China Zenith Chemical Group Limited is looking at a possible spin-off of its polyvinyl-chloride and related calcium carbide business. The company may list the business on the main board of the Stock Exchange. The company seeks funds to finance the operation and expansion of the business segment. The company has retained professionals to advise and assist in the possible spin-off.

China Zenith Chemical Group Limited, Annual General Meeting, Dec 17, 2009, at 16:30 CCT-China Coast, USSR Zone 7. Location: Mandarin Oriental Hong Kong, 5 Connaught Road, Central, Hong Kong, Hong Kong. Agenda: To receive and consider the audited consolidated financial statements and the reports of the directors of the company and the auditors for the year ended June 30, 2009; to re-elect Mr. Chiau Che Kong, Mr. Peng Zhanrong and Mr. Wu Jianwei as directors and to authorize the board of directors to fix the directors' remuneration; to re-appoint RSM Nelson Wheeler as auditors of the company for the ensuing year and to authorize the board to fix their remuneration; and to issue and deal with additional shares of HKD 0.01 each in the capital of the company and to make or grant offers, agreements and options which might require the exercise of such powers be and is hereby generally and unconditionally.

China Zenith Chemical Group Limited reported unaudited consolidated earnings results for the year ended June 30, 2009. For the period, the company reported profit of HKD 205,860,000 and profit attributable to equity holders of HKD 167,896,000 or 4.49 cents diluted earnings per share on turnover of HKD 1,095,614,000 compared to profit of HKD 314,121,000 and profit attributable to equity holders of HKD 265,394,000 or 7.31 cents diluted share on turnover of HKD 1,666,103,000 for the same period last year. Profit from operations was HKD 249,796,000 against HKD 317,245,000 for the same period a year ago. Profit before tax was HKD 243,902,000 against HKD 312,357,000 for the same period a year ago. Net cash generated from operating activities was HKD 331,236,000 against HKD 26,967,000 for the same period a year ago. During the financial period under review, the decline in turnover was primarily attributed by to the decrease in prices of all product segments except for the heat and power segment and the temporary suspension of the glucose and starch production. At the same time, the prices of the key raw materials for the production did not decrease in line with the prices of products.