At the 11th Meeting of the 6th Board of Directors, held on 28 Aug 2008, the following proposals were examined and approve:

1. the 2008 Semiannual Report and its Abstract
2. to approve Shanghai Shenda Kobond New Material Co., Ltd. to construct a new composite material and ancillary weaving base with an annual production capacity of 10 mln sq. meters.
Total investment in the project will be RMB 85 mln, which will mainly be used to import a knife-coated production line and its ancillary weaving equipment.

3. to approve Shanghai Xinfanglian Autofabric Co., Ltd. to invest in new production equipment for auto deco (2.4 mln meters) and in a new plant covering an area of 36,000 sq. meters with total investment of RMB 74 mln

Board of Directors
30 Aug 2008


Source: Shanghai Stock Exchange

Date: 1 Sept 2008

CN01/ZZ /SW/BT/KM