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Document No. 10: Explanation on the Termination of the Project Involving Dalian Bingshan Investment Co., Ltd.

Document No. 10 of the 2005 Annual General Meeting

Explanation Regarding the Termination of the Project of Dalian Bingshan Investment Co., Ltd.

Dear Shareholders:
At the 2002 Annual General Meeting held on May 28, 2003, the Company reviewed and approved the “Report on the Equity Participation in Dalian Bingshan Investment Co., Ltd.” and resolved to authorize the Company, together with Dalian Bingshan Rubber & Plastics Co., Ltd., to jointly invest in the establishment of Dalian Bingshan Investment Co., Ltd.
During the specific preparatory phase of this project, numerous factors delayed its completion. In light of the project’s particular circumstances and in alignment with the company’s development plan, the company has decided to terminate the project.
This is hereby stated.
Please review the above report.

May 30, 2006