Company Profile For Chemspec International Limited

Chemspec International Limited (Chemspec) is a China-based contract manufacturer of engineered specialty chemicals. The Company manufactures specialty chemicals, which are engineered chemicals used as building blocks in the manufacture of advanced chemicals or to enhance the performance of the end products manufactured by its end users in various industries, including electronics, pharmaceuticals and agrochemicals. In manufacturing specialty chemicals for its customers, the Company also provides process design and process development services. Chemspec sells its specialty chemicals directly to end users that incorporate them into their products and to trading companies that then sell its products to final end users. It also assists certain of its long-term customers to source specialty chemicals from other producers in China. On February 2, 2008, the Company acquired 80% interest in Jiangsu Wei Er Chemicals Co., Ltd. (Jiangsu Wei Er).

BRIEF: For the six months ended 30 June 2009, Chemspec International Ltd.'s revenues increased 14% to RMB433.8M. Net income decreased 25% to RMB86.6M. Revenues reflect a decrease in income from pipeline projects segment. Net income also reflects an increase in cost of sales, higher research & development expenses, a rise in other operating expenses, lower other income and an increase in foreign currency exchange loss net.