The company plans to issue no more than 101 million shares this time, accounting for 25.25% of the total share capital after issuance. The controlling shareholders and actual controllers of the company are all Zhejiang Xiaoshan State-owned Assets Administration Commission, holding 187 million shares of the company, accounting for 45.01% of the total share capital after issuance. The company's gear transmission products are used in a wide range of fields, and its position in the industry has obvious advantages. The company has the ability to design, develop and manufacture marine gearboxes from 10kW-10000kW. In recent years, the company's marine gearbox market share has reached 65.5%. The company's share of the domestic construction machinery gearbox market has stabilized at around 20% in the past five years. It is one of the earliest domestic enterprises involved in wind turbine gearbox research and development, and is a national standard setter for wind turbine gearboxes. In recent years, it has been trusted by famous foreign wind power companies such as GE, GAMESA, and ZOLLERN, respectively, to customize and process gear transmission products for them. The gear industry is less concentrated and the market competition is fierce. In the international gear industry, the industrial gear market is the largest and most competitive. Currently, the international industrial gear market is about 16 billion US dollars a year. However, due to the variety of products, the overall concentration is low, and the total market share of the top 10 manufacturers is about 20%. At present, China has more than 1,000 large and small gear companies, more than 300 backbone gear companies, and nearly 50 enterprises over 100 million yuan. Individual enterprises account for a small share of the overall market, and various enterprises focus on different application fields. Each business has technical advantages. In 2008, China already ranked second in the world in shipbuilding, but there is a clear gap between China's autonomous ship support rate and Japan and South Korea, and the autonomous ship support rate will rise to 80% by 2015. By introducing French adjustable propeller complete design and manufacturing technology, the company has become a domestic manufacturer with complete packaging capabilities for adjustable propeller propulsion systems; it explores high-end transmission systems for construction machinery with its technical advantages in the field of electro-hydraulic transmissions, and continues to consolidate the advantages of products in this field. The downstream covers major domestic construction machinery manufacturers; the company is a national standard setter for wind turbine gearboxes. Fund-raising projects expand product production capacity and achieve “import substitution.” The funds raised this time will be invested in 4 projects, including advanced ship propulsion systems, high-precision marine gearboxes, construction machinery transmission devices, key components of wind power generation accelerators, and automatic transmission technology research and development for heavy and special vehicles. The fund-raising project closely revolves around the company's current main business, further optimizing the product structure, promoting industrial upgrading, and enhancing the company's overall competitiveness. Profit forecasting and valuation. The company raised capital to expand product production capacity, optimize product structure, and gradually achieve “import substitution”. We expect the company's EPS to be 0.30 yuan, 0.34 yuan, and 0.45 yuan from 2010 to 2012. Taking into account the average valuation level of comparable companies, we believe that the company's dynamic price-earnings ratio in 2010 was 25-30 times more reasonable, with a corresponding reasonable price range of 7.50 yuan to 9.00 yuan.