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China's First VCD-Player Conglomerate Formed

China's first VCD-player conglomerate has recently been formed as a joint effort of the Shinco Group, a VCD-player manufacturer in Changzhou, Jiangsu Province, and three Chinese electrical-products companies.

These three companies are a VCD-player maker in Guangzhou, capital of Guangdong Province, the Panda Company in Nanjing, capital of Jiangsu Province, and the Shanghai Broadcasting and TV Equipment company.

As a result of this alliance, the daily production of Shinco-brand DVD players has risen to 6,000 from 500 last September, giving Shinco a 40 percent share of this market nationwide.

The cost of producing Shinco DVD players has also been reduced by 300 yuan per unit, and the conglomerate has so far received orders for more than one million Shinco DVD players.

Starting in 1995, the VCD-player industry began mushrooming in China, and now the production of these products exceeds demand due to the redundant increase of similar products and unhealthy market competition. The Shinco Group is expected to usher in a new era with sound market mechanisms for this sector.

(Xinhua)



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