At an extraordinary meeting of the board of directors, held on 9 Sept 2008, a proposal was examined and approved to lend RMB 20 mln at the prevailing market interest rate to Jiangsu Jinmao Chemical Pharmaceutical Group Co., Ltd. Jiangsu Jinmao will pledge its 40% stake in Jiangsu Taiji New Materials Co., Ltd. as collateral, and pay off the loan in three years (RMB 7 mln principal with related interest in 2009, RMB 7 mln in 2010 and RMB 6 mln in 2011). An additional clause is also included in the loan contract, stipulating that the above-mentioned equity will be transferred at no less than RMB 32.6 mln but not exceeding its assessed value, should both parties agree.

Board of Directors
9 Sept 2008


Source: Shanghai Stock Exchange

Date: 10 Sept 2008

CN01/ZZ/SW/BT/KM