The Board of Directors of SunVic Chemical Holdings Limited (the “Company”) wishes to announce that the Company is in discussions with Mr Sun Liping (the Chief Executive Officer and Director of the Company) and other potential investors to set up a propylene plant for the production of propylene (the “Propylene Project”).
Propylene is a colourless, highly flammable gas and a key raw material for the Group’s production of acrylic acid. The Company had previously in its prospectus dated 26 January 2007 indicated one of its future plans as the development of upstream products (such as propylene) to widen the Group’s product range. This Propylene Project could thus potentially provide the Group with an alternative source of feedstock and reduce the Group’s reliance on external raw material sources.
Presently, the parties are in preliminary negotiations, with no certainty that any binding agreement may be reached. The Company will make the necessary follow-up announcements once there are further developments.
In the meantime, the Directors wish to make this announcement to avoid any establishment of a false market in the trading of the shares of the Company or the leakage of price-sensitive information not known to the rest of the public. The public and the shareholders are advised to exercise caution when dealing with the shares of the Company.
BY ORDER OF THE BOARD
Sun Liping
Executive Director and CEO
8 June 2007
