At the 2nd 2008 Extraordinary General Meeting of Shareholders, held on 25 Jul 2008, the following proposals were examined and approved:

1. a scheme to issue convertible bonds with detachable warrants
The company plans to allot up to RMB 3.7 bln worth of convertible bonds with detachable warrants at RMB 100 face value, valid for a period of five years. Shareholders of the company can exercise their right of first refusal to subscribe to the corporate bonds. Meanwhile, holders of the corporate bonds are entitled to obtain warrants, with a 12-month duration from their listing date, in certain proportions. Holders of the warrants can subscribe to one A-share of the company for every 10 warrants held.
2. statements on the use of previously-raised funds
3. a feasibility study on projects financed with funds to be raised via the allotment of convertible bonds with detachable warrants
4. to revise certain clauses in the Articles of Association of the company
5. a proposal for Shanghai Waigaoqiao Shipbuilding Co., Ltd., a wholly-owned subsidiary of the company, to provide a joint liability guarantee for Shanghai Jiangnan-Changxing Shipbuilding Co., Ltd., a subsidiary of Waigaoqiao Shipbuilding, on a loan of up to RMB 2.7 bln with China Development Bank and on a working capital loan of up to RMB 1.5 bln with the Export-Import Bank of China

Board of Directors
29 Jul 2008

Source: Shanghai Stock Exchange

Date: 29 Jul 2008

CN01/JZ/SW/BT/KM