Ｐｅａｒ Ｒｉｖｅｒ Ｐｉａｎｏ Ｅｎｊｏｙｓ Ａ Ｆａｍｅ ｉｎ ｔｈｅ Ｗｏｒｄ Ｍｕｓｉｃ

Tong zhicheng's Working ExperienceMay 2003:

Secretary of Party Committee ana Director-General of the Board ofGuangzhou Pearl River Piano (Group) Co.， Ltd.DOC 1996:

Secretary of Party Committee， Director-General of the Board andGeneral Manager of Guangzhou Pearl River Piano (Group) Co.， Ltd.July 1996:

Director and Deputy General Manager of Guangzhou Second LightIndustdal Group (holding) Co. Ltd and Secretary of Party Committeeand Manager of Pearl River Plano CompanyAPr 1995:

Deputy Director-General of Guangzhou Second Light Industrial Bu-reau and Secretary of Party Committee and Manager of Pearl RiverPiano CompanyJan 1994:

Secretary of Party Committee and Manager of Guangzhou Pearl RiverPiano Industrial CompanyAug 1992:

Manager of Guangzhou Pearl River Piano Industrial CompanyDec 1991:

Acting Manager of Guangzhou Pearl River Piano IndustrialCompanyOct 1990:

First Deputy General Manager of Guangzhou Pearl River PianoIndustrial CompanyMar 1989:

HongKong Pearl River Piano Manufacturing Co.， LtdOct t988:

Deputy General Manager of Guangzhou Pearl River Piano Industrial: CompanyAug 1986:

Genera Manager of Macao Piano Factory Co. LtdOct 1984:

Sect on Chief of Foreign Trade Section of Guangzhou Piano FactoryMay 1976:

Head of Maintenance Department of Guangzhou Piano FactoryNov 1959:

Repa rman and tuner of Guangzhou Piano FactoryTong ZhJcheng's WorkingPerformance:

Since Mr. Tong Zhicheng held the postof General Manager of Guangzhou PearlRiver Piano (Group) Co.， Ltd in 1992， witha strong sense of responsibility， he unitedwith other members of leadership as wellas ordinary staff members， solving difficul-ties and problems by means of reform anddevelopment. In the process of establish-ment of modem enterprise system， he ad-hered to the principle of\"innovation by sys-tem'' and \"innovation by technology\"，implementing the managing concept of\"consciousness first， responsibility first，action first and management first\"， to regu-late the daily work of the enterprise. In 1998，in order to integrate the resources of musi-cal instrument manufacturers in GuangzhouCity， the Group Company presided by Mr.Tong Zhicheng， successfully merged 11 en-terprises running in the red deficit， thussolved unemployment problem for severalthousand workers， and efficiently utilizedlimited resources. As a result， Guangzhou'smusical instrument industry turned lossesinto gains in a short period.

Under Tong's presiding， the GroupCompany mapped out strategic targets ofbasing itself on domestic market and ad-vancing towards outside world. The Groupimplemented developing strategies of re-lying on science and technology， spread-ing famous brands， expanding markets， andbringing up talents etc. He carded on strat-egy of combining introducing high-gradeforeign talents with domestic professionals，cultivating new talented people with pre-serving key veterans， and attracting talentsand finding out growing talents， continuedto introduce foreign advanced infrastruc-ture and Hi-tech， accelerated the utiliza-tion of new and Hi-technologies as well asInternet， to improve the technology ofmusical instrument production and upgradeproducts with good market prospects. Inrecent years， the GroupCompany establishedsubsidiaries in theUnited States andEurope. The sales vol-ume of piano.ac-counted for 15% of to-tal in the U.S. market，and 10% in Europe，initially realizing thetarget of marketingintemati0nally.

By carrying outabove strategies， Tong Zhicheng turned thesmall-sized Pearl River Piano Factory intoone of the largest piano producers aroundworld. The Group Company got newachievements and new breakthroughs inmanagement and technological innovation.Its scale of production and sales expandedrapidly， quality and grade of its productswere improved continually， and the prod-uct brands got recognition and persistentpreference by customers increasingly. In2003， Pearl River Piano Group earned busi-ness income of RMB750.34 million，earned foreign exchange through exportsof US$22.75 million， and realized profit ofRMB 120.07 million and owner's equityRMB889 million， increasing by 5.77， 2.79，6.97 and 20.58 times as more as in 1992respectively. While its tangible assets wereappreciated， its value of intangible assetswent up significantly. The Group Companyobtained several awards including ChinaFamous Brand Product， China FamousTrademark， and China National ProductsSatisfied by Users etc. According to theevaluation by authoritative institute， thevalue of its Piano's brand was up toRMB 1.642 billion， one of the top brandsof China-made musical instrument.

Introduction of Guangzhou PearlRiver Piano (Group) Co.， Ltd(June 2005)

Being a state-owned enterprise groupin Guangzhou City， Guangzhou Pearl RiverPiano (Group) Co.， Ltd is one the largestpiano producers worldwide. After 10-plus-year reform and opening-up， the Group hasbuilt 6 production bases for the productionof upright piano， horizontal piano， guitar，violin and timber processing. Now theGroup possesses workshops of 350，000square meters， more than 4，000 staff mem-bers and over 3，000 machines facilities.Its total assets amounts to RMB 1.5 billion，and owner's equity is up to RMB 1 billion.

