>> Enterprise event

On Mar. 6^th & 7^th, the expert group of localization rate auditing from NDRC (National Development and Reform Commission) came to Shanghai for the auditing of Shanghai Metro Line 2 East Extension Section Project. After experts’ strict auditing, the final localization rate of SRC signal system turned out to be 58.76%, which matched the localization rate requirement of NDRC on SL2EE signal system. Due to the final result, SRC successfully passed the auditing.

 

SL2EE Project is an eastwards extension of the existing Metro Line 2. By cooperating with ASTS USA, SRC is gradually realizing the localization of ATC signal system. After more than 2 years’ preparation and implementation, the localization of ATC signal system has been preliminarily realized, expect that the interlocking CPU board and onboard ATP/ATO CPU board still adopt imported equipment, and ATS still adopts imported software at present.

 

It has been quite a complicated course to cooperate with ASTS for the localization of metro signal system, including processes of initial planning, bidding, detailed implementation, project management, and passing the auditing at last. For more than 2 years, SRC Metro Department and Overseas Market Department worked together on the project implementation and business management, actively communicated with relative departments as Shanghai metro proprietor, Shanghai customs, etc. to confirm requirements and deploy delicately. The technology center, craft department, product center, relative workshops and departments of SRC also cooperated together for the project. The localization project started from obtaining production certificates from foreign manufacturers and gradually achieved initial success by realizing quantity production after conquering various difficulties. After SRC’s providing goods on Mar. 2010, the expert group from NDRC came to Shanghai for the final auditing of localization. On Mar. 6^th & 7^th, the core project management team from SRC Overseas Market Department and Metro Department coordinated with the expert group to carry out the auditing in Shanghai. After two day’s auditing, revising & correcting, the auditing of the localization project was finally passed.

 

Passing the auditing means a tax saving of over 20,000,000 RMB for the joint venture of SRC – ASTS. On the other hand, this also helps the joint venture to avoid a high risk of economic loss arising from non-tax relief due to not matching the national localization requirements, which may significantly effect the cooperation between SRC & ASTS.