On August 7, 2006, a 4-member group led by President Caoguang and Vice President Wangyusheng headed for the construction site of 1,000 TPY Polysilicon Project of Sichuan Xinguang Silicon Industrial Science & Technology Co. Ltd(hereinafter referred as “Xinguang”) to conduct investigation, as well as check the implementation status of the engineering work which is undertaken by Chengda.

Mr. Cao along with other members first supervised the construction and installation work at the site, then held talk with Mr. Tang Changqi, the Party Secretary and Standing Vice President of Xinguang, and Mr. Pu Xiaodong, the Chief Economist.Mr. Tang introduced in detail the current progress on the installation work at the Site as well as the difficulties met thereof. Both parties discussed intensively on how to accelerate the construction progress and how Chengda will support the on-site design work. Mr. Cao promised that Chengda would surely try its best to satisfy the Owner’s demand of dispatching sufficient resident engineering personnel as the project construction has entered into the most critical period, and Chengda will spare no effort to help the Owner realize the goal which was set by the provincial government, that is, the project be formally put into production on Feb. 28th, 2007.

The 1,000 TPY Polysilicon Project of Sichuan Xinguang Silicon Industrial Science & Technology Co. Ltd is the first on-built thousand-ton-scale silicon plant in China. Polysilicon plant features long production flow and sophisticated technology.Advanced countries would not like to transfer polysilicon production technology in an attempt to retain technical monopoly. This project is built by combining Russian technology and home-developed technology. Chengda has met a number of technical difficulties in the course of engineering design for this project and has put in much effort both physically and economically in order to overcome the difficulties. We believe that with the effort of both the Owner and Chengda, Xinguang 1,000TPY Polysilicon Project will turn out to be a success.