The company has conducted a series of special activities on self inspection of its corporate governance and issued the related reports. Pursuant to relevant requirements of the Company Law of the PRC and the Securities Law of the PRC, details of the company's rectification are announced as follows:

With an efficient governance scheme, the company’s major shareholders and senior managers have exercised their rights and fulfilled their responsibilities accordingly, which has safeguarded the company’s normal operations, and has had no impact on its fund appropriation nor guarantees provided for its subsidiaries. Meetings of the board of directors, meetings of the board of supervisors and general meetings of shareholders have been carried out accordingly and in a proper manner. In order to ensure healthy investor relations, the company has formulated and strictly implemented the Management Rules on Information Disclosure and the Management Rules on Investor Relations.

In the future, the company will continue to reinforce its governance by training its management, taking full advantage of special committees of the board of directors and improving its information disclosure system.

Board of Directors
23 Jul 2008

Source: Securities Times

Date: 23 Jul 2008

CN01/CJ/LZ/BT/KM