At the fifth Meeting of the fifth Board of Directors and the fourth Meeting of the fifth Board of Supervisors, both held on 26 Nov 2008, the following proposals were reviewed and approved:

1. to invest a total of RMB 454.68 mln to establish a new non slurry cement production line with 3,000 tonnes daily production capacity via Gangu Qilianshan Cement Co., Ltd., a wholly owned subsidiary of the company. The company will issue new shares to raise 35% of the capital funds and the remaining funds will be raised from bank loans. The term of construction for this project is 12 months

2. to donate a total of RMB 9 mln in cash to earthquake stricken areas in Longnan City, Gansu Province in 2008 and 2009

3. the special rules for possible funds misappropriation by major shareholders or other related parties

4. to transfer all its 25% equity in Tibet Qilianshan Cement Pulverizing Co., Ltd. to Lanzhou Jiatong Bag Making Co., Ltd. for RMB 1,079,166.38

5. to make provisions for write downs in glazed tile production line of Yongdeng Qilianshan Cement Co., Ltd., a wholly owned subsidiary of the company

6. to distribute attributable profits of RMB 63 mln, RMB 70 mln and RMB 13 mln of three wholly owned subsidiaries of the company, Yongdeng Cement, Tianshui Qilianshan Cement Co., Ltd. and Gangu Cement

Board of Directors and Board of Supervisors
26 Nov 2008


Source: Shanghai Stock Exchange

Date: 27 Nov 2008

CN01/BJ/JL/VW/JW