(Wholly-owned Subsidiary of World Houseware (Holdings) Limited Listed on the Main Board of Hong Kong Exchange and Clearing Limited)

Principally operating the environmental protection business and the household products business, South China Reborn Resources (Zhongshan) Company Limited (the “Company”) is among the first batch of enterprises honored with the title of “Clean Production Company". It has been certified to the ISO9001:2008 Quality Management System and the ISO14001:2004 Environmental Management System, and has won laurels issued by governments and environmental groups, and obtained dozens of invention patents and utility model patents both in China and Overseas.

Located in Zhongshan, Pearl River Delta, Guangdong Province, the Company was established on 27 June 2004 with approval of Zi Ding [2004] No. 511 Document issued by Zhongshan Bureau of Foreign Trade & Economic Cooperation. With more than US$ 10 million of registered capital, it was officially put into operation in 2006.

The Company has a business focus on the reutilization of residual resources from both solid and liquid wastes and fully supported with a research and development (R&D) center, under which there are a 9,000 m2 production base for energy fiber and regenerated fiber, a 6,000 m2 R&D department for the production of plastics and the resource recovery from waste plastics, and a 1,000 m2 optimization R&D center for PP plates, PEVA films, and plastic pipes for industrial and household use. The finished products are characterized by superior quality, including plastic tablecloths, plastic shower curtains, plastic forming accessories, plastic masterbatch manufacturing, far-infrared plastic products and negative ions plastic products, of which 70% are exported to the world-famous supermarkets and department stores in Europe and the United States.

The Company also has a 10,000 m2 waste reutilization production base for treatment of solid and liquid wastes, waste plastics and sludge, and a sewage treatment plant for the reduction of sludge without chemical additives, which converts sludge into hybrid charge absorbent and treating about 300 tons of sewage per day, thus realizing waste reduction through resource reutilization, and moving towards “Zero Waste”.

In 2010, a fully automatic computerized production line has been installed in its plant in Zhongshan by integrating the company’s several technology inventions and equipment for the conversion of food wastes into various high protein content raw feed material for livestock and aquatic products, as well as into various feeds. The quality of the feed has reached the acceptable standard through multiple times of improvement, optimization and trial production. The Company has also entrusted a global leading testing, inspection and certification group to establish a product quality inspection center in the plant to inspect the production and quality. The purpose is to ensure that the products are high-quality high protein content raw feed material for livestock and aquatic products, as well as various high-quality feeds for supply on the PRC market, Hong Kong market and the world market.

In 2012, the Company bidded for renting a lot located in the Tuen Mun EcoPark in Hong Kong for the conversion of food waste into feed, which has already been approved by the Environmental Protection Department of the Hong Kong SAR Government. The main building of the plant is now under construction with relevant equipment being added, and is expected to be completed and start operation in the first quarter of 2014.

The Company's Environmental Protection Development and Research Center has an expert team consisting of a number of experts included in the national expert bank, doctors, professional scholars, senior engineers and engineers who are holding posts in the Company, enabling the Company to constantly upgrade its production and operation on the basis of its traditional core products. The Company has put more than US$20 million of scientific and technological research funds since its establishment and is still continuing to keep investing. The main R&D direction is the recycling of solid and liquid wastes. The complete set of sophisticated equipment that has been installed properly include the equipment for: (a) recycling domestic and industrial sewage; (b) conducting environmental-protection disposal of transforming sludge into liquid, gaseous and solid fuel; (c) transforming waste plastics and tires into Guobiao III vehicle fuel and gas; (d) manufacturing sludge into hybrid charge absorbent; (e) manufacturing sludge into industrial coal with a calorific value of 4,300-5,500 kcal; (f) rapidly transforming sludge into high-nutrient organic fertilizer and diluted fertilizer, and the Company has also developed (g) a complete set of high-tech advanced equipment controlled through computer, which transforms food wastes into high-nutrient protein feed additives for livestock and aquatic products, as well as into various feeds; (h) the boiler's stack device for low-temperature cleaning and discharge at 38℃; and (i) manufacturing permanent releasing anion, far-infrared energy masterbatch and derivatives, etc. Some of the equipment and products mentioned above have acquired international invention patents.

With a floor area of around 146,000 m2, the Company has well-improved, optimized, comfortable and tidy staff dormitories and large-scale staff' dining hall, and a landscape greening rate of more than 55% within the plant. To improve staff's health and enhance their vitality, it has also built two recreation gardens, a football field, a standard basketball field, a badminton court, a reading room, a table tennis room, etc.