The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 27, 28 and 29 Oct 2008, thus constituting an unusual price movement.

Following consultation, the board of directors confirms that there are no significant undisclosed issues that would materially impact the company's stock price, including equity transfer, private placement, asset stripping, capital injection, negotiations, plans, intents or agreements outstanding, pursuant to relevant regulations, nor are there any such issues planned for the next two weeks that would materially impact the company's stock price.

It is estimated that the company has suffered losses over the first nine months of 2008. If it continues to suffer losses over the entire year, the company will be delisted. Additionally, there is no progress in the major asset restructuring as that China Power Petrochemical Corp. was unable to increase its investment in the company as previously committed.

The China Securities Journal, the Shanghai Securities News, Securities Times 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.

Board of Directors
30 Oct 2008


Source: Shanghai Stock Exchange

Date: 30 Oct 2008

CN01/CJ/JL/NK/KM