Shandong Humon Reaps Remarkable Revenue from Chemical Business      

Shandong Humon Smelting Co., Ltd. (Shandong Humon, SZ: 002237), located in Yantai, Shandong province, announces the operating revenue from the chemical business was much higher than the gold smelting business in the first half of 2008, thanks to the price rise of sulfuric acid. The gross profit rate of the chemical business reached 50.74%, with the operating revenue annual growth of 170.05%. The revenue growth was 226.17% for sulfuric acid and 102.7% for ammonium phosphate. However, the revenue growth for the gold smelting business was only 13.50%.
   The company accomplished the revenue of RMB905.11 million in the first half of 2008, up 35.43% year-on-year. The operating profit was RMB139.92 million, up 164.43%. It expects the performance to grow annually 130% from January to September.
   With the Olympics in Beijing, China restricted the transportation of explosive goods. Some ore dressing plants in northern China had to suspend or reduce production. To reserve raw materials for production, the company had increased the purchase amount of raw material from March. Both the inventory and the operating cash flow pressure in the company were therefore increased.