The worldwide financial crisis has been sweeping the market in China, as a result, the demand of silicon rubber products further shrinks in the fourth quarter. The subsidiaries of our Group have realized a sales of 7,432 tons silicon rubber at the decrease rate of 21.1% y.o.y, the decline range expanding 7.3 percentage points compared to the third quarter. During the fourth quarter, the sales volumes of silicone gum and silicone rubber are 1,681 tons and 4,910 tons, respectively decreasing 30.7% and 20.6% y.o.y..However, owing to growing requirments in power system reconstruction after earthquake in China, with an amount of 841 tons, the sales of insulating rubber has increased 4.0% y.o.y.
In 2008, the subsidiaries of our Group have achieved a sales of 31,554 tons silicon rubber, reduced by 9.6% than in 2007, among which, the sales of 7,004 tons silicone gum decreased 35.1%, while the annual sales of silicone rubber and insulating rubber grew by 0.6% and 10.5% than in 2007, the amounts being 21,380 and 3,170 tons.
Following the stride of large countries around the world to put forward the economy-reprospering plan, China starts strengthening domestic demand, expanding the investment to electrification and electric power, and vigorously reviving car, textile, and electrical appliance industry as well. With a massive usage of silicon rubber, the measures would enormously promote the restoration and development of the market. We estimate that the subsidiaries of our Group will witness a growing sales rate above 10% in 2009 than in 2008.
February 22nd, 2009
