Organization & Subsidiaries
China ACM's organizational structure was carefully developed to abide by the laws of the People's Republic of China and maintain optimal tax benefits as well as internal organizational efficiencies.

The Company currently receives extremely favorable value added tax (VAT) and income tax treatment (zero tax) due to its usage of more than 30% recycled waste materials. Management believes that the Company will continue to receive favorable tax treatments going forward as it seeks to continue to lead the market with environmentally sensitive innovations and procedures.

Philosophy & Committed Environmental Goals

China ACM is strongly committed to the development of environmentally sensitive products with the goal of lessening the extent of global warming in China, and to set a good example to competitors. The Company uses components in their cement mixtures that are environmentally friendly and satisfactory to the Chinese government's regulations. China ACM's goal is to continue to use 30% or more recyclable components in their mixtures in order to do their part in fighting global warming. In addition, the Company is working to take a strong leadership position in addressing environmental issues by:

• Increasing energy efficiency
• Reducing air emissions
• Managing and minimizing waste
• Promoting environmental management systems

Interest in environmental management systems (EMS) is increasing in the cement sector and China ACM is seeking to be at the forefront of this movement. The Company is currently discussing the development of a standards board that will assist the government in setting national guidelines and recommendations.

China ACM hopes to be one of the leading companies making positive changes towards environmental protection initiatives in China. Future aspirations include setting attainable goals for the recycling and proper disposal of waste materials. One of these practices will be to adhere to the philosophy of industrial ecology, which is the use of waste from other industries as raw material.