Investor Communication Meeting was held in Heli on March 15^th. Chairman of Board, Secretary, CFO, Security Representatives of Heli and tens of investors communicated with each other aiming at increasing stock issuance. The company prepared to issue stocks no more than 50 million Yuan and collect funds nearly 1 billion Yuan.

In 2007, the achievements of the company was a little lower than expectation as EPS (earning per share) 0.90 Yuan due to the growing price of raw materials and revaluation of RMB.

Heli sold 33,500 sets of forklifts in 2007 (exclude ATF) and it plans to sell 43,700 sets in 2008, among which 12,000 sets for export and 6,000 sets of electric forklifts. Seeing from this plan, the company will continue to develop stably and steadily. As the iron ore becomes more expensive and steel factory raised their price, it was anticipated that gross profit rate will go down for a little. Meanwhile, for the company has no intention to raise price in a short term so as to knock out the competitors, the achievement will be lower than expectation as a result.

The increased stock issuance and collected funds are used as 340 million for casting center, 257 million for large-tonnage forklifts in Baoji, 205 million for Hengyang Production Base and others for cab, mast and covering parts. All the investment is to enlarge production capacity and increase parts manufacture. Investors on the meeting thought that the return period of these projects were long while the company could conduct rolling development due to not too high debt ratio. On the other side, the company believed that to increase parts manufacture can guarantee the quality of products and bring benefits for company.

As for the rising price of raw materials, some competitors hoped Heli to firstly respond by raising price. Heli was surely able to go through the period by raising price, however, it will not raise price on the back of strategic consideration although this will influence the achievement in 2008 negatively. Rise of steel price will infect the gross profit rate on about 3 percentages. In Sep. 2007, the company raised 8000 Yuan to counteract the pressure taken by the higher battery price. Recently, gross profit rate of this part has returned to the level before the battery price rose.

Parts business of Heli played a more and more important role in the company, which can not only guarantee the quality, but also increase the profit. For example, last year, Bengbu Factory had gained revenue of more than 200 million and profit of 40 million; Anqing Factory earned profit of 40-50 million, if adding the 1000 million profit of axle box, per part contributed more than a half to the profit. An assembly factory and a part manufacturing factory results in the high gross profit as well as why company grains while other competitors lose.

It is predicted formerly that EPS of Heli in 2008, 2009 and 2010 will be 1.09, 1.61 and 2.14 Yuan. After issuing 50 million stocks for dilution, the EPS shall be 0.95, 1.41 and 1.88 Yuan then. The company will lower the target price due to pressure taken by the achievement downturn and the evaluation reduction of construction machinery block.

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