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Re: DFLY post# 29

Wednesday, 05/12/2010 3:38:45 PM

Wednesday, May 12, 2010 3:38:45 PM

Post# of 55
Rebornne New Zealand Limited included three parts to its operation.

- It contract packs in New Zealand for its Infant Formula Milk Powder, and exports in retail packs to China.

- It owns a factory in Guangzhou, China, and purchases imported bulk milk powder, blend and packs it into retail packs and markets and distributes these products, together with the imported packs above, all under it’s own ‘Rebornne’ label, to the Chinese market. The main products are various types of baby food, but also include health and colostrum products.

- Rebornne owns 60% of a factory in Shandong, China, with the remaining shares held by a Chinese Government owned conglomerate. This factory packs retail packs of liquid milk, and baby water (for mixing with Infant Formula). It has formulated an ‘Energy Drink’ to local taste, that will commence production next year, and plans to install a milk drying facility that will supply the Guangzhou operation with powder. All products from Shandong will be marketed alongside the Guangzhou/ New Zealand product, using the same brand – Rebornne.

Rebornne holds all necessary licences in China – with the exception of the new baby water and energy drink – including the rights to foreign ownership.

Rebornne distributes our manufactured products to chain store head offices. In addition, online sales are also extremely strong, confirming our popularity to the local Chinese families. Currently, we are working to cover and promote our sales to all parts of China, so that more consumers will have the opportunity to enjoy the goodness of Rebornne products.

However, we have reached the stage where the current price of dairy products, the increasing demand in China, the investment in the new factory, and additional plant requirements, means that our operation is seeking an equity partner as we require more capital to fulfill our potential and expand to new markets.

Corporate structure
The CEO and President of Rebornne oversees both operations in New Zealand and Guangzhou.

Structure
Rebornne (New Zealand) Limited is fully owned by the Vendor
Rebornne (Guangzhou) Dairy Company Limited (registered in China) is fully owned by Rebornne New Zealand Ltd
Rebornne (Dong Ying) Dairy Company Limited (registered in China) is 60% owned by Rebornne New Zealand Ltd, and 40% owned by Shandong King Group

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