FUFENG results

During the year, driven by the increased sales volume of major products, the Group's turnover increased to RMB2,445.7 million, representing an increase of 37% compared to 2006. However, with the decrease in the average selling prices (ASP) of the Group's major products and the increase in the cost of raw materials, especially corn kernel, the Group's gross profit dropped to RMB249.7 million. The increase in transportation, administrative expenses also further lowered the Group's profitability. Fufeng recorded a profit attributable to shareholders for 2007 of approximately RMB 45.1 million. Its earnings per share for 2007 amounted to RMB 2.8 cents.