Company to Strengthen Steel Products Sector

At the 1st Extraordinary Meeting of the 4th Board of Directors, held on 29 Jul 2008, the Corporate Governance Rectification Report was examined and approved. The company has disclosed the following investment highlights:

First, its metal products production capacity surged from 130,000 tons to 300,000 tons following a technological upgrade of its pre-stressed stranded wire production line. The company will take the opportunity to consolidate its core business which is the manufacturing of steel products.

Second, the company has been successful with several value-added products and technology, which will improve the company's competitiveness.

Third, Ningxia Huahui Live Carbon Co., Ltd., a subsidiary of the company, is the leading manufacturer of active carbon. As energy conservation and environmental protection are high government concerns recently, there will be potential in the development of the company.

Risk warning: Environmental changes plus surging raw material costs may place a degree of pressure on the company's operations.


Source: www.topcj.com

Date: 31 Jul 2008

CN01/SS/DM/BT/KM