Dear Clients and Associates,

 

Thanks for your support and devotion in the passing year!

 

With your support and effort, Beifa Group has experienced for more than 10 years of double-digit growth and become China¡¯s leading supplier of pens and stationery.

 

Recently, the world economy is slowed by the financial crisis broken out in the U.S. No companies can escape from this crisis. Stationery industries across the world are also affected. Many 600 companies in China stationery industry are deeply affected and will stop running or have been closed in the past months.

 

However, prosperity is always accompanied by depression. As one of the major companies that act quickly to the changing economy and consumer demand, Beifa Group has taken many effective measures to retain and enhance its export business. Such measures include reducing operation cost, launching environment-friendly pens and stationery (namely Beifa eco series), adding more lines of fashionable and innovative products, presenting its one-stop-shopping stationery for students and office, and provide budget saving solutions to reduce your high buying office cost to stay competitive against other companies.

 

When other competitors invested heavily in stock market, bond market, and housing market and endured severe losses from these investments, we have always been taking pens and stationery manufacturing and service as our core business and kept healthy growing. We produce as much as 1.7 billion units of pens in 2007 and become the biggest supplier of pens in volume in Asia.

 

At the same time, we have been very cautious in customer credit management, which, to a great extend, rewards us with no harm to the health running of our cash flows. This makes Beifa Group a reliable partner to hundreds of customers around the globe.

 

After many years¡¯ successful exploration in North America and Europe, we have been speeding up in developing news markets in Latin America, Middle East and Africa, and Southeast Asia. Over the years we have achieved great success in these regions. Sales in developing countries grow 16% at a comparative basis in the past 11 months!

 

We are confident to get through this challenge!

 

The operation of a company in financial crises is like a train across the tunnel in mountains, it will never feel eased until getting out of the tunnel. The victory is not so far to approach. It is just there!

 

At the end of the year 2008, we¡¯d like to collaborate, hand in hand, with our clients, suppliers, and associates to achieve another momentum year in 2009.

 

 

 

Qiu Zhiming

President, Chairman of Board of Directors