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  Bussiness Strategy

The Directors' long-term goal is to leverage the Group¨s position in China's fertiliser market to be at the forefront in China¨s slow release fertiliser and microbial organic-inorganic compound fertiliser market, and at the same time to diversify into various high-margin chemical products. To achieve these objectives, and create value for shareholders, the Directors will focus on the following strategic initiatives:

Increase production cost competitiveness
To attain higher production yields and optimize production schedules by strategically expanding in other provinces in the PRC with direct access to secure natural resource supplies.

Develop differentiated chemical products
To increase chemical product variety, expand the scale of operations organically and evaluate potential strategic expansion opportunities to further strengthen market presence.

Extension of fertiliser product lines
To focus production on slow-release fertilisers and microbial organic fertilisers, where the Group intends to develop new, higher margin fertiliser products and construct additional production complexes.

Attract and develop highly talented personnel
The Group will be led by an experienced CEO, with a strong management team including 5 western directors. The Directors will seek to implement clear delegation of responsibility and provide comprehensive training systems to enhance employee skills.

Focus on research and development to improve product quality and development
The Group¨s research and development activities will place emphasis on new product development, production and technology improvement and cost efficiency. In addition, the Directors intend that the Group will invest in in-house research and development and seek synergistic partnerships with reputable third-party research and development institutions.

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