RMB 450 Mln Line of Credit for Subsidiary

At the 2nd Meeting of the 3rd Board of Directors and the 3rd Board of Supervisors, both held on 29 Jul 2008, the following proposals were examined and approved:

1. the 2008 Semiannual Report and its Abstract
2. the Corporate Governance Rectification Report, details of which can be found on the website of the Shanghai Stock Exchange (www.sse.com.cn), dated 31 Jul 2008.
3. a self-inspection report on the possible misappropriation of funds
4. Hunan Capital Investment Limited Liability Co., a wholly-owned subsidiary of the company, has applied for a line of credit
and working capital loans totaling up to RMB 450 mln from China Construction Bank, Hunan branch
The company will provide a three-year joint liability guarantee on the aforementioned line of credit, which includes a working capital loan. Capital investment will provide a counter-guarantee using its own assets.

As of the date of this announcement, the company and its subsidiaries have provided external guarantees totaling 1.947 bln and the company has provided guarantees totaling RMB 923 mln for its subsidiaries.

Board of Directors and Supervisors
29 Jul 2008


Source: Shanghai Stock Exchange

Date: 31 Jul 2008

CN01/IS/SW/BT/MM