The tenth five-year plans has given thoughts to the overall development of JCH and therefore being highly practical within the overall framework of strategic positioning, strategic aim, strategic task, strategic procedures and strategic implementation.

‘(1) Three new' strategic positioning as:

1. Fostering productivity of the traditional machinery enterprises and upgrading their products through innovative technology and techniques,

2. Providing facilities and services for the new and emerging industries,

3. And entering the new industry such as environment protection and other growing industries when appropriate.

To put it more specifically, the meaning of positioning the work of Beijing machinery industry is three-folded, namely as:

1. Upgrading the traditional industry and its products to meet the new demand through new technologies and techniques, spontaneously, structuring the modern manufacturing and outdating those less competitive ones,

2. Finding the cutting points of entering the new industry value chain of the Beijing machinery industry, extending its product concepts in terms of packaging and serving,

3. And entering those growing industries such as fuel battery, solid waste processing, CNG gas refilling, water processing, all under the broad name of environment protection.

(2) ‘Four, five and six' strategic aims

‘Four' means realization of establishing the four core groups in printing machinery, numerically controlled machine tool, environment protection machinery and engineering machinery. Each of the four groups is competitive in its own industry and having its company listed on the stock exchange. Within the next five years, JCH aims at becoming the largest supplier of printing machinery in Asia, the most competent supplier of numerically controlled machine tool and other ancillary equipment in China, the environment protection group as the leader in the eyes of its competitors in Beijing and the engineering machinery as the most competitive one in the Chinese market segments.

‘Five' means strengthening five joint ventures around the principal industries of JCH.

‘Six' means six organizational changes, attempting to foster six industrial giants within JCH.

(3) Four strategic tasks, namely as:

1. Adjusting the overall structure to increase the controllability of state-owned capital through merge, acquisition and other changes with the combination of the international capital, financial funds, private funds, industrial funding and knowledge capital, attracting more external sources of funding and other effective means.

2. Sustaining and creating the wealth through capital reallocation and re-generation. JCH is aiming at upgrading its industrial excellence, operation, not to commit itself in any risks.

3. Fully entering the capital market through merger, acquisition, expansion, listing on the stock exchange, etc. after accomplishing the above two. Basically it shifts its focus from product operation to capital operation with the determined position and associated responsibilities.

4. Actively promoting corporate culture to increase the solidarity and its competitiveness. JCH is to create innovative environment and cultural bases to form the core values and beliefs for its staff with a sound understanding of its vision and aims.

(4) Two strategic procedures

The first step is to speed up the process of organizational changes in the development process. During the period of 2001-2002, JCH will concentrate on forming three groups and leaving 6-7 enterprises out of the business, at the same time, promoting small-to-medium-sized enterprises

The second step is to create new image and to seek innovate ways of developing. During the period of 2003-2005, JCH will effective use the flow of capital, aiming at one enterprise listed on the stock exchange and the combination of industrial capital and financial capital. Also JCH will further organize its resources through merger and acquisition, expand its capital and explore the OEM organizational mode. JCH encourages its enterprises to enter industries like trading, service, real estate, etc to divert risks.

(5) Five strategic implementations

1. getting financing of RMB 6 billion. During the period of tenth five-year periods, JCH will heavily attractive capitals through land development, stock listing, private funding and so on. It is expected that by the end of the five ten-year period, a total amount of RMB 6 billion.

2. Attracting investment. JCH will consider those industries with high growth potential, high market shares and will relatively invest in terms of technology, sales and marketing network and human resources. It is thought that those industries will be of the core competitive industries with the group. At the same time, JCH will contribute partially to staff identity shift and other necessary administrative duties concerning employment benefits.

3. Promoting collaboration with foreign companies. During the period of tenth five-year period, JCH will work closely with foreign companies in areas of capital management, technology, management, sales and others to solve the problems concerning technology transfer, financing, marketing channels and management structure It aims to build up two or three international brand names with the help of foreign companies.

4. Restructuring the organisational structure by growth potential, market share, profitability, barriers to entry and other indexes. For those profit-losing enterprises, it is demanded to restructure the overall strategy. On the opposite, for those prospectus enterprises, it is aimed to expect more growth in the near future through several initiatives.

5. Reinforcing the management philosophy. With the period of the tenth five-year, it is to consolidate the strategic approaches and the tap the potential, creativity and innovation to the fullest.