(2007)Signing Ceremony for Technical Co-operation between Cyan (UK), ASKA (HK) and Southwest (China)

Southwest Computer Co.,Ltd(SCC), which mainly focuses on military technology products, announced that it will exert efforts in civilian products by the end of this year. As one of the main measures for this move, on October 25, 2007, the tripartite technology cooperation agreement among SCC, Cyan Technology (Cyan) and Hong Kong ASKA Technology (ASKA) was officially signed. On that day, relevant officials from the Chongqing Municipal Local Taxation Bureau and the State Taxation Bureau, as well as the senior commercial commissioner of the British Consulate General in Chongqing attended and witnessed the signing ceremony.

This framework agreement signed by SCC aims to carry out long-term cooperation with Cyan in two civilian technology aspects mainly including tax control machines and remote meter reading. At the same time, it also means that SCC Company, which has always been focused on military technology, will further expand the strength of its technological advantages in civilian product development. Different from the signing ceremonies of many cooperation agreements in the past that were just perfunctory, the tripartite agreement signing ceremony that began early in the morning on the 25th almost became a technology promotion conference. During the three-hour ceremony, three engineers from Cyan Technology described their technological advantages in detail.

Cyan Technology was established in 2002 and is a technology enterprise listed on the London Stock Exchange. Its leading products are micro-control chips, wireless networks, and environmental monitoring systems. Its advantages are low energy consumption and usage costs, rich configuration and functions. Its markets mainly include Asia and Europe. In 2005, Cyan Asia Limited was established in Hong Kong. SCC Company has a long history of 40 years. This state-owned military enterprise is one of the first batch of high-tech enterprises in Chongqing. However, because its focus has always been on military products, although it is well-known, it is still a newcomer in the civilian product market. SCC has always been the customer unit of the third party ASKA in this cooperation, and ASKA is the main distributor of Cyan products. Due to this origin, ASKA has facilitated the cooperation among the three parties. Before the signing of the tripartite cooperation agreement, SCC's first-generation tax control machine had been successfully developed. The purpose of this cooperation is to adopt Cyan Technology's control chips in the development of SCC's second-generation tax control machines and remote meter reading (mainly used in the fields of public utilities such as electricity).

As the national tax system reform has introduced relevant policies, requiring that all business entities must use tax control machines to pay taxes (including national tax and local tax) in the future, and the first batch of government tenders for tax control cash registers will be held at the end of this year. Therefore, the three parties signed this agreement in order to achieve the purpose of technological and product upgrades before the tender. At present, the main functions of domestic tax control cash registers are all focused on the improvement of tax functions. The models currently produced by SCC are no exception, which are determined according to national tax standards. SCC and Cyan Technology and ASKA Technology have two aspects of cooperation intentions: on the one hand, they are to accelerate the research and development of the second and third generations of tax control cash registers, that is, to increase and strengthen the business functions of tax control cash registers. In this way, tax control cash registers can not only complete all tax functions stipulated by national standards, but also rely on other added functions, that is, business functions, to make one machine multipurpose. In this way, users can not only complete tax functions on one tax control cash register, but also complete daily reports, monthly reports, annual reports, variety statistics, market demand analysis prediction, data collection, and even list multimedia functions, making tax control cash registers multipurpose and able to achieve the use function of PC calculators.

SCC will intensify its efforts to develop industrial control products. SCC's current production of flow counting products is taking shape and is moving towards intelligence and digitalization. Cyan Technology also has advantages in this aspect of development. ASKA Technology has advantages in market promotion and logistics channels. The three parties will work together in this aspect and jointly focus on the flow counting product market.

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