Guarantee Provided for Subsidiary

At the 13th Meeting of the 3rd Board of Directors and the 8th Meeting of the 3rd Board of Supervisors, both held on 10 Jul 2008, the following proposals were examined and approved:

1. to temporarily appropriate a maximum of RMB 30 mln in idle raised-funds to supplement working capital before 10 Jan 2009
2. to provide joint liability guarantee for Jiangsu Boweier Zhixin Amorphous Transformer Co., Ltd., a 51% stake of which is held by the company, on RMB 10.20 mln of a RMB 20 mln loan granted by Nanjing Suyi Industry Co., Ltd. through China Merchants Bank, for a period from 10 Jul 2008 to 9 Jul 2009
The guarantee is in proportion to the company's investment in Jiangsu Boweier. Contracts related to the loan and the guarantee were signed on 10 Jul 2008.
As of the date of this announcement, the company has provided guarantees totaling RMB 306 mln.

Board of Directors
10 Jul 2008


Source: Shanghai Stock Exchange

Date: 14 Jul 2008


CN01/CJ/SW/AR/KM