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COMPETITIVE STRENGTH

We believe our competitive strengths are as follows:

Brand Equity and Brand Management

We put high emphasis on our brand equity and brand management. In the early 1990s, when brand equity and brand management were unfamiliar concepts to PRC companies, Gongyou was amongst the first to embrace these concepts and launched the Company’s marketing campaign with the famous and catchy slogans “Gongyou, Gongyou, the friend of woodwork; Gongyou, Gongyou, the door to getting rich”.

This marketing campaign later expanded into commercial advertisements in CCTV. The Company also put up trademark and advertisement posters all over the country; all these efforts resulted in transforming Gongyou into a widely known and highly popular brand.

Gongyou is also innovative in spending its advertising dollars with a passenger vessel from Weihai to Dalian, and trains from Weihai to Jinan are all named “Gongyou”.

These efforts paid off generously to Gongyou. The brand of “Gongyou” was awarded as one of the “Top 10 Industry Brand in China” by Brand Net and China Quality in the year 2004, and also the “Most Famous Trademark” in Shandong Province by Shandong AIC.

Emphasis on Product Quality

We believe that delivery of quality products and services is the basic requirement of this business.

We are very focused in maintaining a system of quality assurance measures to ensure that our customers are provided with high quality products.

We place great emphasis in the manufacturing processes, instituting a stringent quality control system, and in recognition of our efforts, our quality management system was certified by ISO9001: 20000. These efforts also rewarded us with a China Certificate of Conformity of Machinery Safety.

The emphasis on maintaining quality products continued to pay off. We obtained PRC  certification, and quality certification for exports for all our electromotor products. As a validation of compliance with international standard for quality, 16 woodworking machineries have successfully been awarded with     EU certification and we currently in the process of getting  ce    certificate in the US for 5 products.

 Product Research & Development Capabilities

We attach high importance to R&D having invested more than RMB10 million in recent years to strengthen the Company’s R&D capabilities.

The Company currently employs 150 R&D staff, (90% of them hold a bachelor degree and above). 30 of them hold senior R&D positions. The R&D Division has been certified at the provincial level in 1998 and over the last two years, the department has successfully developed more than 200 new products.

Sales & Distribution Network (International & Domestic)

We have successfully over the years established a strong domestic sales network on the back of the proven range of products and an effective marketing campaign. We believe that it is the strong domestic sales network that generates steadily more and more new customer accounts. Our efforts to maintain a good relationship with existing customers provides a high quota of repeated sales.

Leveraging on our experiences in the domestic market and on our good relationships with our distribution agents, we managed to build up a credible international sale network, covering more than 20 countries.

Strategically located and access to developed transportation network

Our group’s production operations are carried out at Weihai plant, which is strategically located in Weihai City, Shandong Province, PRC. Weihai City’s excellent location and transportation facilities (see map below) allow prompt delivery of our products to customers and cost savings in delivery cost.

gongyou machines

Management & Employees

The management team consists of well-reputed professionals with some of them having more than 3 decades of experience in the woodworking machine industry. For more details, please refer to “Board of Directors”

 

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