We exercise close management and supervision on the manufacturing processes, product quality and delivery schedules of our packaging products. We upgrade and improve our manufacturing facilities and processes in order to improve manufacturing efficiency and stay competitive in the packaging industry in the PRC. The factories are strategically located close to our major customers and for this reason we can arrange for timely delivery and control the related transportation costs of our products. The close proximity to our major customers also allows us to maintain regular communications with them, understand their latest products and packaging requirements, industry trends and provide them prompt service and support. The three factories are capable of a maximum annual manufacturing capacity, in aggregate, of 15,100 tons of packaging products and structural components. Our quality management systems installed for the manufacturing of our packaging products and structural components at the three factories have been awarded certificates in respect of the compliance with the international standards of ISO9001 and GB/T19001.