Through deepening reform， innovat-ing system， and optimizing industrialstructure， organizational structure， assetstructure and technical structure，Guangzhou Pearl River Piano (Group) Co.，Ltd has initially established modem enter-prise system. It took the lead in getting theachievement of annual production of 10，000pianos in Chinese piano industry， establish-ing the largest technology center and tech-nology RD center for provincial key en-gineering projects， getting approval forimport and export business independently，inviting foreign experts to be technical ad-visors in piano manufacture， setting upsales companies in the United States andGermany， organizing marketing commu-nity in the industry， thus increasing itsmarketing proportion in China to 30 per-cent and more. In the past 10 consecutiveyears the Group's total profits increased byover RMB 10 million every year. Its pro-duction and marketing ranked first in Chinafor the past over 20 years; its economic per-formance also ranked first in Chinese musi-cal instrument producing industry. In 2004，its export delivery accounted for 32.8% ofgross sales; and its Pearl River piano andother musical instrument were exported tomore than 80 countries and areas includ-ing European and American developedcountries， having 15% of market segmentin American piano market.

The Group Company firmly carriedout famous brand strategy， striving to forge\"Century Brand\" and \"World-famousBrand\". Its leading product \"Pearl River\"piano obtained awards including ChinaFamous Brand Product， China FamousTrademark and China National ProductsSatisfied by Users， the sole product obtain-ing a good many awards in Chinese musi-cal instrument producing industry. Whileits tangible assets were appreciated， itsvalue of intangible assets went upsignificantly. According to the evaluationby authoritative institute， the value of thebrand of Pearl River Piano was up toRMB 1.642 billion， one of the most valu-able brands of China national musical in-strument in Chinese musical instrumentproducing industry. Other brands were rec-ognized as famous brand and famous trade-mark in Guangdong province.

The Group Company gloriouslygained a series of awards including Enter-prise of China National' 5.1' Labor Award，China National Advanced Enterprise inQuality Management， China National Ad-vance Enterprise in Quality andPerformance， China National Advancedorganization of Engineering Implementa-tion Satisfied by Users， China NationalAdvanced Enterprise of After-Service，China National Enterprise with ExcellentManagement and Guangdong QualityManagement Award. With bank AAAcredit rating， local tax A credit rating andcustom AA credit rating， the Group Com-pany was in the list of 16 Chinese Enter-prises Creating World Famous Brand andInternational Competitiveness as well as10 Chinese Model State-ownedEnterprises. The former and present Stateleaders Jiang Zemin， Zeng Qinghong， SongPing， Li Changchun， Li Tieying， ZhangDejiang， Wang Gang etc went to visit， andpraised the steady development of theGroup Company.

International BusinessOpportunities and Developmentof Guangzhou Pearl River Piano(Group) Co.， Ltd

Driven by economic globalization，rapid growing up of IT industry and sci-ence technology， enterprises competeeach other without national boundaries. Inconformity to market requirement， theGroup Company made a decision of\"go-ing out\"， making breakthrough in Ameri-can market and opening European marketwith German market as a base. It set upworkshop in Macao to produce pianos， andestablished marketing companies in theUnited States of America and Germany，realizing radical transformation from \"go-ing out\" of products into that ofcorporation.

The United States is the largest musi-cal instrument market around the world， andtherefore a position that worldwide superproducers inevitably want to get into. Onthe basis of the thought ofinternationalization， the Group Company setup its marketing company in the U.S. in1999. Thanks to its strategy of market sub-division and personnel localization， it suc-cessfully established over 300 marketingspots， largely increasing the sales of pianosthere， and expanding to other Americancountries including Mexico， Brazil， andCanada etc. The export volume of PearlRiver piano climbed from more than 2000in the year 2000 to more than 4000 in 2001，accounting for 15% of total American pi-ano market， two times of that before settingup American marketing company. To sat-isfy increased market demands， the GroupCompany is making great efforts to furtherenlarge its proportion in American marketby 10% in the coming 5 years， to 25% ofthe total. The Group Company plans to in-crease US$5 million worth of investmentinto its American corporation， for promot-ing the sales of other small musical instru-ment and electronic musical instrument，such as guitar， violin， accordion and elec-thc guitar on one hand， attracting new cus-tomers in order to sell more products inSouth American countries on the other hand.By gradually implementing strategy of in-creasing product categories and that of ex-panding marketing regions， the Group Com-pany is striving to enlarge market share.

Europe is the dominant market for high-and-medium-grade pianos and importantbase for piano production around the world.To establish marketing company in Euro-pean country is beneficial to the Group'sparticipation in the competition of high-grade products， the absorption of Germanadvanced producing technologies， and up-dating the product quality. Approved by theMinistry of Commerce， the Group set upZhujiang Piano Group European Co.， Ltdin Munich， Germany (European Company).European Company is one of the subsidiar-ies of the Group with gross investment val-ued at US$900，000 (Euro 500，000). Thetask of the European Company is to developthe market in European countries， and en-large market share in those countries. In2004， the export volume of Pearl River pi-anos reached 5，095 amounting to US$4.95million， 17.45% and 22.22% more than thatof last year respectively.

Practice proved that it was a wise de-cision Guangzhou Pearl River Piano(Group) Co.， Ltd had made to establishmarketing companies in the United Statesof America and Germany， which played asignificant role in promoting brands of Chi-nese national musical instrument， and ex-panding its market share in the interna-tional market.