Hong Yuan Holding Group (HGYN)

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Management remains hopeful that business logic and ethics will prevail and intends to present the offer to the Court to safeguard shareholders’ and creditors’ value.

With regard to operations, we have seen the activity pick up in both the USA and overseas. In the domestic market, we have received several orders totaling approximately $300,000. These orders include multiple orders for existing inventory that should be fulfilled before the end of the quarter. Overseas, the EU parliament passed a Directive on Packaging favoring the use of sustainable material including bioplastics. The EU legislation does allow each State to implement national legislation. We are expecting a surge in demand in Italy and France in the months to come. In Italy several supply agreements are being negotiated but we are struggling to access the necessary working capital to fulfill such orders.