Xinwen Mining Group was established in 1956, and it’s a large state-owned group company. The public property is the mainstay of Xinwen Mining Group, and diverse forms of ownership exist together. The main product of Xinwen Mining Group is coal, and many other kinds of products are produced in various industries. It is one of the 520 emphasis national enterprises of the whole country and one of the 136 emphasis group companies in Shandong Province. It ranks the 163rd among 1000 top class industrial enterprises in China and the 11th among 100 powerful units in coal industry of China in the year 2006. The Group owns the high credit prestige of AAA Class., and has got the honorable mention of China Enterprise Culture, and the honors of the First Administration and Innovation Enterprise Diploma of Shandong Province, and Enterprise Administration Diploma of China Coal Industry. And it has been confirmed as one of the first batch of elected enterprises for recycle economy by Ministries and Commissions including State Development Planning Commission. In recent years, Xinwen Mining Group is reforging herself by managing market economy rules and advanced ideas, and build up a major coal—electricity—chemical industry structure. At present the production output of coal reaches 15 million tons, and the largest Jinggong mine—Longgu coal mine has been put into production. And the main kinds of coal are gas coal, gas-fat coal, fat coal, and 1/3 coking coal. The coal products are mainly smelting cleaned coal, dynamical cleaned coal, cleaned and mixed coal, mixed coal, lump coal and so on. And regarding the non-coal industries, the main products and operations are cement (5 million tons per year), electric power (8.06 million MW), gypsum board (500 thousand tons per year), special-type paper (50 thousand tons per year), salt chemical (100 thousand tons of sodium hydroxide, 100 thousand tons of PVC), and machine manufacturing and repairing, iron ore exploitation, pharmacy, construction materials, light and textile industries, metallurgy, foundry, and so on. The group had a sale income of RMB17.6 billion, and the total assets reached to RMB28 billion in the year 2006. In term of the designs of enterprise’s developing and reformation, in a time henceforth, Xinwen Mining Group will take scientific thinking on development and security views of development as our direction, building “harmonious Xinwen” as chief goal, and system innovation, scientific innovation and administer innovation as our power, so that we can enlarge main business, enforce non-coal businesses, optimize system, make capital alive, and continue unalterably to go on a developing way which is essence security mode, quality benefit mode, persist innovation mode, resource saving mode and harmonious developing mode, we will realize the Group’s developing speed is fast and well. Till the year of 2010, the Group’s coal output can reach to 40 million MT, and the sales income will be RMB40 billion. Material Supply and Sell Co., Ltd is completely owned by Xinwen Mining Group, and the company majors in producing and dealing in the coal mine materials. Material Supply and Sell Co., Ltd is a large materials circulating enterprise whose businesses involve production, living materials, waste and old materials and international trade. And also it is appointed and authorized to represent Xinwen Mining Group to be responsible for purchase, supplying for the whole group. Meantime she has the obligation to invest, trades and interrelated negotiation, signing and contract performance on the items of iron, manganese, and nickel ores. The company holds capital asserts of RMB2,700 million, and the sales income is increased from RMB3,600 million of 2001 to RMB2.1 billion of 2006, the sales income out of Group reaches to RMB1.01 billion. It is appraised as Logistics Industry 100 units of Enterprises. The company owns 14 standard warehouses which occupy 370 thousand square meters, a railway leased line which help realizing hoisting, production, storage and transportation to form xxxxx company was awarded as the unit of “strictly abiding by contracts and punctuality” in the year of 2000. And it has got the certificate of qualification enterprise to import and export and is approved to do the business of import and export in business of various kinds of commodities and technology by itself or as the agent for others in 2001. The company passed the attestation of standard quality control system of GB/T19001-2000 idt ISO9001: 2000 in the year of 2002. The company enjoys high credit prestige of AAA class. The company unceasingly renovates management ideas, based on Xinwen Mining Group’s practicality, aiming at national and international market, inaugurates a completely new materials management mode of managing markets. By using the core theory of “Two costs” to negotiate, the company signed business contracts of “Two Costs” with 87 units of emphases manufacturers, and the negotiated business materials refer more than 5000 kinds of 30 major defects, and the negotiated prices are much lower than market prices, so that the company cut down large amounts of costs. The commercial idea of “Managing Markets” makes the Large Enterprise Supply Chain Conformity gain National Grade Enterprise Modernization Innovation Achievement Second Prize. Till now the year 2007, Material Supply and Sell Co., Ltd has established 14 branch companies and business offices, 2 companies in foreign countries, so a material marketing network that major in home area and radiate surrounding areas is formed. By straight pin and “Two Costs” negotiation sales for partner manufacturers, the company enlarges external market shares, and sales income to the markets out of Xinwen can reach over 1 billion RMB per year. At the same time, the company is trying to expand importation and exportation businesses, and successively develop international trade businesses with customers from Brazil, Russia, the USA, India, United Arab Emirates, Germany and so on relating to iron ore, nickel ore, manganese ore, woods, plasterboard, PVC board, cement and clinker, and import and export total volume reach to more than RMB60 million. It’s very rare that the company has such a great achievement in national coal industry interior supply system. At present, the company is trying to enhance the core-competitiveness, expand distribution trade scope, integrate the material resources between the enterprise and society, and make great efforts to form the influence force and control force for area markets, and become more influential material resources trade enterprise, and do our best to create ourselves to be modern material resources trade enterprise of cross-industry, cross-area, and cross national borders.