At the 1st 2008 Extraordinary General Meeting of Shareholders, held on 5 Nov 2008, the following proposals were examined and approved:

1. to extend cross-guarantee contracts with Nanning Chemical Industry (Group) Co., Ltd. and Nanning Chemical Industry Co., Ltd.
The cross-guarantee contracts, each to expire on 1 Mar 2009, were signed by the company with Nanning Chemical Industry (Group) Co., Ltd. and Nanning Chemical Industry Co., Ltd., respectively. Due to the current financial pressure, the company plans to extend the validity of both contracts to 31 Dec 2009 with the maximum amount of the respective guarantees remaining unchanged at RMB 150 mln and RMB 300 mln.
As of 30 Apr 2008, the total external guarantees provided by the company amounted to RMB 670,400,000, accounting for 51% of the 2007 audited net asset value of the company, of which RMB 220,400,000 in guarantees were provided for its subsidiaries.

2. to provide a guarantee for Nanning Natural Paper Co., Ltd.
The company plans to provide a 3-year guarantee on a RMB 25 mln working capital loan with Nanning Commercial Bank and a 3-year RMB 5 mln guarantee on loans and acceptance bills with Bank of Communications, Nanning branch, both for Nanning Natural Paper, one of the company's subsidiaries.
As of 30 Sept 2008, the total external guarantees provided by the company amounted to RMB 677,000,000, of which RMB 227,00,000 in guarantees were provided for its subsidiaries. The total amount in external guarantees accounted for 51.5% of the company's 2007 audited net asset value.

Board of Directors
5 Nov 2008


Source: Securities Times

Date: 5 Nov 2008

CN01/DC/LZ/JE/KM