China Automation Group is the largest provider of safety and critical control systems in China. The Group focuses on petrochemical automation, railway signaling control technology markets, in a bid to bring into full play the Group's leading position in the industry by rapidly expanding its product range and operational scale. The Group also aims at further unlocking its business potential to achieve organic, rapid growth by widening the use of its product technology and enhancing research & development of related products. In addition, the Group will expand the coverage of its products, market and operational scale through strategic investment and acquisition so as to maintain rapid and steady growth through the following strategies:
 

Organic growth of existing business:

1. Demonstrating the Group's strength in the railway signaling system industry of China, seizing the rapid growth opportunity afforded by the Mainland's railway industry, expanding the operational scale of existing signaling products, improve signaling products, thus turning itself from a provider of railway signaling systems to a contractor.
   The Group currently holds a 76.7% stake in Beijing Jiaoda Microunion Technology Co. Ltd. Acquisition of the company enabled the Group to tap into the highly regulated railway market of China and the highly profitable market of railway signaling systems of the country. The Group will seek to boost its market share in state-owned railways so as to enable rapid growth of its existing business.
    
2. Unleashing the Group's competitive edges in the railway signaling industry in China, seizing the growing opportunity in China's light railway market, actively opening up new markets, enhancing the scope of application of existing signaling products, developing new products, thus turning itself from a provider of light railway signaling systems to a contractor offering comprehensive solutions.
    
3. Enhancing the Group's strength in the petrochemical safety system market in China, broadening the Group's market share in the safety and critical control products and its scale of operation, actively exploreing new industries for applying safety products, such as the electricity and nuclear electricity industries, and widening the market share
    
4. Developing the Group's strength in the automation industry in China, actively seeking strategic partnership, expanding the scope of automation, and enhancing the Group's ability to provide all-rounded solutions in the petrochemical automation industry in China.

Investment and R&D

1. The Group will invest more in R&D to cope with growth of its core business, and apply the latest technology to safety and critical control systems.
    
2. The Group will step up its R&D efforts regarding railway signaling system. It will improve its product system and invest more in the R&D concerning high-speed railway signaling system to maintain its pack in the industry. It will also step up investment in the R&D of railway signaling system and provide comprehensive solutions to signaling systems.
    
3. The Group will devote more efforts in R&D regarding petrochemical safety products, apply the latest technology and build a new safety system, with a view to maintaining its leading market position. The Group will develop a wider variety of specialized control software to reinforce its competitiveness;
   

Boost productivity and cater to demand associated with business growth

The Group will build a new production base in Beijing and boost its productivity so as to meet the rapidly growing market demand.

Expand the sales and maintenance network at home and abroad

The Group will continue to open up its sales service network at home and abroad and provide better sales and maintenance services to clients. It will also develop its engineering service business with high profitability in the international market.

Actively seek strategic investment and acquisition opportunities

The Group will focus on its two core business, i.e. the petrochemical safety system and the railway signaling system. It will be actively looking to acquiring companies that may generate synergy with the Group. It will also continue to enlarge its market share and boost its core strengths.