To compliment Prosperity International’s business scope in the building material-related business, the Company has established a joint venture company with Anhui Conch Venture Investment Company Limited. Prosperity International owns 25% of the joint venture company. The total investment of the joint venture company amounts to RMB200 million.

The joint venture company will be involved in the operation of a public port and other related facilities, as well as the provision of warehousing services mainly catering for building material sectors in Jiangsu Province of the PRC. It will also be responsible for producing and selling slag powder, with an initial planned production capacity of 1.5 million tonnes per year. Slag powder is being used extensively worldwide in the manufacturing of various cement products. The relevant licenses of the port have been granted by the government authorities. The construction of the port facilities and the slag powder production plant is estimated to commence by early 2010 and 2011 respectively.

Superior geographical advantage of the port

• One of the few deep water ports along Yangtze River Delta
• In 2005, over 50% of ore imported to the PRC were consumed by building material production plants along Yangtze River

Designed capacity of the port:

• 3 berth docks, each of 50,000 tonnages
• 3 berth docks, each of 2,000 tonnages
• Massive throughput of 8 million tonnes per year