Pursuant to the resolutions of the company's 2007 Annual General Meeting of Shareholders, the company signed guarantee contracts with relevant banks to provide two-year joint liability guarantees on a RMB 20 mln line of credit taken out from China Bohai Bank Co., Ltd., Tianjin sub-branch for Tangshan Sanyou Thermo Co., Ltd., a subsidiary of the company and a RMB 40 mln line of credit taken out from the Export-Import Bank of China for Tangshan Alkali Chloride Co., Ltd, the company's subsidiary.

On 22 Aug and 26 Aug 2008, both subsidiaries signed loan contracts with corresponding banks, respectively.

As of date of this announcement, the company's cumulative external guarantees for its subsidiaries totaled RMB 705 mln, including the aforementioned guarantees. The company's subsidiaries have no external guarantees and there are no guaranteed loans in arrears.

Board of Directors
2 Sept 2008


Source: Shanghai Stock Exchange

Date: 2 Sept 2008

CN01/BJ/JL/BT/KM