3.  BUSINESS CHARACTER

(1) Change and development significant

  ---------- ------------------------------------------------------------
  Nov. 1988  Established a company with register capital 50 million baht
             with par value 10 baht/share.

  Apr. 1989  Built 1^(st) plant at Nongjom, Sansai, Chiangmai on area 15
             rais 36.6 square wahs and finished in Oct. 1989

  Feb. 1990  Started earning income from the operation.

  Dec. 1991  Increased register capital from 50 million baht to be 125
             million baht.

  Jan. 1993  Permitted from The Securities of Stock Exchange of Thailand
             as register securities.

  Jan. 1993  Started buying-selling shares in the Securities of Stock
             Exchange of Thailand under the name “CM”

  Feb. 1994  Changed from company limited into Public Company Limited

  Mar. 1994  Built 2^(nd) plant at Maefagmai, Sansai, Chiangmai on area
             26 rais 29.9 square wahs and started producing in Oct. 1995

  Nov. 1998  Increased register capital from 125 million baht to be 210
             million baht.

  Apr. 2003  Joint investment with River Kway International Co., Ltd. in
             ratio 51:49 in Agri Foods Processing Co., Ltd. with capital
             invested 120 million baht, paid-up 30 million baht.

  Mar. 2004  Built cold storage at Maefagmai, Sansai, Chiangmai on area 8
             rais 3 ngans 97 square wahs and finished in Jul. 2005

  Jul. 2004  Bought capital investment in Agrifoods Processing Co., Ltd.
             from River Kway International Co., Ltd. increased from 51%
             to 100%.

  May. 2005  Increased register capital from 210 million baht to be 315
             million baht.

  May. 2005  Changed par value from original par value 10 baht/share to
             be 1 baht/share.

  May. 2007  Increased register capital from 315 million baht to be 346
             million baht.

  May. 2009  Increased register capital from 346 million baht to be 381
             million baht.
  ---------- ------------------------------------------------------------

  Change of authority in controlling the company

  None

  Change of holding structure, management or conducting business in the
  passed 3 years

  No any change.

  Important incident in 2011

-   On march 2011 donated money to help peoples whose suffered from
    Surnami peril in Japan amount 3,300,000 baht through Japan
    Consulate, Chiangmai and through Maejoe University.

-   April 2011 granted ISO22000:2005.

To carry on business of the company.

 The Company is a Manufacturer and Exporter of Frozen Vegetables which to be brought the agricultural products as raw materials to pass the processing methods then brings to keep at Cold Storage with temperature -25 degrees Celsius.

 The products of the company are Frozen Vegetables such as Soy Beans, Green Beans, Sweet Corns. Carrots, Baby Corns etc. 

Structure of Revenue

 For Chiangmai Frozen Foods Public Company Limited 

 ( In Thousand Baht)

+--------------------+----------+-----+---------+-----+---------+-----+
|  Products          | 2011     | %   | 2010    | %   | 2009    | %   |
+--------------------+----------+-----+---------+-----+---------+-----+
| Frozen Vegetables  |  1       | 9   |  1,     | 9   | 1,      | 9   |
|                    | ,267,285 | 9.9 | 346,700 | 9.8 | 292,202 | 9.9 |
+--------------------+----------+-----+---------+-----+---------+-----+
| Others             | 685      | 0.1 | 2,372   | 0.2 | 1,865   | 0   |
|                    |          |     |         |     |         | .1  |
+--------------------+----------+-----+---------+-----+---------+-----+
| Total              | 1        | 10  | 1,      | 10  | 1,      | 10  |
|                    | ,267,970 | 0.0 | 349,072 | 0.0 | 294,067 | 0.0 |
+--------------------+----------+-----+---------+-----+---------+-----+

+---------------------+---------+-----+---------+-----+---------+-----+
| Product markets     | 2011    | %   | 2010    | %   | 2009    | %   |
+---------------------+---------+-----+---------+-----+---------+-----+
| Overseas            | 1,      | 8   | 1,      | 8   | 1,      | 8   |
|                     | 019,895 | 0.4 | 109,487 | 2.2 | 057,959 | 1.8 |
+---------------------+---------+-----+---------+-----+---------+-----+
| Domestic            | 248,075 | 1   | 239,585 | 1   | 236,108 | 1   |
|                     |         | 9.6 |         | 7.8 |         | 8.2 |
+---------------------+---------+-----+---------+-----+---------+-----+
| Total               | 1,      | 10  | 1,      | 10  | 1,      | 10  |
|                     | 267,970 | 0.0 | 349,072 | 0.0 | 294,067 | 0.0 |
+---------------------+---------+-----+---------+-----+---------+-----+

Remark: Domestic sale, mostly from indirect export which is exported by 

Agrifood Processing Co., Ltd. (Subsidiary Company)

  --------------------------- ---------------- ----------------- ----------
  Nature of Customers         Percentage                         

                              Oversea Market   Domestic Market   Total

  Total sale value            80.4             19.6              100.00
  --------------------------- ---------------- ----------------- ----------

+----------------+----------------+----------------+-----------------+
| O              | Percentage     |                |                 |
| peration cycle |                |                |                 |
+----------------+----------------+----------------+-----------------+
|                | 2011           | 2010           | 2009            |
+----------------+----------------+----------------+-----------------+
| 1^(st) Quarter | 21.00          | 23.00          | 23.00           |
+----------------+----------------+----------------+-----------------+
| 2^(nd) Quarter | 28.00          | 31.00          | 32.00           |
+----------------+----------------+----------------+-----------------+
| 3^(rd) Quarter | 29.00          | 25.00          | 27.00           |
+----------------+----------------+----------------+-----------------+
| 4^(th) Quarter | 22.00          | 21.00          | 18.00           |
+----------------+----------------+----------------+-----------------+
| Total          |  100.00        |  100.00        |  100.00         |
+----------------+----------------+----------------+-----------------+

Subsidiary company

Agrifood Processing Co.,Ltd., is a distributer (Export) of Frozen Sweet
Corns.

Structure of Income (Unit: Thousand baht)

  --------------------- --------- ------- --------- ------- --------- -------
  Particular            2011      %       2010      %       2009      %

  Revenue from sales    261,066   99.2    248,377   98.2    248,206   98.9

  Others income         2,106     0.8     4,475     1.8     2,871     1.1

  Total                 263,172   100.0   252,852   100.0   251,077   100.0
  --------------------- --------- ------- --------- ------- --------- -------

Business target

Maintain the product quality always in standard.

-   Always strive to produce the goods to meet consumer requirement.

-   Seek the business expansion channel for maximum advantage to every
    shareholder.

-   Fairly conduct business, not ruin an environment and promote of
    living together with good relationship between company and
    community.