Remarks on Guarantees and Fund Transfers

Pursuant to relevant regulations of the CSRC, independent directors of the company issued the following special remarks on fund transfers between the company and related parties and guarantees provided by the company for other parties:

As of 30 Jun 2008, the company has not provided any guarantees for its shareholders, the effective controller or other related parties. The company has never provided any irregular guarantees for its subsidiaries or other parties.

In addition, fund transfers between the company and related parties strictly comply with relevant regulations and the amount in funds transfered between the company and related parties is small. There are neither funds misappropriated by the controlling shareholder nor funds misappropriated by other related parties as of 30 Jun 2008.

Independent directors: Zhang Qiaofan, Shi Dafang and Xin Jinguo
12 Aug 2008


Source: Securities Times

Date: 12 Aug 2008

CN01/IS/LZ/BT/KM