We are subject to various PRC national and local environmental laws and regulations related to our operations. We believe that it is important and essential to protect the environment. For this reason, we have in place environmental protection policies for discharge of all of our wastes generated during our production process.

We have obtained the pollutant emission permit for waste water and gas and ensured all waste water and gas generated during our production process is safely handled according to national safety standards before external discharge. The operation of our machines also generated noise which is within acceptable regulatory standards.

During the two years period in 2015 and 2016, we have commissioned a third party waste disposal company to handle/dispose of certain toxic liquid and solid waste (such as emulsion and mineral oils), which, under PRC laws and regulations, are required to be handled by a waste disposal specialist.