On the afternoon of March 29th, Lu Dong, new general manager of China Export & Credit Insurance Corporation of Ningbo Branch, together with vice president Lai Dongfeng, director Shen Shuhuan and assistant director Zhang Jibo came to visit our group, leader of our group Patrick Xu, Jolin Zhu and Lemon Hou warmly welcomed them. General Manager Lu attached great importance on business when he took office and he immediately started his visiting of companies in full stride as planned. We were told that our group was the second company General Manager Lu visited since his assumption of office, from which, we felt Ningbo SINOSURE's full care and determination on co-operating with us.
Jolin Zhu briefly introduced the development process, trade model and enterprise culture of our group. Afterwards, the two parties exchanged views on such issues as the current economic situation, the trend of export expansion and export insurance business. The two parties talked straight to the point, the communication between them was profound and specific.
President Xu expressed that as an AA level big customer of SINOSURE, Sellers Union Group paid an annual insurance amount of hundreds of millions of dollars and the total amount had reached a billion dollars. SINOSURE kept supporting business of our group, and the two parties established a long-term strategic relationship. As a booster and ballast that helped enterprises explore the international markets and control risks, SINOSURE had indeed played the role of escort on helping export enterprises develop business. Besides helping enterprises explore new markets and new customers, SINOSURE would also offer professional guidance to enterprises before risk occurred. And when risks occurred, they would immediately offer timely help and efficient compensation to them. In particular, under the guidance of SINOSURE and based on the characteristics that our group had a large quantity of foreign customers, most of whom are in small scale and from different countries and also because of our fast-increasing business of our group, we especially set up Risk Management Department. Through strict risk controlling on all steps during our business chain, the whole risks control level of our group improved, which had helped our business grow steadily and effectively.
General Manager Lu pointed out that as the top 10 enterprises for export in Ningbo, Sellers Union Group had a strong influence in export industry, and he was so delighted that he had a chance to visit Sellers Union Group. He also expressed that SINOSURE was a policy-based insurance company, which was set up to support the development of the import and export business. So foreign trade enterprises had better make good use of national policy advantages and expand insurance coverage and improve the insurance depth of overall business. According to statistics, in recent three years, the compensation payment Sellers Union Group received was apparently higher than the annual insurance premium we paid. This indeed showed the great and real support of SINOSURE to foreign trade enterprises as a policy-based insurance company. In such cases, general manager Lu suggested that enterprises should strengthen the consciousness of insurance and make full use of the large scaled subsidy of export credit insurance offered by local government. And he also suggested that our salesmen should dispel the "extra cost" concept of export insurance and increase the percentage of export credit insurance in order to promote the steady development of the business and make contributions to the local export-oriented economy.
The two parties reach some consensus on such topic as making more cooperation innovations, increasing the coverage of credit insurance and deepening the exchange mechanism in the future.Finally, leaders of SINOSURE of Ningbo Branch seriously forwarded several checks (total US$800,000), together with the compensation notice to leaders of our group, which was for the compensation of the insured cases earlier. We are so grateful at the timely compensation of SINOSURE. Under the strong support of SINOSURE, we have a strong confidence in keeping a sound and steady development of our business in 2016.
