Goodbaby International Holdings Limited is engaged in design, research and development, manufacture, marketing and sale of strollers, children鈥檚 car safety seats, cribs, bicycles and tricycles, and other durable juvenile products. The Company鈥檚 segments include strollers and accessories segment, which is engaged in research, design, manufacturing and selling strollers and accessories; other durable juvenile products segment, which is engaged in research, design, manufacturing and selling car seats and accessories, cribs and accessories and other durable juvenile鈥檚 products; strollers and accessories segment, which is engaged in sourcing and distributing strollers, and other durable juvenile products segment, which is engaged in sourcing and distributing car seats and accessories, cribs and accessories and other durable juvenile products. As of July 31, 2010, it disposed Goodbaby China Commercial Co., Ltd, Shanghai Goodbaby Fashion Co., Ltd. and Mothercare Goodbaby Retailing Co., Ltd.

Goodbaby International Holdings Limited (the"Company" or "our Company" and, together with its subsidiaries, "Goodbaby", "we," "us," "our," the"Group" or "our Group") is an international
durable juvenile products company headquartered in China. We are mainly engaged in the research and development, design, manufacture, marketing and sale of strollers, children's car safety seats, cribs, bicycles and tricycles, and other durable juvenile products.

Over the years, we have established a strong leading position in the global durable juvenile products industry with an excellent and efficient business model. During the past decades we have achieved in establishing well-known brands in China and globally, an internationally leading research and development ("R&D") system in the industry, an extensive and effective global distribution network, a stable and well-developed manufacturing and supply chain management system, and a professional and ambitious management team with visions and passion. In addition, as one of the earliest established durable juvenile products companies in China, we have first-mover advantages in the Chinese market, which creates huge entry barriers to new entrances.

Since the establishment of our group, we have chosen the development path of continuous innovation and identified the business strategies of independent R&D. Since the early 1990s, we have started the global strategic approach from the establishment of R&D institutions to the expansion into R&D centers, aiming to build a comprehensive global R&D system. As at 31
December 2010, we have established five R&D centers with more than 330 professional R&D and design engineering staff, forming a creative R&D system based on forefront market research. The R&D system, through innovation, creativity and design, solidifies our strong R&D capacity and continuously consolidates and strengthens our leading position in the global durable juvenile products industry. We have obtained a total of 4,465 patents in China and overseas, well ahead of our industry peers.

In China, the Group principally designs, manufactures and sells its products under its selfowned brands, including "gb" and "Happy Dino", which enjoy wide recognition and reputation as well as leading market share. As at 31 December 2010, we sold our products through our distribution network which covered 498 distributors, 1,687 department stores and supermarkets, and 5,785 maternity and childcare specialty stores. In the overseas markets, we establish strategic partnerships with local distributors or owners of world famous brands, and sell the products under both our own brands and third-party brands. As at 31 December 2010, we have established cooperative relationships with 32 international distributors and 82 brand owners in the overseas markets.