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R&D ADVANTAGE
The Company has been trying to develop attractive footwear products to satisfy the demands of target market and to interpret the fashion trends. Meanwhile, the Company has been focused on the R&D and application of new craftsmanship, new materials and new technologies, to streamline the Company’s innovative brand concept and international sports fashion. The Company increased its input in R&D, new equipment and talent recruitments to develop fashionable stylish and practical footwear products. In addition, the Company keeps adding new elements into the product designs to enrich the brand connotation and win consumers’ in-depth recognition of Baopiao brand, thus ensuring the fashion trend-setter position of “Baopiao” in the female sports and casual shoes market.
We believe that technological innovation is a key to increasing product quality. Our internal research and development center was set up in 2002 and is primarily responsible for conducting our research and development activities. Our research and development efforts are focused on the following objectives: preparing and setting the technical strategy for the Company, introducing and applying new technologies and materials, creating and improving the footwear molds, materials, types and functions, detecting and determining the technical performance of products, improving the technical indexes of products, and providing technical support for the manufacturing department, the sales department and the quality control department. As of November 5, 2009, we have 30 staff members dedicated to research and development, including 4 market analysts, 6 pattern makers and 20 computer designers and sample makers. All of our research staff has experience in the footwear industry. Our market analysts attend various domestic footwear trade exhibitions to keep themselves informed of the latest fashion trends. Our pattern makers work closely with the sales and procurement teams in designing new products and in improving existing products. Our design team develops and improves concepts and ideas upon the sales records of our products and other market information.
The Company utilizes the three dimensional scanning bionic technologies, including the integrated dynamic analysis, the force measurement and the plantar pressure analysis as well as the techniques combining the feet modeling and the feet database analysis, to develop functional, healthy and comfortable shoes. In 2007, the Company was rewarded the title of Hi-tech Enterprise by the local authority. In 2008, our subsidiary, Pacific Shoes introduced the CAD/CAM software developed by a famous footwear designer from Taiwan to facilitate automatic sample design. The main developing work is as follows:
1. CAD (Computer Aided Design System)/CAM (CAM, Computer Aided Manufacturing System) three dimensional aided designed upper sample so as to improve the accuracy of designed sample and save raw materials.
2. CAD/CAM three dimensional aided designed out sole mold so as to improve the clearness of patterns and three-dimensional effect of out soles.

Company R & D Center
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