Chaowei currently sells almost all of its products in China. Our motive batteries for electric bikes are targeted at two market categories: the primary market for electric bike manufacturers and the secondary market for distributors of electric bikes, batteries and accessories.

The Company has a dedicated key account customer service team for electric bike manufacturers, serving the major customers in this segment. A key component of our strategy is to strengthen our relations with major electric bike manufacturers through regular management visits, close customer care through our sales representatives and technical support and upgrades. The Company's major customers in the primary market include market leaders such as Jiangsu Yadea, AUCMA and Shandong Bidewen.

According to Frost & Sullivan, the size of the secondary market has surpassed that of the primary market for the first time in 2009. The Company has an extensive distribution network of independent distributors and sub-distributors. Our network provides extensive market coverage, customer reach and after-sales service, covering every province, autonomous region and municipality in China. As of 30 June 2011, we have 524 independent distributors who distributed our lead-acid motive batteries on an exclusive basis.

Our success rests on our dedicated efforts to maintain customers' loyalty through commitment to product quality. These efforts have resulted in well-established relationships with customers. Currently, we also provide after-sales services via our distributors, highlighted by the new one-stop service centers offering distribution and a comprehensive package of services including sales, maintenance and repair and recycling of batteries.