Guofeng Plastic to Spin off Non-Metal Business      

Anhui Guofeng Plastic Industry Co., Ltd. (Guofeng Plastic, SZ: 000859) announced on September 19th to invite public bid for the 100% equity held in Anhui Guofeng Non-Metal Hi-Tech Material Company Limited. One year ago Guofeng Plastic planned to sell its 80% stake in this subsidiary.
   The 100% equity in the non-metal company was evaluated at RMB96.21 million as of March 31st, 2008. The buyer shall pay a debt RMB235.89 million that the non-metal company owes Guofeng Plastic.  
   Anhui Guofeng Non-Metal Hi-Tech Material Company Limited engages in the processing and sale of non-metal minerals (calcium oxide and calcium carbonate), with a super fine non-metal powder production capacity of 300 000 t/a.
    Guofeng Plastic, headquartered in Hefei of Anhui province, majors in the production of plastic film (polyethylene and polypropylene) with a production capacity of 250 000 t/a.
   Anhui Guofeng Group Co., Ltd. is the largest shareholder of Guofeng Plastic. In order to remain the non-metal business completed, the 100% equity in Anhui Guofeng Non-Metal Hi-Tech Material Company Limited will be jointly sold together with the 100% stake Anhui Guofeng Group Co., Ltd. held in both Anhui Guofeng Mining Development Company Limited and Chaodong Jiuhua Mining Company Limited. In fact the selling bulletin went into public on September 12th by the entrusted Hefei Assets and Equity Exchange.
   Anhui Guofeng Group Co., Ltd. was also seeking a buyer for its 90% stake in Anhui Guofeng Bio-Energy Company Limited.
   Guofeng Plastic explained it aims to gain cash and change the product portfolio, strengthen its film business and finally lift the profit-making ability. The company reported an EPS of RMB0.0439 for the first half of 2008.