Pursuant to the 2008 business plan of Fujian Hesheng Zhixin Amorphous Alloy Transformer Co., Ltd., a subsidiary of the company in which a 40% stake is held, the company plans to guarantee, on a joint and several basis, a one-year RMB 15 mln line of credit with China Minsheng Bank, Quanzhou sub-branch for Fujian Hesheng. An agreement on the maximum amount of the guarantee was subsequently signed between the company and CMB, Quanzhou sub-branch on 14 Aug 2008, with a guarantee period from 18 Aug 2008 to 17 Aug 2009.

The above-mentioned guarantee was approved at the 15th Meeting of the 3rd Board of Directors held on 14 Aug 2008. As of 14 Aug 2008, the company had provided guarantees totaling RMB 45.6 mln, including the guarantee provided for Fujian Hesheng.

Board of Directors
15 Aug 2008


Source: Shanghai Stock Exchange

Date: 15 Aug 2008

CN01/VW/DM/BT/KM