CONTACT:	-OR-	INVESTOR RELATIONS COUNSEL:
Richard D. Propper, MD		The Equity Group Inc.
(619) 795-4627		Adam Prior
Dr. Wang Changli		(212) 836-9606
(8610) 5898 1332		aprior@equityny.com

FOR IMMEDIATE RELEASE

HLS SYSTEMS INTERNATIONAL LTD. REPORTS FINANCIAL RESULTS

FOR ITS FISCAL YEAR ENDED JUNE 30, 2007

Highlights

·     Total revenues increased 13.3% to $101.89 million

·     Comprehensive income of $15.81 million, reduced from $22.21 million as the result of a one-time $6.4 million merger related expense

Beijing, China – September 27, 2007 – HLS Systems International Ltd. (OTCBB: HLSYF, HLSWF, HLSUF), (“HLS” or “the Company”), one of the leading automation systems providers in the People’s Republic of China (PRC),today announced its financial results for the fiscal year ended June 30, 2007 (see attached tables). These results do not include the results of Chardan North China Acquisition Corporation, the Specified Purpose Acquisition Corporation (“SPAC”) with which HLS combined on September 20, 2007. HLS now owns 74.11% and 89.64%, respectively, of Beijing and Hangzhou HollySys, and has approximately 29,200,000 shares outstanding and 11,500,000 warrants outstanding.

Dr. Wang Changli, HLS Systems’ Chief Executive Officer, stated, “We are very pleased with HLS’ growth over the past twelve months, and feel that the Company is now in a prime position to expand operations in the PRC and internationally. We signed a record number of contracts during the year, and our backlog at June 30, 2007 increased 17.5% to $101.92 million from $86.75 million at June 30, 2006. Subsequent to our fiscal 2007 year-end we have signed several substantial contracts which cover projects in the rail and nuclear industries and are in higher margin sectors than our standard industrial business. We expect that our margins and earnings will increase as we further penetrate into these markets.”

HLS Systems International Ltd.	Page 2
September 27, 2007

Dr. Wang continued, “In addition to our constant focus on winning contracts and securing new business, we are also working towards positioning HLS for future growth and expansion. We feel the access to additional capital as a result of the Chardan North merger will greatly enhance our ability to pursue a variety of potential acquisition possibilities to help accelerate the next phase of our growth. We are evaluating multiple potential candidates, but will only pursue those that can further strengthen our position in the industrial, nuclear and rail automation markets and are strategically aligned with our core expansion strategy. Possibilities include increasing ownership positions in certain domestic companies in which HLS currently holds a minority interest, Chinese companies that fit our business model, and candidates outside of China.”

Year-End Financial Results

For the fiscal year-ended June 30, 2007, total revenues were $101.89 million, an increase of 13.3% from $89.92 million in the prior fiscal year. This increase was largely due to a higher number of total integrated contracts under operations, with 2,089 contracts for the year-ended June 30, 2007 compared to 1,609 contracts for the prior fiscal year. HLS also reported product revenue, the selling of spare parts and component products to customers for maintenance and replacement purposes, of $4.51 million for the fiscal year-ended June 30, 2007, an increase of approximately $776,000, or 20.8%, from $3.73 million in the prior year.

As a percentage of total revenues, the overall gross margin declined slightly to 35.1% for the fiscal year-ended June 30, 2007 from 35.6% for the prior fiscal year, primarily due to HLS purchasing a higher proportion of spare parts and components from third parties in order to satisfy its customers’ maintenance and replacements needs. Gross margin for integrated contracts slightly increased to 34.0% for the fiscal year-ended June 30, 2007 from 33.7% for the prior year. This increase was due primarily to the commencement of a higher number of railway and city light rail transportation contracts versus the prior year, which generated higher margins than the traditional industrial contracts that comprised the majority of the work in process during fiscal 2006.

