According to the forecast, the world's PVC resin demand will have an average annual growth rate of about 4.9% in 2006-2010, and Asia's average annual growth rate will be about 5.5-6.5%. In the forthcoming five years, China's PVC resin demand will maintain an average annual growth rate of over 12%.

At present, China's per capita annual consumption of PVC resin is only 5Kg, far behind the 10-20Kg of developed countries. In terms of structure, China's PVC hard products share a proportion of 45%, yet the ratio is 69.2% in America and 66.8% in Western Europe. In this sense, development potential still exists in China's chlor-alkali industry. It is predicted that in 2010, China's PVC apparent consumption will exceed 15 million tons.

As the main domestic PVC resin consumption fields, East China and South China had the apparent demand of 2.7 million tons and 2.6 million tons respectively in 2005, accounting for 65% of China's total apparent consumption. Following the above two markets, North China and Central China had the apparent demand of 1.9 million tons and 700 thousand tons respectively, accounting for 32% of China's total apparent consumption. The four major consumption markets that mentioned above share 97% of China's gross apparent consumption.

China's PVC Resin Production and Consumption

Income Structure of the Company by Product, 2006

2 Analysis on Chlor-alkali Industry

3 Operating Performance of the Company

4 Forecast on Company Achievement