Guangdong Building Materials Company

Guangdong Materials Group Corporation is one of the 20 key material circulation companies supported by China government, one of the top 100 domestic enterprises selected for trial modern enterprise regulations and the large state-owned group authorized by Guangdong government. Since 1996, we stick to reforms, creation, development and continuous growth & continuous expansion. We have created Canton-materials Circulation Pattern, a three-in-one unity of production materials, professional market & modern logistics and e-commerce. Now we have become a large modern material circulation group, whose operation ability is the first in Guangdong and .is leading in China.

Since 1997, our operation scale has kept the average growth rate of over 20%.Our business in cars, metal and wooden materials are taking the lead in China and greater Pearl River Delta. In 2005, we operation scale was RMB 40.3 billion Yuan, which is 15.1% increase than that in 2004; Among them, the amount below the line promotional activity is as high as RMB 26 billion Yuan, which is 23% increase. According to statistics in China and in Guangdong, we ranked 81 at Top 500 Enterprises, 39th at Top 500 Service Enterprises and 18th at Guangdong Top 50 Enterprises. In achievements assessment on state-owned enterprise management, we are appraised to be excellent.

Over the past 9 years, we had been focusing on the sales of high-valued large production materials that the government care, Guangdong lack and rank the first in Pearl River Delta. In 2005, our sales of vehicles ranked first in China and took up 29% & 60% of market shares respectively in Guangdong Province and Guangzhou City; our sales of metal materials ranked 3rd in China and took up 24% & 39% of market shares respectively in Guangdong and Guangzhou; our sales of wooden materials ranked 1st in China and 63% & 82% market shares in Guangdong and Guangzhou.

Over the past 9 years, we had been focusing on the sales of high-valued large production materials that the government care, Guangdong lack and rank the first in Pearl River Delta. In 2005, our sales of vehicles ranked first in China and took up 29% & 60% of market shares respectively in Guangdong Province and Guangzhou City; our sales of metal materials ranked 3rd in China and took up 24% & 39% of market shares respectively in Guangdong and Guangzhou; our sales of wooden materials ranked 1st in China and 63% & 82% market shares in Guangdong and Guangzhou.

Our group persists in the inter-promotion, inter-facilitation and inter-bearing of trading and professional market. By making use of our advantages of many properties, we have set up six professional markets and logistics bases with large scales, full functions, high classes and good management: Guangdong Motor Market, Guangdong Motor Sales & Maintenance Base, Guangdong Yuzhu Logistics Base, Guangdong Yuzhu International Wood Market and Guangdong Electrical Appliance Market. We have also set up branch markets surrounding Guangzhou and in Pearl River Delta. By relying on our professional markets, we are the first to build up “Guangzhou Materials Motor Trading”---chained motor sales pattern in China. We have developed middle-class or senior wholesale markets for metals and woods and created “Price of Guangzhou Metals” and “Price of Guangzhou Woods”. We have developed our unique advantages for competition and development.

We have speeded up enterprise information and e-commerce development. We have started to use Office Automation System (OA), implemented ERP projects for key enterprises and set up six e-commerce web sties. Domestic customers can check product types, specifications, capabilities by the web site and further ask price & place orders. In 2005, we jointly invested South China Metal Materials Trading center, together with China Min-metals Cooperation & Guangzhou Metals group to make e-commerce on metal materials. Guangdong Motor Market E-commerce web site has realized Electronic Data Interchange (EDI) with main domestic motor manufacturers. By Electronic Ordering System (EOS), the customer can place orders to manufacturers and suppliers and e-commerce is realized. We developed Modern Logistics Project and Guangdong Materials Motor Trading Chained Sales Project, which have been decided to be special national bond projects for restructuring in national circulation industry in 2004 by National Development and Reforms Commission. Guangdong Motor Market and Guangdong Metal Materials Market have been decided as key supporting leading enterprise for chained sales and middle-classed / senior whole sales market respectively. Our group company and our affiliated companies have passed certification on ISO9001:2000 Quality Management System.

We have been exampled as the advanced model for the reform and development in national or provincial circulation fields. In September 2005, Wen Jia-bao, Premier of State Department came to Guangzhou for investigation. Zhang De-jiang, Secretary of Guangdong Provincial Party Committee, appointed our group as the place for enterprise representatives to attend symposium hosted by Premier Wen and make reports to Premier Wen. In 2000, Political Study Office from central government had sent special persons to our group. After investigation, they had high praise on our group and made an investigation report: State-owned Enterprise can be Better than Foreign-invested or Private Companies. This report was submitted to various leaders at central government and spread all over the country. In the recent years, People’s Daily, Economic Daily, China Central TV station has set our group as the model for state-owned enterprise reforms and development for many times and they reported our experiences & methods. Leaders from China Communist Party, central government, Guangdong government, such as Li Chang-chun, Zhang De-jiang, Huang Hua-hua and various province directors, care very much about our reforms and development. They came to our group very often and provided us instructions. They have big hopes on our company. They encourage us to be bigger & stronger. They encourage us to be the “champion” and “aircraft carrier” in China’s circulation industry.

