China Oriental Group Company Limited is an investment holding company. The principal activity of the Company and its subsidiaries is the manufacture and sales of iron and steel products. Over 90% of the Company’s consolidated sales and contribution to results are derived from People’s Republic of China and mainly from the production and sales of iron and steel products during the year ended December 31, 2008. In August 2008, the Company announced the acquisition of a 71% equity interest in Tangshan Fengrun Hengfeng Iron and Steel Company Limited (Xinyi Iron and Steel or Hengfeng Iron and Steel), formerly Tangshan Baotai Iron and Steel Group Xinyi Iron and Steel Company Limited. On March 24, 2009, the Company acquired the assets relating to the iron and steel production from Hengfeng Iron and Steel.