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Business Strategies

Business Strategies

It is the Group’s goal to become the best integrated stone business operator in China. To achieve this target, the Group will continue to uphold its established strategies:

Further expansion of quality mine resources
The Group will capture more quality stone resources to enhance its dominance in the stone market, and actively control the flow of quality raw stones of domestic and foreign sources via various means, including merger and acquisition, shareholding and strategic co-operation. The Group will also continue to follow up and make negotiations on the acquisition of mine projects of development potential in the future. Apart from identifying quality mines within China and overseas, we will also make cooperation agreements with enterprises globally, including distribution agreements, where premium stone resources could be found, to become their general distributors. As natural stone resources are non-renewable, with the increasing consumption of resources in the world and the continuous increase in the pursuit of living environment and quality by consumers, the Group needs to lay a solid resource foundation for its long term development.

Establish solid customer base and strengthen existing customer relations
Through co-operation with renowned property developers, renovation and decoration companies and construction design companies, we will fully leverage on synergy of resources, mutually complement development strengths and strengthen our core competitiveness, hence achieving a win-win situation. Currently, the Group is taking the initiatives to prepare and establish a stone trading platform in stone distribution centers in China with a view to allow its mine products to penetrate into the market in a rapid and extensive manner. Hence, the acceptance among consumers will be established, while brand awareness and market share will also be enhanced.

Active exploration of high-end market
The Group would penetrate into markets with long-term development potential and further increase its market share via co-operation with renowned customers. The Group optimized its marketing strategies with focus on sales of slabs last year, and directly accessd to the high-end construction and decoration markets in Guangzhou and Pearl River delta area via the acquisition of Guangdong Jiapeng Construction, thereby curtailing fees arising from the multi-layered intermediate sales channels and boosting up its profits.

Perk up mining and processing capacity
We will continue to ramp up our mining capacity in order to cater for the rising market demand for stones. Upon the duly commencement of mining in Tujisi Mine, the total annual mining capacity for marble blocks of the Group is anticipated to climb up significantly. Currently, apart from processing the safe production permit, other production and operation permits for Tujisi Mine have been obtained. Meanwhile, the Group will continue to identify suitable area for the construction of its self-owned modern processing plant with a view to assure the quality of its marble products and further optimize the entire industry chain. The Group has previously signed a co-operation agreement with the government of Jiangyou, but the government was unable to provide the original land for the processing plant given the policy adjustment on local industry structure, and upon active communication between the Group and the government, the Group has re-signed an intent of co-operation with the government of Jiangyou in November 2011, under which, the government of Jiangyou would provide other suitable sites for the construction of the Company’s processing plant.

Create brand of integrated stone operator and enhance added-value of products
To realize our objective of becoming the best integrated stone operator, apart from placing its business focus on mining, the Group will actively raise the added-value of its products via measures including innovative product design and selling products purchased outside. As the tightening monetary policy in China imposes a relatively great impact on private enterprises, our target customers should possess risk aversion capability, such as developers specialized in massive government construction projects. In addition, the Group will help its customers to implement certain combinations of plans. If the necessary raw materials could not be provided by our mines, the Group will directly purchase from mine owners inside and outside China, and also provide our professional advices on stone to customers.