In November 2003, after review and approval by the China Securities Regulatory Commission and the company’s general meeting of shareholders, the company and Laigang Group successfully implemented an asset swap, exchanging 43.69% of the equity and part of the accounts receivable in Qilu Assets held by the company. The company exchanged 83.04% of the equity of the strip production line and powder company owned by Laigang Group. This move has played a positive role in promoting the company to resolve operational risks and seek new development. As a strip production line with built-in assets, its strip production ranks second in the industry and it can currently achieve a total annual profit of approximately RMB 50 million. The powder company's products are high-tech new materials. It has undertaken and completed the National Spark Plan "High-Quality High-Performance Powder Metallurgy Reduced Iron Powder", the National "863" Plan "High-Performance Steel Powder Materials for Cars" and Shandong Province's "Ninth Five-Year Plan" Science and Technology The key research project "Research and Development of High-Performance Water Atomized Steel Powder and Products" and other projects have achieved eight scientific and technological achievements, with 7 utility model patents and 3 invention patent applications. Therefore, as the powder company's national "863 Plan" project - the "40,000-ton water atomized iron powder production line" gradually reaches production, its good development prospects will gradually appear.