According to a notice related to export rebate rate for certain commodities including textiles and cloth issued by the State Administration of Taxation of the Ministry of Finance, the export tax rebate rate for textiles has been increased from 11% to 13%, which will exert a positive impact on the company's annual profit.

According to the estimates of the company's Finance Department, the 2H 2008 net profit is projected to increase by RMB 1.5 mln due to the adjustment on export tax rebate.

Board of Directors
5 Aug 2008


Source: Shanghai Stock Exchange

Date: 5 Aug 2008

CN01/SC/LZ/KM