SOURCE: Shiming U.S., Inc.

October 29, 2007 17:23 ET

Shiming Reports on CCID Consulting's Commentary on China's Industry Application Market -- Termed a "Blue Ocean" Opportunity for the LCD Industry

BEIJING--(Marketwire - October 29, 2007) - CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm to be listed in Hong Kong, recently published its analysis of the flat panel television industry in China, identifying the rapidly expanding Chinese industry application market as the next "blue ocean" opportunity in the LCD industry.

In contrast to retail sales of flat panel televisions to consumers for home use, the industry application market involves the use of flat panel displays for a wide range of display needs in such areas as advertising, signage, and other situations which utilize electronic display of information in public areas. CCID Consulting classifies the industry application market into the following ten major sectors: government, exhibition (including exhibition halls, museums and science museums, etc.), catering and entertainment (including restaurants, KTV venues, bath houses and hotels, etc.), financial services (including banking, securities and insurance, etc.), education, transportation (including buses, the metro, railways and civil aviation, etc.), sanitation, retail (super markets and department stores, etc.), energy (power, petroleum and coal), and media (commercial buildings, radio and television, etc.). In addition, industry analysts have also identified subcategories of applications such as logistics, telecommunications, postal services, sports venues and the construction industry.

The use of LCD flat panel displays for many of these applications was once prohibitively expensive. However, due to recent reductions in the cost of production and sales prices per unit, flat panel televisions have achieved rapid sales growth in China's industrial application market. According to a survey of the flat panel TV industry application market conducted by CCID Consulting, it is estimated that by the end of 2007, China's flat panel TV industry application market will register a growth rate of 55.3% per year, from 2003 to 2007.

According to CCID's analysis, the competition in the flat panel TV retail market is fierce, and the profit margins thin, prompting manufacturers to rely upon volume for overall profitability. In contrast, there is comparatively mild competition at present in the flat panel TV industry application market. Industry users usually purchase large numbers of flat panel TVs, and the profit margin is relatively higher, particularly when sales to industry users by LCD makers are direct without the use of third party agents. Market analysts believe that this may be an untapped opportunity for well-positioned LCD makers.

China's Flat Panel TV Industry Application Market Growing Rapidly

According to the statistics from CCID Consulting, in 2006 the sales volume of China's flat panel TV industry application market reached 292,500 units, a 42.5% increase from the prior year; and sales revenue reached 2.682 billion Yuan, a 14.3% increase from the prior year.

With the further decreases in the per unit price of flat panel displays, and the continuing rapid growth in Chinese commerce, including the current drive toward modernization spurred on by the approaching Beijing 2008 Olympic Games, industry watchers believe China's flat panel TV industry application market will continue to grow at a rapid pace through 2007. CCID Consulting predicts that in 2007 the sales volume in China's flat panel TV industry application market will jump to 439,300 units, and overall revenue is projected to exceed 3.963 billion Yuan. CCID referred to the Chinese industry application market as the "blue ocean" of opportunity within the LCD industry.

"We have already established inroads into this market, and we are continuing our focus on growing sales to industry application customers," said Shiming Wang, CEO of Shiming U.S., Inc. (OTCBB: SGUS). "Our sales force is strategically reaching out to buyers in the industry application market, and our production team is focused on producing high-quality flat panel units with competitive pricing that targets this market. We are also actively positioning our product line to serve more categories of the industry application market. We are excited by the emerging growth opportunities in the Chinese industry application market, and believe it represents a major growth opportunity for our company."

About Shiming U.S., Inc.

Shiming U.S., Inc. (OTCBB: SGUS) is a consumer electronics company with a particular focus on the development and manufacture of competitively priced LCD products, including HDTV and computer monitors. Shiming's manufacturing plant is located in the Changxin High and New Technology Industrial Garden in Shenzhen, China. For several years the company has been involved in the research and development of consumer electronics products and technologies such as LCD, plasma displays, and household electronics.

Shiming was originally formed in 1999 as Shanxi Shiming Science & Technology Joint Stock Company Ltd., under the laws of the PRC. In November 2006, the company combined with Argenta Systems, Inc., a publicly traded company incorporated in Nevada and quoted on the OTC Bulletin Board. For further information about Shiming, please refer to the company's periodic reports as filed with the U.S. Securities and Exchange Commission.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking information about Shiming that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and Shiming's future performance, operations and products.

This forward-looking information should be considered only in connection with Shiming's current and periodic reports as filed with the SEC. Shiming assumes no obligations to update any forward-looking statements or information set forth in this press release.

Contact Information

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    Shiming U.S., Inc.
    Chunan Liu
    Chief Financial Officer
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