In 2003, Kasen entered into the production of automotive leather and has made remarkable progress:

—We are the first manufacturer in China capable of manufacturing chrome free automotive leather.

—We received ISO9001:2000 certification in 2002 and we were the first company in China to receive     ISO/TS 16949:2002 certification in 2004. We have also received ISO/IEC17025 and UKAS certifications     for laboratory testing.

—We have built up a facility with annual capacity of 30 million SQF of automotive leather and we expect     our capacity to reach 80 million SQF by the end of 2008.

—Our products have qualified for the use by a number of leading international automobile manufacturers     including General Motors, Volkswagen, Ford and Mazda.

Our customers are suppliers to international automobile manufacturers. For the domestic market in China, we sell our automotive leather products directly to our customers. For overseas markets, we promote our products through a network of overseas sales agents.

We stress the importance of a customer-oriented approach and provide technical support, including testing, product design, quality improvement etc. We design and produce tailor-made automotive leather products based on the requirements of our customers in terms of style, texture and quality and we provide our customers with high quality after-market services. We actively carry out promotional activities for newly developed products and provide technical consultation services to our customers. As part of our sales and marketing strategy, we also station our marketing representatives in the factories of some of our domestic customers to help them resolve any product issues that might arise and to generally help us establish closer relationships with those customers.