New Subsidiary Founded

At the 14th Meeting of the 3rd Board of Directors, held on 28 Oct 2008, the following proposals were examined and approved:

1. the 3Q 2008 Report
2. to establish Beijing Yanqing Village Bank Co., Ltd. with other shareholders
The company will invest RMB 10 mln in Beijing Yanqing.
3. to participate in the construction of the Beijing social security system
The relevant agreement has not yet been signed.

4. a loan with Beijing Jingfeng Gas Power Co., Ltd., a related party of the company

Board of Directors
30 Oct 2008


Source: Shanghai Stock Exchange

Date: 30 Oct 2008

CN01/CJ/JL/NK/KM