31 heavy industry subsidiary shares in Kunshan Hua Heng back to the tree good shade

Yang March 11, Kunshan Hua Heng Welding Co., Ltd. (hereinafter referred to as "Kunshan Hua Heng") application for Gem IPO will be issued 27 million shares, 270 million yuan to raise funds for Welding robot workstation project, welding automation complete sets of equipment projects, digital welding power projects and research and Development Center project.　　In the company's shareholder list, 31 Electric Limited liability company (hereinafter called "31 Electric") is particularly conspicuous, 31 electric holding Kunshan Hua Heng 3 million shares, accounting for the total shares of 3.7%, ranked third largest shareholder.　　Data show that 31 electric is the 31 Heavy industry Group (hereinafter referred to as "31 heavy Industry"), a wholly owned subsidiary, company registered capital of 200 million yuan, operating range of electrical machinery and equipment, heavy industrial equipment and general equipment, mechanical and electrical equipment general machinery, professional equipment, electronic products, instrumentation research and development, production and sales.　　December 2009, by the General Assembly of Kunshan Hua Heng Resolution passed, 31 electric per share of RMB 5 yuan in cash 15 million subscription 3 million shares, accounting for the total capital of 3.37%. Although Kunshan Huaheng said, 31 electric only holds 3.7% of the company's shares, has no significant impact on corporate decision-making.　　But there is no denying that 31 of electric shares, bringing not only the change in ownership structure, but also means a succession of large orders. In 2009, Kunshan Huaheng and 31 heavy industry and its associated side of the contract amount of 14.744 million yuan, accounting for Kunshan Hua Heng Year's operating income of 8.55%.　　In 2010, 31 heavy industry and its associated party and Kunshan Hua Heng's contract amounted to 105.784 million yuan, accounting for the income of 40.24% of the year, steady sitting Kunshan Hua Heng, the first major customer. In this respect, Kunshan Huaheng explained that, as 31 heavy industry welding automation needs to purchase a large number of welding robot products, at the same time, Kunshan Hua Heng products have a strong competitive advantage in the practical application of the gradual acquisition of 31 heavy industry recognition.　　Company to provide project design, equipment supply, installation and construction services, on the one hand, can increase the company's product sales; On the other hand, the company will obtain the construction of welding automation production lines, automation plant engineering experience. Orders from 31 heavy industry to Kunshan Hua Heng's performance growth is a great credit to the Wei.　　31 heavy industry mainly to Kunshan Hua Heng Procurement welding robot, data show that 2009 to 2010 Kunshan Hua Heng Welding Robot Products Sales income of 53.9337 million yuan and 141.5179 million yuan, 31 heavy industry and its associated party orders accounted for 27.34% and 74.75%. And welding robot revenue accounted for 2009 and 2010 Kunshan Hua Heng Main business income ratio of 31.28% and 55.68%, which means that 31 heavy industry group and its associated party orders for Kunshan Hua Heng's operating income growth is self-evident.　　According to the data, Kunshan Hua Heng's operating income jumped from 177 million yuan in 2009 to 263 million yuan in 2010 and an increase of 48.59%. Orders coming from 31 heavy industry, according to Kunshan Hua Heng's prospectus, January 8, 2011, Kunshan Huaheng and 31 Heavy Machinery Co., Ltd. signed a contract of 31.099 million yuan, 31 Heavy Machinery Co., Ltd. to Kunshan Hua Heng purchase welding robot system. In addition, the company intends to invest 69 million yuan in welding automation equipment projects are also facing the risk of overcapacity. The project reaches postpartum, will reach an annual output of 1000 pipe welder and 800 welding machine size, and 2010 the output of the two products are 352 units and 143 units respectively, 2010 production and sales rate of 83.24% and 79.02% respectively. The production capacity of the project is 303% and 800% respectively, which undoubtedly poses a challenge to Kunshan's sales ability.