Gongyou Machines Ltd, previously Asia Gongyou (Holdings) Ltd, was registered on 23 November 2004 under the Singapore Corporation Act.
Gongyou Machines conducts its business primarily in the PRC through its subsidiary, Asia Gongyou (Weihai) Ltd, which was incorporated in Weihai, Shandong, PRC, as a Wholly Owned Foreign Enterprise (“WOFE”) in 2005 and acquired key businesses and main assets of Shandong Gongyou Group in july 2005. Shandong Gongyou, an established market leader in PRC, was first established in Weihai, Shandong province in 1958, and was later incorporated into a limited liability company in 1998.
The Group first ventured into woodworking machinery business in 1976, and before the recent acquisition, the group’s main businesses are in the manufacturing of woodworking machineries and electro motors.
As at end of June 2006, Asia Gongyou (Weihai) Ltd has total assets of 35,000,000 US and employees of 1,260, with an annual production capacity of 100,000 units of woodworking machineries and 300,000 units of electro motors.
With our proven range of woodworking machinery products and extensive domestic sale network, we are according to the China National Forestry Machinery Association, the largest domestic woodworking machinery manufacturer in terms of our production scale and product models.
Our management believes that we currently command about 60% market share of small-scale woodwork multi-purpose lathe in China’s woodworking machinery market.
Quality is imbedded in our products. And to show our quality assurance for our products, we achieved the ISO9001: 2000 certification, the highest and worldwide accepted certificate achievable in our industry, together with a China Certificate of Conformity of Machinery Safety.
To strengthen our foothold in the international markets, we obtained quality certification for all our electromotor exports.
In addition, as a validation of compliance with international standard for outstanding quality, 16 of our woodworking machineries have successfully been awarded with CE certification and 5 of them are currently in the process of getting UL certificate in the US.
Our brand “Gongyou” has become a widely known and highly popular brand in our domestic market since the early 1990s. The “Gongyou” trademark was awarded as one of the “Top 10 Industry Brand in China” by Brand Net and China Quality in year 2004, and also as one of the “Most Famous Trademark” in Shandong Province by Shandong AIC.
Currently, we have expanded our international sales network to cover more than 100 countries including Vietnam, Chile, Russia, Argentina, Mexico, Ukraine, South Africa, Ecuador, Indonesia, Greece, Colombia, Italy, Malaysia, Poland, England, Nigeria, Spain, US, Canada, Australia.
In 2003, overseas sales contributed only 5.5% to total sales and grew to 16% in 2005. In 2006, overseas revenue is projected to contribute over a quarter of total revenue, and the group aims to increase this proportion revenue contribution to 35% in 2008. In the long run, our exports will outpace our home market sales, and the higher profit margins abroad will further increase our group’s average profit margins.
To further improve our overall efficiency and streamline operations, the management is implementing an ERP system. To date, we have invested RMB600,000 to install the modules sales, warehouse, planning, supply, finance and others. The ERP system will be fully functional by the end of 2006. Currently, 40% of our administration staff has been covered by this network, and in 2007 this percentage will be increased to 100%.
With our established brand, our scalable core technologies, and our upgraded administration system, the management’s main target is to develop the group into the leading international woodworking machinery manufacturer.