Dear colleagues:

    The New Year's bell is about to ring. At this wonderful moment when the people of the whole country are welcoming the coming of 2007, I am very pleased to extend my New Year's blessings to all the employees of Zhongbao and Rifa Group through the company's intranet and corporate newsletters!

    2006 was the year when the Group implemented comprehensive strategic adjustments. The company has unified understanding and unity, and comprehensively promoted industrial structure adjustment, organizational restructuring, and staff team building. Corporate revenue and profits remained unchanged, and employee income was further increased. The group has taken another solid step towards sustained and stable growth. At the same time, we have carried out all-round strategic investment business and extensively participated in industry acquisitions and mergers.

    2007 was an important year for the Group to promote listing, integrate resources, and exert synergies. We will adjust the product structure and change the growth mode, promote product research and development and independent innovation, and optimize the distribution system and incentive mechanism in accordance with the requirements for sound and rapid economic and social development put forward by the central government. We will adhere to the policy of cultural unity, strategy unity, and system unity, and support subsidiaries (business units) to give full play to their advantages, adapt measures to local conditions, and more effectively implement the strategic decisions and system documents of the group headquarters.

    The current competitive environment continues to undergo profound and complex changes. The equipment manufacturing industry has been identified as a strategically important industry by the state, and support and encouragement policies have been introduced one after another; textile companies are facing low-cost expansion constraints and are in urgent need of industrial upgrading; foreign companies have successively set up factories in China to compete for the domestic market. Facing the domestic situation where opportunities and challenges coexist, we need to find new support in the competition, and sincerely establish a new competitive pattern of mutually beneficial cooperation and harmonious coexistence with enterprises from all over the world.

    Finally, from Hangzhou, I wish you all happiness and well-being in the new year!

    thank you all.