Nov. 20, 2003, Hengyuan Company established a new factory in Jiangsu Province which produces raw materials of
mineral desiccant. At present, it’s output is up to 300 tons every month.

Sept. 2, 2003. Mr. SanBen, representative of Japan company (WuTian) visited our company. He signed a contract with us. WuTian company is expected to be our third Japanese customer soon.

Aug. 25, 2003, fiber desiccant sheet, specially developed for Acon Biotechnology (Hangzhou) Co., ltd. was passed all the test in Acon’s newly-developed bio-kits. Hengyuan has formally become one of Acon’s appointed suppliers for supported desiccant products of its bio-kits.

Aug. 15, 2003. Depending on hardworking, our technicians successfully designed new manufacturing technique, lowering production cost. Currently, the price of our fiber desiccant is almost similar with that of silica gel. The Zhuhai Livzon Bio-material Co., Ltd., Shanghai Shenrui Medical Bio-material Co., Ltd., and Shanghai Huaguan Biochip Co., Ltd. etc. have adopted our products in their hCG pregnancy strips.

Aug. 1, 2003, Due to excellent performance of Hengyuan Fiber desiccant, Shanghai Huaguan Biochip Co., Ltd. took the lead in using Hengyuan Fiber desiccant in its newly-developed HCV strip.

Jun 20, 2003, For Bio-kits, our company specially developed rapid bibulous paper(E04) whose performance overpassed that of imported one. And it can substitute glass fiber. The first batch exported to Canada was laded yesterday after the sample of bibulous paper was confirmed by foreign companies.