2007, June 2^nd, SBS Shares (002098) passed the proposal of establishing subsidiary companies in Dongguan and Tianjin, determining to establish Dongguan SBS Science & Technology Co., Ltd and invest Tianjin SBS Science & Technology Co., Ltd with Shi Mingqu.

It is said, as the subsidiary company, the registered capital of Dongguan SBS is 50million RMB. Total investment of Dongguan SBS is 116,294,200 RMB, planning to build up a production line with annual capacity of metal zipper 56,230,000pcs and nylon zipper 469,066,000pcs. Annual sales revenue (including tax) will increase 300 million after this project completed.

SBS Shares and Shi Mingqu invest Tianjin SBS together with 200 million registered capital, which includes SBS Shares RMB199,000,000, occupying 99.5% of registered capital and Shi Mingqu one million, occupying 0.5%. Total capital of Tianjin SBS is RMB125,528,900, planning to build up a production line which will achieve annual capacity of  metal zipper 49,897,000pcs, nylon zipper 334,416,000pcs and plastic zipper 121,158,000pcs.  Annual sales revenue (including tax) will increase 320 million after this project completed.

SBS declared that the purpose of the investment was to carry out the strategy of expanding scale  “Chinese distribution, Global infiltration”, exert the advantage of brand, technology and scale, improve supply ability and service  in Hua'nan, Huabei and Dongbei districts, even increase the market share and ensure stable and continuous  development.