The company is a key listed subsidiary of Dalian Shide Group, with new chemical building materials as its core business. Zhongbao Carbon Fiber Co., Ltd., a wholly-owned subsidiary of the company, is one of the three largest manufacturers of carbon fiber products in the domestic market.

The net profit of the company's prepreg (pre-impregnated composite fibers) cloth produced by its carbon fiber prepreg production line increased by 40% YOY. Carbon fiber has a high strength-to-weight ratio, which is likely to bring bright market prospects. The stock has broken its 250-day and 125-day moving average with increased volume, and is expected to climb further. Investors are advised to keep an eye on the stock.

Source: Shanghai Securities News

Date: 6 Aug 2008

CN01/VL/DM/BT/MM