Pursuant to a notice issued by the China Securities Regulatory Commission (CSRC) and the Liaoning Regulatory Bureau related to corporate governance, the company has conducted relevant rectification activities to strengthen its corporate governance. Details pertaining to the rectification are as follows:

In 2007, the company conducted the following activities:

1. formulated a self-inspection report and a rectification scheme
2. formulated information disclosure rules
3. revised the Articles of Association, the rules of order for meetings of shareholders and meetings of the boards of directors and supervisors, as well as rules for internal control
Following the self-inspection, the company completed rectification of issues related to the activities of the board of directors, established the Special Committee of the board of directors, reinforced the sense of responsibility and integrity of directors, supervisors and senior management, and improved its internal controls.

The company will continue making progress in the following rectification scheme:

1. to further improve its internal controls and rules for the possible misappropriation of funds by major shareholders
2. to reinforce training programs for its directors, supervisors and senior management on a regular basis

As corporate governance is a long-term task, the company will review and regulate its governance in a timely manner, improve its internal controls and ensure the stable development of the company.

Board of Directors
18 Jul 2008

Source: Securities Times

Date: 18 Jul 2008

CN01/VL/MZ/BT/MM