Regarding a resolution of the 16th Meeting of the 3rd Board of Directors, held on 15 Aug 2008, to supplement the company's working capital with up to RMB 15 mln in idle-raised funds for a period of no more than six months (from 18 Aug 2008 to 17 Feb 2009), supervisors of the company issued the following special remarks in compliance with relevant regulations:

1. The supplementation of the company's working capital with idle-raised funds will ease working capital requirements, improve the efficient use of raised-funds and reduce the company's financial costs. The supplementation will not have any adverse impact on the company's projects to be financed with raised funds.
2. To use RMB 15 mln in idle-raised funds, which is less than 10% of the company's total raised funds. The supplementation of working capital with raised funds is in compliance with relevant regulations and the Articles of Association of the company.
3. A proposal to supplement the company's working capital with idle-raised funds has been approved at the 16th Meeting of the 3rd Board of Directors.

Thus, we approve the above-mentioned supplementation of working capital with idle-raised funds.

Supervisors: Lu Youyu, Yang Shengjun, Shi Ailin, Huang Zhaohui and Mei Shuilai
18 Aug 2008


Source: Securities Times

Date: 18 Aug 2008

CN01/ZZ/SW/BT/KM