At the 25th Meeting of the 3rd Board of Directors, held on 20 Oct 2008, a proposal was examined and approved to provide a three-year guarantee on RMB 22 mln of a three-year RMB 40 mln loan with China Construction Bank, Alarcon sub-branch, for Alarcon Xinnong Cotton Pulp Co., Ltd., based on the company's holding proportion of 55% in Alarcon Xinnong. The guarantee must be submitted to a general meeting of shareholders for examination and approval.

Including the aforementioned guarantee, guarantees provided by the company total RMB 390 mln. There are no guaranteed loans in arrears.

Board of Directors
21 Oct 2008


Source: Shanghai Stock Exchange

Date: 21 Oct 2008

CN01/NS/MR/JE/KM