NASDAQ:ZKIN

Advantages

Maintaining and Further Increasing Our Market Position

We have a number of competitive advantages that will enable us to maintain and further increase our market position in the pipe and fitting manufacture industry. Our competitive strengths include:

Solution-oriented products and services

Conventional manufacturers make products based on what prior customers ordered or pre-set prototypes, but we listen to our customers, engage in their projects, offer them engineering solutions and quickly respond to their demands. This differentiates us from other competitors who only supply products. By leveraging the flexibility of our product and providing systematic solutions to our customers, we strive to develop long-lasting partnerships with our clients.

Extensive Sales Network

To penetrate local markets and build lasting partnerships with the local water and gas supply companies, we have established a sales network with 27 sales representative posts in major urban hubs in China. To better serve our clientele, we also have worked with dozens of resellers across China. This extensive network ensures our products and services are easily accessible in all of China’s major cities.

Integrated Supply Chain

Most of our competitors outsource components from third-parties and often encounter difficulties achieving the same low defect rate, high gross margin and production efficiency. Because we have the necessary production lines and machinery, we are able to decrease the cost of production by modifying raw steel strip to produce our own components and parts. As a result, we are able to achieve higher margins and ensure superior quality and consistency.

Technical and Engineering Capability

We understand that each project is unique, and as a result, we cater to our clients’ unique needs on an individual basis. Our technical teams regularly consult and develop solutions that best cater to our clients’ objectives. Our sales team, engineers and construction teams work collaboratively to deliver the best service experience.

Rigorous Quality Control Benchmark

We have rigorous quality control mechanisms built into the manufacturing process to ensure that every product we make conforms with industrial quality standards. The following certificates attest to our focus on excellent quality control: ISO 9001:2008, DVGW, ISO14001:2004 and Global Manufacturer Certificate (GMC).