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• Revenue: -12.5% (2Q09), -7.1% (1H09)
• Net Profit: -30.0% (2Q09), -30.4% (1H09)
• Press Release: On a sequential basis, gross margin rose to 23.1% in 2QFY09 compared to 22.1% in 1QFY09
• Reflecting a firmer performance sequentialiy, net profit for the 2QFY09 increased slightly to RMB24.8 million as compared with RMB23.5 million
  1QFY09 despite a lower revenue being reported
• Paper chemical expansion completed and sales has commenced in early June 2009, delivering immediate revenue contribution of approximately RMB7 million
• Revenue for 1HFY09 declined 7. 1% year on year due to work stoppages for maintenance
• Net profit for 1HFY09 declined 30.4% year on year due to lower revenue and the expiry of tax incentives
• Outlook: The Board of Directors (“the Board”) remains confident about the long term prospects for the paper and paper chemical products market in the People’s Republic of China (“PRC”).
• Nonetheless in the short to medium term, the management remains concern with the lower average selling prices for various paper products across the paper industry.
• Going forward, the Group intends to explore various options and opportunities to strengthen its production process and product offerings.
• The Group aspires to reach a paper production capacity of 350,000 to 500,000 tonnes per annum over the next few years, so as to achieve greater economies of scale and relevance in the PRC market.
• The current capacity stands at 180,000 tonnes per annum.
• In addition, the Board will continue to monitor the business environment closely and adjust its business strategies and plans accordingly.
• Barring any unforeseen circumstances, the Board remains optimistic about the Group’s performance for the next 12 months.

FINANCIAL RECORDS

Revenue (RMB '000)

FY 1Q 2Q 3Q 4Q Total
2009 215,467 198,679
2008 218,801 227,105 231,866 232,798 910,570
2007 201,339 165,461 180,885 212,185 759,870
2006 206,559 216,456 211,669 181,258 815,942
2005 152,483 178,301 193,002 162,625 686,411
2004 NA NA NA NA 633,417
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Earnings (RMB '000)

FY 1Q 2Q 3Q 4Q Total
2009 23,531 24,836
2008 34,008 35,502 39,124 34,749 143,383
2007 29,802 21,250 23,513 24,440 99,005
2006 42,572 34,993 31,092 26,941 135,597
2005 27,446 34,656 44,063 41,556 147,721
2004 NA NA NA NA 117,979
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Dividends

FY Interim Final Special (RMB)
2009 NA
2008 NA NA NA
2007 NA NA NA
2006 NA NA NA
2005 NA 0.111 NA
2004 NA 0.088 NA
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Bonus / Rights / Stock Split

Date Type Details
NA
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Share Data (RMB)

NAV = $2.07
EPS = $0.11 (6M FY09)
No of Shares = 442,000,000
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ANALYSTS' TARGET PRICES

Broker Recommendation Target Price Date
NA