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Established in 1958, the Shijiazhuang Jingang Internal Combustion Engine Parts Group Ltd. was completely rebuilt into a private enterprise in September 2011. With 50 years of experience, Wang Jiming, the president of the board, insists upon utilizing scientific techniques in order to improve the innovation and development of our products.

Now we are one of the largest auto parts manufacturers in China, specializing in the development, design, and production of our high quality Kincon piston, cylinder liner, piston pin, piston ring, engine valve, and engine bearing. We are also the sole supplier of all engine friction parts in China. In 2010, our company was honored to be a leading enterprise in the internal combustion engine parts field in China. We were also recognized as one of the top ten famous enterprises with top ten national brands in the auto parts industry. In 2011, we were awarded as one of the top ten brands for customer satisfaction.

Strategic Technological Transformation
During our first strategic technological transformation in 2006, our company invested RMB 460 million to relocate and establish a science and technology industrial park. This new facility is modern, information based, environmentally friendly, and energy efficient. Then, focusing on optimizing the product development process, our group purchased and introduced superior equipment and technology in order to reform or replace out of date equipment. With an advanced level of product development, our own research center was established and approved as an Enterprise Technology Center in Hebei Province by the Hebei Development and Reform Commission. With the upgrade of our products, the optimization of our market structure, and the expansion of our heavy-duty commercial vehicle parts, our products can be produced in large quantities, and our car, bus, marine engine, and construction machinery products are superior quality. In addition, our central testing room has been established as a Hebei Engine Accessories Quality Supervision and Inspection Station, and was awarded the National Laboratory Accreditation Certificate as a national laboratory by the National Accreditation Board of China.

The second phase of our strategic technological transformation began in 2010. We invested more than RMB 100 million for improvements. Since our first restructuring, investment in scientific technology helped us to establish our Italy FLAT valve production line utilizing advanced equipment. In order to seize the opportunity created by rapid development in the auto industry, we invested in 426 pieces of superior equipment, enabling us to optimize the production process, merger process, product structure, and to eliminate production bottleneck issues. Because of this, the casting of our cylinder liner and piston and the heat treatment property of our piston pin were improved immensely. We established our specialized Weichai piston and cylinder liner production lines, car parts, and large vehicle parts production lines. We have also been successful in reducing procedures, surplus, waste products, and cost, while improving the efficiency and the quality of our fine engine parts.

In 2010, our annual industrial output increased 70.3% more than the previous year, and our sales income increased 64.48%. Even with the poor economic conditions existing both domestically and abroad, in 2011, our company had a stable increase.

Virtuous Cycle of New Product Development and the Optimized Structure of Product and Market
Expanding on the momentum of our strategic technological transformation, we focused on product development and adjusting to and optimizing our market and product organization in order to meet the demands of our present clients and those in the future.

In order to manufacture products that increase fuel efficiency and save energy, oil, and reduce emissions, we utilize low friction technology and reduce the weight, moving inertia force, and the internal friction output of our products. We focus on researching prospective new high performance products, and developing products with low power consumption and low emission. One way we accomplish this is by closely following new developments in our field. Our products are then developed with leading process, material, and core technology. We also follow the development of innovative engines, and continuously manufacture new products to replace our present leading products.

Currently, we have successfully developed our new product for the VM series of diesel engines and MAN engines. We have also made great progress in our gasoline and heavy oil engine products. We have become the supplier for Weichai, Haima, Weichai Power Yangzhou Diesel Engine, Henai Diesel Engine, Jinan Diesel Engine, and other engine plants. We can also solve problems such as air leaking and engine oil burning, while saving energy and reducing power consumption. Additionally, we concentrate on new technology and innovation, so all our products are improved in their structure, material, surface, and performance. Each year our new products have turned a great economic profit. In 2011, the value of our new products reached 85.272 million. This year the value will reach 150 million.

In order to benefit from our diligent research and development, we take a series of actions. First, our export strategy is strengthened. In 2006, our group was confirmed as the national auto parts export base enterprise by the Commerce Department of China and the National Development and Reform Committee. From 2005 to 2011, our annual export income increased 39.3% on average. In addition to our great progress on our international OEM service, we have also supplied batches of products for Korea Doosan, Italy FLAT, and Japan Kubota. In the international market, our products are involved in the purchase systems of Chrysler, Ford, DEUTZ, Cummins, DANA, INTERNATIONAL, MAN, and other companies. In addition, our market in China has expanded. The product quantity for some brands of engines, including Shangchai, Weichai Power, Sino Truck, and Dongfeng Commercial Vehicle, has increased. Some of our heavy-duty fitting products are manufactured in large batches, like our Weichai Europe III WP10 and EGR pistons, our 055 cylinder liner, our Sino Truck Europe III cylinder liner, and more. Moreover, our product line encompasses the entire Cummins engine market in China. In fact, we supply parts for more than 30 famous engine companies and auto works. In 2011, the sales value of our medium and heavy type fitting parts for commercial vehicles increased nearly 5 times that of 2005. Our annual sales value increased by nearly 9 times that of 2005. Furthermore, we are expanding our maintenance market. Currently, our products are sold in the car, bus, marine engine, engineering machinery, oilfield generator set, and other non-road equipment market.

Creating the National Brand, Kincon
With the readjusting of state owned businesses to private enterprises in September 2011, Kincon group has the development advantage. With the philosophy of benefiting each employee, stockholder, and customer, the president of the board has worked to create our international image and the Kincon national brand known for high efficiency, innovation, and environmental protection.

In the next 5 years, our annual sales value should exceed RMB 2 billions, and our group will rank in the top three in our field in China. We aim to be the first enterprise with comprehensive abilities and to be in the forefront of international engine parts suppliers. The international market, the engine market in China, and the maintenance market in China comprise one third in our gross sales respectively. Our international OEM market comprises two thirds of the market. The product market for our passenger car comprises one third of the engine market in China.

In the next 5 years, we will work with famous domestic companies in the industry and work together for mutual sharing and share holding. Cooperating with the scientific research institutions in China, we aim to intensify our product development and testing on the material, performance, durability, and friction of our engine products. We will strive to improve the mechanical and economical efficiency of our products.