The first is the company shall continue to sharpen vision, and take up the historical obligation of revitalizing the textile industry. Hiking Textiles Company was founded by restructuring of Hiking Group Shandong Welltrade International Trade Co., Ltd, Shandongtex Genfont Co., Ltd. and the textile business of Shandong Gaintex Co., Ltd,. --- The predecessor of these three companies, Shandong Textiles I & E Corp. was founded in 1951, is one of the earliest foreign trade companies engaging in textile import and export trade, with a highest yearly import and export volume of $ 500,000,000. Among foreign trade companies in Shandong province and textile companies nationwide, the company’s import and export scale is in a leading position, having much clout in Shandong province and a glorious history. However, due to its long-term ignorance of cost, one-sided emphasis on export volume, advocate of scale and neglecting of efficiency, as well as extensive management practices, the corporate got into a scrape and suffered serious loss during the transition from planned economy to a market economy. After the restructuring, the Group has provided a stable environment for the company’s operation. Zhang hoped everyone can always keep in mind our historical mission to revitalize textile sector of the Group and attain even grater accomplishment.

　　The second is to increase industrial integration effort, and actively promote innovation of trade patterns. At the mid-year work conference of the Group in July 2009, the Group proposed to speed up trade patterns innovation, implement supply chain management. In July 2010, the Group integrated Hiking Group Shandong Welltrade International Trade Co., Ltd, Shandongtex Genfont Co., Ltd. and the textile business of Shandong Gaintex Co., Ltd,. Under the leadership of general manager Wang Xiaomiao, the executives team made great efforts and achieved initial results. The company saw a sound business development, staff stability, and smooth operation of new business models, which has made the Group and the staffs of the company more confident about the future development.

　　Thirdly, Hiking Textiles Company is currently facing two major development opportunities. The first is to bring the integrated advantages into full play: such as the effective reduction of the internal management costs and expenses; further enhanced attractiveness to suppliers; further expansion of business in overseas markets through foreign sales agents; as well as the new advantages in research and development.

　　The second opportunity is to extend the industrial chain and implement the forward integration strategy. At present, we face a series of difficulties in business operation, the ones who can overcome these difficulties, will get the development opportunities. Opportunity means to solve the problems others cannot resolve, it is just like when people across a river. Suppose there is a lot of wealth on the other side of the river, but nobody can cross the river, under this circumstance, if we have a way to cross, then we can gain the opportunity. If we can solve the cost problem by extending our industrial chain, then we get an extraordinary opportunity for great development. Mr. Zhang hoped that all colleagues in the company can embrace new challenges positively and make the greatest contribution to revitalize the Group’s textile sector with a brand-new field of vision and high spirit.