Shuanghuan Expects Prosperous Soda Ash Sector for 2008      

Hubei Shuanghuan Science & Technology Stock Co., Ltd. (Shuanghuan, SZ: 000707) accomplished an operating revenue of RMB1.302 billion in 2007, an increase of 29.24% over the previous year. The net profit was RMB94.6677 million, an increase of 205.19%. The earning per-share was RMB0.20.
   Stimulated by the rapid development of chemical, glass and daily chemical sectors, the demand for soda ash in China was brisk. Soda ash in Chinese market will still be in short of supply in 2008. With the impact from macro control policy and environmental protection pressure, the newly-built soda ash production will fall drastically. Soda ash units in China have a higher operating rate today, with a lower product inventory and a sound export situation. The prosperity of the soda ash sector is expected to maintain up to early 2009.
   According to Shuanghuan, the oversupply of the soda ash domestic market is a long-term trend. The fiercer competition of the price of soda ash and the price rise of raw material will have a great pressure on production and operation of Shuanghuan. The company plans to produce and sell 640 000 tons of soda ash and 650 000 tons of ammonium chloride and get a sales revenue of RMB1.5 billion in 2008. The headquarters Yingcheng site (Hubei province) will form a capacity of 1.30 million t/a raw salt, 1.10 million t/a soda ash, 1.10 million t/a ammonium chloride and 350 000 t/a ammonia at the end of 2008, for the sales revenue of more than RMB2.5 billion a year.
   Shuanghuan completed the acquisition of the 45% equity in Chongqing Yihua Chemical Co., Ltd. in the first quarter of 2008.
   Shuanghuan is controlled by Hubei Yihua Chemical Industry Group Corporation today.