TOP TEN HIGHLIGHTS IN YEAR 2004  
January, 2005

    1. Presided by Kaifeng Municipal Government and Kaifeng City Council, KFAS has made substantive strides toward further renovation of state-owned enterprise. According to “Notions upon Standardizing the Ownership Change of State-owned Enterprises” and “Kaifeng National Property Rights Transferring Practices”, Guangdong Mingzhu Group Co., Ltd and Shenzhen Jinxinan Investment Co., Ltd have accepted the whole state property rights of KFAS’s, which means KFAS has changed from a state-owned enterprise to a private stock enterprise.
     2. KFAS coined a new record with an annual total industrial production value of RMB526.06 Million Yuan, sales income of RMB554.5 Million Yuan, industrial incremental value of RMB145.5 Million Yuan and profit & tax of RMB27.55 Million Yuan, which respectively increased by 31.1%, 10.8%, 25% and 86.8% compared to the same period last year.
     3. On Sept.19, 2004, the 40,000m3/h large ASU of large nitrogen fertilizer project supplied by KFAS for Shandong Hualu Hengsheng Chemical Co., Ltd was successfully put into operation by first trial. So far, it is the largest ASU locally designed, completed and has been put into operation inside China.
     4. The major construction of the technical renovation project for localization of 40,000 m3/h large ASU granted by national debts has been completed, inside which some symbol works like the heavy shop, cold test center of expander, process optimizing simulation software for large ASU and chemical plant and optimizing design software for various kinds of heat exchangers have been put into use and has played an important role during the R&D of 40,000 m3/h large ASU supplied for Shangdong.
     5. A 52,000 m3/h large ASU contract has been signed between KFAS and Henan Yongcheng Coal & Power (Group) Co., Ltd.
     6. After being strictly evaluated by China Machinery Industrial Enterprise Management Society and Machinery Industrial Economic Management Institute, KFAS has been listed in “500 Powerful Machinery Enterprises in China”.
     7. KFAS has been listed as “100 Key Industrial Enterprises in Henan Province”.
     8. “Internal compression process for large ASU” independently developed by KFAS has been awarded the Third-class Award for Science & Technology Advancement of China Machinery Industry, which has been successfully applied in more than 30 sets of 10,000 m3/h-grade large ASU.
     9. The R&D of oxygen aeration process for industrial waste water and municipal wastewater undertaken by Kaifeng China National Environmental Protection Co., Ltd has been listed in “Henan Important Technical Tackling Plan in Year 2004” and has obtained supporting funds from Henan Science & Technology Department.
     10. KFAS put great efforts to develop cold store products. Besides the leading position of CA cold stores in Fruits & Vegetables Market, KFAS has been ascending into the food process industry, which successively supplied five low-temperature cold stores for some famous Chinese food processing groups like Jiayi of Anhui, Jinluo of Shandong and Huaying of Henan etc.

　

Total Industrial Production Value & Sales Income Break RMB500M Yuan for the First Time
January, 2005

  In 2004, by seizing opportunities, pooling wisdom & efforts of all the employees and staffs, KFAS has completed an annual total industrial production value of RMB526.06 Million Yuan, sales income of RMB554.5 Million Yuan, industrial incremental value of RMB145.5 Million Yuan and profit & tax of RMB27.55 Million Yuan, which respectively increased by 31.1%, 10.8%, 25% and 86.8% compared to the same period last year. Thus, KFAS has over-fulfilled the economic targets drawn by Kaifeng Municipal Government.
     Year 2004 is of vital significance to the development of KFAS, such as property rights renovation realized a historical breakthrough; the first 40,000m3/h large ASU was successfully started up and put into operation; a 52,000 m3/h large ASU contract has been signed between KFAS and Henan Yongcheng Coal & Power (Group) Co., Ltd, technical renovation project for localization of 40,000m3/h large ASU has been smoothly completed.

　

Main Works of First Half Year of the Design Dept.

     It is to take the design of 52000m3/h air separation plant as key work, further to develop more new product; new technology; and to increase design quality and supply satisfactory service for our customers, in which including: to complete and standard main drawings of asp from 3200---15000m3/h to adapt market requirement; to lower cost and keep high quality level; to reinforce new comer’s training for design and check qualification for pressure vessel and pressure piping.

