(PINK:SLPC)

China SLP Filtration Technology, Inc. plans for IPO. (was formed via a reverse merger transaction with a private shell company).

Company Snapshot:

 Leading PRC-based manufacturer of nonwoven fabrics in the PRC.

 Industry Snapshot:

• The nonwoven fabric industry is large and growing, driven primarily by China’s economic development in recent years.
  
• China has experienced rapid economic and industrial growth in the past 30 years. China’s output of iron and steel, cement, coal, fertilizer and power generation all currently rank as first or second in the world. China’s consumption of raw materials currently ranks second in the world.  Due to outdated technology and equipment in China’s chemical, raw materials and energy industries, China has encountered problems of inefficient utilization of energy and resources, as well as heavy pollution due to accelerated urbanization. Reducing emission pollution has been a focus for the Chinese Central Government for several years and is expected to remain a focus moving forward.  As China’s government imposes stricter policies on environmental protection, industrial gas and dust emission limits have become stricter.  Existing water foam and static dust removal technology is not capable of complying with government regulations, which, in turn, increases the demand for filter bag type dust removal techniques.
  
• Bag filters are a solution to smoke dust and powder dust emissions because they are highly efficient in air pollution reduction.  By adopting PPS fiber as a filtration material, our end users can effectively and efficiently contain pollutants such as powder dust, smoke dust, sulfur dioxide and dioxin.
  
• We expect the demand for fiber grade PPS products will increase substantially by operators of coal-fired power plants, the metallurgical plants, and garbage incinerators.

Post IPO Share Calculation:

• 15,265,714: Pre IPO outstanding shares 
•  4,166,667: Newly issued shares of Common Stock
•  1,971,428: Shares from convertible notes 
•     458,472: Share issued to financial institutions (Agents)

GeoTeam® best effort calculation of total post IPO  shares assuming full conversions:  21,862,181

Use of proceeds We will use up to $20 million of the net proceeds of this offering to purchase and install new production lines; the balance remaining will be used for working capital and for general corporate purposes.

Financial Snapshot:

• Our net sales for three month period ended March 31, 2010 were $4,628,671, an increase of $2,413,731, or 109%, from $2,214,940 for the same period of the prior year. The increase in net sales was largely attributable to increased manufacturing capacity and output resulting from the installation in February 2009 of a new production line used to manufacture needle-punched nonwoven fabric.
  
• Net income for the three months ended March 31, 2010 was $594,332, an increase of $105,125, or 21%, from net income of $489,207 for the three month period ended March 31, 2009. The increase was largely due to an increase in sales of our new needle-punched products.