COSTIN&＃039;s Core Value Our vision is to develop new environmentally friendly (or green) filtration materials that contribute to beautiful blue skies and fresh air. We are committed to the motto of �purifying the impossible� to create a better living environment in the low-carbon era. It is our mission to foster collaboration and alliance to promote the use of innovative non-woven materials in the post-industrial era. Corporate Profile COSTIN New Materials Group Limited ("COSTIN" or the "Company", together with its subsidiaries the "Group", HKEx stock code:02228) is a pioneer in setting new quality standards for the non-woven materials sector and a leader in this emerging industry throughout China dedicated to protecting our environment through science and technological innovation. We manufacture a host of advanced functional non-woven materials along with recycled chemical fibres developed from recycled raw materials at its headquarters in Jinjiang, Fujian Province. Our non-woven materials production facilities consisted of a total of 17 production lines with a total annual production capacity of 122.3 million yards; and 5 function-adding lines and ancillary lines with a total annual production capacity of 60 million yards. For recycled chemical fibres, we have 2 production lines with a total production capacity of 30 thousand tons. Our advanced, highly automated production facilities backed by strong technical know-how and impressive economies of scale give us a huge competitive edge for producing the highest quality products customised to meet specific customer needs, including advanced non-woven materials with liquid repellent qualities as well as anti-bacterial, aroma absorption and thermal resistance materials. We plan to expand its production facilities. The New Production Facilities which is expected to commence operation in the first quarter of 2011 will occupy a total site area of approximately 74, 204 sq. m. and have 6 production lines and 10 function-adding and ancillary lines with an aggregate designed annual production capacity of 50, 500, 000 sq. m. and the investment amount of which is estimated to be approximately RMB852.0 million. Ultimate Strong Research & Development Our operations are firmly built on technology and marketing differentiation. In addition to the work of our in-house R&D team, we also nurture long-term cooperative ties with prestigious academic institutions including Tianjin Polytechnic University and Wuhan Textile University (formerly known as Wuhan University of Science and Engineering) to jointly carry out research projects on new materials to expand the application of non-woven materials across an even wider spectrum. In April 2008, our unmatched R&D capabilities are recognised by National Development and Reform Commission (NDRC) who have selected Xinhua Company, a subsidiary of COSTIN, together with China Nonwovens & Industrial Textiles Association (CNITA), as one of the organisations to compile the industry guidelines and standard for three non-woven materials namely Stitch- Bonded Non-woven Reinforcing Material, Needle-punched Elasticity Non-woven Material and Needle-punched Non-woven Fibre Sheet. The guideline is regarded as the industry standard and yardsticks for any dispute. We have established an environmental protection control system in accordance with the requirements of ISO14000:2004. In April 2008, we obtained ISO14001:2004 certification, which is an international standard used to measure the impact of an operation on the environment. Besides, we was also the first non-woven materials manufacturing enterprise in the PRC to obtain the SCS Recycled certificate. Diversified Customers, Sales & Marketing We have a diversified customer base. Its customers include enterprises from various industries including the steel, cement, coal-fired power station, chemical, coal, ferrous metal and trading companies and manufacturers of textiles, footwear, luggage and leather-ware, which are located in Fujian, Zhejiang, Jiangxi, Guangdong, Shandong and Shanghai. We also export our products to overseas trading companies which onward distributed the products they purchased from our Group to customers in India, Indonesia, Egypt, Brazil, Dubai, etc. High-quality and Multi-functional Products Our products have a number of advantages over conventional woven fabrics. These innovative new non-woven materials can be customised to provide various functions such as absorbency, liquid repellency, resilience, flame resistance, shock absorption, filtering and bacterial resistance. The products are widely applied as raw materials for the manufacture of footwear, textile products, hand-bag and suitcase lining, household decoration, filters, etc. The recycled chemical fibres principally produced by our Group are polyester staple fibres, which can be widely used as raw materials for production of synthetic leather, shoe materials and non-woven materials. With its advanced technology know-how and strong research and development capability, we are uniquely positioned to expand the scope of the application of its products to fit customers from various industries. The versatile and increasing application of its products will in turn further broaden our customer base and variety