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Published 19th January 2007

China: MIGAO Corp revenues up 47% for financial year 2006

Migao Corporation announced on 15 January its full financial year results as follows: “For the twelve months ended September 30, 2006, Migao reported revenues of $58.3 million, a 47% increase as compared to the $39.8 million revenues achieved last year. Net income for fiscal 2006 was $8.6 million, as compared to $6.7 million for the same period last year. "We are extremely pleased with the revenue and earnings growth achieved this year. Our attention to quality was a key factor in retaining all of our preexisting customers as well as attracting new ones," said Mr. Liu Guocai, Migao's President and CEO. "During the year, we successfully accelerated our expansion plans and we will continue to increase our production capabilities to capitalize on the opportunities available in one of the fastest growing, and largest markets in the world."

Operationally, Migao produced potassium nitrate or potassium sulphate at its three operating subsidiaries: Sichuan Migao, Guangdong Migao, and Liaoning Migao.Migao ended fiscal 2006 with 120,000 tonnes of design production capacity, and subsequently added 20,000 tonnes of potassium nitrate capacity at Sichuan Migao and 40,000 tonnes of potassium sulphate capacity at Guangdong Migao, for a total of 180,000 tonnes of current design production capacity. Further expansion activity currently in progress includes an additional 20,000 tonnes of potassium nitrate at Sichuan Migao; 20,000 tonnes of potassium sulphate at Guangdong Migao and recently announced plans to build a new 40,000 tonne potassium sulphate facility in a new industrial park close to Shanghai. The new Shanghai Migao facility will be completed in late 2007. With the completion of the Shanghai Migao expansion by the end of calendar 2007, the annual design production capacity of potassium nitrate and potassium sulphate will be 260,000 tonnes by the end of calendar 2007. As well, the design production capacity includes an additional 260,000 tonnes per year of by-product at the end of calendar 2007.”