According to a notice from Sinochem Corporation, the controlling shareholder of the company, Sinochem Corporation purchased 4,744,595 shares of the company on 7 Oct 2008 at an average price of RMB 8.704 per share, thus, Sinochem Corporation's holding in the company increased to 801,550,153 shares, equal to a 55.76% stake.

Moreover, Sinochem Corporation plans to continue purchasing the company's shares through the trading system of the Shanghai Stock Exchange and will purchase a maximum equity interest in the company of 2% (including the above-mentioned increased equity) in the following 12 months. After the increase reaches the 2% equity interest threshold, in compliance with relevant regulations, Sinochem Corporation must make an offer to acquire more shares of the company, if a waiver of tender offer obligation is not granted by the China Securities Regulatory Commission.

Accordingly, the controlling shareholder will not sell its equity interest in the company within the period of the scheduled equity increase.

Board of Directors
8 Oct 2008


Source: Shanghai Stock Exchange

Date: 8 Oct 2008

CN01/FL/JL/NK/KM