PRODUCTS Research & Development

RESEARCH AND DEVELOPMENT

We believe that the improvement of existing products and the proliferation of new products will provide us
with a competitive edge in our business. We have in place a team of 5 experienced and qualified
personnel in our R&D team, led by Dr Gai Wei who won the first prize of the Ningxia prize for Progress in
Science and Technology (宁夏自治区科学进步一等奖) in 2003 and reports directly to our CEO. Our R&D team
undertakes various research and development activities to expand our product range and improve the efficiency
of our production processes. In view of the expected increase in market demand for various indium products,
our R&D team is focusing on developing the following products:

ITO nano-powder and sputtering target

We are currently researching on ITO nano-powder and high density sputtering target materials, and have
completed research at the laboratory stage. In 2007, we may purchase, install and test production
equipment, and trial products will be delivered to our production units for test production. We are
exploring the possibility of commercial production in the next few years.

Indium metal		ITO		Sputtering target
	processed		processed

Sputtering target is a source material during sputter deposition processes; typically in the form of the disc
which inside vacuum chamber is exposed to bombarding ions. A sputtering target facilitates the
deposition of a variety of thin films and coatings used in the microelectronic, flat panel display, data
storage, glass costing and other industries.

Apart from our research and development efforts in relation to ITO sputtering targets which is
currently ongoing, we also expect to undertake research and development efforts to develop the
following products in the near future:

(i) Membrane photovoltaic power generation technology (solar energy batteries)
The membrane photovoltaic power generation technology adopts the copper indium
selenium compound membrane, which has the characteristics of high rate of transforming
solar energy, durability and lower costs. We believe that this technology is going to be the
main focus point in the future development and industrial application of indium.