HARBIN, China, July 13 /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 will enjoy tax saving from the newly imposed program from the government specially rewarded to all environmental friendly products. The Company’s latest project on “AFC - B High Intensity Boards”, which produces high standard wall boards with innovative technology from recycling materials, has been confirmed to meet the requirement of tax cuts preferential policies of the State and Province. Under the policy, the Company will enjoy a 50% deduction on value-added tax and exempt on income tax for 5 years.
On October 10, 2006, China government issued “The Proposal of the 11th Five-year Plan of National Economical and Social Development”, in which encouraged recycling and put utilization of regenerated resources on a higher priority in the economic development process. According to the proposal, the government would reinforce environment protection, offer more support to the environmental protection industry and invest more in promoting pollution treatment.
Heilongjiang Economics and Trade Committee had also made relevant policies in respond to these government initiatives. It has been pointed out in “Supplementary Notice about Doing Well in Resources Comprehensive Utilization and the Authentication Work of New Type of Materials Products (2002) No. 381”, that environmental protection products and new type of material wall products should enjoy preferential policies of tax cuts and exemptions.
CAON’s business concentrates on turning waste plastic and coal ash into SF synthetic materials. By using these SF synthetic materials, the Company produces wall boards, that are used in building construction and drainage cover. These two main products have been widely used in building construction industry.
Mr. Li Guomin, the president of CAON, said, “We are improving the technology level to reduce the cost; substantially using macro preferential policies in which the government offers to the environmental protection enterprises simultaneously. Such policies will enhance greatly the profit margin of the company and reinforce the confidence of the investors as well.”
About Harbin Hongbo Environment Protection Material Ltd.
Founded in 2004, Harbin Hongbo Environment Protection Material Ltd, operating arm of CAON, 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 utilization of industrial solid wastes in resources and environment field. The 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 base on the material, the Company develops different products, such as board and profiled bar used in well lid, grates for water drainage pools, guarding railings, protective board for slope, hard shoulder, inner wall cable pipe/tube, home renovation and etc.
The Company has maintained the partnership relationship with Changchun Applied Chemistry Institute of China Academy of Sciences, which mainly specializes in researches in resources and environment, advanced materials, development of carbon dioxide, corn and rare earth resources, focused 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 focuses on the development and use of SF synthetic material, especially construction molding board, and then expand the scale of production, purchase new equipment, increase output in the future development.
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.
