Harbin Welding Huatong: China Securities Co.Ltd(601066) securities recommendation letter on the initial public offering and listing on the gem of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

China Securities Co.Ltd(601066)

about

Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd. issued shares for the first time and was listed on the gem

of

Listing recommendation

Sponsor

March, 2002

Statement of recommendation institution and recommendation representative

China Securities Co.Ltd(601066) and Chen Qiang and Zhao Liang, the sponsor representatives of the project, have been honest, trustworthy, diligent and conscientious in accordance with the company law of the people's Republic of China (hereinafter referred to as the company law), the securities law of the people's Republic of China (hereinafter referred to as the securities Law) and other laws and regulations and all relevant regulations of the CSRC and Shenzhen Securities Exchange, and have issued the listing recommendation letter in strict accordance with the business rules and industry self-discipline norms formulated according to law, And ensure that the documents issued are true, accurate and complete.

catalogue

interpretation...... 3 I. Basic information of the issuer 5. II. The issuer's current offering 13 III. information about the sponsor representative, CO sponsor and other members of the project team of this securities issuance and listing 14 IV. explanation on whether the recommendation institution has any circumstances that may affect the fair performance of recommendation duties 15 v. internal audit procedures and core opinions of the recommendation institution on this securities issuance Vi. matters that the recommendation institution should promise in accordance with relevant provisions 17 VII. This offering complies with relevant laws and regulations 18 VIII. Work arrangement during continuous supervision 21 IX. recommendation conclusion of the sponsor on the project twenty-two

interpretation

In this listing recommendation letter, unless the context otherwise requires, the following words or abbreviations have the following meanings: 1. Generally, the sponsor, lead underwriter, refers to China Securities Co.Ltd(601066) China Securities Co.Ltd(601066) securities issuer, company and stock public refer to Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd. and Harbin Welding Huatong

Weir company refers to Harbin weir welding Co., Ltd., which is a wholly-owned subsidiary of the issuer

CSRC and CSRC refer to the China Securities Regulatory Commission

Shenzhen stock exchange refers to Shenzhen Stock Exchange

Lawyer of the issuer, jintiancheng refers to the accountant of Shanghai jintiancheng law firm, and Zhonghui refers to Zhonghui accounting firm (special general partnership)

Company law means the company law of the people's Republic of China

Securities Law refers to the securities law of the people's Republic of China

Articles of association / articles of association refers to the articles of association of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The articles of Association (Draft) of Harbin Welding Institute formulated to adapt to this public offering and listing on the gem refers to the articles of Association (Draft) of Huatong (Changzhou) welding industry Co., Ltd., which shall come into force from the date of the company's initial public offering and listing

This issuance refers to the initial public offering and listing of RMB common shares by Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The listing recommendation letter refers to China Securities Co.Ltd(601066) the listing recommendation letter on the initial public offering and listing on the gem of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The general meeting of shareholders refers to the general meeting of shareholders of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The board of directors refers to the board of directors of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The board of supervisors refers to the board of supervisors of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

The last three years and the reporting period refer to 2018, 2019, 2020 and January June 2021

Yuan and 10000 yuan refer to RMB yuan and 10000 yuan unless otherwise specified

2、 Professional interpretation

By heating or pressurizing, or both, and with or without filler materials, the welding refers to a processing method in which the welded parts (the same or different materials) achieve the combination between atoms or molecules to form a permanent connection

A welding method for melting the base metal to be welded to form a weld. Because the welded parts are closely attached together, under the action of temperature field, gravity, etc., the molten liquid melted by the two fusion welding refers to the workpiece will be mixed. After the temperature decreases, the melting part condenses, and the two workpieces are firmly welded together to complete the welding (unless otherwise specified in this listing recommendation, "welding" refers to fusion welding)

The abbreviation of fusion welding materials refers to the general name of materials consumed in fusion welding. Fusion welding materials refer to, for example, welding rods, welding wires, metal powders, fluxes, gases, etc. (unless otherwise specified in this listing recommendation, "welding materials" refer to fusion welding materials)

Welding wire refers to the welding material used as filler metal or conductive wire at the same time

Electrode refers to the coated melting electrode for manual arc welding, which melts the metal strip filled in the joint of the welded workpiece during gas welding or electric welding

Flux refers to a granular material that can melt to form slag and gas during welding and play a role in protecting and metallurgical treatment of molten metal