The Company reported income from operations of $18.43 million for the fiscal year-ended June 30, 2007, compared to $18.99 million in the prior fiscal year. The slight decline was largely due to a $2.56 million increase in research and development expenses from fiscal 2006 related to railway signaling control systems. The nature of HLS’ business entitles the Company to receive governmental subsidies to encourage and support its research and development activities. The Company reports its research and development expenses as a net figure, which is the amount spent less the amount of current government subsidies received respectively.

HLS Systems International Ltd.	Page 3
September 27, 2007

The Company reported a net interest expense of $7.61 million for the fiscal year-ended June 30, 2007, compared to $1.09 million for the prior year. The increase was mainly due to one time $6.4 million merger related expenses connected to the previously announced $30 million bridge loan in December 2006 as part of the Chardan North China Acquisition Corp. announcement, with $4.82 million being the amortization of discount to notes payable and $1.58 million being the accrued interest on notes payable.

For the fiscal year ended June 30, 2007, the Company’s comprehensive income was $15.81 million compared to $19.20 million for the prior fiscal year, with the difference being primarily attributable to the $6.4 million increase in interest expense.

Upcoming Events

Dr. Wang concluded, “HLS is continuing its search for a Chief Financial Officer with experience in both the Chinese and U.S. markets. We expect to fill the position in the near future and will schedule a financial community call shortly thereafter. In addition, we are continuing to seek a listing on a national exchange, and hope to provide an update shortly.”

About HLS Systems

HLS has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing over 4,700 projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements concerning our expectations about future operating results, potential acquisitions and the retention of a CFO. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of HLS’ 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 HLS is engaged; cessation or changes in government incentive programs: potential trade barriers affecting international expansion; fluctuations in customer demand; management of 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; as well as other relevant risks detailed in HLS’ filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. HLS does not assume any obligation to update the information contained in this press release or filings.

HLS Systems International Ltd.	Page 4
September 27, 2007

GIFTED TIME HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(In US Dollars)

	Years Ended June 30,
	2005			2006			2007
Revenues:
Integrated contract revenue	$	75,027,422		$	86,187,820		$	97,380,399
Products sales		4,545,410			3,728,784			4,505,087
Total revenues		79,572,832			89,916,604			101,885,486
Cost of integrated contracts		52,164,176			57,107,242			64,284,550
Cost of products sold		2,518,835			842,813			1,818,715
Gross profit		24,889,821			31,966,549			35,782,221
Operating expenses:
Selling		5,646,565			6,378,462			7,577,371
General and administrative		5,136,383			6,483,223			7,098,112
Research and development		202,344			77,724			2,638,622
Impairment loss		-			-			-
Loss on disposal of assets		29,511			32,706			37,109
Total operating expenses		11,014,803			12,972,115			17,351,214
Income from operations		13,875,018			18,994,434			18,431,007
Other income (expense), net		194,547			61,228			172,977
Interest expense, net		(555,796	)		(1,088,582	)		(7,608,792	)
Investment income		664,889			618,843			370,410
Subsidy income		2,292,880			4,355,367			7,280,766
Income before income taxes		16,471,538			22,941,290			18,646,368
Income taxes expenses		401,468			1,368,838			2,501,104
Income before minority interest		16,070,070			21,572,452			16,145,264
Minority interest		2,366,549			3,521,197			3,060,513
Net income	$	13,703,521		$	18,051,255		$	13,084,751
Weighted average number of common shares		22,200,000			22,200,000			22,200,000
Weighted average number of diluted common shares		22,200,000			22,200,000			22,883,836
Basic earnings per share	$	0.62		$	0.81		$	0.59
Diluted earnings per share	$	0.62		$	0.81		$	0.57
Other comprehensive income:
Net income	$	13,703,521		$	18,051,255		$	13,084,751
Translation adjustments		(2,119	)		1,149,579			2,723,504
Comprehensive income	$	13,701,402		$	19,200,834		$	15,808,255