Guangdong Materials Group had received a lot of honorary titles from the government, such as “State Labor Holiday Diploma”, “Advanced Collectivity in State Trade Industry” from Ministry of Personnel of People’s Republic of China and China Domestic Trade Bureau, “Guangdong Excellent Unit for Political and Ideological Education” & “Guangdong Excellent Unit for Publicity of Factory Affairs” etc.

Zhuang Yao, Chairman and Party Secretary from our group, won “State Model Worker” in 2005, “Top 20 Outstanding Peron for Promoting Business Process in China from 1985 to 2005”, “Model Worker at Domestic Trade Industry”, “Guangdong Model Worker”, “Guangdong Labor Holiday Medal” from Ministry of Personnel of People’s Republic of China. He is now the member of Chinese People’s Political Consultative Conference in Guangdong. Cheng Lian-xian, Director, General Manager and Vice Party Secretary from our group, has been elected as deputy of Guangzhou Yuexiu People’s Congress. Zhang Yu-di, Director, Vice Party Secretary, Union Chairman is entitled as “Model Worker at Domestic Trade Industry” by State Department of Domestic Trade and Ministry of Personnel of People’s Republic of China. Li Yue, Vice General Manager of our Motor Trading Company is entitled as “Guangdong Model Worker”. Zhaogui Min—Chairman of Our Yuzhu Forestry Group, Li Yue---Vice General Manager of our “Guangdong Material Motor Trading”, Lin Ye—Vice General Manager of Guangdong Electrical Appliance Market, Zhong Yao-ping / Li Fang-chun—Vice General Manager of Our Shilong Wooden Materials Factory are elected as deputy to people’s congress in Guangzhou Huangpu District, Baiyun Distirct, Liwang District, Dongguan City and Dongguan Shilong Town respectively. Wei Zhi-guo, manager of our Jun Le Company is elected as member of Chinese People’s Political Consultative Conference in Guangzhou Baiyun District.

Our Guangdong Motor Market is entitled as “Advanced State Unit for Building up Civilized Industry”; “Guangdong Materials Motor Trade” and Guangdong Construction Materials Company are entitled as “State Youth Civilized Unit”; Guangdong Motor Market and Guangdong Metal Materials Market are enlisted as state key market by former State Economic and Trade Commission and entitled “No Faulty Goods at 10 Thousand Stores in One Hundred Cities”. They are now also enlisted as the key markets for monitoring prices by National Development and Reform Commission.

We have been based on human talents and paid special attention on raising total quality of the staff. We have been keeping the principle of joint development of enterprise and staff. Wet have set up a management team, who respect their jobs, happily make contributions, hold together, go all out in work, make explorations and make creations. We build up our staff team to be the best one who are most competitive in the market. We provide career development platform for the staff. We encourage our staff to seek the best, which is our enterprise spirit, and grow continuously.

Our Enterprise Spirits: Being Honest, Hard-working, Thrift, Honest, Creative and Efficient.

Our Key Values: Make Contributions to the Society, Create Values to the Customer, Share Growth with Staff. In our continuous growth, the value of the enterprises, customers and staff is raising continuously.

Our Standards on Behaviors: Professional Ethics of Being Loyal, Working Attitude of Being Precise & Serious, Civilized Behaviors of Being Enterprising and Aggression of Being Creative.

Positioning of Our Brand Image: To the public---Return to the Society, Server the Public and Be First-class Enterprise; To the Customer---Provide High-quality Services, Being Honest & Faithful, Gain Mutual Benefits; To the staff---Based on Staff, Being United & Cooperative, Receive Qualified Personnel and Keep them Stay.

We value construction of Enterprise Culture. We persist on hosting culture activities for the staff, continuously flourishing enterprise cultural activities and promoting development of spiritual civilizations and material civilizations. Each year, we attended competition on vocality, dancing and opusculum hosted by Publicity Department of Guangdong Provincial Party Commission, Guangdong General Labor Union and Guangdong TV station. Each time, we receive the golden medals.

“Being Honest, Hard-working, Thrift, Honest, Creative and Efficient” is not only our enterprise spirits, but also the goal that our Staff is in pursuit for.

We sincerely welcome customers from all social levels to our company for making investigation, giving instruction, cooperation, seeking cooperation, making investment for restructuring and seeking joint development.