With our vertically integrated business that combines our shoe sole production process with our shoe manufacturing process, we are able to lower production costs, ensure that the quality of our products is consistently in accordance with our stringent quality control standards and also to reduce the lead time for the development and production of our shoe products.

• We have positioned ourselves in the sports shoe industry in particular the outdoor shoe market.
• As most of the players in the outdoor shoe market are predominantly international brands and are priced at a premium, we are able to compete effectively due to our relatively lower price structure.

• We have successfully built up the "Addnice" brand as a manufacturer of quality sports and leisure shoes, apparels and accessories in the PRC.
• We have received various awards and affirmation in respect of our "Addnice" brand, such as PRC Famous Trademark, Fujian Famous Brand Product and Quanzhou City Well-known Trademark, which demonstrates the strong public recognition and acceptance we have gained for our products.

• We have adopted a strategy of maximizing our exposure in a variety of media, such as television advertisements through central and local television stations from time to time, billboards in commercial districts, giant poster displays on exteriors of shopping malls and other media.
• Between March 2006 and February 2008, our Group signed Miao Lijie, a captain of the PRC female basketball team and a player in the WNBA as spokesperson for our "Addnice" brand and between April 2007 and March 2009, we signed Jason Kapono, a NBA player from the Toronto Raptors and back-to-back winner of the Foot Locker Three-Point Shootout for 2007 and 2008 to endorse our "Addnice" brand.

• Our products under "Addnice" brand are distributed across 20 provinces, municipalities and autonomous regions within the PRC through an extensive sales network.
• We have appointed 29 authorised regional distributors and 43 direct retailers to distribute our "Addnice" products. Our "Addnice" products are sold via 954 "Addnice" specialty stores and 464 retail stores totaling 1,418 point of sales.

• We are able to control the quality of our products from the production development stage to the manufacture of our sports and leisure shoe products and shoe soles products.
• We were accredited with the internationally recognised ISO 9001:2000 certification for Addnice Sports in 2004 which was subsequently renewed in 2008. In 2006, Addnice Sports was awarded the Certificate for Product Exemption from Quality Surveillance Inspection for our products sold under the "Addnice" brand.

• Our product development personnel monitors market trends in the PRC and keeps abreast with the latest international fashion trends from various sources such as industry journals, magazines and internet websites.
• Our product development department successfully design and produces approximately 50 to 60 new shoe products and approximately 40 to 50 new shoe sole products each year which are introduced for our spring/summer and autumn/winter season line up.
• Strong production capabilities
  Our Group has the capability to produce our shoe soles via injection moulding process and foam moulding process. Our foam moulding process produces MD midsoles which have greater elasticity. In the PRC, not many of our competitors are able to produce shoe soles utilizing the foam moulding process.

• Our Executive Chairman and CEO, Mr Wu Qingquan, has over 20 years of experience in the shoe industry and he has played a pivotal role in the growth and development of our Group.
• Mr Wu Qingquan is ably supported by our senior management team, whom are experienced in sales and marketing, manufacturing, quality control and financial management.

Our strategic location gives us easy access to labour and suppliers of raw materials which, in turn, allows us to lower our production costs and obtain timely delivery of our raw materials.

• We have established good working relationships with our OEM customers, many of which are owners or manufacturers or export distributors for established sports brands including PRC brands such as Xtep, China Peak, 361^o and Qiaodan and international brands such as FILA, J'Hayber, Bulldozer, Spalding, Eksis, Prince and Lotto.
• Our Group has also established a strong working relationship with our customers who are regional distributors of our "Addnice" products in the PRC.