At the 9th 2008 Extraordinary Meeting of the Board of Directors, held on 24 Oct 2008, the following proposals were examined and approved:

1. the 3Q 2008 Report
2. the resignation of Ma Saimin from his position as independent director
3. to guarantee a 30 mln loan for Urumqi Urban Construction Investment Co., Ltd. (Urban Investment), which holds a 0.57% stake in the company.

On 30 Apr 2008, Urban Investment, Xinjiang Urban Construction Environmental Protection Co., Ltd. (XUCEP), a subsidiary of the company, and China Development Bank (CDB) signed a RMB 30 mln loan agreement. Pursuant to the agreement, Urban Investment applied with CDB for a 12-year RMB 30 mln infrastructure loan, which would be used by XUCEP to establish its Urumqi Comprehensive Waste Treatment Center.

As of 24 Oct 2008, guarantees provided by the company and its subsidiaries totaled RMB 190.5 mln. There are no guaranteed loans in arrears.

Proposals 2 and 3 must be submitted to a general meeting of shareholders for examination and approval.

Board of Directors
27 Oct 2008


Source: Shanghai Stock Exchange

Date: 27 Oct 2008

CN01/KC/VW/MR/NK/KM