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Our goal is to become the largest greenhouse vegetable producer of high-quality and safe vegetables with a strong brand recognition by consumers across China. We intend to achieve our goal by implementing the following strategies.

Increase our greenhouse coverage and arable land area
Increasing our production scale is a critical component of our business strategy. We will continue to conduct market research utilizing our database to identify suitable sites for additional farms. Our new farms will be concentrated in Fujian and Guangdong provinces, areas that are close to our target markets in southern China and offer favorable climate for crop cultivation.

Strengthen our brand building efforts
We intend to enhance our brand recognition among wholesalers, institutional customers and supermarket chains by continuing to focus on quality. We believe we can further enhance the quality of our produce through continual investments in greenhouse cultivation, improvements in our production process and technological advancement. In addition, we plan to instill greater consumer confidence in our food safety by developing and integrating a computerized food traceability system.

Additionally, we will begin to promote our brand name among end consumers. We believe such efforts can increase general demand for our produce. We will enhance end-customer brand recognition by selling produce under our brand name. We believe that creating a visible brand will raise customer recognition of our differentiated high-quality produce.

Expand and broaden our sales, marketing and distribution network
We intend to expand our sales, marketing and distribution network to seize opportunities in new markets. In particular, we intend to strengthen our sales, marketing and distribution efforts in the southern China market and expand sales of our produce to the Yangtze River delta, an affluent area with growing demand for high-quality, fresh produce. We plan to set up wholesale operations in coastal provinces across China to target regions with high retail purchasing power. We will also broaden our customer base to include new types of customers such as leading fast food chain restaurants.

Continue to devote research and development efforts to enhance our horticultural know-how
We will continue to devote more resources to research and development, and actively seek opportunities to collaborate with institutions, universities and industry experts to improve and further develop cultivation techniques. Our research and development will continue to focus on improving production yield and efficiency through experimental cultivation of new seeds with new techniques and the use of industry-leading technologies developed in-house or by third parties.

We plan to continually develop new crop varieties to meet evolving market demand. Each year we test grow many seeds to identify varieties with superior quality and good production yield. We will employ advanced cultivation techniques to improve crop varieties with strong market demand. We will also continue to design and improve our agricultural facilities and horticultural equipment.

Recruit and train more farm managers and technical personnel
We will continue to provide extensive training for our existing farm managers and technical personnel to keep them abreast of the latest developments in the agricultural industry. We will also recruit additional farm managers and technical personnel to support operations at existing farms and new production bases. Our standardized production processes, advanced horticultural techniques and extensive industry experience enable us to provide effective training to new managers and technical personnel to support our expansion plans.