HQ Sustainable Maritime Industries, Inc . (“HQ”) is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in China's South Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, and conducting fish processing and sales. Its variety of farmed and ocean-harvested products -- ranging from tilapia and shrimp to squid and red snapper -- are sold around the world.

Bringing state-of-the-art technologies to the fishing and aquaculture industries, HQ is China's leading producer of quality tilapia fish exports to the U.S., commanding 10 percent of this market. Total U.S. consumption of tilapia products has risen from less than $20 million in 1992 to nearly $174 million in 2002.

According to the American Tilapia Association, world production of tilapia products reached 1,461,239 metric tons in 2002, of which China produced the dominant share of 47 percent.

HQ's superior location on the environmentally pristine tropical island of Hainan province, its vertical integration for hands-on quality control, and its Chinese-Canadian management team provide important competitive advantages. With offices in Montreal, New York City, Haikou city in Hainan province, China, as well as Beijing and Shanghai, the company's business focus is on bringing the Highest Quality to consumers respectful of environmental and corporate obligations. Meeting obligations to future generations regarding sustainability fall within these obligations.

HQ is principally engaged in harvesting, processing, sales and marketing of farm-bred and ocean harvested products. The company also has freezing storage facilities with a capacity of 3,000 metric tons and aquatic products processing bases in Hainan. Offices of the Joint Venture have been established in Hainan Province of China, where only polluting industries have been banned.

Environmental and Quality Assurance
HQ adopts and implements stringent quality control measures and procedures throughout its production process.

The company's vertical integration permits it to control the quality of its products at all stages of production.

From the outset, HQ has allied itself with quality assurance government agencies such as the Canadian International Development Agency (CIDA). HQ's products have obtained HACCP Certification and EU Code assignment. HACCP is a USDA program that sets standards and monitors sanitation measures in processing plants for food products . The EU Code assignment certifies that HQ's products meet EU importable food standards set by the relevant inspection agencies.