(PINK:SLPC)

We are a leading PRC-based manufacturer of nonwoven fabrics in the PRC.  In 2009, we ranked No. 1 in sales revenue in the PRC for polyester (PET) nonwoven fabrics according to a report issued by the China Nonwovens & Industrial Textiles Association, or CNITA.

We currently manufacture two types of PET nonwoven fabrics which are used in a wide range of products, including filtration products, road construction materials, home furnishings, automobile interior insulation and industrial packaging.   Our products are sold primarily to PRC-based manufacturers which use our products as raw material components for end-products they sell to their customers operating in the heavy industrial, automotive, construction and home furnishing industries.

We recently developed a continuous filament, spun-bond, needle-punched manufacturing process to manufacture polyphenylene-sulfide fiber, or PPS nonwoven fabric, which is the key product line around which our long-term growth strategy is centered.   PPS nonwoven fabric is heat resistant, corrosion-proof and flame retardant, and is used to manufacture dust filter bags for pollutant dust removal and emissions controls in coal-fired power plants, garbage incinerators and cement factories.  As a result of the recent adoption of new, stringent environmental regulations governing the discharge of carbon and other emissions by coal-fired power plants and other heavy industrial plants, we believe the demand for our PPS nonwoven fabrics will be significant.  Our independent market research indicates that over 80% of coal-fired power plants in China are not in compliance with current government regulations and are faced with the choice of either complying or being shut down.  Bag filters made of our PPS materials offer these and other plant operators a cost effective method of meeting these new emission and dust pollutant standards in China.

We will continue to manufacture and generate revenues from the sale of PET nonwoven fabrics, but we expect the sales of our PPS nonwoven fabrics to ultimately eclipse the sales of PET nonwoven products and become our main product offering.