At the 33rd Meeting of the 3rd Board of Directors and the 14th Meeting of the 3rd Board of Supervisors, both held on 10 Nov 2008, the following proposals were examined and approved:

1. to postpone general elections for the 3rd Board of Directors and the 3rd Board of Supervisors
In consideration of ongoing major asset restructuring, both the board of directors and the board of supervisors suggested postponing general elections of the 3rd Board of Directors and the 3rd Board of Supervisors to no later than 27 Jan 2009.

2. to accept the resignation of Zhang Jiang from his position as secretary of the board of directors, and to appoint Zhou Yunlong as Zhang Jiang's replacement
3. to extend the RMB 20 mln loan with Xi'an Commercial Bank, Xincheng branch from its current due date 15 Dec 2008, for another year. The loan interest will be calculated in accordance with relevant regulations set by the bank.

The company plans to convene its 4th 2008 Extraordinary General Meeting of Shareholders on 27 Nov 2008, at which proposal 1 will be examined and considered for approval.

Board of Directors and Board of Supervisors
11 Nov 2008


Source: Securities Stock Exchange

Date: 12 Nov 2008

CN01/CW/RL/NK/KM