Financial Overview

-The Company brought in 1.5 billion yuan in sales in the first half of 2012.

-In 2011, the Company had a domestic market share of 48% in piston rings, 38% in valve seats and valve guides and 80% in cylinder liners.

Awards

-Anqing TP Goetze Liner Co., Ltd. (ATGL), a subsidiary of the Company, received the Quality Certification award from FAW Jiefang Wuxi Diesel Engine Factory.The effective date is from Jan.1 2011 to Dec. 31 2012. (From a press release on April 20, 2011)

-In March 2011, Anqing TP Goetze Liner Co., Ltd. (ATGL) received the Excellent Quality award from GAC Toyota Engine Co., Ltd. because of its high quality liners. Since 2005, ATGL has supplied 8 million liners to GAC Toyota Engine Co., Ltd. (From a press release on April 28, 2011)

-Anqing TP Goetze Liner Co., Ltd. (ATGL) received the Safety Award, issued jointly by Tianjin FAW Toyota, Tianjin FAW Toyota Engine, FAW Toyota (Changchun) Engine, Sichuan FAW Toyota, and Sichuan FAW Toyota Changchun Fengyue Co., Ltd. (From a press release on Sep. 20, 2011)

-Anqing TP Goetze Liner Co., Ltd.(ATGL)  received the A-Level Supplier award from SAIC Motor. (From a press release on Jan.10,  2012)

Joint ventures

-In May 2010, TPR announced a plan to establish a joint venture in Shandong Province, China, to manufacture cylinder liners for automotive engines. A TPR affiliate in Korea, Y&T Power Tech, Inc., planned to jointly form a company tentatively named as YTAL with ARN (Anhui province, China) in July. The joint venture was expected to achieve annual sales of one billion yen in 2012. Located at Rizhao, Shandong, YTAL would have supplied cylinder liners to Korean automakers in China. The joint venture would have been capitalized at USD 8 million, of which 80 percent would have been owned by Y&T and 20 percent by ARN. (From an article in the Nikkan Jidosha Shimbun on May 17, 2010)

Dissolution of plan

-In August 2010, TPR announced that it had frozen its project to establish a new joint venture company in China. The company was planning to build a cylinder liner plant in Shandong Province through a joint investment with a Chinese auto parts supplier. Following the sharp depreciation of the Korean won, however, TPR decided that it would be more advantageous to increase cylinder liner production and export the products to China from Y&T Power Tech, its affiliate in Korea. Y&T set up an additional production line that was scheduled to be completed by October 2011 to increase its production capacity to 1.6 million units a month, an increase of 33 percent from its previous capacity. (From an article in the Nikkan Jidosha Shimbun on Aug. 5, 2010)

Reorganization

-In August 2009, TPR announced that it would turn Anqing TP Goetze Liner Co., Ltd. into a consolidated subsidiary. At the request of TPR, the subsidiary strengthened its capabilities in technologies and operations to expand the scope of its business. (From an article in the Nikkan Jidosha Shimbun on Aug. 5, 2009)

Product Development

-In June 2009, Anqing TP Goetze Piston Ring Co., Ltd.(ATG) succeeded in developing prototypes of transmission seal rings. These prototypes were supplied to Wuxi Heante Power Technology Co., Ltd., an affiliate of Germany-based Hoerbiger. (From a press release, June 29, 2009)

Investment projects                                                                                                                       (units: in million yuan)

Project	Details	Amount invested	Status
Constructing production lines to manufacture  60 million piston rings annually, valve springs, powder metallurgy shock absorbers etc.	-	-	Under construction
Constructing production lines to manufacture parts for ZR series engines	-	200.0	Under construction
Constructing production facilities to manufacture liners, second stage construction of valve springs etc.	-	-	completed
Constructing production facilities to manufacture piston rings	annual production capacity: 80 million units	200.0	to be finished in 2012
Constructing production facilities at Anqing TP Goetze Liner Co., Ltd. to manufacture cylinder liners	annual production capacity: 4 million units	200.0	to be finished in 2012
Constructing production facilities to manufacture piston rings	annual production capacity: 3.6 million units	150.0	to be finished in 2011
Constructing production facilities at Anqing TP Powder Metallurgy Co., Ltd. to manufacture valve seat inserts and valve guides	annual production capacity: 50 million units	100.0	to be finished in 2012

-Anqing TP Goetze Liner Co., Ltd. invested 29.95 million US dollars to introduce an automatic aluminum packaging production line from Teikoku Piston Ring Co., Ltd. (TPR) of Japan.

-Anqing TP Goetze Liner Co., Ltd. introduced kinds of dry and wet liner production lines and measurement gauges.