Anhui Heli Co., Ltd. issued the announcement of shareholders increasing shares of the company, declaring that the shareholder—Anhui Forklift Truck Group Co., Ltd. acquired 580,700 stocks through secondary market on Sep. 11^th, 2008.

The announcement showed that Anhui Forklift Truck Group increased 580,700 stocks through Shanghai Stock Exchange. Formerly the Group held 128,878,076 shares of Heli, up to 36.10% of the total stock capital; while presently the Group increased to 129,458,776 shares, accounting for 36.27% of the total stock capital.

According to the plan of increasing shares, Anhui Forklift Truck Group will continue to increase holding stocks through Shanghai Stock Exchange in the coming 12 months (since the date of increasing shareholding this time), while the accumulated increasing ratio will be less than 2% of the total stock capital (including the increased part this time). Moreover, Anhui Forklift Truck Group promised not to reduce shares during the implementation period of forthcoming increasing plan and statutory time limit. 

In the first half year of 2008, Heli realized operational income of RMB 2.030 billion Yuan with a year-on-year increase of 15.06%, net returns of RMB154.1953 million Yuan with a year-on-year decrease of 9.14% and earnings per share of RMB 0.43 Yuan. The achievement was not as good as being anticipated. 

During the same period, Anhui Forklift Truck Group accomplished forklift sales income of RMB 1.551 billion Yuan, amount to a year-on-year increase of 13.95%. Referring to the data from industrial association, the Group sold 21,867 sets of forklifts, increasing 15.12% than last year while the increasing rate moved down greatly comparing with 27.93% in the previous year. The snow disaster and leaders’ visit in the first half year resulted in some negative influences on the material purchase and product sales. As the forklift sales of the whole industry reached 93,632 sets with a year-on-year increase of 45.7%, the sales increasing rates of the top three forklift manufactures in the field—Anhui Heli, Hangcha and Dalian Forklift were respectively 15.12%, 15.3% and 5.63% only with increasing part from newly entering firms.

Seeing from the sales area structure, export in the first half years kept rapid increasing, ensuring stale growing of main operation. Domestic sales was RMB 1.402 billion Yuan with a year-on-year increase of 5.58%, up to 69.65% of the main operational income while export income reached RMB 611 million Yuan with a year-on-year increase of 5.58%, up to 30.35% of the main operational income, moving 6.32% forward than last year. Although the rate of gross profit was only 22.87%, decreasing 7.38% comparing with that in the same period of last year due to the revaluation of RMB and uprising price of raw material, it’s still 4.13% higher than the gross profit of domestic sales.

It is predicated that the downward intendancy of steel price in the second half year is helpful to improve the gross profit rate of forklifts, keeping the former 20.5%. The company will conduct down-regulation towards the income increasing rate of forklifts and loaders as well as the gross profit rate of parts, expecting to realize earning per share of the whole year to be RMB 0.90 Yuan and target price to be RMB 18 Yuan.

About Heli

One of the ten largest manufacturers of forklifts in the world, we are also engaged in the production and sales of various construction vehicles, mining machinery, and related spare parts. Furthermore, we are also involved in the outputting of metal materials, petrochemicals (excluding dangerous chemicals), electronic products, electric devices and rubber products.

Having received government investment and support, in addition to cooperating with Japanese forklift manufacturer in the past, our products meet international quality standards. In 1999 we received ISO9001 certification for our management system, with our products having been evaluated as compliant with European 'CE'quality and safety regulations.

Marketed under our proprietary "HELI" brand, our forklifts are suitable for use in various applications. These include ports and harbors, airports, construction sites, shopping malls, warehouses, and for short distance transportation. With capabilities for forklift truck design, manufacturing, testing and inspection that lead the domestic market, we are the sole company in this field to be listed on the Shanghai Stock Exchange.

With the only national-level forklift R&D center in China, we can also provide scientific consultancy for the domestic materials handling industry. If you are interested in any of our series, please feel welcome to contact us. We are looking forward to working together with your company for future cooperation.