Exhibit 10.5

                      SALES CONTRACT OF INDUSTRIAL PRODUCTS
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                                                                      NO.: 02600
                                                               SIGNED AT: Tai'an
                                                         DATE: December 16, 2002

This contract is made and entered into by and between  Shandong Shengda Chemical
Machinery Co., Ltd (hereinafter  referred to as the Seller) and Shandong Shengda
Chemical  Co., Ltd  (hereinafter  referred to as the Buyer);  whereby the Seller
agree  to sell  and the  Buyer  agree  to buy the  commodity  mentioned  in this
contract  subject  to the terms and  conditions  stipulated  below:  Article  1:
Object, Quantity, Price and Date of Delivery

NAME OF COMMODITY: Gas Sensible Heat Device

UNIT: PIECE

QUANTITY: One

UNIT PRICE: RMB 1,478,704.21yuan

TOTAL AMOUNT:  RMB  1,478,704.21  (One million,  four hundred and  seventy-eight
thousand, seven hundred and four point two one) yuan

DATE OF DELIVERY: February 26, 2003

Article 2: QUALITY STANDARD

Be subject to: 1. The Drawing Sheet provided by the Buyer;  2.The National Trade
Standard.

Article 3: TERMS AND TIME LIMIT OF QUALITY  ASSURANCE  OF THE SELLER:  1 Year of
Quality Warranty

Article 4: NUMBER OF NECESSITIES,  SPARE PARTS, TOOLS TO BE PACKED WITH THE SAID
EQUIPMENT,  AND METHOD OF SUPPLY: In accordance with the requirements  indicated
in the drawing sheet.

Article 5: TITLE TO THE GOODS SHALL BE PASSED  UPON  DELIVERY;  HOWEVER,  IF THE
BUYER  FAILS TO PERFORM  THE  OBLIGATION  OF PAYING THE FULL  AMOUNT OF PURCHASE
PRICE, TITLE TO THE GOODS SHALL REMAIN WITH THE SELLER.



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Article 6: MEANS AND PLACE OF DELIVERY: The site where the buyer uses the goods.

Article 7: MODE OF TRANSPORAT AND DESTINATION AND COST ALLOCATION:  By road; the
Seller shall pay the cost.

Article  8:  STANDARD,  METHOD,  and PLACE  AND TIME  LIMIT OF  INSPECTION:  The
inspection  will be done  pursuant  to Article 2 at the place of  delivery.  Any
dispute shall be raised within three days.

Article 9: THE  INSTALLATION AND TESTING OF THE COMPLETE  EQUIPMENT:  The Seller
shall be responsible for them.

Article  10:  METHOD,  TIME AND PLACE OF  PAYMENT:  50% shall be paid after this
contract becomes effective.  40% shall be paid after the successful installation
and testing;  and the  remaining  amount of money shall be paid - off within one
year.

Article 11: TERMINATION OF THIS CONTRACT: After the remaining amount of money
has been paid off.

Article 12: METHOD OF SETTLING THE DISPUTE OVER THE CONTRACT:  IN THE PERFORMING
OF THIS CONTRACT, IF ANY DISPUTE ARISES, THE TWO PARTIES SHALL SETTLE IT THROUGH
FRIENDLY  DISCUSSIONS;  THE DISPUTE CAN ALSO BE MEDIATED BY THE LOCAL INDUSTRIAL
AND COMMERICAL  ADMINISTRATION;  IF NO SETTLEMENT  COMES FROM THE DISCUSSIONS OR
MEDIATATIONS,  THE  DISPUTE  SHALL BE SETTLED BY LAWSUITS  THROUGH THE  PEOPLE'S
COURT.

Article 13: THIS CONTRACT SHALL BECOME  EFFECTIVE  after having been  officially
signed by the two parities.

THE SELLER:                                   THE BUYER:
Shandong Shengda Chemical
Machinery Co., Ltd                            Shandong Shengda Chemical Co., Ltd

 /s/ Gong Xingyu                                /s/ Wang Wei
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AUTHORISED SIGNATURE                          AUTHORISED SIGNATURE