Beijing Zhongshi Xinhua Technology Company Limited (Zhongshi Xinhua) was founded in Beijing early 2001. It focuses on improving operation and management efficiency by providing value-added business information and consulting, network technology and commerce services for China's food industry.

　　Zhongshi Xinhua is jointly created by China National Foodstuffs Group Corporation and Beijing Xinhua Guoxin Information Services Company Limited. The Company's vision is to be First, Fast, Focus in information, consulting and e-commerce services in China's food industry.

SHAREHOLDER BACKGROUND

　　China National Foodstuffs Group Corporation (CNFGC) was founded in 1954 as an enterprise directly affiliated to the China Internal Trade Bureau (fomer Ministry of Internal Trade). It specializes in the business of meat, eggs and poultry with import and export authority. Now CNFGC has more than 50 subsidiaries or joint ventures scattered over the country and is currently the largest food corporation in China. It has extensive business relationship with the whole Chinese food industry and great influential power in the industry. CNFGC has also established good economic, technical and trade cooperation relationships with many corporations and institutes from US, Japan, Italy, Denmark, the Netherlands, Switzerland and Germany, etc.

　　Beijing Xinhua Guoxin Information Services Company Limited (Xinhua Guoxin) is the first, largest and most influential information, network technology and e-commerce services provider in China's food, grain and oil stuff industry. It launched the first content web site for China's food, grain and oil stuff industry, China Cereals, Oils and Foodstuffs Information Net (www.cof.net.cn) in July 1996. In Nov. 1997, Xinhua Guoxin launched the first e-commerce web site for China's food, grain and oil stuff industry, China Cereals Trade Net (www.cctn.net.cn). In March 2000, Xinhua Guoxin launched the first online professional community I-Grain.com for grain and oil stuff industry. Xinhua Guoxin has professional technical staff who have developed many grain, oil stuff and foodstuff information and e-commerce systems and accumulated abundant experiences. During the years, Xinhua Guoxin has provided IT solutions and software development services for many relevant companies and institutes. It is now the market leader with the broadest content database, the most complete e-commerce services and the largest customer base.

PRODUCT AND SERVICE OFFERINGS

1. Information service

　　Zhongshi Xinhua Company provides clients with information services via multi-channels.

　　China Food Net (www.efoods.com.cn) is a vertical portal specialized in food related topics. It has rich information resources, large customer base and advanced functions. It is capable of providing information on food industry dynamics and market price changes. It can help you search information of special interest to you, grasp the changes in the market and business opportunities. The mission of China Food Net is to provide customers with food related information which is most suitable for the food industry and most suitable for the enterprises.

　　Meat, eggs and poultry related information: covers meat, eggs and poultry price information around the country, as well as commercialized products and packaging information.

　　Industry dynamics home and abroad: over 100 field representatives around the country provide us with first-hand domestic market information; cooperation with Xinhua News Agency, the Customs Office, International Meat and Food Magazine and the US Meat Association enables us to get hold of international market dynamics.
Trade opportunities: users could issue or search for supply and demand information, conduct online communication, increase transaction opportunities, especially opportunities of cooperating with large enterprises.

　　Statistics and analysis: includes updated customs data and analysis of various data types.

　　Product testing and evaluation: provides evaluation of commercialized products from various angles, and results of such evaluation.

　　Other parts: hot topics, laws and regulations, technical achievements, industry knowledge, industry exhibitions and conferences, forum.

　　China Meat, Eggs & Poultry Information, is released every Thursday by fax, e-mail or mailing. It has three parts for China, overseas, exports and imports. In addition, special reports for some important events or products will be attached periodically.

　　Meat, Eggs & Poultry Information, published jointly by China National Foodstuffs Group Corporation (CNFGC), China Meat Association and Huashang Commodity Reserves Center, offers policies, prices, domestic and international market highlights, buying and selling information of poultry and relevant products.

2. Consulting service

　　Besides the value-added professional industry analysis reports, Zhongshi Xinhua also offers customized information and consulting services such as market research analysis and quality management to its enterprise clients.

3. Advertising and promotion service

　　Zhongshi Xinhua can help enterprises promote products and images in the food industry by multiple information channels and media such as internet, email and publications advertising. The special "One to One" advertising plan is tailored for customers with different needs, budget and characters.

4. Commerce service

　　Zhongshi Xinhua is integrating local food companies and relevant resources to establish nationwide distribution channels.

5. Technology service

　　The shareholders of Zhongshi Xinhua Company has strong background and experience in the industry and technology. CNFGC is the largest food enterprise in China, with rich experiences and established working relationships in the industry. After being in operation for over six years, Xinhua Guoxin now owns a professional team of technical personnel, who have a good understanding of the grain and oil industry, sound knowledge of various computer and internet-related technology, as well as rich experiences in technical innovation and services.

　　Taking into consideration the special features of the food industry, Xinhua Guoxin has developed many industry unique application software systems, such as Office Automation, outsourcing, sales channels and customer relationship management.

　　With a sound knowledge of the food industry and rich experience in information technology, Zhongshi Xinhua can assist food companies of all sizes to design, develop and build a high-performance, scalable, reliable net ware system, internal management software system (Office Management, Production Management, Sales

　　Management, Decision Support System), e-business system, which could better meet the needs of modern management, increase operation management efficiency, achieve the goal of cost saving, provide more sales and purchase channels, equip managers with timely and accurate company information.

　　At the same time, Xinhua Guoxin provides ASP services of internet, information system and e-business platform, which is based on internet. This kind of service can help companies build a nationwide information network, reduce initial investment in network equipment, save cost of system maintenance, management and upgrading.

　　Due to the many years of experiences in technology development and after sales service, the company has established a perfect service and warranty system, which promises our users with timely, reliable and high quality services, and also the safe and stable running of our customers' system platform.

MAJOR PARTNERS

　　National Economics and Trade Commission: Zhongshi Xinhua is entrusted by the National Economics and Trade Commission to provide price information of meat, egg and poultry related products in over 100 large and medium sized cities in China, with analysis reports, at fixed intervals.

　　China Meat Association: China Food Net developed by Zhongshi Xinhua is the sole network system of China Meat Association. Zhongshi Xinhua is also actively carrying out cooperation with the Association in related information consulting services.

　　China Foods Industrial Group: Zhongshi Xinhua provides services including information consulting and network technology to over 100 member enterprises of

　　China Foods Industry Group (covering the whole country), and has constant information exchange and cooperation with these enterprises.