At the 1st 2008 Extraordinary General Meeting of Shareholders, held on 15 Oct 2008, the following proposals were examined and approved:

1. 1H 2008 Profit Distribution Scheme
According to data provided by the company's accounting firm Ernst & Young Huaming Certified Public Accountants, the company's net profit for the first half of 2008 was RMB 2,143,834,438 and profit available for distribution to shareholders was RMB 4,207,650,138. Following the retaining of RMB 214,383,444 for statutory reserve and RMB 608,623,820 for general risk provision, undistributed profit for the first half of 2008 was 3,384,642,874.
The company plans to pay a cash dividend of RMB 0.335 (taxes included) for every 10 shares held, based on 2,388,795,202 total shares outstanding as of 30 Jun 2008, a total of RMB 796,663,200 will thus be paid. The remaining RMB 2,587,979,674 will be reserved for distribution to shareholders in the following years.

2. to issue up to RMB 10 bln worth of subordinated bonds with maturity ranging from 5 to 15 years in batches within three years
3. to issue up to RMB 10 bln worth of financing bonds with maturity ranging from 1 to 10 years in batches within three years, of which the funds raised will be used to supplement the company's medium and long-term funds
4. to adjust relevant resolutions of the 2nd 2007 Extraordinary General Meeting of Shareholders
The company plans to issue up to RMB 8 bln worth of hybrid capital bonds with a maturity of more than 15 years in batches within three years

Funds raised via subordinated bonds and financing bonds issuance will be used to boost the company's capital and supplementary capital, thus improving its capital adequacy ratio.

Proposals 2, 3 and 4 are subject to a regulatory approval.

Board of Directors
16 Oct 2008


Source: Securities Times

Date: 16 Oct 2008

CN01/FL/JL/BT/KM