President

In the past year, the internal and external, social and economic, environment has changed greatly, and the growth in economy slowed down worldwide.Under this circumstance, our company can still make good performance, and it is you, all members of the company, who worked hard, contributed to the result . 　For modernization, we’ll adopt some measures to reform the company in the near future. They are as follows : 　 1.Revise management strategy 　　In view of the limitation in resources, we’ll revise management strategy and policy, altering multiple and diversified economy to the management of focusing on our own products, to strong our core business.Our wish and desire is to position us as an international leader in the field of seawater chemistry and biotechnology.As for thebusinesses out of core, they will betried out on the market through business divisions, and classified in the future. 　　 2. Increase income and decrease expenditure 　 In the phase of increasing income, to change Cigu Salt plant into asalt industry culture and recreation area is a successful example of transformation of state-run business. In conjunction with collagenmedical material and ferment technology of biotechnology plant, wehave researched on collagencosmetic care products and health food, and developed bottled water,such as ocean-generated water and alkaline ion water with smallest molecule, which is good for metabolism. We have opened up successfully several accesses to its products, such as sales stores, biotechnology franchise stores, department and hyper stores, and Internet,and officially become a biotechnology industry company. 　In decreasing expenditure, we are devoted to decrease sea freight cost of evaporating brine imported from Australia; activates distribution center for wash salt and refined salt to save freight and loading fee;and other activities for cutting down cost 3% each month . 3.Promoteorganization change and management reform 　 In order to innovate on past practices of state-run enterprise in short time, with a new idea of “turn salt into gold, challenge original idea”, we have set up bonus to encourage all staffs and consumers to contribute new ideas, and further, adopted a new reward system and abolished the old system of apportioning bonus among staffs. On the part of organization change, the former function organization has been replaced by business division organization. Junior employeeswho have good performance can be promoted as an exception. Through reconstruction of production flow, promoting ERP and other management innovation projects, we have integrated our resources and raised our efficiency . 　Looking ahead, though our salt production sustained an impact from the abolishment of salt policy regulations, the new products developed one after another and marketed in succession, collagen cosmetics and health food products opened up in the market of pharmacy, our business profit is expected to grow greatly.We will continue to make creating values as our main goal, and make our best effort to promote our core business and enterprise reformation to enable us to grow up constantly, healthily and strongly.

President