Response to Unusual Share Price Movement

The company's stock price reached its minimum intraday limit in three consecutive trading sessions on 20, 21 and 24 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 third 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 outstanding issues.

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 Shanghai Stock Exchange website (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
25 Nov 2008


Source: Shanghai Stock Exchange

Date: 25 Nov 2008

CN01/CJ/JL/VW/JW