The company plans to provide three-year guarantees on a RMB 25 mln working capital loan with Nanning City Commercial Bank and a RMB 5 mln loan and bank acceptance bill with Bank of Communications, Nanning branch, for Nanning Savageness Paper Industry Co., Ltd., a subsidiary of the company.

The relevant proposal, examined and approved at the 4th Meeting of the 3rd Board of Directors, held on 14 Oct 2008, must be submitted to a general meeting of shareholders for approval.

Additionally, as of 30 Sept 2008, the company had provided guarantees totaling RMB 377 mln, accounting for 51.5% of the audited net asset as of the end of 2007. Of the RMB 377 mln, RMB 227 mln was provided for its subsidiaries. None of the subsidiaries had guaranteed loans in arrears.

Board of Directors
15 Oct 2008


Source: Securities Times

Date: 16 Oct 2008

CN01/FL/JL/BT/KM