1. The Company has established strategic cooperation relationship with Piaggio (Italy), the largest-scaled motorcycle manufacturer in Europe. Chongqing Zongshen Engine Manufacture Co., Ltd., a wholly-owned subsidiary of the Company, has become the largest top-grade scooter engine production base of Piaggio (Italy) in China. The cooperation was called “a cooperation model between China and Italy in industry and commerce” by Chinese Premier Wen Jiabao. (Picture 1)

 2. The Company has established permanent strategic cooperation relationship with MTD (USA), the largest general power machine product manufacturer in the world, in general power machine production technology field. Chongqing Zongshen General Power Machinery Co., Ltd., a wholly-owned subsidiary of the Company, has become one of the largest production bases of MTD (USA) in the world, with an annual average output of general power machines and end products of more than 1 million set in total (Picture 2).

 3. The Company has established technical cooperation relationship with Boston-Power (USA), a globally famous high energy lithium ion battery manufacturer, in battery pack and power system integration field. Currently, both parties are actively testing technologies on storage battery, battery management system and charger.

 4. The Company has established technical cooperation relationship with EDI (Italy), a globally famous engine design and development planning institution, in diesel engine technology field. The 499cc single-cylinder water-cooled four-stroke diesel engine project and 250CC single-cylinder water-cooled four-stroke petrol engine project entrusted by the Company to EDI (Italy) for design and development are both progressing smoothly.

 5. The Company has established technical cooperation relationship with Dellorto (Italy), a world top-grade carbureter and electronic system design manufacturer, in the R&D filed on the electronic fuel injector and electronic controlled carburetor system of motorcycles, and has achieved obvious effect on relative technical innovation on performance improvement of motorcycle engine emission systems.

 (Signing Ceremony for All-round Cooperation Between Zongshen and Piaggio) Picture 1

CEO of MTD (USA) Visiting Zongshen (Picture 2)