Dear Shareholders,
As the shareholder of China Synthetic Rubber Corporation (CSRC),
you are cordially invited to attend the Annual General Shareholders’ Meeting (AGM)
which will be held on June 16, 2009. The ROC Company Act requires at least 50% quorum
for holding the AGM. Hence, your attendance or proxy submission is vital to the
AGM. We appreciate your timely attendance and take this as a strong motivation for
us to optimize shareholders’ value. |
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With the surge in global oil prices in 1H08
and global economy slowdown in 2H08, CSRC’s operating results of the year 2008 was
not able to meet the budget, nor can it upbeat that of year 2007. Under such a challenging
environment, CSRC still made profits in 2008 thanks to the execution of the “eagle
style management principle” and strong competences. |
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CSRC produced 98K tons and sold
99K tons carbon black in 2008, respectively. Total sales, including power and steam
cogeneration, amounted to NT$4,775m in 2008, a 13% increase from that of 2007. Operating
profits amounted NT$733m and non-operating income amounted NT$389m. Profits before
taxes amounted NT$1,122m and profits after taxes amounted NT$856m. EPS recorded NT$1.99.In respect of the core business, operating profits increased by NT$123m
in 2008 mainly attributed to the royalty income from biotech business. Non-operating
income decreased by NT$475m mainly due to the lower contribution from subsidiaries. |
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CSRC which has seven carbon black plants with total capacity at 680k tons, is the
world’s forth largest carbon black producer. We successfully invented some high
value-added products, including nano carbon tube, specialty blacks, and super conductivity
blacks. In addition, we had made progresses in achieving high abrasion, low hysteresis,
high tint, high purity and various level conductivities. A new production with Smoke
Dryer technology was just introduced to lower the production costs. All our efforts
will enhance our customer service quality and competitiveness. |
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The demand for carbon
black was contracted by the global financial crisis. We expect the market will start
to recover starting from 2Q09. It is estimated that sales of carbon black and power/steam
cogeneration will be 90k and 580K in 2009, respectively. CSRC will continue to provide
quality customer services, maintain market share, develop new products and further
lower production costs by improving our production process, expanding capacity,
and synergizing feedstock resources. |
Your supports in the resolution of the agenda
are solicited. The proposed resolutions are translated into English and attached
herewith. We sincerely invite your attendance or grant the proxy to your custodian
bank or us to present at the meeting and to exercise your right, if you couldn’t
attend the shareholders’ meeting.
Thanks again for all your supports.
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