Dear Shareholders:

We recognize the enormous potential of the construction materials industry in China and we are focused on maintaining a leading position as a manufacturer of ceramic tiles in China. Our two decades of experience in this business translate into a deep understanding of the industry dynamics and potential and reinforce our confidence in our future success.

We have benefited from the growth of the Chinese economy, and believe that real estate in China is sustainable on a long-term basis as it accounts for an estimated 25% of GDP and is the most important asset for a high proportion of Chinese households. Therefore, active property development and a vibrant building materials sector continue to be a vital component of China’s growth.

We believe that as China’s urbanization trend underpins its continued economic growth, we anticipate the continued growth of urban housing and a sustained demand for our building materials products. Our strategic plan is to focus on targeted cities in China as well as to grow our new products portfolio by bolstering our research and development efforts in order to expand our market. We believe that we retain a competitive advantage in our sector due to our brand name recognition, innovative ceramic tile products, customization capabilities, and our ability to quickly and expertly meet our customers’ needs.

Going forward, we are optimistic that we can leverage our industry expertise to strengthen our position in the Chinese ceramic tile market and create long-term value for our shareholders.

-  Ms. Meishuang Huang
Chief Executive Officer