Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd
Notes to financial statements
January 1, 2018 to June 30, 2021
1、 Basic information of the company
（1） Company profile
Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd. (hereinafter referred to as “the company” or “the company”) was formerly Changzhou Huatong welding wire Co., Ltd. (hereinafter referred to as “Huatong Co., Ltd”). Huatong Co., Ltd. took June 30, 2011 as the base date and adopted the overall change method to establish the company. The company was registered in Changzhou Administration for Industry and Commerce of Jiangsu Province on September 2, 2011 and now holds the business license with the unified social credit code of 91320400608130487q. As of June 30, 2021, the registered capital of the company is RMB 136.36 million and the total share capital is 136.36 million shares (par value of RMB 1 per share). Registered address: Yaoguan Town, Wujin District, Changzhou City, Jiangsu Province; Legal representative: Yang Yuting.
Basic organizational structure of the company: in accordance with the provisions of national laws and regulations and the articles of association, a standardized multi-level governance structure composed of the general meeting of shareholders, the board of directors, the board of supervisors and the management has been established; The board of Directors consists of four special committees including strategy committee, audit committee, remuneration committee and Nomination Committee and securities department. The company has procurement department, manufacturing department, marketing department, foreign trade department, technology and quality department, finance department, securities department, party masses work department, comprehensive management department, safety and environmental protection department, equipment department and other main functional departments.
The company belongs to C33 metal products industry. Business scope: metal welding wire, special welding electrode, welding accessories, trackless permanent magnet wheel shoe all position autonomous Crawling Arc Welding Siasun Robot&Automation Co.Ltd(300024) manufacturing; Manufacturing of hoisting machinery and equipment; Manufacturing and processing of welding equipment and welding material production equipment; Flux sales; Sales of ferrous sulfate and polymeric ferric sulfate derivatives (except dangerous goods); Selling self-produced products; Self operated and acting as an agent for the import and export of various commodities and technologies, except for the commodities and technologies that are restricted or prohibited by the state. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments). The main products include: welding wire, flux, welding rod, welding strip, etc.
（2） Company history
1. Establishment of Huatong Co., Ltd
The predecessor of the company, Huatong Co., Ltd., obtained the approval certificate of foreign invested enterprises of the people’s Republic of China with the approval number of “foreign trade and economic cooperation sufuzi Zi (1997) No. s28173” issued by the people’s Government of Jiangsu Province on May 23, 1997, and was registered with the Administration for Industry and Commerce of the people’s Republic of China on May 30, 1997, It also obtained the business license of enterprise legal person with the registration number of “Qi He Su Chang Zong Zi No. Holitech Technology Co.Ltd(002217) “, and the registered capital was 3 Shanghai Pudong Development Bank Co.Ltd(600000) 0 US dollars at the time of establishment. The paid in situation of the registered capital was verified by the capital verification report of “Su Wu Rui kuaiyan (97) No. 306” issued by Jiangsu Wujin Surui Certified Public Accountants on June 12, 1997. The capital contribution of each shareholder is as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Wujin Huatong welding wire Co., Ltd. 12960000 in kind 36.00
Wujin container factory 12240000 physical 34.00
Lin Yingfeng 10800000 currency 30.00
Total 3 Shanghai Pudong Development Bank Co.Ltd(600000) 0 100.00
2. Equity change of Huatong Co., Ltd
(1) In September 1999, the first equity transfer and capital increase of Huatong Co., Ltd
On September 6, 1999, through the resolution of the board of directors of Huatong Co., Ltd., the shareholder Wujin Huatong welding wire Co., Ltd. transferred its 36% equity of Huatong Co., Ltd. (contributed by US $12960000) at the price of RMB 108000000 to Wujin Xinhua Chang welding wire factory; The registered capital was increased to 78000000 US dollars, of which: the contribution of Wujin container manufacturing plant was changed from 12240000 US dollars to 12238200 US dollars, Wujin Xinhua Chang welding wire factory paid the new registered capital of 31999200 US dollars in currency of 265270000 yuan, and Lin Yingfeng paid the new registered capital of 10 Lingyi Itech (Guangdong) Company(002600) US dollars in cash. The capital increase was verified by the capital verification report “suwu Rui kuaiyan (99) No. 260” issued by Jiangsu Wujin Surui Certified Public Accountants on October 27, 1999.
