a definitive stock purchase agreement pursuant to which it will acquire a controlling interest in Beijing HollySys Company, Limited and Hangzhou HollySys Automation, Limited (collectively referred to as "HollySys"). HollySys has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing over 3000 projects utilizing a wide array of automation products.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about Chardan North, HollySys and their combined business after completion of the proposed acquisition. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Chardan North's and HollySys' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which HollySys is engaged; cessation or changes in government incentive programs: potential trade barriers affecting international expansion; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of automation and control system technology; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Chardan North's filings with the Securities and Exchange Commission, and the registration statement on Form S-4 (Reg. No. 333-132826) . The information set forth herein should be read in light of such risks. Neither Chardan North nor HollySys assumes any obligation to update the information contained in this press release.

In connection with the pending transaction, HLS Systems International Ltd. ("HLS Systems") has filed with the SEC a Registration Statement on Form S-4 containing a Proxy Statement/Prospectus for the stockholders of Chardan North. The stockholders of Chardan North are urged to read the Registration Statement and the Proxy Statement/Prospectus, when it is available, as well as all other relevant documents filed or to be filed with the SEC, because they will contain important information about HollySys, HLS Systems, Chardan North and the proposed transaction. The final Proxy Statement/Prospectus will be mailed to stockholders of Chardan North after the Registration Statement is declared effective by the SEC. Chardan North stockholders will be able to obtain the Registration Statement, the Proxy Statement/Prospectus and any other relevant filed documents for free at the SEC's website (www.sec.gov). These documents can also be obtained for free from Chardan North by directing a request to Lori Johnson c/o Chardan Capital, 625 Broadway, Suite 1111, San Diego, CA 92101.

HLS Systems, Chardan North and their respective directors and officers may be deemed to be participants in the solicitation of approvals from Chardan North stockholders in respect of the proposed transaction. Information regarding Chardan North's participants will be available in the Proxy Statement /Prospectus. Additional information regarding the interests of such participants will be included in the Registration Statement containing the Proxy Statement / Prospectus.

CONSOLIDATED STATEMENTS OF INCOME
                       AND COMPREHENSIVE INCOME
                            (In US Dollars)


                                         Years Ended June 30,
                                --------------------------------------
                                    2004         2005         2006
                                ------------ ------------ ------------

Revenues:
 Integrated contract revenue    $51,224,340  $75,027,422  $86,187,820
 Products sales                   1,849,916    4,545,410    3,728,784
                                ------------ ------------ ------------

Total revenues                   53,074,256   79,572,832   89,916,604

Cost of integrated contracts     37,569,353   52,164,176   57,107,242
Cost of products sold               338,167    2,518,835      842,813
                                ------------ ------------ ------------

Gross profit                     15,166,736   24,889,821   31,966,549

Operating expenses:
 Selling                          4,521,884    5,646,565    6,378,462
 General and administrative       2,678,262    5,136,383    6,483,223
 Research and development           383,059      202,344       77,724
 Impairment loss                    139,937            -            -
 Loss on disposal of assets          11,963       29,511       32,706
                                ------------ ------------ ------------

Total operating expenses          7,735,105   11,014,803   12,972,115
                                ------------ ------------ ------------

Income from operations            7,431,631   13,875,018   18,994,434

Other income (expense), net          31,792      194,547       61,228
Interest expense, net              (832,110  )  (555,796  )(1,088,582)
Investment income (loss)             90,492      664,889      618,843
Subsidy income                        2,782    2,292,880    4,355,367
                                ------------ ------------ ------------

Income before income taxes        6,724,587   16,471,538   22,941,290

Income taxes expenses               947,768      401,468    1,368,838
                                ------------ ------------ ------------

Income before minority interest   5,776,819   16,070,070   21,572,452

Minority interest                 1,041,543    2,366,549    3,521,197
                                ------------ ------------ ------------

Net income                      $ 4,735,276  $13,703,521  $18,051,255
                                ------------ ------------ ------------

Weighted average number of
 common shares                       50,000       50,000       50,000

Earnings per share                    94.71       274.07       361.03

Other comprehensive income:
 Net income                     $ 4,735,276  $13,703,521  $18,051,255
 Translation adjustments              1,212       (2,119)   1,149,579
                                ------------ ------------ ------------

Comprehensive income            $ 4,736,488  $13,701,402  $19,200,834
                                ------------ ------------ ------------