This photo traces the history of the Chunghwa pencil, from its humble beginnings in the 1930s. Photo provided to Shanghai Star

About 2 billion pencils were produced by China First Pencil last year, or about 15 percent of total domestic output.

The company owns two famous brands,"Chunghwa" and "Greatwall", whose products not only cover all large stationery markets across China, but also have orders from 54 countries and regions around the world.

"To date, we have established seven production companies in Shanghai, Jiangsu, Heilongjiang and Liaoning provinces," says Huang Hua, general manager with China First Pencil Co Ltd.

According to Huang, the company's iconic Chunghwa 2B pencils, which are specifically used in written examinations, still see growth in sales revenue, despite the fierce competition and emerging new technology for writing.

"Almost one-quarter of the product's sales come from drawing pencils including HB, 2H and 2B," Huang says.

Pencils in China are graded on a system using a continuum from “H” to “B”, (which stand for hardness and blackness), and a pencil rated at HB means it is in the midway in terms of both hardness and blackness. Chunghwa's drawing pencil graded from 6H to 6B.