Business summary

Ruifeng Power Group is a professional cylinder headquartered in China. It is the main component manufacturer for automobile engines. According to reports, according to 2016 sales volume, the Group ranked fourth among Chinese professional cylinder block manufacturers. The Group's products mainly manufacture cylinder blocks for various types of automobiles such as passenger cars, commercial vehicles and mobile industrial vehicles. At the same time, it also manufactures cylinder heads and a number of other components for cylinder blocks, mainly including spindle heads and flywheels. The Group's customers are mainly major automobile manufacturers and engine manufacturers located in China, including Jiangling Motors, Beiqi Foton Motor, Jiangxi Isuzu, Anhui Jianghuai Automobile Group and Great Wall Motor.

Competitive advantage

Equipped with highly flexible production facilities and processes to meet the specific needs of different customers

Have continuous optimization and innovation of production processes and technologies

Have a strong and stable customer base

Risk Factors

If it is not possible to maintain the utilization rate of production facilities, the profit margin and profitability of the group may be significantly adversely affected

Long-term supply agreements have not been established with suppliers. If supply is not secured, the Group's production costs and plans may be adversely affected

Use of proceeds

About 43.3% is used to purchase automated machinery and equipment development and installation of intelligent manufacturing systems

Approximately 16.3% was used to repay part of short-term loans

Approximately 15.1% was used to build new machining lines and purchase additional machinery and equipment to further increase production capacity

About 12% is used to enhance R&D capabilities

Approximately 8.5% is used to purchase equipment and other costs related to enhancing cooperation with third party industry partners

Approximately 4.8% is used for general working capital