Inner Mongolia Yuan Xing Energy Co., Ltd. (000683) announced that according to preliminary estimates, net profit for first nine months of 2008 is projected to increase by 150-200% compared to the same period in 2007, when net profit was RMB 66,291,600. Further, under China's new accounting standards, a 500-550% increase in annual net profit is estimated over the RMB 30,539,100 in net profit gleaned in 2007.

The sharp increase is mainly attributable to the following items:

First, pursuant to an interest-free agreement with Industrial and Commercial Bank of China, Ordos Dongsheng sub-branch, debt restructuring generated a RMB 29.91 mln savings.

Second, a RMB 17.84 mln government subsidy was included in the profit and loss statement during the current reporting period.

Additionally, a swap of its 48% equity in Xilin Gol Sunite Alkali Co., Ltd. for a 15% stake in Unichem International Co., Ltd., previously held by Inner Mongolia IHJUCHEM Holding Group Co., Ltd., reaped RMB 97.60 mln. Consequently, after deducting RMB 26.30 mln in income tax and RMB 4.58 mln in minority interests, these items garnered a total of RMB 114.47 mln.


Source: China Securities Journal

Date: 20 Oct 2008

CN01/BJ/JL/JE/MM