In particular the rapidly deteriorating economic environment which has persisted since September 2008, Zhejiang Hongda chemicals's operating environment continues to change significantly. However, as for projections by each segment, the major segments, which are the Optical Brightening Agent, only a slight decline in operating income.

Hongda Chemicals will continue to build a business structure for continued growth and implement the three basic policies to revamp its business structure; “Whitening world, honor to the country”, "Revamp to achieve a more efficient management style"; and "Develop strong businesses with strong products."

Creativity and development

As a company focused on creativity and development, Hongda Chemicals uses original technology from Europe and inventive ideas to provide the world with superior products. This approach, supported by continuous research and development, constitutes Hongda Chemicals’s operating base. Our corporate philosophy is "providing innovative products to the world and generating new trends to contribute to creation of an affluent society." Hongda Chemicals will continue its ongoing pursuit of innovation.

Environment
Another area in which we have made substantial progress has been on the environmental front. The implementation of the international standard ISO14001 as the basis for our environmental management system is proceeding apace, although progress has been slower than we expected.

Social Responsibility
From the beginning, Hongda Chemicals has been committed to supporting the communities in which our employees work and live. Social responsibility is serious work (and play) at Hongda Chemicals as we strive to better through ethical business practices, socially empowering technology applications, educational and environmental programs, and employee diversity and volunteerism.
By consistently fostering a community-oriented, philanthropic culture, Hongda Chemicals has been recognized again and again as a responsible, globally oriented corporate citizen. This will continue to be the backbone of our culture as we look forward to the next 20 years and beyond.

Other areas where we can and do have a substantial impact are those of procurement, training and development, employment equity and diversification of our employee base, and local economic and social development through our extensive programmes.

We are very thankful to our customers, our vendors, our employees and our well wishers for their continued support and guidance in making us to work for.