At the 23rd Meeting of the 7th Board of Directors, held on 31 Jul 2008, the following proposals were examined and approved:

1. to elect new directors
2. to replace certain senior managers of the company
3. the 2008 Semiannual Report and its Abstract
4. to provide a one-year guarantee on a RMB 70 mln loan for Jialing Group Foreign Trading Development Co., Ltd., in which the company holds a 100% stake
To date, the company has provided guarantees totaling RMB 75.6 mln (excluding the above-mentioned guarantee) for its subsidiaries. There are no overdue loans on which the company has provided guarantees.

5. to revise certain items in the Articles of Association
6. the Corporate Governance Rectification Statement
Detailed information pertaining to the statement can be found on the website of the Shanghai Stock Exchange (www.sse.com.cn), dated 2 Aug 2008.

7. to liquidate Hainan Jiatai Motorcycle Co., Ltd., a subsidiary of the company with a 60% stake held, and Huihao (Hong Kong) Development Co., Ltd., a subsidiary of the company, with a 25% stake held

8. to sell 3,507,600 shares of the Bank of Communications through the secondary market
9. to sell assets of Jiafu Garden and properties of the company’s representative office in Beijing through a public auction

The board of directors plans to hold the 2nd 2008 Extraordinary General Meeting of Shareholders on 21 Aug 2008, at which proposals 1, 4, 5 and 9 will be examined and considered for approval.

Board of Directors
31 Jul 2008


Source: Shanghai Stock Exchange

Date: 4 Aug 2008

CN01/MR/DM/BT/KM