As approved by the board of directors of Ningbo Tongmuo Powder Metallurgic Co., Ltd., a subsidiary in which the company holds a 75% stake, on 24 Sept 2008, Ningbo Tongmuo Powder Metallurgic signed an agreement with Shanghai Bank, Ningbo branch, to provide a two-year joint liability guarantee for the company on a RMB 30 mln loan with Shanghai Bank, Ningbo branch.

Apart from the above-mentioned guarantee, Ningbo Tongmuo Powder Metallurgic has never provided guarantees for other parties.

As of the date of this announcement, guarantees provided by the company total RMB 157.2 mln, with no guaranteed loans in arrears.

Board of Directors
6 Oct 2008


Source: Shanghai Stock Exchange

Date: 6 Oct 2008

CN01/DC/LZ/BT/KM