Dear Shareholders,

WALPHONE is pleased to report that the share price increase by a amount too

big. Although we are not world’s leading cell phone provider, level of profit

and shareholder return is always on top 3. In other hand, because a good

coordinated plan between outsourcing and production, we are leader of unit

lower cost, therefore, our profit made up more 50%.

This success is the result of corporate mission “Rule 1: Never Lose Money!

Rule 2: Never forget Rule 1.”.

By adhering to this mission statement, WALPHONE is focused on

investissment some items; controlling seriously cash-flow and ratios of finance

and specializing production based on weakness of each area. By planning

research and development years in advance for two technologies WALPHONE

was able to avoid large unnecessary capital outlays and reduce maximally the

unit cost.

In general, this market environment had not big fluctuation except the

increasing of tariffs and some financial indicators which influence the price and

logistic: this “cake” is dividend by 08 firms (include WALPHONE) with the

trend demand and weakness (thị hiếu) are defined. Therefore, that is the reason

why we follow our strategy.

However, in the third year of business, WALPHONE made a grave error

because of WALPHONE’s inexact estimated decision. By neglecting research

and development, it found itself two years behind the competition in the debut

of high level technology. This led to an array of problems that plagued the

organization for several years. Having gone through this hardship

WALPHONE made it a point to learn from experiences thus establishing an

environment for knowledge creation. Immediately, we had a turning-point

decision which bring us to top 3 again and unbelievable profit.

Looking forward, WALPHONE try to recovery our market share by attention

on price and sales growth. In addition, improving the share price is our target in

long-term.