About Us > Our Business

According to the Frost & Sullivan Report, for the financial year ended 31 December 2005, our sales of lead-acid motive battery products in China represented approximately 12.44 per cent. of the total market size (in terms of sales revenue) of the lead-acid motive battery products for electric bikes in China. The report also highlighted that our market share was almost two times the market share of the second largest player.

With our leading position in the motive battery product market in China and our product research and development capability, we are well positioned to capture additional business opportunities in China's personal transportation device market. In light of the clear trend on developing alternative transportation devices, aiming to reduce the reliance on oil and gas and produce less emission, we intend to explore the motive battery market for electric-powered motorcycles and electric cars.

Leveraging our experience and expertise in producing lead-acid motive battery products for electric bikes, our product mix has been expanded to include Ni-MH battery products and complementary electrical equipment, such as chargers, controllers and motors, for different types of personal transportation device.

Our lead-acid motive battery products are distributed through our sales representatives and exclusive distributors whom are strategically located in 29 provinces, autonomous regions and directly-administered municipalities in China. We sold our motive battery products principally to manufacturers of electric bikes. With the growing retail market for replacement of battery products, i.e. our secondary market, we have also strengthened our efforts in the sales of battery products to exclusive distributors.

For each of the three financial years ended 31 December 2006, our turnover amounted to approximately RMB370.96 million, RMB521.69 million and RMB1,019.56 million, respectively, and our profit after taxation amounted to approximately RMB55.35 million, RMB70.10 million and RMB147.66 million, respectively. The CAGR of our turnover and profit after taxation over the period from 2004 to 2006 were approximately 65.78 per cent. and 63.33 per cent. respectively.

COMPARATIVE ADVANTAGES

We have the following comparative advantages:—

We have strong brand recognition and we are the market leader in the lead-acid motive battery industry in China

In terms of market share, we are the leading producer of lead-acid motive battery products in China. For each of the three financial years ended 31 December 2006, our turnover derived from the sale of lead-acid motive battery products in China amounted to approximately RMB333.93 million, RMB461.59 million and RMB898.60 million, respectively. Our success is to a significant extent attributable to our focused efforts on the development of lead-acid motive battery products since 1990s and our emphasis on product research and development.

With this market leadership position, we enjoy the production-scale advantage. We are also a forerunner in the development of the motive battery industry in China, that allows us to receive the latest market intelligence, to strengthen the quality of our battery products and to diversify our product mix for the emerging market for alternative and clean motive energy to be used in transportation devices in China with the latest technological change.

We have obtained awards and certifications in relation to our re-chargeable battery products. With our established brand name and reputation in the industry, together with our strong production capacity, we can further strengthen our leadership in the lead-acid motive battery industry in China and benefit from the continuous development of the market, in terms of product diversity and technological change.

We have our technological know-how that enables us to produce high-quality motive battery products at competitive prices

Technological know-how is important in producing motive battery products with high-quality and consistent performance. We have our technological know-how that enables us to enhance the quality of our motive battery products by extending the product life cycle and increasing their performance. These features are crucial to motive battery products as they are expected to perform steadily and to provide uninterrupted power supply to transportation vehicles. Our Directors also consider that this is one of the most important factors that facilitates us in establishing a recognised brand name in the leadacid motive battery industry in China.

We have a strong distribution and servicing network satisfying the demands in both the primary and secondary markets

Our Directors believe that our distribution and servicing network is one of the most sophisticated networks in the China motive battery industry. We had a total of more than 300 sales representatives and exclusive distributors strategically located in PRC provinces, autonomous regions and directly-administered municipalities in China. With this network in place, we are able to extend our business reach to almost all leading electric transportation manufacturers in China and all major retailers and wholesalers for motive battery products. This enables us to continue to maintain our leadership in the industry.

We have strong product research and development capability

We focus on product research and development with a view to improving the quality of our products and keep up with the latest technological trends. Our research and development team comprised more than 100 staff, 11 of them having received doctorate or master's degrees, or possessing professor or senior engineer qualification. Our product research and development team is equipped with the equipment for the development of a variety of battery products.

In addition to our strong in-house product research and development team, we collaborate with a number of universities in China, including Harbin Industrial University and South-East University, to study trends in the industry and to focus on product features that are considered important by our customers. Current research projects include Ni-MH motive battery products, Li-ion battery products and high efficiency motive battery products technology which is regarded as one of the significant technologies with support from the PRC government according to the “National Medium-to-Long-range Program for Scientific and Technological Development (2006-2020)”.

We have a strong and experienced management team

Our chairman, Mr. ZHANG Tianren, has had an experience of 18 years in management in motive battery industry in China. Our executive Directors are also specialised in different aspects of production, sales and marketing in the motive battery products industry and corporate management. We have a management team with extensive experience and expertise in the management and operation of our business in the motive battery products industry.