The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 30 Oct, 31 Oct and 3 Nov 2008, thus constituting an unusual price movement.

Following consultation, the board of directors confirms that there is no significant undisclosed information or issues outstanding, including but not limited to equity transfers, private placements, debt restructuring, business restructuring, asset stripping or capital injection.

The company had violated certain SSE Stock Listing Regulations, and the disciplinary committee of the SSE imposed a public reprimand on the company on 30 Oct 2008.

Apart from the above-mentioned issue, the board of directors confirms that there are no significant undisclosed issues, plans, negotiations or intentions outstanding nor are any such issues planned for the next two weeks, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company's stock price or the prices of its derivatives.

The company has estimated continued losses from 2006 through 2008, and will be delisted if it posts a loss for 2008. In addition, there is no progress has been made in major asset restructuring, because China Power Petrochemical Corp. was unable to boost its investment in the company as previously committed. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
4 Nov 2008

Source: Shanghai Stock Exchange

Date: 4 Nov 2008

CN01/DC/LZ/NK/KM