Rongfeng United Holdings Co., Ltd. (the Group) is mainly engaged in the leasing business of its own ships. Of the four ships registered under the Group's name, two Panama-type dry bulk carriers and one Cape of Good Hope dry bulk carrier, named GH FORTUNE, GH POWER and GH RESOURCES respectively, have a total capacity of about 275,138 dw tons owned by the Group and are not subject to any financial leasing arrangement. The remaining Panama-type dry bulk carriers of the Group, namely GREAT HARVEST (carrying capacity of about 68,192 DWT), are expected to be leased to an independent third party in 2013/12 Buyers. The Group provides customers with global shipping services by chartering ships for dry bulk transportation. The Group is headquartered in Hong Kong, and all ships in the fleet are registered and fly the Hong Kong flag in accordance with Hong Kong law. All of the Group's vessels are leased on a fixed-term lease. According to the Group's fixed-term lease agreement, the Group's ships will be leased to the lessee for the period specified in the contract. During this period, the Group is generally required to provide and pay for all crew and ship insurance, repair and maintenance costs. The lessee must bear the costs directly related to the voyage, such as bunker costs for the charterer's business (unless otherwise agreed), port fees, pilotage fees and other daily expenses. The Group's success depends on the following key competitive advantages: Experienced management team and excellent track record A younger fleet to meet customer needs High maintenance standards, providing a safe and reliable fleet
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