The company announced that as of 26 Jun 2008, the company and its subsidiaries are in arrears on loans totalling RMB 395.1 mln, including RMB 289.1 mln held by the company itself and RMB 106 mln by its subsidiaries.

The company also announced that due to the tight macro-economic and monetary policies imposed by the State, its working capital is limited. Its corporate finances are saddled with overdue loans and interest rate increases. Compounded by spikes in chemical prices and the disastrous impact of the early 2008 snowstorms, the company expects to suffer a RMB 30 mln net loss for the first half of 2008.

Source: First Financial Daily

Date: 27 Jun 2008

CN01/NW/MZ/BT/MM