In the second quarter of 2008, our company has achieved the sales volume of 8,290 tons silicon rubber at the decrease rate of 8.8% y.o.y，of which, the sales volume of silicone rubber and HVI rubber are 5,665 tons and 869 tons respectively or increased by 11.0% and 15.4%, while silicone gum decreased by 45.7% with the sales volume of 1,756 tons. During the first half year, our company has realized total sales of 15,967 tons of silicon gum, rubber and HVI. Comparing the total sales volume of 16,040 tons of last year, there is a slight decrease of 0.4%. The main reason of the decreased sales in the second quarter consists in that after May 12 Wenchuan strong Earthquake, owing to the affected material manufacturers and severe damaged silicon manufacturing bases, siloxane cyclic compound was in short supply, and the supply of importing siloxane cyclic compound decreased greatly as well. Under such condition, our company could only reduce the sales of silicone gum to guarantee the increasing supply of silicone rubber and HVI rubber.
The plant infrastructure and supporting projects covering 40,000 square meters workshop at the New Silicon Park project in Nanjing, with a total investment of 40 million yuan, had been completed and delivered in May. Two newly added silicone gum production lines of Nanjing Dongjue, with an annual output of 5,000 tons, are under construction on schedule, and are due to be officially launched in September this year, which will totally bring an increased annual output of 10,000 tons silicone gum. By then, the annual capacity of silicone gum will total to 42,500 tons.
July 23td, 2008
