Feng Kwong Yuen Chairman of the Board of directors Heshan Astros Printing Ltd.

1. On Building Excellent Corporate Culture and Enhancing Harmony for Development June, 2007．Beijing Feng Kwong Yuen Chairman of the Board of directors Heshan Astros Printing Ltd.

2. 1 Ⅰ. Why is an excellent corporate culture essential? Numerous practices of enterprises have proved and will prove that there exists an important and mutually-beneficial relationship between the corporate culture and the profit. In the development of an enterprise, the corporateculture plays a guiding role in consolidating employees, enhancing the commitment to the organization and satisfaction, encouraging employees’ willingness to work , and constraining and guiding the behavior of employees. In a word, an excellent corporate culture is the core competing force for an enterprise to maintain sustainable growth.

3. 2 Ⅱ. Current situations of corporate culture development in China’s printing industry The development of corporate culture of China’s enterprises lags behind, and this , to a large extent, prevents them from growing strong and excellent. The printing industry, a traditional processing entity, is particularly weaker in corporate culture building. Many printing enterprises are more willing to devote themselves to technology, management and marketing, thus ignoring the development and promotion of corporate culture.

4. Leo has realized that in the new century only corporate culture can gain us new competitiveness and power for long-term and rapid growth because of the increasing globalization of the world economy and narrowing of technology and production between enterprises in the new century. In the wake of such crisis, we established this guideline of strengthening the building of corporate culture. 3 Ⅲ. Leo’s Culture After years of efforts, Leo has set up a cultural system with our characteristics, which can be carried out in our enterprise. It covers three levels—spirit, system, and material. This culture provides the company support intellectually and spiritually.

5. Leo’s Value System －Spirit level 4 1. Vision Astros(Beijing)Printing & packaging company limited Beijing Leo-Cultural Relics Printing Co. Ltd. We endeavor to become the world leader in printing communications industry！ Jiangxi Hua Ao Printing Company Limited Leo Creative (Shanghai) Trading Company Ltd. Shanghai Tophand Business Printing Co.Ltd Heshan Leo Packaging & Printing Ltd. Leo Group in China Leo Paper Group Heshan Astros Printing Ltd

6. Leo’s Value System －Spirit level 4 4 Leo the U.K. office Leo New York office Leo Paper Group in the World Leo U.S.A. office Leo Europe office 辦事處 HK headquarters

7. Leo’s Value System －Spirit level 5 2. Mission ①Provide solutions and service above customer’s expectations ②Aspire to the best quality in a ll areas including the operation and supply chains. ③Take the social responsibility as of an enterprise ④Create open and fair working environment ⑤Use wisely and import advanced technology

8. Leo’s Value System －Spirit level 6 3. Value Quality－best service, always the best People－respect people Morality－obey laws and disciplines, be honest and fair Community－serve the community Environment－save resources and cherish environment Human relations－harmony and mutual benefit

9. Leo’s Value System －Spirit level 7 4. Management belief Fundamentals—people Best way—strategies Root—quality Goal—final results

10. Leo Group Ltd. has always been endeavoring to make use of the best strategies in operation. Our advances so far are not only because we stick to the spirit of seeking the best and providing services above customer’s expectations, but because we have set up an overall management system and used effective management tools, and these guarantee our enterprises can operate in an efficient and risk-manageable way. System Level—Leo’s management system and tools 8 Heshan Astros Printing Ltd.

11. System Level—Leo’s management system and tools 9 ISO9001:2000 ISO14001 International qualitymanagement system International environmentmanagement system OHSAS18001 ISO10012 Measurement management system Work place safety and health management system ISO27001 Bar code printing management system Information security management system

12. System Level—Leo’s management system and tools 9 LBEM Balanced scorecard management system Leo Excellent management system Six Sigma C－TPAT FSC-COC Forest Stewardship Council-Chain of Custody Certificates ICTI International council of toy industries

13. Material Level-A tour of Leo Yatushi’s corporate culture 10 1. Promotion of corporate culture Company newspaper：Leo Yatushi Leo Radio Broadcast

14. Material Level-A tour of Leo Yatushi’s corporate culture 11 2. Sports and recreation activities Every year Yatushi conducts various sports and recreation activities to enrich the spiritual life of the employees, such as Cultural Festival, Leo Sports Meet, and Christmas Party.

