The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 16, 17 and 20 Oct 2008, thus constituting an unusual price movement.

Following consultation with the company's board of directors and its senior management, the board of directors confirms that, apart from the resolutions of the 30th Meeting of the 3rd Board of Directors, there are no significant undisclosed issues, negotiations, plans, intents or agreements outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company's stock price within the next two weeks.

The company's major shareholder New Hope Chemical Investment Co., Ltd. and effective controller Liu Yonghao confirm that there are no significant undisclosed issues currently outstanding.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Stock Exchange (www.sse.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.