All the distinguished guests and friends,

Good days.

We gain a new harvest year through all the staff and industrial leaders’ efforts and cooperation, though the adjustment of tax rebate policy to some extent has brought so negative impact on the whole industry.

It is expected that the annual fastener output will reached 5 million tons, rising 13% from the corresponding period, while sales volume is 44 billion RMB, with a year-on-year increase of 15%. According to our preliminary statistics, the export volume is 2.5 million tons, up 21%. Our foreign exchange is 3.15 billion Yuan with an increase of 31%. All these achievements are credited to you all here. As we all know, as entering into 2008, our entire industry will face an awesome task.

This afternoon, we held a president meeting of the entire industry to analyze the whole market situation as well as discuss how we face series of problems emerging in 2008. We come to consensus through our serious discussion: As a whole, we should get a clear understanding of the current situation, seek unity of thinking and inspire enthusiasm to face all the difficulties; we must seek the opportunity, develop in through adjustment, while perform adjustment through development in order to boost fastener industry. We must stick to the scientific concept of development and rely on the advance of science and technology to accelerate the adjustment of product structure, market structure, the price structure and the whole industry structure. We try hard to effect three transformations in the industry: transform from seeking quantity to seeking quality and benefit, from being large and all-embracing to being refined, from manufacturing enterprises to manufacturing and trading enterprises. Thanks to the three transformations, the growth pattern of fastener industry has been under great change in order to promote the sustained and stable development of fastener industry, which is our consensus forming in the meeting.