Inner Mongolia Haiji Restructuring

On 20 Sept 2008, the company received a ruling of the Intermediate People's Court of Wuhai City from Inner Mongolia Haiji Chlor-Alkali Chemical Co., Ltd., in which the company holds a 41.9% stake and has a long-term investment of RMB 527.92 mln, with a registered capital of RMB 1.46 bln.

Wuhai City Electric Power Bureau (WCEPB) had filed a lawsuit against Inner Mongolia Haiji on RMB 30.63 mln in arrears and petitioned the court to have Inner Mongolia Haiji restructured, which the court has adjudicated.

To date, Inner Mongolia Haiji has begun restructuring procedures and is negotiating with WCEPB for a settlement. If an agreement is not reached, Inner Mongolia Haiji will appeal to a higher court.

Board of Directors
22 Sept 2008


Source: Shanghai Stock Exchange

Date: 23 Sept 2008

CN01/IS/LZ/BT/KM