HARBIN, China, June 23 /Xinhua-PRNewswire/ -- Chang-On International Inc. (OTC Bulletin Board: CAON) ("CAON" or "the company"), a company engaged in the business of waste recycling and reutilization, announced that the company had signed a sales contract with Harbin Peace Real Estate Development Co. Ltd, stating that it will deliver a total of 16,000 pieces of construction molding board to Harbin Peace Real Estate Development Co. Ltd, according to the construction schedule before August 2007. The contract will bring in a total of RMB 1.92 million (USD 250,000) in sales income for the company if the two parties reach the articles.
The contract also includes such articles that any ruptured or fragmented products, after use by Harbin Peace Real Estate Development Co. Ltd, shall be returned to CAON, which shall charge material expense, and CAON shall charge processing expense for any replacement for new boards.
CAON's business concentrates on using waste plastic and coal ash to develop the product into SF synthetic materials. By using the SF synthetic materials, the company can produce wallboards, used in building construction and drainage covers. These two main products have been widely used in the building construction industry.
Such material is more competitive than foreign products, which merely utilize waste material, as this not only makes use of waste plastics, but also utilizes coal ash, meaning more and more local developers are showing great interests in the relative products and, therefore, intend to buy them. The company had entered into other ordering contracts with local developers before this one.
"Currently we have the know-how to transform SF materials into plates, tubes or section bars, and it can produce both acid-proof piping and alkali proof piping with the materials-even corrosion resistant junction boxes," said Mr. Li Guomin, president of CAON. "Once the technology becomes mature, the company will equip the production facility to produce the products which would replace medium density fibreboards, steel molding boards, PVC products, and plasticized steel bars. There is a big market in China, and at that time, we will not only sell the construction molding boards, we will also diversify our products."
About Harbin Hongbo Environment Protection Material Ltd.
Founded in 2004, Harbin Hongbo Environment Protection Material Ltd. is located in the Harbin Economy & Technology Development Zone, Heilongjiang Province, China, with a registered capital of RMB 3 million (or USD 375,000) and total assets of nearly RMB 10 million (or USD 1.25 million). It is a joint venture between enterprises from Taiwan, Hong Kong and domestic companies.
Harbin Hongbo focuses its core business in comprehensive resources and utilization of industrial solid wastes in resources and environment fields. Their main product is SF synthetic material, a new type of material for environment protection and energy saving, which is abbreviated for synthetic material of plastics and coal ash. And based on the material, the company develops different products, such as boards and profiled bars used in well lid, grates for water drainage pools, guard railings, protective boards for slopes, hard shoulders, inner wall cable pipes/tubes, and home renovations, etc.
The company has maintained the partnership with Changchun Applied Chemistry Institute of China Academy of Sciences, which mainly specializes in the research of resources and environment, advanced materials, development of carbon dioxide, corn and rare earth resources, focusing on the development of advanced structure materials, advanced composite materials, advanced functional materials. Mr. Mo Zhishen, professor of the Institute, acts as the company's R&D leader.
Harbin Hongbo will focus on the development and use of SF synthetic material, especially construction molding boards, and then expand the scale of production, purchase new equipment, and increase output in future developments.
Forward-looking Statements
This report contains ‘forward-looking' statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese, European and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
