At the 23rd Meeting of the 5th Board of Directors held on 10 Sept 2008, the following proposals were examined and approved:

1. 2008 daily related-party transactions
2. to adjust the composition of special committees under the board of directors
3. to apply for lines of credit from the bank
To ensure capital flow as well as daily production and operation, the company plans to apply for a total of RMB 700 mln in lines of credit from three banks, including RMB 200 mln from China Merchants Bank, Wuxi branch, RMB 300 mln from China CITIC Bank, Wuxi branch, and RMB 200 mln from China Minsheng Bank, Nanjing branch.
4. to raise the maximum amount of the company's guarantee for Little Swan Import & Export Co., Ltd. (LSIEC)
To meet the demands of LSIEC's expansion, the company plans to raise the maximum amount of its guarantee provided for LSIEC, from RMB 25 mln to RMB 50 mln. The duration of the guarantee will be from the approval date of a general meeting of shareholders to 31 May 2009.
5. a proposal related to a large-scale relocation of the company
The company plans to conduct a large-scale relocation from its current production and administration site at 67, Huiqian Rd to 18 South Changjiang Rd, Wuxi National Hi-tech Industrial Area by June 2009.

Proposals 1, 4 and 5 will be submitted to general meeting of shareholders for examination.

Board of Directors
10 Sept 2008

Source: Shanghai Stock Exchange

Date: 11 Sept 2008

CN01/NW/DM/BT/KM