Becoming Specialty Chemical (SC) Company With SC Sales Revenue/Profit Exceeding 50% OUCC Expediting Yangzhou Investment Project To Further Expand SC Market In China

OUCC 2009 Shareholder’s Meeting took place on June 3, in which meeting new Board Directors & Supervisors were elected and the dividend distributions passed with 1 NTD per share in cash.

OUCC like many petrochemical companies has been significantly affected by the current global recession since 4Q 2008. However, with the help of our specialty chemical business that contributed about 50% of the revenues and 80% of the earned incomes in 2008, OUCC performed reasonably well with total annual sales revenues of 13.3 billion NTD, net profits before taxes 1.12 billion NTD and an EPS after taxes 1.42 NTD. It appeared that the past strategic direction in transforming OUCC to a specialty chemical company has been nicely rewarded.

Global economy remaining sluggish early 2009, OUCC was in fact able to keep it’s head above the water with EPS after taxes 0.3 NTD in the first quarter, by carefully controlling inventory and trimming down overall business operating costs.

Looking into the future, we are more committed than ever to our efforts of expeditiously transforming OUCC to a diversified specialty chemical company. To meet the growing demands of China’s market in agriculture, cosmetics & personal care products, OUCC has accelerated the Yangzhou investment project to add its EA & EOD production facilities in Mainland China, construction expected to be completed in 2010. Furthermore, a planned 40 kta EOD plant in Linyuan, Kaohsiung is also in the design stage and construction will soon begin to broaden market expansion in specialty chemical.

In addition, R&D has been devoted to the high value-added EOD, bio-degradable plastics, and green chemicals along with other New Product development (NPD). Besides our own in-house research & development, OUCC has also been actively seeking external cooperation via technology importation and strategic alliances to improve and strengthen the development of our SC competitive advantage.

In summary, OUCC will continue to chase it’s persistent and sustainable growth at a faster speed with the planned strategy into a diversified specialty chemical company and in turn, to create added & high values for our customers, shareholders & employees.