Pursuant to a resolution of the 11th Meeting of the 4th Board of Directors, the company plans to transfer its 25% equity in Sinochem Modern Environmental Protection Chemicals (Xian) Co., Ltd., 19% equities in Sinochem International Taicang Xingnuo Industry Co., Ltd., Taicang Sinochem Macromolecular Material R&D Co., Ltd., and Sinochem International (Suzhou Industrial Park) New Material R&D Co., Ltd. to China New-Tech Trade Development Co., Ltd. for RMB 80,452,700, RMB 8,493,700, RMB 21,207,600 and RMB 0.00 respectively, or RMB 110,154,000 in total.

As China New-Tech Trade Development is a subsidiary of the company's controlling shareholder, the aforementioned equity transfer constitutes a related-party transaction.

Board of Directors
26 Sept 2008


Source: Shanghai Stock Exchange

Date: 6 Oct 2008

CN01/BJ/JL/BT/KM