Corporate Bond Issue Validity Extended

At the 12th Meeting of the 4th Board of Directors, held on 20 Oct 2008, the following proposals were examined and approved:

1. the company's qualifications for corporate bond issuance
2. to extend the validity of corporate bond issuance by an additional year
The company plans to issue up to RMB 800 mln worth of corporate bonds, with a validity of no less than five years.

Funds raised through the corporate bond issuance will be used for repayment of short-term loans taken out from commercial banks, and for debt restructuring, working capital replenishment, investments or acquisitions.

The proposal will be valid for one year, upon approval by the 2nd 2008 Extraordinary General Meeting of Shareholders.

3. to petition a general meeting of shareholders to authorize the board of directors to address issues related to the corporate bond issuance

4. to convene the 2nd 2008 Extraordinary General Meeting of Shareholders, at which proposals 1, 2 and 3 will be examined and considered for approval.

Board of Directors
21 Oct 2008


Source: Securities Times

Date: 21 Oct 2008

CN01/IS/LZ/JE/KM