Pursuant to the Letter of Intent signed by the company and Nanning Jinlang Pulp Industry Co., Ltd., between 1 Jun and 24 Oct 2008, the company purchased a quantity of paper pulp from Nanning Jinlang valued at RMB 2.99 mln.

Both Xiong Ke Mo, the chairman of the company, and Ye Jing Hui, a senior manager of the company, are the directors of Nanning Jinlang, thus, the aforementioned purchase constitutes a related-party transaction.

The transaction was approved at the 5th Meeting of the 3rd Board of Directors.

Board of Directors
28 Oct 2008


Source: Securities Times

Date: 29 Oct 2008

CN01/FL/JL/JE/KM