|We are pleased to announce that on 10 December 2010, another two of our subsidiaries namely Weihai Honglin Wire and Cable Co.,Ltd. and Changshu Honglin Wire and Cable Co., Ltd. have being assessed as High Technology Enterprises.
Advanced technology enterprise refers to the enterprise identified in the 《国家重点支持的高新技术领域》(or identification purpose only:“High-technology Arena Supported by the State”) which include enterprises in the fields of IT technology, bio-engineering and new medical technology, aerospace technology and new material technology etc and possess key proprietory intellectual property rights through focusing on constant research and development and technology achievement transformation . To be sucessfully appraised as a High-Technology Enterprise, companies are required to demonstrate, among others, (i) demostrated research and development capability; (ii) constant capital investment in R&D,(iii) strong management capability; (iv) commercial application of research outcomes; (v) the number of proprietory intellectual property rights and; (vi) growth of sales revenue and total asset. Appraisal standards and procedures are strict and complicated as it requires approvals from different relevant authorities ,such as municipal, provincial and national science and technology authorities and tax authorities.
Such honours testify to our strong research and development strength and demonstrated R&D achievements. Our group has always been focused on investing in and enhancing the standards of our research and development and the Group has always historically invest around 3% of our total revenue each year in our research and development. Through our research and development capability, we have managed to become strategic partner to many of our customers where we worked together with our customers in the initial stage of new products design and development and such strategic collaboration allows us to enjoy relatively higher gross margin products and get bigger market share in the initial launch stages of new product.
Our group will continue to focus and enhance investment in our research and development, and strive to seek new revenue growth opportunities for our products particularly in new fields of solar, antenna and automobile industries.