Marketing Our Products to Utility Companies

There are many water and gas transmission companies in China, and it would be very time-consuming if we negotiate with each of them one by one on the terms of our order contract. To better market our products to these utility companies, we have invited some of them to conduct on-site visits to check our production facility, quality control protocols, production capability, and research and development capacity to demonstrate our value as a supplier compared to other competitors on the market. Once approved by these utility companies’ internal assessment teams, we will be pre-approved as their “qualified supplier”, which would exempt our company from their production inspection process when they place orders.

We have been pre-approved as “qualified supplier” by the following companies:

• Towngas Investment Group
• Changsha Water Investment Group
• Shengzhen Water Supply Group
• Shanghai SMI Water Group
• Sichuan SPT Energy Group
• Min Sheng Energy Group

Potential Long-Term Opportunities For Large-Scale Project

All of these companies present us with potential long-term opportunities for large-scale projects, which would require a large volume of piping products over multiple years. In addition, we would be able to advantage of their business network. We currently do not directly supply to some of our partners and instead we rely on local distributors and wholesalers to deal with specific projects due to the complex of each project. However, to provide goodwill and value-add to our customers in addition to our quality products, we prioritize the production of their orders and plan to offer them with engineering advisory and post-sales maintenance services in the future. We also have staffed experienced engineers available to resolve any installation or maintenance issues that these end users may encounter.