Lanhua Sci-Tech Venture: Limited Increase of the Coal Productivity in the Future Three Years

It is known that the coal price of Lanhua Sci-Tech Venture hasn't increased obviously, which is similar to that of last year. Due to the reasons of foreign partner, the supporting railway of Sino-American Daning Coal Mine has been delayed to operate again, and it is expected that it can't run through before the end of the year, and even in 2008, which affects the sales volume and sales price of the coal directly.

It is expected that the coal price of Daning Coal Mine will reduce at 40-50 Yuan/ton than the normal price before the run through. It is expected that the coal productivity of the Company won't increase at great scale in the future three years and the compound annual growth rate will be 5.9%.