Our success and achievements to this day, as well as our potential for future growth, are attributed to our Company’s many strengths, some of which include the following:

Our operations and businesses are amongst the largest and most established in China’s agricultural processing and trading industry. Over the years, we have become a market leader in many of our product areas.  According to statistics issued by the China National Association of Grain Sector and the State Administration of Grain, we are one of the largest wheat and oilseed processors in China. We are also the largest exporter of rice in the country. Our biofuel business was one of the first producers of fuel ethanol approved by the National Development and Reform Commission and other ministries in China and we have since become one of the largest produces of fuel ethanol in the country.
Being a leader within our industries and having a long history of supplying reliable and high-quality processed agricultural products have not only helped enhance customer confidence in our products but have also enabled us to establish long-term relationships with many of our customers.

Our main products include fuel ethanol, edible oil, consumable ethanol, anhydrous ethanol, starch, sweetener, animal feed, rice, brewing malt and flour, noodles, bread, amongst others.
Not only does our broad product portfolio provide us a well diversified revenue and customer base, it also enables us to tap into a number of different trends within food and energy consumption that have emerged as a result of China’s economic growth. For example, rising disposable incomes due to the fast growing economy in China is bringing about changes in food consumption, particularly among the urban population. A faster pace of life has contributed to an increased demand for convenient and processed food, which in turn has driven up the production levels of the food processing industry. The Chinese population is consuming increasing amounts of meat and dairy products as well as processed foods and beverages as a result of rising household incomes. These trends have led to increases in demand for edible oils, animal feeds, flour, and food additives.
Our broad portfolio of products enables us to act as a one-stop supplier to large-scale food producers whose needs are typically diverse and whose purchasing volumes can be large. Another advantage of having a diversified product portfolio is that our revenues and costs are not overly concentrated on any one single product sector.  This mitigates any volatility in our overall earnings and financial position that generally occurs as a result of any changes in selling prices or raw material costs in a single product sector.
In terms of energy consumption, increased car ownership in China has led to greater concerns over air pollution, the increasing dependence on fuel imports and rising energy prices.   This has given impetus to the consumption of fuel ethanol, which is an environmentally-friendly additive to gasoline that increases its burning efficiency and thereby reduces emission levels, enhances fuel efficiency, while at the same time reducing fuel cost. We currently wholly, or partially own, two of the four licensed operating fuel ethanol production facilities in China.

Senior management and key staff of the Company are experienced in the industry and most of them gained the relevant exposure at COFCO Goup.
Mr. Yu Xubo, managing director of the Company , held various positions in COFCO Group in prior to current position, has 20 years of experience in food processing, trading and corporate management.
Mr. Lu Jun, executive director & deputy general manager of the Company and general manager of oilseed processing division, has 15 years of experience in oiseed processing, trading and corporate management.
Mr. Yue Guojun, executive director & deputy general manager of the Company and general manager of biofuel and biochemical division, has 20 years of experience in chemical engineering, relevant operations and coporate management. Prior to joining the Company, he had worked at China Resources Group for 9 years.
Ms. Yang Hong, deputy general manager of the Company and general manager of rice trading division, has 20 years of experience in rice processing, trading and corporate management.
Mr. Jiang Guojin, deputy general manager of the Company and the general manager of brewing material division, has 20 years of exeperience in brewing material processing, trading and corporate management.
Mr. Wang Zhen, deputy general manager and general manager of wheat processing division, has over 20 years of experience in wheat processing, trading and corporate management.
Mr. Li Wai Kwan, deputy general manager of the Company, has over 10 years of experience in accounting, financial management, coprorate planning and treasury.
Other senior management and key staff have relevant experience in edible oil production, as well as the trading and purchasing wheat, rice and barley.
Our management team and staff will leverage on its rich experience, refined planning and strategic moves to confront challenges in the future.

We have over 30 subsidiaries located in ten different provinces in China. All of these facilities are located within, or in close proximity to, the market centre giving us a nationwide network of production, sales and distribution. Our facilities that use domestically sourced raw materials are strategically situated within, or close to, key raw material sites.  Our facilities that use imported raw materials are close to vital port and/or rail transport locations.
For example, our biofuel and biochemical processing production facility, which uses corn as its main feedstock, is located in Heilongjiang Province, a main corn growing area of northeastern China; whereas our soybean oil production facilities, which use imported soybeans as inputs, are located near dry-bulk cargo ports as well as key edible oil markets throughout China. Our malt facility in Dalian is located close to the Dalian port where imported barley is unloaded, and also near the major beer production and consumption areas of northeastern China.
By optimizing our strategic positioning within the country, we are better able to manage our supply chain to keep our logistics costs low while at the same time ensuring stable supplies  and timely deliveries to our production facilities and to our customers. In addition, we sell our products through a network of third-party distributors, many of whom have formed long-term supply relationships with our Company. Such an extensive national platform not only gives our Company the security of a stable supply of raw materials but also easy access to the transportation for such materials and products at a competitive cost.  This benefit also extends our reach to our customers and reinforces why we are a market and industry leader.
As of December 31, 2007, our sales team consisted of approximately 1,000 employees across all of China.

According to the IPO prospectus (P. 79) , the annual crushing and refining capicities of edible oil of the Company are 4.9 million and 1.2 million metric tones respectively, while processing capacities of wheat and brewing materials are 1.4 million and 0.68 million metric tones.
In 2007, we were the second largest edible oil in China, possessing approximately 12% of market share, with the sale of approximately 5 million metric tons.。
The large-scale nature of our production volumes enable us to reap significant economies of scale in terms of operating and purchasing costs, to share the best practices among the different entities and businesses within our Group, and to serve our customers reliably.

A stable supply of high-quality raw materials at competitive costs is crucial to our business. Our fuel ethanol plants are strategically located within corn producing areas so that we are able to source approximately 50% of our raw materials from local farmers at a relatively lower cost since no third-party agents or costly logistics arrangements are involved. We have established long-term and stable relationships with state-owned grain depots and local grain warehouses throughout China that provide us with a stable supplies of raw materials such as corn, wheat and paddy. We have also established long-term strategic relationships with leading overseas suppliers such as Archer Daniels Midland and Cargill Inc., whose procurement strength and strong international logistics capabilities also help to ensure that we receive a stable supply of raw materials. Our ability to secure a steady supply of raw materials helps to lay a solid foundation for the sustainable growth and expansion of our Company in the future.