Yantai Dahua Holdings, Ltd.

About Yantai Dahua Holdings Co, Ltd.

Yantai Dahua Holdings Co. Ltd. is engaged in, through its subsidiaries, the manufacturing and sales of paper principally for printing and writing in China. It is a leading paper manufacturer in Shandong, China and employs a total of 1,180 staff.

The Company's marketing teams distribute its products through six sales offices in different parts of China to cater for its clientele of over 210 well-established publishing houses, printing companies and other state-owned material supplies companies. Under the leadership of its experienced management, the Company expects to expand its production capacity to meet the anticipated increase in the demand for paper and that such increased demand is projected to result in growth in the Company's revenues and net income.

Operations

Yantai operates out of its headquarters in Yantai City, Shandong Province in China. It occupies a total site area of 110,000 sq. meters, on which various structures having 28,000 sq meters of floor space were erected to house it.

Yantai segregated the whole of China into four marketing zones, that are managed by six sales offices. The Beijing and Shijiazhuang sales offices, which service the customers of the northern territory, handles approximately 69% of the company's business.

China is the second largest paper consumer in the world behind the USA. Total paper consumption in 1999 was 35.9 million tons in China and 94.6 million tons for that of the USA.