Dacheng Sugar Holdings Limited (the “Company”) and its subsidiaries (collectively, the “Group”) are mainly engaged in R&D, production and sales of various corn refining products and corn sweeteners. These products are divided into upstream and downstream products. The Group's upstream products include corn starch, protein powder, corn oil and corn refining products. Corn starch is refined downstream to produce a variety of corn sweeteners. These corn sweeteners are divided into two categories: corn syrup (glucose syrup, maltose syrup, and high fructose syrup) and solid corn syrup (crystallized glucose and maltodextrin). In terms of production capacity and production, the Group is one of the largest producers of corn sweeteners in China. The annual corn processing capacity is 1.5 million metric tons, while the comprehensive annual production capacity of corn sweeteners has reached 1.36 million metric tons. Customers come from all walks of life, including food and beverages, confectionery, daily necessities, fermentation industries, chemical products, cosmetics and pharmaceuticals. With the development and growth of the Group, demand for corn as a raw material in the production process is increasing. In 2011, the Group carried out corn procurement and logistics in various corn producing regions to ensure adequate supply of raw materials and further reduce corn procurement costs. The Group's subsidiaries are located in Changchun, Shanghai, Jinzhou, Dalian, etc., and use multiple advantages such as raw material production, transportation, and customers to continuously consolidate and develop domestic and foreign markets with high-quality and stable products.
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