On 2 July 2008, the company announced an asset purchase scheme via private placement, which constitutes a related-party transaction. The scheme will be examined prior to 25 July 2008.

Investment highlights:
First, it is expected to be profitable in 1H 2008. Second, it has invested RMB 180 mln (18%) in Orient Fund Management Co., Ltd. and RMB 500,000 (0.005%) in Karamay City Commercial Bank Co., Ltd.

Risk warning: Surging raw material prices have impacted production costs.

Source: www.topcj.com

Date: 15 Jul 2008

CN01/NW/MZ/BT/MM