Guarantee of Two Refunding Loans Approved

At the 11th Meeting of the 7th Board of Directors, held on 25 Jun 2008, a proposal to provide guarantee for two loans due, taken out by Huangshi Cihu Mountain Villa Hotel Management Co., Ltd., a subsidiary of the company, for repayment of old debt, was examined and approved. Of the two loans, a RMB 1.2 mln refunding loan will be applied for from Huangshi City Commercial Bank, Development Zone branch with a one year term while another RMB 1.4 mln refunding loan will be applied for from Huangshi Rural Credit Cooperatives with a loan term of two years.

As of the date of this announcement, the company has provided guarantee for a total of RMB 6.8 mln in loans, of which overdue guaranteed loans total RMB 3 mln and loan guarantees for subsidiaries have reached RMB 3.8 mln.

Board of Directors
25 Jun 2008


Source: Shanghai Stock Exchange

Date: 26 Jun 2008

CN01/VL/DM/AR/KM