Stock Hits Minimum Intraday Limit

The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 4, 5 and 6 Nov 2008, thus constituting an unusual price movement.

Following consultation, the board of directors confirms that other than previously-disclosed resolutions ratified at the 30th Meeting of the 3rd Board of Directors, there are no undisclosed issues currently outstanding, pursuant to relevant regulations. To date, both Newhope Chemicals Investment Co., Ltd., a major shareholder of the company, and Liu Yonghao, the company's effective controller, confirm that there are no significant undisclosed issues currently outstanding.

The board of directors also confirms that other than the above-mentioned issues, there are no significant undisclosed issues, plans, negotiations, intentions or agreements currently outstanding, pursuant to relevant regulations, nor are any such issues planned for the next two weeks that might materially impact the company's stock price.

The Shanghai Securities News, the China Securities Journal 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
6 Nov 2008


Source: Shanghai Stock Exchange

Date: 7 Nov 2008

CN01/CW/RL/JE/KM