Equity Transfer Agreement Signed

On 28 Oct 2008, the company signed an agreement with Huainan Mining Industry (Group) Co., Ltd. to transfer its 12% stake in Hefei Wanneng Power Generation Co., Ltd, a subsidiary of the company, to Huainan Mining Industry for RMB 96.6 mln, which was fixed based on the asset evaluation by Beijing Guoyou Dazheng Assets Appraisal Co., Ltd. conducted on the base date of 31 Jul 2008.

In addition, on 27 Oct 2008, Hefei Construction Investment Co., Ltd. and Anhui Liyuan Electric Power Development Co., Ltd., the other two shareholders of Hefei Wanneng Power Generation, also signed an agreement with Huainan Mining Industry to transfer their respective 20% and 2% stakes in Hefei Wanneng Power Generation to Huainan Mining Industry.

Following the above-mentioned transactions, the company, Huainan Mining Industry and Hefei Construction Investment will hold 51%, 34% and 15% stakes, respectively, in Hefei Wanneng Power Generation.

The deal does not constitute a related-party transaction and will have no adverse impact either on the company's operations or its financial status.

Board of Directors
29 Oct 2008


Source: Securities Times

Date: 30 Oct 2008

CN01/DC/RL/LZ/JE/KM