The company will provide guarantees on RMB 83 mln in loans for Henan Huanghe Industry (Group) Co. Ltd with Industrial and Commercial Bank of China, Changge branch; RMB 50 mln in loans for Tianrui Group Casting Co. Ltd from China Everbright Bank, Zhengzhou branch; RMB 15 mln in loans for Henan Yinge Industrial Investment Holding Co. Ltd from China Construction Bank, Luohe branch and RMB 24 mln in loans from Bank of China, Luohe branch.

A proposal regarding the guarantees was approved by the 24th Meeting of the 5th Board of Directors held on 24 Apr 2008.

The abovementioned entities are not related parties of the company.

As of 24 Apr 2008, including the abovementioned guarantees, total guarantees pledged by the company were RMB 533.97 mln, accounting for 25.06 percent of the audited net assets of the company. There are no outstanding guarantees for subsidiaries of the company, nor are there any overdue guaranteed loans.

24 Apr 2008
Board of Directors

CN01/MZ/KM/GB