Chinese

[Report: Zhu Xiao ou]

With the spring wind of 2007, Dr.Xie Bing, BD Section manager of SD came into the meeting room of Guiyang South Sea E&M Co, Ltd, where the GM of South Sea was waiting for him. The strategic cooperation agreement which indicated win-win situation, was signed by these two VIPs. The agreement contains two parties' responsibility and right. South sea E&M should try best to assist Siemens SD to develop local market and finish 4 millions sales target. Meanwhile, Siemens SD will supply full support on the product, technology and also price. It is the milestone for SD Development in Southeast Region. The main product in South Sea E&M is the drawbench, and he is on the leading position in the middle/high-end market for long time, so we can gain more market share in Drawbench Branch and South Sea E&M can improve technical influence and branch effect with the support of Siemens.

Our Siemens MM440 were used on Drawbench of South Sea E&M. The potential for every year was from 6 million to 8 million RMB. Therefore South Sea was one of VIP for us at that time. However, South Sea nearly never purchased SD Products in 2004 and 2005 because of our product quality issues. Followed by the improvement of quality and the effort from SD and Regional colleagues, South Sea built up the confidence on Siemens SD products again. So the situation is changed to develop as what we hope. Until Mar of 2007, more than 1 million books have been from South Sea.

We believe SD business can have a good future in the southeast region with the partnership of South Sea E&M Co, Ltd.