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Vinda International’s Statement of Clarification

In connection to a quality monitoring report on provincially distributed tissue paper products released by the Guangdong Province Administration for Industry and Commerce, showing that a large variety of tissue paper products failed the microbial test in a severe manner, including “Pleasant Goat and Big Big Wolf” facial tissues, Vinda International Holdings Limited (“Vinda International” or the “Company”) wishes to make the following clarification:

Vinda International is the only company which has obtained the copyright license to the cartoon “Pleasant Goat and Big Big Wolf”, and has exclusive rights to manufacture and sell a series of “Pleasant Goat and Big Big Wolf” branded tissue paper products, including toilet rolls, pocket tissue paper, facial tissue paper, table napkins and wet tissues. However, the batch of “Pleasant Goat and Big Big Wolf” facial tissues which were selected for examination were not manufactured by Vinda International. Instead, the batch of tissues were produced by 东莞市万利达纸业有限公司, a company that is unrelated in its entirety to Vinda International. This is a serious case of violation against Vinda International’s rights, and is considered an offence. The Company reserves its rights, and will not rule out taking legal action against 东莞市万利达纸业有限公司.

For the past 25 years since Vinda International was found, the Company had always treated ‘providing high-quality products’ as its foremost priority. All of the Company’s production facilities meet national health standards. Starting from raw material procurement, throughout the whole course of manufacturing, each step in the production process undergoes rigorous internal control. A number of quality tests are conducted on the Company’s products, and Vinda International’s products are approved by independent third-party authorities (including ISO9001 and ISO14001). Moreover, Vinda International is the first Chinese enterprise in the household paper products industry to meet the requirements for HACCP, Hazard analysis and critical control points, so consumers can safely use the Company’s products.

The Company hereby reiterates that results from the quality monitoring report are unrelated in its entirety to the Company’s products.