Investor Relations
Unit Nominal value Issue price Issue expense Raised fund
Per share 1.00 15.56 0.562 14.998
Total 60,000,000 933,600,000 33,705,600 899,894,400

 
 

Declaration

The issuer’s Board of Directors has approved this prospectus and its summary. All the directors have promised that there are no false records, misleading statements or major omissions, and that they accept individual and joint legal responsibility for their truthfulness, accuracy and completeness.

The president and CFO of the company and representative of the accounting firm have pledged truthfulness and completeness of the financial and accounting reports in this prospectus and its summary.

No decisions or comments made on this issue by the China Securities Supervision Commission or other government agencies represent their substantive judgment or guarantee on the value of the issuer’s shares or returns for investors. Any statements opposite to this are false statements.

In accordance with the Securities Law of the People’s Republic of China, after an issue, the issuer will be responsible for their business and profit changes and the investors will be responsible for the investment risks resulting from these changes.

Investors who hold any doubt about the content of this prospectus and its summary should obtain advice from their share broker, lawyer, professional accountant or other professional advisers. The issuer’s Board of Directors has approved this prospectus and its summary. All the directors have promised that there are no false records, misleading statements or major omissions, and that they bear individual and joint legal responsibility for their truthfulness, accuracy and completeness.


Risk Factors

After this issue, Sany Holdings Co., Ltd., the controlling holder of the company, and Mr. Liang Wengen, the ultimate controlling shareholder, will remain in a controlling position. If they exercise control over personnel matters and business decision-making by their right to vote, there may be risks for minor shareholders.

When the proceeds are in place after the completion of this issue, net assets of the company will increase greatly and the ROE in the year of issue will experience apparent decrease as compared to that of 44.53% in 2002. Investors need to heed possible investment risks.

As a high-tech enterprise registered in the Changsha Economic and Technological Development Area approved by the State Council, the company enjoys preferential policies, including exemption from income tax. Approved by Hunan Provincial Tax Bureau, and the local tax bureaus in Changsha City and Changsha County, the company was exempted from payment of corporate income tax for two years from July 1st, 1998 to June 30th, 2000, totaling 21.979 million RMB Yuan. If the above-mentioned exempted tax needs to be paid due to changed tax collection and management policies, interests of the company will be affected; but the controlling shareholders pledge to assume responsibility for this.

The sales revenue of the main business of the company were 392.611 million, 550.3451 million and 984.5624 million RMB yuan in 2000, 2001 and 2002 respectively, with year-on-year growth rates of 40.18% and 78.90% respectively; net profits were 59.9507 million, 91.2461 million and 209.8554 million RMB yuan respectively, with year-on-year growth rates of 52.20% and 129.99% respectively in 2001 and 2002. Sales revenue of the main product (truck-mounted concrete pump) had maintained fast growth, reaching 75.7374 million, 184.2352 million and 489.7319 million RMB yuan in 2000, 2001 and 2002 respectively. With the saturation of the market and expansion of the company, there exists the risk of reduced growth momentum of its main business.

To improve the collection of receivables, the company received such fixed assets as buildings and vehicles for receivables of 22.2789 million RMB yuan during period from 2000 to 2002, with 9.9303 million, 3.9051 million and 8.4435 million RMB yuan in 2000, 2001 and 2002 respectively. The company has made efforts to improve the collection of receivables and reduce the amount of receivables received in the form of fixed assets; however, it can not be ruled out that similar payments in the form of fixed assets will be received and the fixed assets may not be cashed timely so as to cause losses to the company.

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