In 2008, the Company will enter into a new phase of development milestone. In order to line up the newdevelopment strategy and development directions of the Group, the Chinese name of the Company was changed from "航天科技國際集團有限公司" to "中國航天國際控股有限公司" (the Chinese stock short name was changed to "航天控股"). The new name reflects that the future development of the Group will no longer be restricted to the technology domain, and fully demonstrates the Group's development strategies in three main business focuses, namely hi-tech manufacturing, science and technology park complex development and related property investment, and hi-tech industries investment. More importantly, the new Chinese name also encompasses the close relationship between the Company and CASC, the substantial shareholder of the Company, and their future business interaction.

Looking forward, the Group is full of confidence in its future development. The hi-tech manufacturing business of the Group will unavoidably be affected by the austerity measures in the Mainland China, the appreciation of Renminbi and the slowdown in peripheral economies. However, following the completion of the third phase extension work of Huizhou Industrial Park, the Group's overall production capacity is expected to be enhanced. This together with further efforts put in the improvement of management and quality and widening of new products development, the Group has confidence in coping with various challenges. It is anticipated that the hi-tech manufacturing business will maintain a steady growth and continue to be a core and stable profit generator for the Group.

The Group will allocate further resources in developing the science and technology park complex development business and related property investment, and grasp the various business opportunities arising from the prosperous economic development of China. With the support of CASC and the Shanghai Municipal Government, an innovated development and management model will be adopted in the Shanghai Aerospace Technology Industrial Park to establish a platform which is beneficial to aerospace industry and bring reasonable return to the Group in the long run.

Shenzhen Aerospace is to set out an overall construction and development plan for the "Shenzhen Aerospace Technology Building" project based on comprehensive market research. The project is preliminarily planned  to commence construction between the end of 2008 and the beginning of 2009. The "Shenzhen Aerospace Technology Building" project is expected to further optimise the asset structure of the Group and bring a new source of long term steady return for the Company.

The Group will continue to strengthen the communications with CASC and fully utilise the leading resources of CASC and the potential of the Group. The Group, having inherited the steady management motto, actively explores other potential projects and investment opportunities so as to raise the Group's profitability, thereby consistently enhancing greater value for the shareholders.