Recently, our company has concentrated our best effort on core business.It is sincerely purposed to improve management efficiency and enhance the competence of our core business.Meanwhile, new ventures have been well prepared and we are sparing no effort to search for cooperation partners aiming at better management performance commonly.

In retrospect of 2007, we have finished some projects as below:

We enhanced our ODM core business and make development for new customers and products with robust foundations available for prospect growth in 2008.

We made the recapitalization for global R&D projects and simplify R&D management framework.

We finished the transfer and renewal establishment for production functions started from 2006.Currently, all production capacities have been clustered in the southern China regions to serve as production bases. The production and logistic framework has been significantly simplified.

We aggressively improved the framework of asset and obligation to enhance the financial physique of our company with the optimal preparation ready for upcoming growth.

When we are facing challenges in 2008, in view of the conditions caused by business management, markets and competition, we will continue our best effort on currently regulated policies and concentrate our strength to implement strategic downsize projects with effective management available for various resources.Under the said principles, our company will spend our best effort on below aspects:

Chase the growth in our specialized business and expand the foundation for core business.

Continue the recapitalization for various assets and obligations financially.

Enhance the control over financial balance and simplify the frameworks of cost, expenditure surveillance, product items and organizations.

During the year with much uncertainty, everyone of our company will definitely continue our incessant endeavor to create a brilliant way commonly.Hereby, we deeply appreciate the patient support from every generous shareholder and also express our best regards to everyone with tons of blessings in both health and wealth.

Chairman