（1） Expand the export technical transformation project of special special fractional horsepower motor

1、 Project overview

The project has been approved by Zhejiang Provincial Planning and Economic Commission (ZJJG [1999] No. 396) and belongs to the special planning project of the State Economic and Trade Commission for expanding the export of key industrial products. Through the transformation of the original production facilities, including the improvement of the production process and the introduction of advanced processing equipment, the project will form an annual production capacity of 350000 sets of special fractional horsepower motors with excellent product quality and performance level, and expand the competitiveness and market share in the international market. The project ranks first in the project invested by the raised funds of this issuance.

2. Investment estimate

(1) Total investment scale: the total investment scale of the project is 29 million yuan, all of which are fixed assets investment.

(2) Specific uses of the raised funds: 1.72 million yuan for construction projects, 21.0916 million yuan for equipment purchase, 473200 yuan for equipment installation, 90000 yuan for other expenses, 3.0872 million yuan for reserve funds, and 1.728 million yuan for interest during construction, totaling 29 million yuan.

3. Market analysis of investment projects

At present, the annual demand for all kinds of fractional horsepower motors in the international market is about 450 million sets, and the world trade volume is 10 billion US dollars. At present, China's export motors only account for 1.5% of the demand in the international market. If the export volume is increased by one percentage point, it will reach 100 million US dollars. Take only two of the companies that our company exports to Europe as an example. Nicrotra company in Italy is a large fan factory in Europe, with an annual demand of 1.4 million sets of special motors and 200000 sets of hydro-air company in Denmark. However, due to the limitation of production capacity, our company is unable to meet the demand of these two companies The annual export volume of the company is only 110000 sets, so it has a great development space to expand exports. And with the development of science and technology and the extension of its application, the demand of foreign market will continue to expand. It has a bright future in foreign market. In the domestic market, at present, the annual demand for special special fractional horsepower motors is 35 million units (sets), among which some high-tech special fractional horsepower motors still rely on imports and consume a lot of foreign exchange. For example, Shanghai Hangxing group, Zhangjiagang sea lion group, and Shanghai Zhonglu bowling company, a large domestic manufacturer of dry cleaning machines, need to import special fractional horsepower motors from Italy and the United States every year. In addition, many well-known large domestic companies are increasingly demanding special fractional horsepower motors. Therefore, as long as we strengthen technological innovation and improve the technical content and product grade, the project products also have a great market development space in China. The sales of this product will be mainly through the combination of self export and foreign trade agency. Part of the products will replace the import and be matched with the domestic host manufacturers. Through the company's domestic and foreign sales channels and international exhibitions, the company will explore new international markets, make full use of the company's advantages in technology, price, quality and after-sales service, etc. to maintain the company's competitiveness in the market.