Profile of Ninghua

1.Beijing Ninghua Industrial Co., Ltd., registered and established in Haidian District, Beijing, on March 29, 1995, operates at Room. 3-401, Wandi Garden, No. 39, Middle Xisihuan Road, Beijing (self-owned commercial and residential office building covering an area of 152 m2), with a registered capital of 3.102 million RMB yuan as well as 10 shareholders and 80 employees. Mr. Shan Changzhu is the legal representative of the company. The company is mainly engaged in development, organization of production, marketing and technical support, and it realized the sales income up to 24 million RMB yuan in 2004.

2. Beijing Ninghua Science and Technology Co., Ltd., registered and established in Mentougou District, Beijing, on January 19, 2004, operates in Beijing Shilong Industrial Development Zone, with the registered capital of 3.302 million RMB yuan, 10 shareholders (the same as the ones of Ninghua Industrial Co., Ltd.). Mr. Shan Changgzhu is the company’s legal representative. Possessing 39 employees, the company yielded the sales income totaling two million RMB yuan in 2004. In February 2004, Beijing Ninghua Science and Technology Co., Ltd. bought a land covering 8818㎡ in area, on which, the 4700-square-meter light steel structure workshop (including a 8-meter-height 2100-square-meter workshop, a 4-meter-height 1200-square-meter machining workshop, a 500-square-meter electronic assembly workshop, a 800-square-meter component and part warehouse and 100-square-meter offices) was completed and put into use in November 2004; and the comprehensive building covering an area of 2600 m2 (including a 4.5-meter-height 700-square-meter exhibition hall ) has been topped out in July 2005 and now is under interior and exterior decoration which is expected to complete by the end of 2005. Ninghua has invested 14 million RMB yuan totally in the civil engineering in Shilong Industrial Development Zone. After the completion of construction, it will become the headquarters, R&D center, marketing center, technical training center and numerically controlled EDM (electrical discharge machining) equipment production and test base of Beijing Ninghua. In March 2005, certified by China Certification Center for Quality Mark, the quality control system of Beijing Ninghua Science and Technology Co., Ltd. satisfied the requirement of the standard GB/T19001-2000 idt ISO 9001：2000 (Certificate No.: 0205Q11161ROM).

3. The founders of Ninghua are all the EDM experts in various aspects and, through years’ cooperation, have formed an effective core team; and the company has also engaged many domestic experts in the EDM industry, thus laying a solid base for further development. Mr. Shan Changzhu, Board Chairman and General Manager concurrently, graduated from Harbin Industrial University with a Master’s degree and has been always engaged in the research on EDM technology and the development of the relevant products after working. Now he is a senior engineer, a senior member of Chinese Mechanical Engineering Society, a director of Non-traditional Committee of Chinese Mechanical Engineering Society and Non-traditional Committee of China Machine Tool & Tool Builders' Association concurrently, an expert of Senior Professional Technical Qualification Accreditation Committee of Mechanical Manufacture of Beijing Municipal Bureau of Personnel and a member of CIMT (China International Machine Tool Show) 2005 and CIMT2003 Non-traditional Machine Tool Review Expert Team.

4. The basic organizational form of Ninghua: Shareholders’ Meeting – Board of Directors, Board of Supervisors—General Manager—Deputy General Manager—Assistant General Manager, Chief Engineer, Assistant to General Manager (Special) –Department (Basic Production Department Examining Unit)—Team.
5.? The marketing network of Ninghua: Ninghua’ s marketing network covers the principal EDM product market of China, along with 2 regional general agents (in Guangdong and Zhejiang), 16 offices and 20 agents, among which, regional general agents and offices are all equipped with salespersons and technical support personnel, and with spare parts sufficiently supporting the repairing and maintenance in local markets.