Shanghai-based South Cement Co., Ltd., founded on September 26, 2007, plans
to enlarge its production capacity significantly over the next three years.

South Cement, with a registered capital of CNY 3.5 billion, will receive
total investment of CNY10bn to reshuffle the Chinese cement industry. It
will operate in Zhejiang Province, and expects to take a 30% share of its
target market in south China, including Shanghai, and Zhejiang, Jiangxi,
Hunan, and Fujian Provinces in three years.

China National Building Material Co., Ltd. its major shareholder with a 75%
stake, wants to drive South Cement to be one of the top regional players
over the next five years. Other investors including local cement
manufacturer, Jiangxi Wannianqing Cement and Zhejiang Jianfeng Group Co and
also the State-owned Assets Supervision and Administration Commission of
Hunan.