Wuhan Blower Co., Ltd.
Wuhan Blower is located in the East lake New Technology Development Zone in the southernmost part of Wuhan, Hubei Province, where the Company enjoys easy access to railroads, waterways and roads necessary for the transportation of products. Wuhan Blower operates in a new facility in a campus-like setting and occupies a land area of approximately 32 acres.
Our industrial blowers are widely used in a variety of applications such as electricity generation, air pollution control, ventilation, aeration and sewage treatment.
Axial fans - Axial fan blowers consist of a bladed impeller in an elongated cylindrical casing and are primarily used to provide high-volume, low-pressure air for larger power stations of 200 to 1,000 megawatts.
Centrifugal blowers - Centrifugal blowers consist of a "squirrel cage" type of impeller (or rotor) in a scroll- or spiral-shape casing. This type of blower provides a lower volume of air, but at higher pressures, and is used in medium-sized power stations of 100 to 300 megawatts for blowing coal dust into furnaces. They are also mainly used for aeration in sewage treatment plants.
Exhaust silencers - We produce silencers or "mufflers" fitted to the exhaust side of our centrifugal blowers. These silencers are very similar in form and function to the muffler on an automobile.
Wuhan Generating Equipment Co., Ltd
On January 9, 2007, Wuhan Blower completed the formation of Wuhan Generating. To develop the Company's turbine business, Wuhan Blower reached an understanding with China Chang Jiang Energy Corporation, which owns Wuhan Turbine Works, a manufacturer of energy turbines for power plants.
Recently, the Company completed the construction of a new turbine manufacturing facility and started to run the commercial operation now.
Wuhan Generating primarily produces steam and water turbines. Currently four types of steam turbines are available: Regular steam turbines, Co-generation turbines, Heat centric turbines and Variable pressure output turbines.
Currently the Company has around 30 customers in the turbine segment. The five largest customers are: Wuhan Chang Yuan Water Turbine Co., Ltd.; China Aluminum International Hua Ying General Contract Division; Jiangsu Huang Li Paper Co., Ltd. Liuzhou Chemical Co., Ltd.; Sandong Yue Hua Chemical Co., Ltd.
Wuhan Sungreen is a China-based manufacturer of blower silencers, connectors, and other general spare parts for blowers and electrical equipment.
The assets that were purchased from the Seller were re-appraised by an independent appraisal firm Zhuhai GongPingSiYuan Appraising Co., Ltd. ("Zhuhai"). The re-appraisal found that the purchase price of the assets was not materially unfair. Zhuhai concluded that when the entire construction of the workshop and buildings is completed, the purchase price should be considered fair. However, due to the limitation of insufficient resources and the Company's plan to dispose of Wuhan Sungreen, the Company has ceased any further construction of the workshop and buildings. See also Note 8 - Property, Plant and Equipment, and Note 10 - Construction in Progress.
Land Use Rights
The Company carries land use rights at cost less accumulated amortization. Land use rights are amortized straight-line over the useful life of 50 years for the Wuhan Blower and Wuhan Generating campus, and of 30 years for the Wuhan Sungreen campus.
The shared campus of Wuhan Blower and Wuhan Generating consists of approximately 440,000 square feet (44,233 square meters) of building floor space. The Company's turbine manufacturing workshops provide approximately 401,622 square feet (37,312 square meters) of floor space. The office buildings that house the business operations of Wuhan Generating and Wuhan Sungreen provide an additional 287,650 square feet (26,723 square meters) of floor space.
The local government approved the architectural plans for all of the buildings. Currently Workshop 1, Warehouse, Dormitories, and Commercial Shops have not been built. In 2010, the Company ceased any further construction on the campus of Wuhan Sungreen in anticipation of the disposal of the subsidiary.
The parcel of land purchased in the asset acquisition and now carried on the books of Wuhan Sungreen totals 792,547 square feet (73,630.05 square meters). The land has been used for Wuhan Sungreen's operations. The land use right will be amortized over 30 years.
In order to improve its cash flows from operations and working capital, the Company decided to redeploy its capital to meet requirements of its business plan. On December 29, 2010, the Company classified its subsidiary Wuhan Sungreen as a discontinued operation. Accordingly, Wuhan Sungreen's operations have been classified as discontinued operations in the consolidated statements of income and cash flows and the assets and associated liabilities have been classified as held for sale in the consolidated balance sheets. The Company reviewed its Wuhan Sungreen assets and plans to sell these assets for approximately $20 million before 2012. Proceeds from the sales of Wuhan Sungreen assets will be used for working capital for Wuhan Blower and Wuhan Generating and potentially purchasing of equipment.
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Common Stock - $0.0001 Par Value 100,000,000 Shares Authorized; 32,505,000 and 28,327,607 Shares Issued & Outstanding at September 30, 2012 and December 31, 2011, respectively.
Directors and Executive Officers as a group (8 persons)(11) 20,004,398 61.2 %
Institutional Ownership including convertable preferred (estimated)
NewQuest Capital Management (Cayman) Limited(2)(4) 3,363,820 9.9 %
Adam Benowitz and Vision Capital Advisors, LLC(2)(5) 3,317,447 9.9 %
The TCW Group, Inc.(2)(6) 2,231,849 6.6 % Form 10 Q for period ended 30.sept. 2012 >link<
Legal Counsel Contact:
Anslow + Jaclin LLP
195 Route 9 South, Manalapan,
Telephone: (732) 409-1212 x 221
Email: email@example.com Investor Relations Contact:
Mr. Liu Guoliang
Phone: +86-27-59700069 (China)
Wuhan General Group (China),Inc.
Canglongdao Science Park
Wuhan East Lake Hi-Tech Development Zone
Gregg E. Jaclin, Esq. of Anslow + Jaclin, LLP, our outside securities counsel at (732) 409-1212