To further strengthen and capitalize on the established reputation and recognition of our “Labixiaoxin” brand, we are currently consolidating all our existing brands with the intention to use “Labixiaoxin” as an umbrella brand to market all our products, with multiple sub-brands to market our different product segments. In addition, we plan to enhance our brand image by adopting a multi-channel advertising strategy: print media advertising, prime time television advertising and Internet advertising.

We intend to expand our distribution network into other cities in the PRC with growth potential surrounding our existing markets by increasing our advertising and promotional activities in these areas, as well as engaging more regional wholesale distributors to sell our products to the retailers. We believe improved market penetration will help us to gain access to a wider group of end consumers and support our future growth.

We plan to invest in and strengthen our market-oriented product development activities to continuously provide innovative products to differentiate ourselves from other competitors and accommodate the changing preferences of consumers. For example, with growing health awareness among consumers in their consumption of snack food, we intend to focus our product development efforts on manufacturing healthier snack food such as low-sugar or low-calorie jelly products.

We plan to strengthen our market position in the snack food industry and achieve better economies of scale by expanding our existing production facilities and constructing a new production facility.