On September 23, 1999, Huatong Co., Ltd. completed the industrial and commercial change registration procedures for the above equity transfer and capital increase. After the change, the capital contributions of each shareholder are as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Wujin Xinhua Chang welding wire factory 44959200 in kind and 57.64 in currency
Lin Yingfeng 20802600 currency 26.67
Wujin container factory 12238200 physical 15.69
Total 78000000 100.00
(2) In July 2002, the second equity transfer of Huatong Co., Ltd
On April 20, 2002, through the resolution of the board of directors of Huatong Co., Ltd., the shareholder Lin Yingfeng transferred his 26.67% equity of Huatong Co., Ltd. (contribution of USD 20802600) to amjay Corporation in Bahamas (hereinafter referred to as “Anjie company”) at the price of USD 20802600.
On July 15, 2002, Huatong Co., Ltd. completed the industrial and commercial change registration procedures for the above equity transfer. After the change, the capital contributions of each shareholder are as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Wujin Xinhua Chang welding wire factory 44959200 in kind and 57.64 in currency
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Anjie 20802600 currency 26.67
Wujin container factory 12238200 physical 15.69
Total 78000000 100.00
On September 22, 2003, Wujin Xinhua Chang welding wire factory was renamed Changzhou Wujin Xinhua Chang welding wire factory, and Wujin container factory was renamed Changzhou Wujin container factory.
(3) In September 2004, the third equity transfer of Huatong Co., Ltd
On June 20, 2004, through the resolution of the board of directors of Huatong Co., Ltd., the shareholder Changzhou Wujin container factory transferred its 15.69% equity of Huatong Co., Ltd. (contributed by USD 12238200) to Changzhou Xinhua Chang Cotton Textile Co., Ltd. at a price of USD 12238200. On September 24, 2004, Huatong Co., Ltd. completed the industrial and commercial change registration procedures for the above equity transfer. After the change, the capital contributions of each shareholder are as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Changzhou Wujin Xinhua Chang welding wire factory 44959200 in kind and 57.64 in currency
Anjie 20802600 currency 26.67
Changzhou Xinhua Chang Cotton Textile Co., Ltd. 12238200 in kind 15.69
Total 78000000 100.00
(4) In August 2006, the fourth equity transfer of Huatong Co., Ltd
On November 8, 2005, through the resolution of the board of directors of Huatong Co., Ltd., the shareholder Changzhou Xinhuachang Cotton Textile Co., Ltd. transferred its 15.69% equity of Huatong Co., Ltd. (contributed by USD 12238200) to Changzhou Wujin Xinhuachang welding wire factory at the price of USD 12238200; Wujin Xinhua welding wire factory was renamed as Changzhou Wujin Xinhua welding wire factory. On August 7, 2006, Huatong Co., Ltd. completed the industrial and commercial change registration procedures for the above equity transfer. After the change, the capital contributions of each shareholder are as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Changzhou Wujin Xinhua Chang welding wire Co., Ltd. 57197400 in kind and 73.33 in currency
Anjie 20802600 currency 26.67
Total 78000000 100.00
On April 10, 2008, Changzhou Wujin Xinhua Chang welding wire Co., Ltd. was renamed Changzhou Wujin Xinhua Chang Electromechanical Equipment Manufacturing Co., Ltd.
(5) In October 2008, Huatong Co., Ltd. increased its capital for the second time
On March 18, 2008, through the resolution of the board of directors of Huatong Co., Ltd., the registered capital was increased to US $158000000, of which Changzhou Wujin Xinhua Chang Electromechanical Equipment Manufacturing Co., Ltd. paid the newly increased registered capital of US $58664000 in currency of RMB 410718397, The capital increase was verified by the capital verification report issued by Changzhou Kairui certified public accountants Co., Ltd. on April 11, 2008; Anjie company paid the newly increased registered capital of USD 21336000 in currency of USD 21338500. The capital increase was verified by the capital verification report issued by Changzhou Kairui certified public accountants Co., Ltd. on September 19, 2008.
On October 9, 2008, Huatong Co., Ltd. completed the industrial and commercial change registration procedures for the above capital increase. The capital contributions of shareholders after the change are as follows:
Name of shareholder contribution amount (USD) contribution method contribution proportion (%)
Changzhou Wujin Xinhua Chang Electromechanical Equipment Manufacturing Co., Ltd. has 115861400 physical and currency 73.33 Co., Ltd
Agier 42138600 currency
