competitive strengths

(a) We have a competitive cost structure

We believe that having our production facilities in China enables us to achieve lower production costs, as operating costs such as labour costs and the cost of certain raw materials, are comparatively lower in China than those in developed and some other developing countries. In addition, as we manufacture most of the components we require, we are able to further reduce our production costs. This enables us to price our products very competitively thus increasing their attractiveness to customers in China and international market alike.

(b) Wide customer base and good working relationships with our customers

Over the years, we have established good working relationships with our customers and had grown our customer base considerably within the domestic and export market. We have consistently fulfilled the stringent quality and cost requirements of our customers and thus enjoy repeat sales to them.

(c) Wide sales and distribution network within China

We have developed and will continue to develop a wide sales and distribution network in China. Currently, we have over 360 distributors located in more than 30 provinces, autonomous regions, municipalities and special administrative regions in China. Our products are also covered globally in Africa, Asis, Australia, Europe, South America and Southeast Asia.

(d) Experienced management team

Our Executive Chairman and Managing Director, Xue Yongwen manages our business and is supported by an experienced and dedicated senior management team, comprising our Executive Directors, Hao Yanping and Chen Yulin, and our Executive Officers. Most of our management team members have more than 10 years of experience in the agricultural equipment industry. Our management team also has the necessary knowledge of and experience in China market, which other international companies may not be able to acquire within a short period of time. Based on their vast experience, our management team has an in-depth knowledge of our customers' requirements and market demand in China. Our ability to develop and manufacture a wide range of agricultural equipment is attributable to our technical skills, knowledge and our years of operational experience.

(e) Our product quality and proven track record

Our products have established a credible institutional track record since commencement of our business which we believe will help us in our corporate growth and development. Over the years, we have built up our reputation by maintaining an effective quality control system for our production process and for the testing of our products. Further, our "Yongjia" brand is established and recognised amongst our customers, and is associated with quality and reliability.