Ⅰ.  Corporate History

Sichuan New Hope Agribusiness Co., Ltd is a list company which is controlled by Sichuan New Hope Group Co., Ltd. The corporate share stocks with 40 million of RMB ordinary shares of 6.9 Yuan each were approved and issued to social citizens by China Securities Regulatory Commission in Feb.12, 1998. The share stock (for short of “New Hope”, with Stock Code No.000876) was also formally listed and transacted in Shenzhen Stock Exchange in Mar.11, 1998.

Ⅱ.  Corporate Business

Based on the agriculture, the Company has made continual development and has already formed an industrial pattern dominated by agricultural industry and supplemented by diversified operation. At present, our main businesses deal with feedstuff, dairy products, chemical industry and financial investment. The industries are distributed over some provinces and cities of the whole country, and even radiate the Southeast Asia. The total assets are nearly 3.5 billion Yuan. Since its establishment, the company has always insisted on normative operation and scientific management, perfected the legal governance mechanism of modern enterprises, built unique corporate culture and established scientific modern corporate management system to lay a solid foundation for continual development of the company.

The feedstuff business is the traditional basic industry of New Hope which was first to pass ISO/9001-1994 international quality system certification at the end of 1999 and successfully passed the changing-edition ISO/9001-2000 international quality system certification in 2001. With combinations of such advantages as complete quality control, cost control, brand awareness and market recognition, the company has always gone into the front ranks of the same industry and become the main impetus of advancement and the thruster for corporate development.

As the high-tech & new industry cultivated by the company, the chemical business starts strictly according to the standards and requirements of high start-point, high technology and high returns, and purchases stated-owned chemical industry enterprises with International Finance Corporation of World Bank. Through transforming, reconstructing and establishing modern enterprise system, introducing international capital and conducting comprehensive technical innovation as well as passing ISO/9001-2000 international quality system certification, Chengdu Huarong Chemical Co., Ltd has already become the largest production enterprise of high-purity potassium hydroxide which has achieved the anticipated purpose of operating benefits and developmental strategy for domestic and foreign shareholders in China. Additionally, the phosphorus chemical item invested by the company has also achieved remarkable operating benefits. The chemical industry has already become the new impetus to promote rapid development of the company.

The dairy products business is the new field of New Hope agribusiness expansion with annual output of 0.5 million tons of dairy products after the company invested the amount of hundreds millions Yuan to combine and reconstruct over 10 Chinese dairy products enterprises in 2002. The dairy products business has gathered the talents of professional technique and management to accelerate internal integration, and create the core competitive power of the whole dairy products market. In addition, it has already shown the consolidation starting with new profit growth point of the company.

On financial investment, the company has continually increased to hold the initial legal person shares of China Minsheng Bank and become the No.1 shareholder of China Mingsheng Bank though normalizing transfer; and it has become one of main initial shareholders of Mingsheng Insurance by taking part in the reconstruction of China Minsheng Life Insurance Co., Ltd. The return on equity from the continual increase of financial investment has already become the important part of corporate achievement and the important capital source of the industry’s development.

  In addition, the items such as veterinary medicine, hotel and biological fertilizer which are operated by the company have gotten good operating performance, and become the useful supplementation for corporate benefit.

Ⅲ.  Corporate Honors

In 2002, the Company had been ranked the 38^th place among China top 50 list companies with the most developmental potential by China Securities--Asia System Media and also chosen as top 20 companies of “Blue Chip Share in My heart”. As one of two companies recommended by Sichuan Province, the Company took part in the “Experiences Sum-up Exchange on normalizing modern enterprise system of list companies” jointly held by China Securities Regulatory Commission and Sate Economic & Trade Committee and made written communication in the same year.

In 2003, the Company had been ranked the 23^rd place among China top 50 list companies with the most developmental potential by China Securities--Asia System Media.

In 2004, the Company had been ranked the 33^rd place among “China top 100 list private enterprises in 2004” jointly sponsored by Sino-Europe International Business Institute and Oriental Entrepreneur. 

In 2005, the Company had been ranked the 29^th place among “China top 100 list private enterprises in 2005”.

Ⅳ.  Corporate Prospective

As an important leading enterprise of industrialized management of agriculture in Sichuan province, the Company will continue to take the operating tenet of “basing on great agriculture in China, and building one-hundred new hope” and follow the trend of social development as well as continuously accelerate the process of agriculture industrialization so as to make due contributions for social progress.

                                                                                              March, 2006