Chongqing Zongshen Power Machinery Co.,Ltd., the core subsidiary of Zongshen Industrial Group, became a listed

company in Shenzhen Stock Exchange after its reorganization in 2003 with securities code: 001696. The

Company’s major specialties are developing, manufacturing and selling of motorcycle engines, general gasoline

engines, diesel engines and various kinds of agricultural and forestry machineries with an annual production

capacity of 4 million motorcycle engines, 2.5 million general gasoline engines, as well as 1.5 million diesel engines

and agricultural and forestry machineries, which makes it rank among the largest professional production bases in

China with the most complete variety of production for thermo-motive machineries.

The motorcycle engine series covers more than 130 varieties with over 1800 specifications from 35CC to 500CC,

including two-wheeled motorcycle engines, three-wheeled motorcycle engines and off-road competition ATV

engines. The general motive power machinery series covers general gasoline engines, small size generator sets,

small size diesel engines, mini power tillers, mini type pumps, lawn machines, high pressure washers, hedge

trimmers and various kinds of agricultural and forestry machineries. The products from Zongshen Power have

been sold nationwide and exported to more than 100 countries and regions in Europe, America, Middle-East,

Southeast Asia and Africa.

The Company has established a production and management system corresponding to the requirements of

industrial development as well as the development strategy of the Company. The products of Zongshen Power are

kept up with domestic leading level with regard to quality and technique. The integrated competition capability of

the Company has been greatly enhanced through increased technical R&D investments, technical transformation

acceleration as well as technology import and innovation strengthening. The Company has approached the

advanced world levels in the aspect of development and application of new products, new processes and new

techniques. The Company has set up a complete quality control system, which has got ‘ISO9001 Quality System

Certification’, ‘National 3C Certification’, ‘National Production Access Review’, ‘Environmental Management

System Certification’, ‘Occupational Safe Health Management System Certification’ and with part of the products

approved by EPA Certification, CARB Certification, EC Certification, GS Certification, China Agriculture Machinery

Promotion Certification, European Noise Certification and etc., thus preparing it with essential conditions for

product sales and market access.‘Zhongshen’ trademark was officially authenticated as Famous Trademark of

China by the State Administration of Industry and Commerce in Aug. 2003. ‘Zhongshen’ brand motorcycle and

engine products gained the title of China Famous Product in Aug., 2004. The Company acquired “Management

Demonstration Enterprise" Certificate awarded by China Machinery Industry Federation in Mar., 2005 and

simultaneously was rated as Top 500 Machinery Companies of China. Zongshen Power had been rated as ‘Top 500

Machinery Companies of China’, ‘National Quality Management Advanced Enterprises’ and ‘Top 100 Valued

Listing Companies of China’ for successive years from 2004 to 2009. The Company also won ‘Quality Management

Prize by Chongqing Mayer’ in Jan., 2011.

Zongshen Power is the production base for top grade scooter engines of Piaggio &C. S.P.A. Italy, the largest

motorcycle manufacturer in Europe, and the strategic partner for MTD, the largest general engine manufacturer

in the world. The Company exports more than one million units of general engine products to many developed

countries in America and Europe. The Company, by digesting and absorbing international advanced techniques

during the process of strategic cooperation, has forged a series of high grade thermal-motive machinery products

with proprietary intellectual property rights and high technology content, which has promoted effectively its

technical research and development standard and innovation ability. Therefore the Company has gradually

developed into a first rate domestic thermo-motive machinery enterprise with international competitiveness by

its research and development capability, perspectiveness and specialization.

The corporate philosophy of Zongshen Power is ‘Unique and Perfect, Honest and advance’. The development goal

is ‘Strive to be the leading enterprise of the industry, the first-rate enterprise of China and the century enterprise

of the world!’