Directors Resolutions On 3 Projects

At the 24th meeting of the 5th Board of Directors on 28 Dec 2008, the following resolutions resolved after discussion:

1. the proposal of implementing water pollution project at Liucaopo Chemical Plant: the project total investment of RMB 64,819,000, will be self-funding and partially by applying for the RMB 19.50 mln capital which budgeted for national key river basin industrial pollution treatment project by the government, with the construction period of 8 months;
   
2. the proposal of implementing riverbank consolidation project at Bai Sha He Chemical Plant: the project total investment of RMB22,283,200, with the capital source by self-funding and the construction period of 4 months;
   
3. agreeing to jointly invest in establishing Yidu Xingfa Chemicals Co., Ltd. (temporary name) with Hubei Yichang Phosphorus Chemicals Group Company Limited, with the planned registered capital of RMB 100 mln (both will pay 30% of their contribution as the initial contribution). Thereinto, the company contributes RMB 70 mln in currency, accounting for 70% of the registered capital;
   
4. appointing Yang Tiejun as Deputy General Manager;
   
5. agreeing to revoke Yichang Yunji Branch and set up marketing department;
   
6. agreeing to provide a guarantee for the current capital loan with the balance of up to RMB 26 mln applied for by Chongqing Xingfa Jinguan Chemical Co., Ltd. (with 50% equity respectively hold by the company and Shanghai Baijin Chemical Co., Ltd.) to Dianjiang Sub-branch of Bank of China Limited with joint liabilities guarantee by the company and Baijin Chemical, with the period of 1 year.

As of 30 Nov 2008, the company's provided total guarantees of RMB 368.76 mln, among which RMB 302.26 mln are against the loans of its subsidiaries. Apart from the above guarantees, the company and its subsidiaries have no other outward guarantee in any form.


Source: Shanghai Stock Exchange

Date: 30 Dec 2008

CN01/JW/VW/JW