We are principally engaged in the design, manufacture and sale of paper cigarette packages and to a lesser extent, other social product paper packages, in the PRC. Our principal operating subsidiary, Hubei Golden Three Gorges, has been established in the PRC for over two decades. Our history can be traced back to 2001 when our Controlling Shareholder, Chairman and Executive Director, Mr. Yang, beneficially acquired a controlling stake in Hubei Golden Three Gorges. We have accumulated over 20 years of experience in the industry and established strong business relationships with our major customers.

According to the Euromonitor Report, our Group had a national market share of approximately 1.5% in 2013.

We manufacture various types of paper cigarette packages for our customers, which can be broadly divided into (i) hard and soft cigarette packets; (ii) cigarette cartons; and (iii) gift sets designed to pack and carry various sets of cigarette packets. All of the sales of our paper cigarette packages are made to customers in the PRC.

During the Track Record Period, we manufactured paper cigarette packages for ten Provincial Tobacco Industrial Companies and five non-provincial companies from the China Tobacco Industry Development Center. For the years ended 31 December 2011, 2012 and 2013, sales from these 15 customers accounted for approximately 92.8%, 82.0% and 91.8% of our total revenue from the Continuing Operations respectively. Our Group supplied paper cigarette packages for 15 of the 30 Key Cigarette Brands designated by the State Tobacco Monopoly Administration of the PRC (STMA), including Pride (娇子), Haomao (好猫), Yunyan (云烟) and Yuxi (玉溪).

In addition to paper cigarette packages, leveraging on our expertise in paper cigarette packages, we also commenced production of paper packages for drugs and medicines, liquor and alcoholic beverages, food and other social products in 2005. During the Track Record Period, our major customers of these social products included major brands such as Jing Brand (劲牌). We design and produce color boxes, labels, gift sets and paper bags for our customers in different industries according to their specific product image design and package requirements.