On 8 Oct 2008, the company received a notice from Wuhai Black Cat Carbon Black Co., Ltd., a subsidiary of the company, stating that it has received a RMB 21.91 mln subsidy from the Wuhai government for the construction of a 160,000 t/a carbon black project of Wuhai Black Cat in the Hainan District Industrial Park, Wuhai City.

The aforementioned amount qualifies as an asset-related government subsidy which, pursuant to new accounting policies, should be consolidated into the financial statement as deferred income. It is projected that the subsidy will not exert a significant impact on the company's EPS.

Board of Directors
9 Oct 2008


Source: Securities Times

Date: 9 Oct 2008

CN01/BJ/JL/BT/KM