December 15, 2010

To our stakeholders, company employees, supply chains, and customers:

I am pleased to confirm that Jixi Jinyuan Farm reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Wang, Zhen

President and CEO

We continue to support the Universal Declaration of Human Rights and labor rights within our company human resources management.
Our company policy in the area of human rights mainly include: providing the safe working environment, no child labor allowed, promoting the equal employment rights without discrimination to the sex, marriage, age or disability. We strongly believe that every worker shall be treated with dignity and promote the career growth for each employee. We have a open policy that employees are welcome to report any human rights violation to the human resources manager.

In the next year, our goals toward human rights are to communicate to our suppliers that our strong belief in these principles and encourage them to follow. Within our company efforts, we hope to set up the workers management system to ensure that both the management level and the employees/workers understand clearly the specific steps toward the fair equal human rights and labor rights.

We have the complaint box and hotine in the human resources office. During the regular senior managers ings, the President communicates to the managers that supporting the general human rights and labor rights is the first priority in executing the company business. We clearly understand that it's human being the core of the business, the core of the company success.

When there is the violation of human rights within the company, we initially conduct the investigation by interviewing each person involved in the case. The senior management makes sure that an equal treatment to each person involved is ensured. Sometimes due to the competitive performance by the employees, we make sure that the management level sees the whole picture and be fair in his judgment. We do not currently have a metric standard to evaluate the performance. We may need the professional assistance to guide the setup of the measureable performance standards.

We support the freedom of association and collective bargaining and the elimination of forced labour, child labour and employment discrimination. We also support the employment growth program to ensure that the employees have the opportunity to improve their professional development by paying for the training.

We currently try to improve the employment salary / wage structures to make sure that each employee receives his reward fairly not only by his/her academic degrees but also by his actual work experience/performance.

Being an agricultural growers and the food marketing company, we ensure that the health and safety of all workers is ensured. We provide the medical insurance and sick leave and sick pay, and maternity days and pay. Our work pay is comparable for other company pay schedule annd local/national pay schedule.

The company labor or human resources policy is evaluated once a year to make sure that the company follows the labor regulations. We currently do not experience any labor right violations.

As an agricultural cmpany, we focus on organic growing method. Therefore, reducing the negative impact to the air, water and soil and the community as a whole is our top priority. We do not use the chemical fertilizers, we grow the crops once a year to make sure that the soil has the time to regain its nutrients and productivity. We put equal emphasis on the people and the environment so that the organic farming may become a sustainable economic model. Our goal for the future is to promote the use of the biodegradable packaging materials to reduce the use of plastics in the end-market products.

Biodiversity is our area to focus on in the future. The organic farming in some ways does not meet the market efficient production standards, but in the long run, the organic farming shall benefit the human health and the natural environment. Improving the soil fertility, reducing waste materials and using the biofuel energy are the future goals.

Our company has the following two ways to ensure the environmental compliance: the local government evaluates the company compliance to the environmental performance, and the international organic farming certification organization. We are certified by Japan, USA, China as the organic products and the organic agricultural standards.

We support the zero-tolerance anti-corruption, bribery and extortion. We understand that the business itself must be fair to all parties involved, based on equal market competition.

During the annual employee meetings, we raise the awareness of employees about the company's policies regarding anti-corruption and extortion. Responsibility for anti-corruption monitoring within the company is held by the president.

So far no incidents of corruption occuered within the company.