The Group is principally engaged in the research and development, manufacture, marketing and distribution of chemical products and chemical Fertilizer in the PRC under the brandnames "湖光" (Hu Guang), "湖辉" (Hu Hui).

The chemical products manufactured by the Group consist of sodium carbonate and ammonia. The chemical Fertilizer manufactured by the Group can be classified into three major classes being urea, ammonium chloride ,ammonium bicarbonateand BB Fertilizer. The Group has a total estimated maximum annual prodcution capacity of 240,000 tonnes of chemical products and 760,000 tonnes of chemical Fertilizer. The total annual sale quantities of the Group reached 172,000 tonnes of chemical products and 382,000 tonnes of chemical Fertilizer respectively in 2004.
The following graph sets out the breakdown of the Group's turnover by products for each of the four years ended 31st December 2004.