Pursuant to resolutions of the 3rd 2007 Extraordinary General Meeting of Shareholders, the company will provide a joint liability guarantee on a one-year RMB 40 mln working capital loan with Bank of China, Shi Hezi branch, for Xinjiang Tianye (Croup) Co., Ltd., the company's controlling shareholder, effective 7 Aug 2008.

As of the date of this announcement, the company has provided a total of RMB 350 mln in guarantees, including RMB 160 mln provided for subsidiaries and RMB 190 mln for Tianye Group. There are no guaranteed loans in arrears.

Board of Directors
8 Sept 2008


Source: Shanghai Stock Exchange

Date: 8 Sept 2008

CN01/CJ/JL/BT/KM