Overview

Our products are marketed and distributed in the PRC through our network of distributors. The following map illustrates the geographical coverage of the Group’s sales network through our distributors in the PRC:-

Our sales and marketing department is headed by our Executive Director, Mr Wang Yong, who is responsible for overseeing and supervising our sales and marketing activities.

In order to enhance the efficiency of our sales activities, our Group has also set up a liaison office in Beijing to provide better coordination and supervision of our direct sales activities.

Sales Channels

Our products are sold to selected distributors who promote and sell our products through their own sales distribution network in designated regions in the PRC to end-users. The end-users of our potato starch are from various industries, including food processing and catering, pharmaceuticals, paper, textiles, building materials and oil industries. Each distributor is carefully selected on prescribed criteria such as experience, sales network and coverage, scale of operation, credibility and financial position.

We typically enter into non-exclusive distribution agreements with our distributors. Under our arrangements with our distributors, we would grant distribution rights to each of our distributors over a particular geographical area. Each distribution agreement is typically for a fixed term of one year. We may terminate the agreement among others, if the distributor does not place a stipulated minimum purchase volume with us during the year.

As at September 2008, our Group had over 75 distributors which cover most of the provinces and municipalities in the PRC except the Western region of the PRC. The sales network for our potato starch and potato starch-based products established through our distributors covers 48 cities in 21 provinces and municipalities in the PRC.

Marketing

We market our products by regularly participating in trade fairs and exhibitions such as the Shanghai Food Exposition 上海食品展销会, the National Sweets and Wine Exhibition 全国糖酒会 and the Harbin Economics and Trading Conference 哈尔滨经贸洽谈会. We believe that such participation helps to increase the exposure and awareness of our brands in the industry. Such trade fairs and exhibitions further serve as a platform to collate relevant market information and trends, and further provide us with the opportunities to meet potential customers.

We also advertise our products through various means such as leaflets, outdoor advertisements and advertisements in newspapers in order to enhance market awareness of our products and our brand names.