Home > Business > Marine Equipment, Spare Parts and Communications and Navigation Following the increasing market demand and the positive prospects for marine communications and navigation equipment and spare parts, the Company's wholly-owned subsidiary, Yuantong Marine Service Co. Limited (“Yuantong”), is principally engaged in the supply and installation of equipment and spare parts for existing vessels and new vessels, oil drilling projects at sea and communications systems, shore-based AIS systems, vessel traffic management systems and as well as information management system for ports and land users. In 2007, about 75% customers of Yuantong came from COSCO Group's fleets. Although rapid development of the shipbuilding industry in China Mainland has boosted demand for marine ancillary equipment, keen competition among the distributors arises. In addition, certain large-scale shipping companies have commenced to establish their own internal distribution department (including the supply of marine equipment) which intensify fierce competition in the market. Yuantong will forge closer relations with suppliers, and in particular will establish alliances with large suppliers so as to enhance communications, networks, promotional activities and delivery. Yuantong will also strengthen communications with customers, raise operational efficiency, improve order tracking and responsiveness to customer’s call for supporting services and information services. In addition, Yuantong will seek to increase product sales volumes and enhance profitability by acquisitions, alliances, co-operation agreements and establishing and managing cost-efficient sales networks. Following the acquisition of COSCO (Beijing) Marine Electronic by Yuantong in late 2007, Yuantong will integrate its businesses and gradually expand its network.