Pursuant to the China central government’s toughened stance
towards the overall pollution concerns and the persistently heavy pollution experienced
in Linyi city, the local Ministry of Environmental Protection of the People’s Republic
of China (“MOEP”) has recently initiated a more stringent scrutiny onto heavy industries
which are perceived to be polluting and having excess capacity which include steel
mills, coke production plants, cement plants, aluminum smelters, glass panel plants,
etc. However, all steel mills and coke producers, regardless of their standards of
compliance, have been instructed to stop production temporarily until such time when the
assessment by MOEP can be concluded and appropriate clearance is given by the local
government.
In view of the above, the Board of Directors of Sino Hua-An International Berhad
(“Hua-An”) wishes to announce that the Company’s subsidiary namely Linyi Yehua Coking
Co., Ltd located at Linyi city, has complied with the notification received from the
local authorities to stop production temporarily pending completion of the compliance
inspection by them.
Be that as it may, the Board of Directors of Hua-An wishes to highlight that the Company
had already begun implementing technical improvements relating to the dust collection
equipment and desulphurization equipment in Financial Year 2014 which will amount to
approximately RMB28 million and RMB40 million respectively.
This announcement is dated 11 March 2015.
