Shanxi Danyuan Carbon Holdings Co., Ltd. (“Danyuan” for short) is a joint-stock enterprise consisting of Han River Water Conservancy and Hydroelectric Power Group Co., Ltd., Danjiangkou Key Water Control Project Small Hydropower Stations Holdings Co., Ltd., Shanxi Dongsheng Carbon Industry Co., Ltd., Shanxi Qixian Dongguan Village Committee and the Staff Joint-stock Foundation of Shanxi Danyuan Carbon Holdings Co., Ltd. Danyuan is a professional manufacturer of carbon products including prebaked anode, cathode, graphite electrode, electrode paste and charcoal electrode. Danyuan was founded in April 1998, with a registered capital of 4,075 yuan, of which Han River Water Conservancy and Hydroelectric Power Group Co., Ltd. accounts for 47.28%, Danjiangkou Key Water Control Project Small Hydropower Stations Holdings Co., Ltd. accounts for 22.09%, Shanxi Dongsheng Carbon Industry Co., Ltd. accounts for 5.15%, Shanxi Qixian Dongguan Village Committee accounts for 12.03%, and Staff Joint-stock Foundation of Shanxi Danyuan Carbon Holdings Co., Ltd. accounts for 13.45%. Danyuan now boasts a total asset of 140 million yuan.
　　The stakeholder of Danyuan—Han River Water Conservancy and Hydroelectric Power Group Co., Ltd., located in the water source area of the middle line of the South-to-North Water Diversion Project—Danjiangkou City, Hubei Province, is one of the first batch of 100 pilot enterprises with modern corporate management system. Danyuan is a new-type enterprise founded by the Group to achieve cross-region, cross-industry and cross-ownership development.
　　Danyuan now has an annual production of 100,000 tons of prebaked anode, 10,000 tons of cathode, and 10,000 tons of other carbon products. Danyuan is located in Dongguan Industrial Park, Qixian County, Shanxi, with a floor space of 100,000m2. Danyuan now has 500 employees including 45 engineering technicians, and 80-odd employees graduating from junior colleges and technical secondary schools.
　　Danyuan is close to Dayun GradeⅠ highway, only 40km away from the provincial capital Taiyuan, and facing the famous folk house tourist site—“Courtyard of Family Qiao”.
Our carbon products with advanced technology and high quality are up to or beyond the national standard, and well received by users. Our products are even exported to Russia, Iran, etc. In 2007, Danyuan achieved 257.923,200 million yuan in gross sales, of which export accounts for 50%. In 2008, Danyuan achieved 413.3,069 million yuan in gross sales, of which export accounts for 45%.
　　Since its commissioning in 1999, Danyuan, with sustainable and stable development momentum, has gained remarkable economic and social benefits. In 1999, the first investment year, Danyuan achieved 8.51 million yuan in profit and tax; in 2000, Danyuan achieved 16 million yuan in profit, and 5.18 million yuan in tax; in 2001, Danyuan achieved 23.09 million yuan in profit and 11.82 million yuan in tax; in 2002 when raw material price soared and sales price plunged, Danyuan achieved 14.18 million yuan in profit and 10.68 million yuan in tax; in 2003 when there was fierce market competition among carbon manufacturers, Danyuan achieved 12 million yuan in profit and 10.50 million yuan in tax.
　　In 2004, the central government strengthened macro-control, and the carbon industry plunged to the bottom. Although Danyuan strengthened cost control, it still achieved 1.34 million yuan in profit, and 6.68 million yuan in tax; in 2005, it achieved 2.43 million yuan in profit, and 8.83 million yuan in tax; in 2006, it achieved 3.91 million yuan in profit, and 7.37 million yuan in tax; in 2007, with the revival of the metallurgical industry, the carbon product industry also gained rapid development, achieving 9.87 million yuan in profit and 7.61 million yuan in tax; in the first half of 2008, Danyuan achieved 5.33 million yuan in profit. In the fourth quarter, hit by the international financial crisis, our production and business have witnessed a huge impact. In order to maintain credit, Danyuan had been operating at a loss within some period. In 2008, Danyuan achieved an annual profit of 3.1682 million yuan, and tax 9.1 million yuan. Danyuan has been awarded advanced local taxpayer for 10 consecutive years. Our rapid development has attracted the attention of provincial, municipal and county leaders. In 2002, Danyuan was awarded “GradeⅡ Honorary Unit” by Shanxi Provincial Labor Race Committee.
　　First, Danyuan has a good staff team. With a flexible management mechanism which not only carries forward the standard management mode of state-owned enterprises, but also learns from the management means of private enterprises, Danyuan has realized modern management in which management personnel and employees can be both promoted and demoted, and their talent can be given into full play. Meanwhile, Danyuan has constantly strengthened training on carbon production technology, pre-job training for special types of work, safe operation technology, technology operation skills, pre-job training on factory regulations and disciplines for staff, and management knowledge for management personnel above workshop heads. Through these management procedures, the overall quality of staff has been significantly improved, and Danyuan has also been provided with stronger core competitiveness.
　　Second, through persistent technological transformation, process improvement and innovation, Danyuan’s annual production has quadrupled the planned capacity. Danyuan’s planned production capacity was merely 40,000 tons of green anode. Over the years, through technological transformation, Danyuan has achieved a great output with a small input. Through a series of measures including technological transformation and improvement, Danyuan is able to produce various types of carbon products, with an annual output of over 120,000 tons, equivalent to changing a factory to three factories. Danyuan has also converted from the original manufacturer of a single product to a diversified producer and processer of a wide variety of carbon products so as to fast adapt to changes for sale.
　　Third, in the business concept of “Credit & Cooperation”, Danyuan has implemented a sales network characterized by designated people responsible for designated outlets, and satisfactory service. With customer demand as the center, Danyuan has won the trust of a batch of stable domestic and international customers.
　　Fourth, through various forms of cultural activities, Danyuan is to constantly improve its quality. On every major festival, Danyuan will organize activities like knowledge contests, speech contests, and fun sports tournaments to further strengthen corporate and team cohesion. Danyuan is now a vibrant enterprise with a strong culture atmosphere, and relatively high morale among the staff.
　　Currently, Danyuan, with indomitable and advancing spirit, firm and steady steps, is to open up new fields. We believe that with the support and care of local government departments and friends from all walks of life, all our staff, with unified, progressive and innovative spirit, will contribute to the country and society with more brilliant achievements.