At the 26th Meeting of the 3rd Board of Directors, held on 28 Aug 2008, a proposal to sign a power source supply and integrated management service agreement with Tianjin Jinyao Biological Technology Co., Ltd., a subsidiary of Tianjin Pharmaceutical Group Co., Ltd., the largest shareholder of the company, was examined and approved.

According to the agreement, Tianjin Jinyao will provide integrated management services related to water, electricity, gas supply to the plant workshops and administration offices of the company and its subsidiaries, located in the Binhai New Area, effective 1 Aug 2008 to 31 Mar 2009. The cost of the power to be supplied will be equal to Tianjin Jinyao's power procurement price plus the costs for energy transfer and transportation.

The above-mentioned issue, which constitutes a related-party transaction, must be submitted to a general meeting of shareholders for further examination.

Board of Directors
29 Aug 2008

Source: Shanghai Stock Exchange

Date: 29 Aug 2008

CN01/VL/LZ/BT/KM