The idea of Hebei baoshuo co., ltd;

(1) Pre-loss pre-reduction: *ST Baoshuo disclosed on March 2, 2009 that due to the great uncertainty in the implementation process and results of the company's bankruptcy reorganization plan, the company could not confirm the debt restructuring income of the bankruptcy reorganization in 2008 after communicating with accounting firms and relevant departments. Therefore, according to the preliminary forecast of the company's financial department, the company's net profit in 2008 was negative 500 million yuan or more.

(2) New material concept: The company invested 74.7 million yuan to establish Beijing Baoshuo New Building Materials Company, accounting for 75% of the shares. Fully involved in the field of high value-added new materials, the construction of Beijing Olympic venues and infrastructure in 2008, and the national South-to-North Water Transfer Project have a huge demand for green, environmental protection and high-tech materials, which will bring development opportunities for the company.

(3) Concept of energy conservation and environmental protection: The company is a leading manufacturer of environmental protection materials, mainly engaged in the production and sales of environmental protection PP-R plastic pipes. Products have the advantages of environmental protection, energy saving, long service life and low engineering cost, and are widely used in infrastructure construction fields such as municipal drainage and environmental protection projects, oil and gas transportation construction projects, and sell well in domestic and foreign markets.

(4) Concept of West-East Gas Transmission: Karamay Baoshuo Pipe Company, a joint venture between the company and Xinjiang Huayou Enterprise Group, is expected to seize the opportunity of western development and west-east gas transmission.

(5) Development strategy: under the guidance of the draft company reorganization plan, with the aim of protecting the interests of all shareholders and creditors, fulfill obligations in strict accordance with commitments; Actively adjust the product structure, integrate internal resources, adhere to the strategic development direction of chlor-alkali products, supplemented by plastic products, cultivate the company's core competitiveness, improve the sustainable development ability of enterprises, and make the company bigger, more refined and stronger; Constantly improve the corporate governance structure of the company, establish a modern enterprise system, standardize the operation of the company, and ensure the healthy and stable development of the company.