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* extracted from the Annual Report 2007

Established in Linyi City, Shandong Province, the PRC, China Paper Holdings Limited ("China Paper" or "The Group") has a vertically integrated paper manufacturing operation equipped with in-house production facilities for the manufacture of wheat pulp, paper products and paper chemical products. The Group's core business is in the manufacture and distribution of mixed-pulp based paper products made from a mixture of wood pulp and wheat pulp. Its close proximity to an abundance of wheat straw farms in Shandong Province ensures ready access to good quality wheat straw, which in turn boosts cost, logistical and operational efficiencies.

The Group's products are sold to over 320 customers comprising publishing houses, printing companies and other paper distributors throughout the PRC. It has an extensive sales and marketing network in regions with high paper consumption like Beijing, Shanghai, Jiangsu and Zhejiang. Its range of paper products, includes uncoated printing paper, lightweight packing paper, newsprint paper and semi-finished toilet paper.China Paper also sells paper chemical products such as sodium hydroxide and liquid chlorine.

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