RMB 10.2 Mln Guarantee Provided for Subsidiary

At the 16th Meeting of the Board of Directors and the 9th Meeting of the 3rd Board of Supervisors, both held on 25 Aug 2008, the following proposals were examined and approved:

1. the 2008 Semiannual Report and its Abstract
2. to continue to rent offices at 2239 Hongqiao Road from Shanghai Zhixin (Group) Co., Ltd. at a price of RMB 8.1/day/sq. meter for a period of three years from 1 Jul 2008 to 30 Jun 2011 and sign a property lease agreement with Shanghai Zhixin (Group)
3. to provide a guarantee on RMB 10.2 mln of a RMB 20 mln loan with China Merchants Bank, Nanjing branch, Hunan Road sub-branch for Jiangsu Power Electric Amorphous Alloys Transformer Co., Ltd., a subsidiary of the company for a period from 27 Aug 2008 to 26 Aug 2009
Both the company and Jiangsu Power Electric Co., Ltd., another shareholder of Jiangsu Power Electric will provide guarantees for the RMB 20 mln loan.

As of 25 Aug 2008, the accumulated amount of guarantees provided by the company for other parties is RMB 55.8 mln (including the aforementioned guarantee).

Board of Directors and Board of Supervisors
27 Aug 2008


Source: Securities Times

Date: 27 Aug 2008

CN01/SC/LZ/BT/KM