Ningbo Thermal Power Co., Ltd. (NTP), a power generation company with a large consumer base, enjoys an explicit edge over its competitors within the local heat-supply market. As it has significantly increased the number of its customers in recent years, the company currently enjoys rapid growth.

Investment highlights:

1. As numerous petrochemical companies, as well as steel and textile industries were introduced into the industrial park in which the company is based, the company's sale of steam is poised for strong growth.

2. An application to circulate fluidized bed combustion technology and energy saving technology as well as to increase its heat supply radius has enhanced the production efficiency of the company, which has resulted in higher revenue for the company.

Risk warnings

1. With the operation of new power plants in Ningbo and neighboring areas, the strain on power supplies in these areas has been eased. The local power authorities will regulate and limit power supply from the company, resulting in pressure.

2. a 9.88% cut in power tariffs effective 16 Dec 2007 negatively impacts the company's profitability.

Source: www.topcj.com

Date: 31 Jul 2008

CN01/BJ/SW/BT/KM