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HeFei Paragon Plastic Packaging Co., Ltd.

HEFEI PARAGON PLASTIC PACKAGING Co. Ltd

Year 2015 Review
Despite a challenging year with slower global economic growth, intensifying geopolitical instability, and high currency and commodity volatility, but HPPP results remain profitable in volatile markets.

These results further demonstrate the progress we have made in transforming HPPP into a more resilient company, capable of consistently delivering competitive, margin expansion and strong cash flow.

Mission
HPPP target to expand current customer base to bring in more revenue and to diversify business into food and automotive industries which HPPP believe will have a better prospect in growing future.

In order to prepare for the change and diversity HPPP need to spend considerable time in developing a strong internal talent pipeline to prepare for the challenging market.

Achievement
Our objective are energy saving, throughout the year HPPP has maintained output production volume, with product structure change and difference customers contribution weightage, HPPP still manage to maintain and reduced the energy usage.

For year 2015, HPPP has achieved the "Understanding Responsible Sourcing Audit" (URSA) includes assessment of the facility's practices in Labor Standards, Health & Safety, Human Rights, Business Integrity, Environmental Management, and Land Tenure Rights. This was assessed in alignment with SMETA best practice guidance version 4.0 and the Customer's Responsible Sourcing Policy requirements.

Challenges
In November, Hefei minimum wages has increased 20.6% which caused extra burden to HPPP operation cost directly. In coming 2016, HPPP main goal is to strategizes labor loading, improve productivity & efficiency also to automate and simplify process for more cost saving.

Year 2016 are set against the context of challenging market conditions and fragile consumer demand. Many emerging markets continued to be weak, particularly those dependent on oil and other commodity exports and those where currency devaluation is pushing up the cost of living.

Finally, we appreciate our shareholders for their continuous support to HPPP. We will drive agility and cost discipline across our business and preparing ourselves for tougher market conditions and high volatility in 2016.