Application of RMB 1.1 Bln Credit Line Approved

At the 5th 2008 Extraordinary Meeting of the 3rd Board of Directors, held on 30 Jun 2008, the following proposals were examined and approved:

1. to apply for RMB 1.1 bln in lines of credit with Beijing Bank, Zhongguancun sub-branch
There will be two lines of credit: a three-month RMB 800 mln line of credit and a two-year RMB 300 mln line of credit.
2. to guarantee a ten-year RMB 72.35 mln loan with Shanghai Pudong Development Bank, Jiangxi branch, for Jiujiang Hewen Lake Environment Co., Ltd., a subsidiary of the company in which a 65% stake is held.
Jiangxi Environment Co., Ltd. will provide a counter guarantee by pledging a 35% stake of Jiujiang Hewen Lake Environment.
3. to guarantee an up to three-year RMB 300 mln line of credit (with an interest rate up to 10% higher than the current loan interest rate) with Bank of Communications Co., Ltd., Hainan branch, for Haikou Shouchuang West Coast Real Estate Development Co., Ltd., a wholly-owned subsidiary of the company
As of the date of this announcement, guarantees the company and its subsidiaries provided totaled RMB 1.67 bln, while guarantees the company provided for its subsidiaries totaled RMB 607.35 mln
4. to increase the entrusted loan amount for the BOT project to RMB 49.48 mln

Board of Directors
30 Jun 2008


Source: Shanghai Stock Exchange

Date: 2 Jul 2008

CN01/ZZ/DM/AR/KM