　

Our First Domestic Large ASP of 40000m3/h Successfully Put into Operation in Shandong

    The first set of Large Nitrogenous Fertilizer Project---Shandong Hualu Hengsheng Large Nitrogenous Fertilizer Modification Project has been operated on Dec. 28, of 2004. It is key technology renovation project in China during ‘Tenth Five Year Plan’ and it creates 10 items of the first one in China including the first localization of 40000m3/h ASP----developed and supplied by our company.
   This is a symbol that the design and manufacture ability of large ASP of our company has been matured, that grounding a solid base for future expanding large ASP localization and marketing.

　

   Localization Time Is Coming for Large Nitrogenous Fertilizer

   According to newspaper ‘China Chemical’, a dream that has lasted for more than 30 year of large nitrogenous fertilizer localization becomes true at end of year 2004. The first set of demonstration project built in Shandong Luhua Hengsheng Chemical Co. Ltd.has been successfully put into operation, it trusts people that:  Localization Time Is Coming for Large Nitrogenous Fertilizer.
    The great meanings for this project are that create 10 items of the first one in China; less investment (only half of cost for import project); new commercial operation mode; and easy and low cost availability of raw material----using rich coal deposit as fuel instead of oil and gas.

　

    The First set of large Nitrogenous Fertililer Localization Technology Renoration Shandong on Dec.28: The first set of large Nitrogenous Fertiliter Technology Renovation exampling project --- Shandong Hualuhengsheng project ceremony of putting into operation is being hold. it is key technology renovation project in China during "Tenth Five Year plan" including 27 special subjects, realized a historical breakthrough.
     The vice-secretary Gan zhihe,from National Development and Reform Commission, said this project's operation marks our large nitrogenous fertilizer industry has possessed advanced complete ability with own intellectual property rights, from now on we won't depend on import any more. and enhance our competitiveness, meanwhile, from this project building, the succeed experience has been obtained such as creating great localization project responsibily system, risks control system etc. and to push forward powerfully the technology progress of mechanical industry and national manufacturing industry.
      Tan zhuzhou, the director of Petro & Chemical Industry Association, said that the success of this project offered trustworthy localization technology and best example.
     Shandong Hualu Chemical Co. Ltd positively and meticulously made design and aganazation. the total investment didn't reach 1,400 million Yuan, after 26 months of work, the production unit with adding synthetic ammonia of 300 thousand ton/year is realized, and with the shortest working period and least investment of the same unit.

　

The First large Nitrogenous Fertiliter Localization unit put into operation
The localization rate reaches 94% or so
     The first set of large Nitrogenous Fertilizer project--shandong Hualuhengsheng large Nitrogenous Fertilizer Modification project has been operated on Dec.28, of 2004. This marks our large nirtrogenous fertililer industry has had advanced completion capability with own intellectual property rights.
     It is reported, this project began to be built from sept.12, of 2002, after 26 months of work, finally the core technology and complete sets of plants had been developed and researched. The new adding synthetic ammonia in this project reaches 300 thousand ton/year, urea by 300 thousand ton/year, its total investment is 1,398 million yuan.
     The vice-secretary Gan zhihe, from the National Devecopment and Reform commission, said that during building of this project, the building company successfully overcame the difficulties such as technology, funds etc. created great localization project responsibility system, competition system, raise funds system and risk control system and offered valuable experience on the pushing formard the large equipment localization process.

　

Opening Ceremony for waste-water treatment extension project
on February 5, am:10, on the building site of waste water treatment of. Kaifeng pharmaceutical Co. Ltd. the opening ceremony of extension project, which is undertaken by KFAS Environmental protection Company. is being held warmly. the treating capacity of this project is 5000m3/month, it optimized the engineering design and plant completion, and ensured the treated waste water reaching standard, the set up of this project will make the COD cut down by 2639 ton, ammonia and nitrogen by 187ton suspended substance by 1260ton. it thoroughly solved the pollution problem.
The two sides expressed that they will do their best to make this project become national exampling project and contribute their share for the enviroment improvment of Kaifeng.