Welding strip refers to the welding strip, which is not only used as filler metal but also conducts current. It is generally in coil shape and is usually used for submerged arc welding and electroslag welding

A wire drawn directly from a solid wire

Flux cored wire refers to a kind of welding wire made by rolling thin steel strip into a circular steel pipe and filling it with a certain amount of powder

Submerged arc welding wire refers to a kind of welding wire with high welding efficiency, which is used in conjunction with flux and the welding arc burns in the welding interior

Wire rod, also known as wire rod, usually refers to small-diameter round steel in coils

Submerged arc welding refers to a method in which the arc burns under the flux layer for welding. Submerged arc welding wire and flux are used together

Electroslag welding refers to a welding method that uses the resistance heat generated by the current passing through the slag as the heat source to melt the filler metal and the base metal and form a firm connection between metal atoms after solidification

Gas shielded welding refers to arc welding that uses gas as arc medium and protects arc and welding area

Note: there are differences in the mantissa of the sum of partial totals and itemized values in this listing recommendation letter. These differences are caused by rounding

1、 Basic information of the issuer (I) overview of the issuer

Company name: Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd

Registered address: Yaoguan Town, Wujin District, Changzhou City

Date of establishment: May 30, 1997

Registered capital: 136.36 million yuan

Legal representative: Yang Yuting

Secretary of the board of directors: Ding Jinhong

Tel.: 051988710806

Internet address: www.htw.com cn.

The company is a high-tech enterprise specializing in the R & D, production and sales of all kinds of fusion welding materials. At present, its main products include hundreds of varieties of various series, such as carbon steel welding wire, low alloy steel welding wire, stainless steel welding wire, aluminum alloy welding wire, nickel base welding wire, flux cored welding wire, special welding rod, flux, welding strip and so on

Type of securities issuance: initial public offering of common shares and listing on GEM

(II) the issuer's main business, core technology and R & D level

1. Main business of the issuer

The company is a high-tech enterprise specializing in the R & D, production and sales of various fusion welding materials. It is the fourth batch of pilot units of the mixed ownership reform of state-owned enterprises by the national development and Reform Commission. At present, its main products include hundreds of varieties of various series, such as carbon steel welding wire, low alloy steel welding wire, stainless steel welding wire, aluminum alloy welding wire, nickel base welding wire, flux cored welding wire, special welding rod, flux, welding strip and so on, Among them, steel welding materials for hydrogen sulfide corrosion resistance, ultra-low sulfur and phosphorus high-purity heat-resistant steel welding materials, series welding materials for nuclear power and special welding materials for pipeline engineering have realized the localization of welding materials. The technical level of some products is at the international leading and international advanced level, filling the gap in China. The company's products are applied to Hong Kong Zhuhai Macao Bridge, Hualong 1, Baihetan Hydropower Station Coal chemical super large hydrogenation reactor and other national key large-scale engineering projects. The application fields cover various industries such as rail transit, petrochemical industry, nuclear power and hydropower, engineering machinery, container, ship and automobile manufacturing. The products are exported to more than 60 countries and regions.

After years of development, the company has always been providing customers with high-quality and high-performance products, and has become a leading supplier of welding materials in China.

2. Issuer's core technology

Since its establishment, the company has been focusing on the intensive cultivation of fusion welding materials and welding processes. Through years of technical research and development and tackling key problems, with the support of professional and efficient R & D team, the company has continuously overcome technical problems and mastered a series of core technologies. The stage and source of its core technology are as follows:

Technology classification technology name technology source patent number / technology type main application products

Low temperature steel, stainless steel, dual phase steel, coal chemical heavy pressure original and innovative non patented technology, super austenitic stainless steel, welding materials for nickel based force vessels, alloy electrodes, welding wires, welding strips and fluxes

Welding stainless steel, nickel base alloy and heat-resistant materials for petrochemical equipment original and innovative non patented technology steel electrode, welding wire, welding strip and flux

Product development welding zl2015106077181 for nuclear power equipment and original innovation of low alloy steel, stainless steel and nickel based bonding materials. Other non patented alloy electrodes, welding wires, welding strips and fluxes

Stainless steel welding wire with original innovative non patented technology for hydropower

Steel welding materials

Zl2015104973885, low temperature steel electrode, submerged arc welding wire / low temperature welding material original innovation zl20081 Miracle Automation Engineering Co.Ltd(002009) 62 and flux

Other non patented technologies

ZL2019205166355、

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