Sinotruk signs Comprehensive Business Cooperative Agreement with Sinosure

On April 30, Sinotruk signed Comprehensive Business Cooperative Agreement with China Export & Credit Insurance Corporation (Sinosure).  Sinosure will provide about 2 billion yuan of annual domestic trade credit insurance for Sinotruk.

Deputy general manager of Sinosure Liang Zhidong, Chairman of Sinotruk Ma Chunji and President of Sinotruk Cai Dong attended the signing ceremony.  Vice President of Sinotruk Wei Zhihai presided at the ceremony.

Ma Chunji and Liang Zhidong delivered addresses respectively, congratulating that the cooperation between the two sides has stepped on a new stage, expecting both sides to grasp the opportunity to make a broader cooperation, and to gain greater development together.

Liang Zhidong and Vice president of Sinotruk Wang Guangxi signed the agreement together.

The purpose of the signing of Comprehensive Business Cooperative Agreement between Sinotruk and Sinosure is to strengthen the complementation of advantages on the aspects of automobile export trade, domestic automobile trade, risks control and overseas business of both sides, and to further promote the depth and width of cooperation and to realize development together.

According to the agreement，on the base of continuing to provide short term export credit insurance for Sinotruk, Sinosure will further supply domestic trade credit with an annual total of 2 billion RMB to be used in the risks of credit sales, and in the same time Sinosure will provide the domestic business bills credit insurance, domestic credit purchase support and other business supports.

As early as the year of 2002, Sinotruk started the pace of internationalization.  In order to avoid the risks of foreign exchanges collection sufficiently, during a long period, Sinotruk used the settling up method of advance payment or confirmed credit on most of the export products.  The conservative settling up method dragged the pace of internationalization of Sinotruk.

In August 2006, Sinotruk signed “Comprehensive Strategic Cooperative Agreement” with Sinosure. Sinosure signed short term export credit insurance contract with Sinotruk Shandong Import and Export Company, Jinan Truck Company and Sinotruk Refitting Truck Company in succession, totally accepting insurance over 200 million dollars for the export business of Sinotruk.  After more than one year’s cooperation, the export business of Sinotruk has gained rapid development, evading the risks of foreign exchanges collection effectively, making the operation of the company more stable.

After successfully being listed on SEHK as red chip, the production and sales volume having been broke through 100,000 units in 2007, Sinotruk realized fast development in the first quarter of this year.  The production and sales volume of the first 3 months of this year is 32,947 units, 41% increase compared with the same period of last year, realizing the sales income of 11.7 billion RMB.  The production and sales volume of whole trucks in March surpassed 15,000 units, establishing the highest record of monthly production of heavy truck in domestic market, realizing earning foreign exchange through export over 130 million dollars.  Each target increased over 40% compared with the same period of last year.

Sinosure is the only finance agent which undertakes policy credit insurance business in China.  From 2002 to 2007, Sinosure has totally supported 112.1 billion dollars on export and investment, providing export credit insurance services for thousands of export companies, and providing insurance supports for hundreds of intermediate and long term projects.

General manager of Business Development Department of Sinosure Zhu Jingan, general manager of Short Term Business Department Xu Xinwei and senior advisor of Sinotruk Wang Wenyu attended the ceremony.