Growth Strategy

China was accepted into the World Trade Organization (WTO) in November 2001, creating a liberalized, transparent and more predictable trading environment. Consequently, an efficient and effective logistics sector is one of the most crucial factors for China to improve its overall economic productivity and improve trade in the region and with the rest of the world. Grand Power Logistics Group Inc.(Grand Power) and its subsidiaries recognized the tremendous opportunities that this liberalization created for the logistics sector. The company has successfully demonstrated its ability to capitalize on these opportunities and will continue to expand its logistics services in China and North America. Grand Power will continue to evaluate potential investments in downstream services such as cargo-handling facilities and logistics centers. Through its established presence in Asia and with its worldwide network, Grand Power can be more responsive to local customer needs, and link with important markets across North America and Europe. Grand Power will also enhance its other value-added services to meet existing and future customers' needs including warehousing, sorting, distribution and total logistics solutions. As well, Grand Power and its subsidiaries will continue to acquire and retain high-calibre management and employees to deliver its services in a professional manner with high standards of quality assurance.

Growth Strategy Highlights

•	Expanding the core airfreight business.
•	Expanding network in China.
•	Expanding into higher margin businesses.

In 2007, The Company achieved its planned revenue growth, reached targeted critical mass in the airfreight wholesale co-loading area, and continued to establish its foothold in China.

In 2008, the Company plans to further its strategy of establishing a national logistics network in China.

In 2009, Grand Power has adjusted its business strategy from rapidly expanding the China market (revenue growth) to consolidating resources and focusing on earnings. The Company is well positioned and ready to capitalize on industry opportunities.

Recent Development

•	Expanded its reach into key European markets through a joint venture agreement with European Cargo Service (ECS), one of Europe's largest air cargo companies.
•	Signed an operating agreement with Beijing Jinfeng Air Service Co. Ltd. (BJAS) to set up a joint venture in Beijing operating cargo logistics and transportation in Northern China.
•	Set up Grand Power Logistics Development Ltd as a platform for logistic projects in China.