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FUTURE STRATEGY

The Group has three main elements to its future strategy:

Existing facilities

At present, LVST operates from a site in LinYi City. The existing facility has an area of approximately 47,400 m². and has two production lines which are currently operating at their full design capacities. In order for LVST to be better positioned to service future anticipated growth in demand for its products, LVST plans to expand its facility with the addition of two more production lines which would double the existing capacity. A major international food manufacturer has already expressed an interest in purchasing the entire output from one of the proposed new production lines.

New facilities

Key to driving the Company’s growth is the addition of two new production lines in Ulanqab city, Inner Mongolia. The new facility will increase the Company’s capacity from 7,500 to 15,000 tonnes per annum, with the addition of these two new lines. Construction is on schedule with full production expected to commence in summer 2012.

Increase marketing activities

Currently the Board believes that sales of products are limited by production capacity. Anticipating the increase in production capacity, the Board plans to enhance its effort in the area of distribution. With strong growth potential in both domestic and international market, it is proposed that the sales team focus on developing new markets while strengthening the relationship with the existing customers.

Acquisition opportunities

Whilst the Board believes that there are substantial opportunities for organic growth through increased production, they will also consider suitable acquisition opportunities as they arise.

Last updated 02 Nov 2011