15. Material Level-A tour of Leo Yatushi’s corporate culture 12 3. Charity events One of the most important management values is to repay the society. Yatushi is proud of being a responsible citizen. While developing the enterprise, Yatushi keeps close contacts with the society, including creating jobs, supporting charity events and protecting the environment. Charity activity involving ten thousand people Tablet of Love Care for the old

16. Material Level-A tour of Leo Yatushi’s corporate culture 13 4. Honest and lay-abiding Yatushi obeys laws and regulations set by government bodies of labor, customs, business administration, tax, security, and press and publishing, and performs duties for enterprises, and operate honestly.

17. Material Level-A tour of Leo Yatushi’s corporate culture 14 5.Construction of CPC, the union and CPY Yatushi set up the union, a CPC and CPY branch for the purpose of fast development and better serving the society. Other steps include training young workers, helping students and the poor. We established a mutual fund for workers and a volunteer group. Joining the CPC Volunteers planting trees

18. Material Level-A tour of Leo Yatushi’s corporate culture 15 6. Improving living conditions Every year Yatusi invests huge amount of money to improve the work and living conditions of employees. In the future three years, Yatushi will build a culture square, a community hall, a museum, a printing theme park and a Leo hotel.

19. 16 Ⅳ. What we have harvested by building corporate culture Established in 1991, Yatushi has developed from a small firm into one of the biggest printing companies in China and contributed tremendously to the local economy and social development. In recent years, Yatushi won several awards such as “Top 100 Star Enterprises Owned by Overseas Chinese”,“Honest Printing Enterprise of China”,“AAA Quality Enterprise of China” and“Civilized Organization of Guangdong Province”.

20. 16 Ⅳ. What we have harvested by building corporate culture We agree with this saying: a good enterprise must have its good culture. It’s hard to summarize Yatushi’s success, but culture is undoubtedly the limitless source of its sustainable development.

21. 17 Ⅳ.What we have harvested by building corporate culture • Our harvests are： • Culture is a production force, which serves as a stimulus to people’s initiative and creativity，thus increasing the efficiency of the enterprise。 • Culture helps establish a harmonious relationship between labor and the management. Yatushi won the title “Top 100 Enterprises with Harmonious Labor Relationship in Guangdong Province”. • 3. Cultural building adds value for the company in the brand, image, social fame, and credibility, thus brining more business opportunities. • 4. Cultural strengthening lets Yatushi realize that we must plan the every aspect of the development of our enterprise scientifically, thus keeping pace with the development of the whole nation and the time.

22. 19 Ⅴ. Culture construction: our understandings Below are what we have learned in the process of culture building. I hope they are useful for you. 1. Culture itself is neither bad nor good. The key point is whether it suits your enterprise. Culture building should be based on the true situations of an enterprise. Simple copying does not work at all.  2. Culture building is a long term and systematic job. A slogan, or a newspaper, or a party is no culture. Nor are the leaders’ haste decisions.

23. 20 Ⅴ.Culture construction: our understandings 3. Culture building is not like the reformation of a factory. In short terms, it is hard to see the results. So we must be far-sighted and sometimes sacrifice some short-term benefits for the long-term results. 4. Corporate culture building is not only the job of the managers or workers, but the job of every single individual. All should participate the work because in a sense, an individual is the mirror of the corporate culture. 5. Corporate culture can be changing. The change of the enterprise will inevitably affect the culture. So corporate culture builders have to inherit the best part of traditional cultures of an enterprise, and at the same time absorb new cultures, and combine them to create a newer one to meet the needs of the enterprise.

24. 21 Conclusion The printing industry is both a traditional processing industry and a cultural technology industry. I believe you prefer the concept of cultural technology because culture changes the world and technology changes life. Therefore, we, as a cultural technology enterprise, have no reason not to emphasize cultural building. Although the competition is becoming more severe, I believe so long as we conduct more exchanges and cooperation regardless of the location, size, strength of the enterprise, we will create more opportunities for the whole industry. Thank you！