The company has conducted rectification since April 2007, disclosing its report on 30 Oct 2007. Pursuant to requirements of the China Securities Regulatory Commission, pertinent issues are announced as follows:

The company has formulated new rules for management on remuneration and compensation of senior managers, following which, the remuneration for senior managers is composed of two parts, basic salary and performance salary. Meanwhile, the company will provide social security benefits, training lessons, development opportunities and competitive salaries to the employees.

In international business, the company's strength and popularity have been recognised in world markets and it is capable of bidding, signing and constructing projects in Iran and Russia independently. In the area of information disclosure, the company has amended its rules in accordance with the requirements of China Securities Regulatory Commission and the Shenzhen Stock Exchange for timely information disclosure.

The company has also ruled that shareholders with more than a 1% stake in the company will be entitled to nominate candidates to the board directors and supervisors. In addition, it will establish nominating and strategy committees in the future.

The company issued a letter of commitment, stating that it will strictly abide by the rules for management of non-public information disclosure to the major shareholders and the effective controller of the company, in accordance with relevant regulations and rules.

The company is independent in its assets, business, staff, financial condition and sectors. It has submitted reasonable suggestions to the major shareholders and the effective controller, which have agreed to grant independence to the management to the company.

Board of Directors
23 Jul 2008


Source: Securities Times

Date: 24 Jul 2008

CN01/BG/DM/WH/MM