Pursuant to a resolution of the 3rd Extraordinary General Meeting of Shareholders, held on 4 Sept 2008, the company signed a maximum guarantee contract with Bank of Communications, Urumchi branch, according to which the company will provide a guarantee for Xinjiang Tianye (Group) Co., Ltd, its controlling shareholder, on RMB 30 mln of a one-year RMB 100 mln working capital loan.

As of the date of this announcement, guarantees provided by the company amount to RMB 380 mln, of which RMB 160 mln is provided for subsidiaries and RMB 220 mln is for Tianye Group. There are no overdue guarantees.

Board of Directors
17 Sept 2008


Source: Shanghai Stock Exchange

Date: 17 Sept 2008

CN01/DC/LZ/BT/KM