CGS's Polysilicon Project to Start Commercial Operation in H2       

CGS Holding Co., Ltd. (SZ: 000012) said on August 4th the first-half revenue fell 3.11% to RMB2.06 billion, while net profit dropped 36.28% to RMB261.16 million, or RMB0.21 per share.
   In the reporting period, the company's revenue and gross profit margins for the flat glass and fine glass businesses both declined from a year earlier. But its industrial glass business post growth year on year, recording a gross margin of 35%, up 2.51 percentage points over a year earlier.
   CGS has started production of its new high purity polysilicon project in Yichang, Hubei province at the end of 2008. The first phase capacity is 1 500 tons a year. The company expects the project to start commercial operation in the second half of 2009.
   The company's production capacity for float glass would be doubled when a 900 t/d float glass line in Chengdu, Sichuan province, comes on stream in the second half, CGS said. But the uncertainty in market demand and the fluctuation in raw material prices could increase pressure on the float glass business, it said.
   Meanwhile, the second phase of its energy-saving glass projects in Tianjin and in Wujiang of Jiangsu province are expected to start commercial operation in the second half.
   CGS engages in the manufacture and sales of glass materials, silicon materials and photovoltaic module, with manufacturing sites in Shenzhen, Dongguan, Guangzhou, Guangdong province; Tianjin; Langfang, Hebei province; Wujiang, Jiangsu province; Yichang, Hubei province; Wenchang, Hainan province and Chengdu, Jiangyou in Sichuan province.