DEVELOPMENT STRATEGY

Gaoxin Zhangtong Limited Liability Company will devote herself to precise processing of the copper products over the next several years, direct the investment orientation towards the products with high added value, high-tech content, emphasize on the development of the goods which can fill the domestic gaps and replace imported goods We will further work with the first-class entities specialized in investment, research, business and management, such as China Gao Xin investment group and south-central university. We keep pursuing the separation of ownership and power of management, improvement of structure of capital and management, specialization of the key product. Supported by thought innovation, management innovation, efficiency innovation, market innovation, cultural innovation, and capital innovation, we can definitely realize the transition from quantity expansion to quality improvement, from localization competition to internationalized competition, from traditional management to modern one, from product dealing to brand operation. In the near future, our production capacity is expected to exceed 100,000 tons of copper tube (including 30,000 tons of Inner grooved copper tubes), 1 million sets of HTB, 4000 tons of raw materials for HTB, and 20000 tons of plastic coated copper pipe. In 2005, the total annual turnover can reach more than USD 240 million, with estimated profits and paid tax of more than USD 24 million. The factory export values are supposed to achieve USD 50 million. On that basis can we rank top 10 of the world in copper products field.