ZIBO CITY, China, Jan. 31, 2011 (GLOBE NEWSWIRE) -- China Chemical Corp. (OTCBB:CHCC) ("China Chemical" or the "Company"), a manufacturer of organic chemicals for broad consumer goods applications, today announced that it has received High-Tech Enterprise certification from the government of the People's Republic of China ("PRC").
High-Tech Enterprise status is issued to companies that meet the requirements of Chapter IV, Article 28 of the Enterprise Income Tax Law of the PRC. Among the requirements, companies must generate at least 60% of their annual revenue from products or services that support a list of key national high-tech fields. The approval will grant China Chemical a 15% corporate income tax rate beginning in fiscal 2011, which represents a 10 percentage point reduction from the statutory corporate income tax rate of 25%. China Chemical will recognize the benefits of the certification through fiscal 2013.
Mr. Lu Feng, Chairman and CEO of China Chemical, stated, "Achieving High-Tech Enterprise approval strengthens our financial position and is an important ingredient in our proactive growth strategy. This certification will complement our new maleic anhydride facility to enhance our financial performance in 2011."
About China Chemical Corp.
China Chemical Corp. is a Zibo City, China-based manufacturer of organic chemical compounds used in high-performance plastics, PVC, elastic fibers, paints, tires, insulation, flooring, adhesives, medicines, food processing, ink, and paper. The Company's primary products are Phthalic Anhydride (PA) and Maleic Anhydride (MAH), which have a wide variety of applications in the construction, automotive, aviation, marine, and consumer goods industries. China Chemical currently has the capacity to produce 60,000 tons of MAH and 50,000 tons of PA annually. The Company began site development in October 2010 for a 50,000-ton-capacity 1,4 butanediol (BDO) co-generation plant.
For more information about China Chemical Corp., please visit the Company's website at http://www.chinachemicalcorp.com.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. For additional information, readers should carefully review reports or documents the Company files periodically with the Securities and Exchange Commission.