In accordance with the Development Planning of Henan Zhongyuan Coal & Chemical Group Co., Ltd., the total investment of the project of Coal-chemical Industry Park in Hebi City is 15.8 billion yuan, the total chemical production capacity will be 1.8 million tons of methanol per year and 600,000 tons of polypropylene per year. After completion, the project will achieve operating revenue about 10 billion yuan, profits 2.1 billion yuan. Some 6.6 billion yuan is invested in the phase Ⅰ project, which includes building a methanol plant with annual capacity of 600,000 tons and a polypropylene plant with annual capacity of 300,000 tons, the project is expected to be completed between 2007-2011, the operating revenue will be 5.5 billion yuan, profits 1 billion yuan; Some 9.2 billion yuan is invested in the phase Ⅱ project, which includes building two methanol plants with annual capacity of 600,000 tons for each one and a polypropylene plant with annual capacity of 300,000 tons, the project is expected to be completed between 2012-2015, the operating revenue will be 4.3 billion yuan, profits 1.1 billion yuan.

At the same time, through further integration of related resources in northern Henan, within 5-8 years, we gradually made Henan Zhongyuan Coal & Chemical Group Co., Ltd. into a distinctive and important coal chemical production base in the central region of China. For the methanol project with annual capacity of 600,000 tons of phase Ⅰin the Industry Park, the total investment will be 2.55913 billion yuan, the construction will last three years. The project will use Hebi coal as raw materials; adopt advanced Shell pulverized coal gasification and synthesis technology to produce methanol, large particles urea, polypropylene and other products.

After completion, the project is expected to consume 1.3 million tons of coal, 10 million tons of water, with average annual sales income of 1.17813 billion yuan, average annual after-tax profit 237.86 million yuan, taxes 262.64 million yuan. The investment profit margin is about 13.87%, profit and tax investment ratio 19.56%, capital profit margin 47.15%, and the payback period 8.18 years. The written reply to the project environment evaluation report was approved by the State Environmental Protection Administration on Dec. 4, 2007, and the project construction open ceremony was held on Dec. 26, 2007, and now the construction has been fully launched. We are seeking cooperative partners to jointly develop construction projects of Coal-chemical Industry Park in Hebi City.