3-billion-yuan Credit Extension from Standard Chartered Helps Promote Internationalization of SANY

"With SANY, we became old friends at the first sight, fell in love upon first touch, and reached agreements through first talk," said Katherine Tsang, Governor and Chief Executive President of Standard Chartered Bank China Co., Ltd., who visited SANY on March 14 flanked by Wang Lan, Directing General Manager of Department of Enterprise and Financial Accounts, Standard Chartered Bank China Division, The three "firsts" (a pun, where SANY in Chinese literally means three firsts) highlighted the candid and intimate atmosphere.

The visit to SANY was Katherine Tsang's first field trip to inspect an individual cooperating enterprise. During her few hours' stay there, two parties signed an agreement for strategic cooperation, by which Standard Chartered will provide SANY with a globally comprehensive credit extension quota in multi-currency equivalent to 3 billion yuan.

Katherine Tsang is a blood younger sister Hong Kong Chief Executive Tsang Yam-kuen. Ranking officials including Mr. Tang Xiuguo, President of SANY Group, and Mr. Duan Dawei, Vice President and Financial Director of SANY Group cordially received Katherine Tsang and her company at large.

Long-awaited Trip to SANY

"SANY is indeed an industrial leader. I hope that SANY and Hong Kong can grow together, and create greater value through continued innovation." Tsang Yam-kuen's remarks on September 26, 2006 are still resounding.

"SANY really lives up to its reputation, and Standard Chartered takes great pride in having SANY as its client," said Katherine Tsang more than 12 months later to Tang Xiuguo President of SANY Group.

On the afternoon of September 26, 2006, Hong Kong SAR Chief Executive Tsang Yam-kuen, who was attending the Central China Investment and Trade Fair staged in Changsha, led the Hong Kong SAR Delegation of Government, Economy and Trade to SANY. At 2:10, Tsang Yam-kuen showed up at the No.1 Plant of SANY Heavy Industry to visit take a glimpse at the Quality Products Assembly Line for Engineering Machinery.

At the same hour on March 14, Katherine Tsang and her company, who have just disembarked their plane, stepped into SANY's No. 1 Plant. "I have been waiting so long for this trip ever since my brother and my colleagues mentioned SANY to me," said Katherine Tsang.

Mr. Tang Xiuguo briefed Katherine Tsang on SANY's production and sales of pump trucks and trailer-mounted concrete pumps, with an stress on the world record delivery height of 406 meters established by a single SANY concrete pump when building the Hong Kong Financial Center, which figure has now been updated to 492 meters at the Shanghai Global Financial Center. Katherine Tsang listened attentively, expressing her appreciation on efforts of SANY to develop "intellectual and fool-proof engineering machinery products." Tsang et al also visited SANY's R&D Center and Enterprise Control Center. 

One of SANY Group's ceremonial gifts from for Katherine Tsang was a large vase in Chinese red engraved with a group picture of Chief Executive Tsang Yam-kuen and ranking officials of SANY during his previous visit there. In return, Katherine Tsang bestowed SANY with a set of bank notes in HK dollar published by the Standard Chartered Bank (Hong Kong) Co., Ltd., all of them bearing serial number of "600031" (A-share stock code of SANY Industry Co., Ltd.).

Overseas-invested Banks Accelerates SANY's Internationalization

Katherine Tsang's trip to SANY enabled the signing of a strategic cooperation agreement between Standard Chartered and SANY, according to which Standard Chartered Bank will provide SANY with a globally comprehensive credit extension quota in multi-currency equivalent to 3 billion yuan. The two parties also inked a number of cooperation agreements on establishment of a domestic and international sales and trade financing system for SANY products, a platform in Hong Kong for SANY's international capital and trade financing and international settlement, and SANY's future borrowings from overseas bank consortiums and issuance of private corporate bonds. The singing ceremony was followed by a discussion on possibility and feasibility of building a financial institution for closer cooperation.

Katherine Tsang said she was bullish on the perspective of her bank's cooperation with SANY, a rapidly growing enterprise.

Mr. Duan Dawei, Vice President and Financial Director of SANY Group, said comprehensive cooperation with overseas-invested banks will facilitate SANY's internationalization, further strengthen risk control in financial management, and expand the group's financing capability.

In 2007, SANY Group's sales revenue reached a new high of 13.5 billion yuan with a net profit of 4 billion yuan. Despite the dominating share of Chinese sales in total, its overseas business has been burgeoning from 60 million dollars in 2006 to 200 million dollars in 2007. Currently, SANY Group's products are already marketed in 97 countries.

In 2006 and 2007, SANY Group laid an investment of 60 million dollars each in India and the US in land acquisition for manufacturing plants."We are planning to obtain land lots in Germany and Brazil for manufacturing plants, and Standard Chartered Bank is expected to play an increasingly important role during the SANY's internationalization," said President Tang.

In 2007 September, SANY launched the SANY International Development Co., Ltd. with an investment of 60 million dollars in Hong Kong, and SANY Group officially became a client of Standard Chartered Bank thereafter. As their first cooperation project, Standard Chartered Bank provide SANY with a total credit quota of 50 million dollars in support, as well as comprehensive consulting services and financial products and services in management of risk in exchange rates and interest rates relating to imports and exports, and foreign-currency debt.

According to Mr. Duan Dawei, SANY Group converted most of its RMB debts into dollars as suggested by Standard Chartered Bank, and managed to effectively control its capital cost against rising RMB interest rates and fluctuating exchange rates.

In April 2007, Standard Chartered Bank became the first overseas-invested bank to register legal person in Mainland China, and currently operating 14 branches, 23 sub-branches and 2 representative offices in the country. Standard Chartered is committed to becoming a leader on the international market, and providing better services amid SANY's internationalization process. SANY Group will finance its capital needs from the global market through the agency of Standard Chartered.