todays announcement. good news.

Hi all

Having just read through todays announcement in detail I have to condlude that the company has performed extremely well and is very well placed for a strong operating performance in the coming years.

$6.6m NPAT - as per guidance.

Higher than expected revenue in RMB.

The higher AUD obviously hurt (revenue increased 52% in RMB terms and 35% in AUD terms), but unit sale prices increased as did margins.

So all in all, a great 2010.

It looks to me like the market has been spooked by the lack of quantitative guidance given. This seems entirely rational to me, as the factors the company has identified that may affect trading conditions are not new, completely known, and entirely plausible.

The company did say that its expecting solid results for 2011 and that consumption of its products continues to be strong.

So i dont see any issues with not giving guidance.

And I am very happy to see, as I was hoping, that they would fund the Phase 4 plant with retained earnings and debt. Also, the Phase 4 output will be a higher quality nylon which will also benefit margins.

And finally, good to see the company received another tax concession for the next 2 financial years - paying only 15% tax.

I think todays sell-off is unwarranted and the company's performance is strong, and its growth prospects strong.

Whilst disappointed with todays price action, I am a very happy holder.