- DSSG Precision Alloy (Dalian) CO.,Ltd

1. Basics

The time ofestablishment:1997

Address: 4 Gongxing Road, Ganjingzi District, Dalian City

Corporate type: wholly state-owned limited

The industry affiliated: metallurgy

The scope of operation: metallurgy, metal alloy pressing and extending, foundry and relevant products;

Major products: precision alloy, corrosion-proof alloy, high-resistant alloy, stainless belts, sheets, sticks and wires; annual output: 1,500T per year, steel productivity: 1,074T per year

Work staff: 197

Land area: 28240?leased from majority stockholder

2. Corporate representative: Jianping Zhou

3. Capitalization: Registered capital: 72,200,000 (100% shareholder: Dongbei Special Steel (Group) Co., Ltd)

4. Current operation:

In 2004, sales revenue from main operation: 64,185,454.29, profit: 5,244,522.59, net profit: -724,650.76

First half year in 2005: total sales revenue: 41,969,005.73, profit: 3,614,365.48, net profit: -589696.35

5. Financial conditions:

By 2004, total assets: 118,039,014.03, total debts: 54,379,105.75, ownership interests: 63,659,908.28

Including:

(1)  total floating assets:70,780,693.70

cash capital:3,163,813.72, accounts receivable:10,564,053.99, inventories: 544,784.61, finished products10,705,605.08

(2) total fixed assets:45788414.17

original value: 139,288,731.00, current net value: 41,395,793.01, Construction in process: 4,395,793.01 dollars

(3)long-term investment:1,469,906.16

6. Current development:

According to the scheme of the Dalian production base relocation and technical renovation, more new rolling mills will be installed; projected annual output of types of precision alloys and stainless steels: 2,000T

7. Stock ownership transfer:

According to the actual conditions of the company, no more than 40% of the state-owned stock ownership will be transferred.

8. Contacts:

a. Enterprise: Cheng fugang

Telephone:86-(0)411-86671552

Email:041186671552@sina.com  or  asset@dtsteel.com

Mailing address: 4 Gongxing Road, Ganjingzi District, Dalian

Zip code :116031

b. State-owned Assets Supervision and Administration Commission of Liaoning Province:

Qiong Wu, Renhe Zhao

Tel: +86 024 86903276

Fax: +86 024 86903276

Address: 45-22 Beiling Str., Huanggu District, Shenyang, P.R.China

Post code: 110032

E-mail: zcjyc@163.com

9. Declaration: all the data in this specification are shown in the account books in RMB. The net assets value of transferring stock ownership must be actual number after evaluation. This actual number will be the main basis of bottom price of market trade.