9-Month Net Profit Projected to Spike by 500-550%

According to preliminary data released by its finance department, the company’s net profit in the first three quarters of 2008 is estimated to have increased by between 500% and 550%, compared to the same period in 2007, when its net profit was RMB 30.54 mln and EPS was RMB 0.065.

The increase is mainly attributable to the following:
1. ICBC, Ordos Dongsheng sub-branch has abated the company's interest payable, thus generating RMB 29.91 mln in debt restructuring savings. In addition, a RMB 17.84 mln government subsidy was booked within the first three quarters of 2008.
2. The company has swapped its 48% stake in Xilin Gol Sonid Alkali Co., Ltd. for a 15% stake in Unichem International Co., Ltd., held by Inner Mongolia Boyuan Holding Group Co., Ltd., thus generating a RMB 97.6 mln gain.
The combined after-tax gain from these matters is expected to total RMB 114.47 mln.
3. In compliance with a notice released on 16 Nov 2007 by the Ministry of Finance of the PRC, the company has conducted retroactive adjustments on its gains and losses over the same period in 2007.

Board of Directors
17 Oct 2008


Source: Securities Times

Date: 20 Oct 2008

CN01/NW/RL/BT/MM