In order to establish an effective incentive and restraint mechanism, encourage enthusiasm and creativity of the company's senior management, and to promote its healthy development, a remuneration scheme for directors, supervisors and senior managers for 2008 was formulated. Details are as follows:

1. The company's remuneration structure consists of basic pay and incentive pay.
2. the remuneration standards:
   
   • Chairman of the board of directors, who receives RMB 19,000 (taxes included) monthly (paid leaves or holidays included), sets the bar for remunerations. Other senior managers' remunerations are fixed based on their respective level in the post.
   • Incentive pay will be distributed to senior managers based on that of the general manager and according to their working performance, work complexity and responsibility.
3. the remuneration appraisal
4. stipend standards for senior managers on a monthly basis
5. to provide monthly living subsidies of RMB 3,000 for full-time executives who are employed through external recruitments.
   These executives will no longer enjoy travel grants.

Item 5 must be submitted to a general meeting of shareholders for further examination.


Source: Securities Times

Date: 27 Nov 2008

CN01/IS/LZ/JW