China West Power 500 Million Yuan Holdings Limited

In December 21st, China's largest power transmission and transformation producer, 601179.SH, announced that the company intends to subscribe to 125 million new shares of the Ji'nan transformer group Limited by Share Ltd (hereinafter referred to as Ji Yuan stock) for 500 million yuan. After this issue, the total share capital of the company was changed to 230 million shares, and the shareholding ratio of the company was 54.38%.

The company said that the capital increase will complete the regional layout of China West Power Transformer plate in North China and improve the product mix of the company's transformer field.

Ji Yuan shares is a 58 year history transformer specialized manufacturing company, the leading product is 220kV and its following voltage level oil immersed power transformer, distribution transformer, and so on, is the Chinese electric power equipment 20 strong. At present, Ji Yuan shares have been put into use in the new modern factory built in the "Ji'nan Industrial Park". It can produce high-voltage and high-capacity transformers of 750kV grade and below, green energy saving and environmental protection transformers (amorphous alloy transformers), and transformer products for wind power facilities. The production capacity of various transformers can reach 5000 KVA per year, and all the production is expected to achieve annual sales revenue of about 3 billion yuan. At the end of 2009, the total assets amounted to 1 billion 50 million yuan, 340 million yuan in shareholders' equity, 620 million yuan in operating income and 60 million 590 thousand yuan in total profits.

This year, China xit has completed its holdings of Shu Neng electric appliance and Beijing Hao Pu local enterprises in the form of capital increase and share expansion. In October of this year, the 150 million yuan increase of China xit electric power company received 51% stake in Shu electric appliance, which improved the regional layout of the transformer plate in Southwest China. In November, the company acquired 60% of its stake in cash for 14 million 500 thousand yuan, and strengthened its layout in the power electronics field.

The main source of revenue of China West electric power company is high voltage switch and transformer, and its income exceeds 60% of the company's total revenue. The power electronics sector is the fastest growing business segment of the company. In the first half of the year, the total sales volume of the power electronics and system suite reached 1 billion 50 million yuan, an increase of 59 times compared with the same period last year.