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The goal
of the development planning of the Company’s new business is to strive for
the establishment of a core business which is combined with the principal
business of CASC. The Company will, on the foundation of the hi-tech
manufacturing business, through the development of the comprehensive
development project of the Complex Zone of the Launching Site in Hainan
Province and the construction of Shenzhen Aerospace International Centre,
gradually establish the business base for aerospace and aerospace service
business.
Though
the recovery of external economy still exists uncertainty, it is expected
that the performance of the hi-tech manufacturing business will gradually be
stabilized and restored to growth. The hi-tech manufacturing business, to be
operated by the newly established China Aerospace Industrial Limited, will
continue to improve the integration after the restructure, and firmly take
the measures to control investments, reduce receivables, cut down
inventories, stringently control costs, strengthen quality control, maintain
close connection with existing clients and actively explore new markets,
with a view to bringing the operating performance back to the level
prevailing before the outbreak of the financial tsunami as soon as possible
and continuing to provide the Company with performance contribution and
stable cash flow.
Shenzhen
Aerospace will speed up the pace of the construction to complete each
tendering according to the relevant laws and regulatory procedures. Shenzhen
Aerospace International Centre will become the operational headquarters of
CASC in the south, the research and development center for minisatellites
and the investment property of the Company upon completion, and will bring
another major recurrent revenue for the Company. The minisatellite industry
will be a starting point for the development of aerospace business of the
Company and has a broad development prospect. The Company will soon carry
out the preparatory work of this business and will continue to maintain a
good communication with CASC as well with a view to promptly establishing a
business platform of the minisatellite industry.
China’s
State Council formally approved the planning concerning the construction of
an “international tourism island” in Hainan Province at the end of 2009. It
is planned that Hainan Province will initially build a world-class island
leisure resort by 2020 and this will be incorporated into the State’s major
strategic plan. The information, upon announcement, immediately caused a
high attention from domestic and overseas, a new historic trading high
constantly made in the real estate market. Yet, the related cost is also
expected to increase relatively. The long-term development in Hainan
Province is encouraging. Hainan Aerospace will actively communicate with
Hainan and the Wenchang Governments, step up to carry out each relevant
work, including launching the works concerning the expropriation,
demolition, resettlement and infrastructure projects of the entire Complex
Zone and timely introduce the strategic partners to jointly develop the
aerospace theme park and other commercial supporting projects. |