Weiqiao Textile Company Limited ("Weiqiao Textile" or the "Company", together with the subsidiaries collectively known as the "Group") is a non state-owned enterprise and is principally engaged in the production, sale and distribution of cotton yarn, grey fabric and denim. The Company is the largest cotton textile producer in China. Leveraging on the rapid growth of the Chinese economy in the last decade, the Company has established a strong.
presence in the global cotton textile market through its large production scale and advanced technology and equipment.

Production Base
Weiqiao Textile is located in the Shandong Province, the third largest cotton-producing province, with a large production scale. There are a total of 4 production areas, including Weiqiao Production Base (The First, The Second and The Third Production Area), Binzhou Production Base (Binzhou Industrial Park, The First Production Area and The Second Production Area), Weihai Production Base (Weihai Weiqiao Textile Company Limited(“Weihai Weiqiao”) and Weihai Weiqiao Technology Industrial Park Company Limited(“Weiwei Industrial Park”)) and Zouping Production Base (The First Industrial Park of Zouping , The Second Industrial Park of Zouping and The Third Industrial Park of Zouping ), with an aggregate gross floor area of about 4,460,000 sq.m. and a total of approximately 135,000 employees. The production facility is in operation 24 hours a day. In 2007, the Group had a production volume of about 891,000 tons of cotton yarn, 1,646,000,000 meters of grey fabric and 180,000,000 meters of denim. Weiqiao Textile's economies of scale is incomparable in China. In addition, being an integrated cotton textile producer, the Group produces grey fabric and denim from its own cotton yarn. There is a comprehensive product range comprising more than 2,000 varieties, which are sold under the reputable “WeiQiao” trademark in domestic and overseas markets.

Client Network
According to the statistics of China Chamber of Commerce for Imports & Exports of Textiles,Weiqiao Textile ranked number 1 in terms of the aggregate export values of yarn and fabric in the PRC.As at 31 December 2007, the Company had a total of around 8,000 domestic customers scattering 30 provinces and over 780 overseas customers spanning across 20 countries and regions, an increase of 6.7% and 8.3% as compared to 2006. Major customers of the Group include a few market leaders in the textile industry, such as Itochu, Fountain Set Group and Texwinca Group. The Group had a total of around 8,000 domestic customers in the PRC, among which most of them are from Southern and Eastern China where many large-scale textile and garment companies are located.

With the increasing demand for cotton products and the relocation of global manufacturing bases to China, the garment market is expected to grow further in China. Leveraging on its competitive advantages of economies of scale, low labor cost, strong research and development abilities and geographical outreach, the Group will continue to explore business opportunities in the domestic and overseas markets and strive to become the world's largest cotton textile enterprise.

1. Corporate Mission
Benefiting from China's accession into the WTO, the global textile market will be further opened up and the textile industry in China will enjoy unprecedented market advantages. Weiqiao Textile is well positioned to capture every opportunity worldwide and is confident of becoming the world's largest cotton textile producer.

2. Operational Strategy
Weiqiao Textile continually expands its product portfolio and production capacity in achieving rapid growth. By consolidating and strengthening domestic market and penetrating into the overseas markets, such as other Asia, Europe and the U.S., the Company will broaden and solidify its customer base. In addition, The Company will actively develop new products and enhances its production technology by establishing its own research and
development center.

3. Competitive Advantages
Economies of scale – Leveraging on its high production capacity, Weiqiao Textile has achieved economies of scale to benefit from the reduction in its unit fixed production cost and the pursuance of a more flexible pricing policy.

Superior product quality –Weiqiao Textile's products are well known for its quality. All of the cotton yarn produced by the Company are knotless and have reached the 2001 Uster Statistics category of 25-5%. The Group's grey fabric product could reach the standard of Four Point system if so specified by the customers.

Ability to deliver quality products in bulk quantity on a timely basis – Quick response to production has become increasingly important in the textile business. The Group has a comprehensive product range comprising more than 2,000 product models and is able to produce quality products in bulk quantity on a timely basis resulting from its high production capacity. Such abilities have enabled the Group to compete successfully in overseas market
and will continue to be a key driving force for its further expansion in the future.

Effective customer network – The PRC is the largest textile and clothing producing country in the world and domestically, the Group has a broad customer network covering more than 30 provinces and municipalities directly under the central government in the PRC. Its foreign market extends across more than 20 countries and regions around the world.

Highly experienced and committed management and staff - Most of the Group's management personnel have extensive experience in the cotton textile industry and are familiar with the market environment. The Group also has a highly efficient, dedicated and stable workforce.

4. Production Volume
The Group has an aggregate production volume of approximately 891,000 tons of cotton yarn, 1,646 million meters of grey fabric and 180 million meters of denim in 2007. Weiqiao Textile's economies of scale is incomparable in China. In addition, being an integrated cotton textile producer, the Group produces grey fabric and denim from its own cotton yarn. There is a comprehensive product range comprising more than 2,000 varieties, which are sold under the reputable “WeiQiao” trademark in domestic and overseas markets.