Our company was downgraded to Class B enterprise by Manzhouli State Administration of Foreign Exchange on March 20 13. The specific reason is: 1. Our company has a long-term cooperative relationship with Russia and implements cash on delivery settlement. On this basis, we are allowed to default on the payment for 1-2 months. From September to the end of 10 months, our company * * defaulted on the payment for Russia. Due to the negligence of our staff, this overdue payment was not reported to SAFE in time, which led to our company's credit rating being downgraded.

2. As Manzhouli Customs implements the price limit principle for imported logs and plates, the actual import price of our company is lower than the price set by the customs, resulting in the customs import amount and actual import amount of our company during the period of 20 1 1, 20 1 2 and 1.