A BRIEF INTRODUCTION OF THE COMPANY
1、Baiyu Group
   Baiyu Group was founded in 1991. It is a privately owned enterprise in paper manufacture and Magnesium production. The group company has one paper mills of large scale, one Magnesium plant, one Import ﹠ Export trading company and one product research & development center both in Xi'an. The net asset of the company is RMB.24850 millions. The company has more than 2300 staff members. The annual sales volume is RMB.700 million. The tax generated is RMB.65 million. On a yearly basis, Baiyu Magnesium produces 25,000Mt good quality Magnesium metal, and Baiyu Paper produces 25,000Mt culture paper and offset printing paper.
　2、Shanxi Wenxi Baiyu Magnesium Co.,Ltd
　 Shanxi Wenxi Magnesium Co., Ltd. (referred to in the following as Magnesium Co.)was set up in Apr.2000 at the full investment of Shanxi Baiyu Group.
　Magnesium Co. acquired the certification for Import and Export enterprises of P.R.C.in Sept.2001 so as to get the Import ﹠ Export right on its own; it obtained the title of Standing Council Member of the 1st Council of China Nonferrous Metals Industry Association Magnesium Branch; it was elected Deputy Director of the 2nd Council; it is a member of International Magnesium Association. The company passed ISO9001 Quality Control System certification in Dec.2002;it passed ISO1400 Environmental Control System certification in Apr.2003;it was conferred Company of Qualified Quality by the city of Yuncheng; it was rated AAA credit enterprise in year 2002 and 2003 by China Agricultural Bank Shanxi Branch; it was appraised as the leading tax generator by Wenxi County in consecutive years.
　Based on the enterprise theory of comparing the enterprise to boat and the brand to sail and regarding the faith as soul and the people as base, Magnesium Co. holds to the development strategy from the product operation to the asset operation and then to the brand operation. Within the short three years plus, the company asset expanded so quickly on increasing accumulation. The Magnesium plant rebuilding and expansion project started in Apr.2003 at the investment of RMB.45 million for designed capacity of 20,000Mts.The first phase of 20furnaces were completed and lit for production on Oct.2003.Magnesium Co. has reached an annual capacity of 25,000Mt Magnesium metal, sales volume of RMB.400 million, contribution to the foreign currency by export of USD40 million, tax generation of RMB.40 million, Magnesium anode alloy can reach 5000Mts. The company staff has been increased to 1800 people.
　The company is enhancing internal quality and establishing outside image. The main measure of the company is on “excellent quality, high efficiency, low waste and security”. It has always been setting up the concept of “quality is the life of the brand and the soul of the brand”. Based on the Baiyu brand consciousness, the Baiyu brand Magnesium metal has been widely accepted not only domestically but also in the markets as far as in Korea, Germany, France, Norway, Canada, and U.S.A., for Baiyu’s excellent quality, satisfactory service and good reputation.
　3、 Hunan Baiyu Paper Co.,Ltd
　Hunan Baiyu Paper Co., Ltd. is a large-scale manufacturer subordinated to Baiyu Group, producing middle class and top class culture paper. The mills are located at the main street end in West Lake County, with the scenic Langba River on the south side, adjoining with the Dingcheng District of the historic city Changde. They are in geographic advantages and the beautiful environment of nature. The mills are 70km away from the downtown area, sitting at the main drag of the traffic in both ancient and modern time. Road wise, there are direct roads to Changde, Hanshou, and Changsha; water wise, there stands Liulinzui, a pier with annual throughput of 200,000Mts.
　After the successive investment in expansion by the group company, the paper mills now have totally 8 paper machines of Type 1760, 1575, 1092, with the annual capacity of 25,000Mts.The main products are double offset paper, writing paper, newspaper and MG paper. According to the company development plan, by the end of nest year, the annul capacity shall reach 50,000Mts with the coming up of photocopy paper, news paper, coated paper, sanitary paper, and one-side photocopy paper.
　Since long ago, Baiyu Paper has always been insisting on the operation theory of being oriented by the market, living on the quality, and rooting on honesty and faith, and has won trust from many customers by the flexibility in operation. Under the strong support from the customers, Hunan Paper Co. has now primarily realized the brand operation of the products and developed the knock-out products of the company; 1760 long web 55g double offset paper, characterized with bigness and high brightness. The other paper products are going to provinces such as Fujian, Jiangxi, Hubei, Sichuan, etc. for the fitness to the market. The sales network has primarily taken shape.
　In perspective, Hunan Baiyu Paper Co., Ltd. will continue to hold onto the enterprise spirit of comparing the enterprise to boat and brand to sail and regarding the faith as soul and people as base, with hopes to widely exchange and cooperate with friends from all walks and build together a brilliant future.
　4、 Shaanxi Baiyu Science & Technology Co., Ltd
　Shaanxi Baiyu Science & Technology Co., Ltd is subordinated to Baiyu Group. And it is a member of the International Magnesium Association (IMA). It primarily deals with international trades, sales magnesium alloys, magnesium ingots, ferrous metals and nonferrous metals. Based on the enterprise theory of comparing the enterprise to boat and the brand to sail and regarding the faith as soul and the people as base, Shaanxi Baiyu Science & Technology Co., Ltd has built a good image and reputation among its clients and the sales volume has reached over USD30 million.