Events:

Qinghai Huading (600243) issued an announcement on June 17, 2009. the company received a letter from Qinghai Sky Investment Industrial Co., Ltd., the second largest shareholder of the company, from May 8, 2009 to June 15, 2009. Qinghai Sky has reduced its shares in the company by 1868500 shares through the Shanghai Stock Exchange, accounting for 1% of the company's total share capital. As of June 15, 2009 (the date of receipt of the notice), Qinghai Sky has reduced its holdings by 14213500 shares. It accounts for 7.61% of the total share capital, and now holds 35506500 shares of the company, accounting for 19% of the total share capital of the company, and is still the second largest shareholder of the company.

Comments: Qinghai Huading (600243) the second largest shareholder Qinghai Sky Investment Industrial Co., Ltd. is mainly engaged in industrial investment, high-tech machinery product development, manufacturing and sales. On November 16, 2006, due to the control of 5000 shares of Qinghai Huading through holding Qinghai heavy and 4972 shares of Qinghai Huading through judicial auction, celestial phenomena Investment directly and indirectly controlled that the shares of Qinghai Huading will account for 53.37% of the company's total share capital after the non-tradable share structure reform, triggering the obligation of tender offer, but the application for exemption from the tender offer has not been approved by the China Securities Regulatory Commission, December 20, 2007. Tianxiang Investment transferred its 54.66% stake in Qinghai heavy Duty, withdrew from the competition of Qinghai Huading (600243) actual controller, and became only the second largest shareholder.

Qinghai Sky Vision Investment has reduced its holdings by 14213500 shares, accounting for 7.61% of the total share capital, and now holds 35506500 shares of Qinghai Huading (600243), accounting for 19% of the company's total share capital, of which 31035000 restricted shares are held, accounting for 16.61% of the total share capital. the ban will be lifted on December 25, 2009.

The main products of Qinghai Huading (600243) are machine tools, food machinery, elevator parts and gearboxes. At present, the demand for ordinary machine tools is insufficient, and the company is facing a grim situation. In 2008, the operating income was 1.032 billion yuan, an increase of 20.10% over the previous year, and the net profit belonging to the parent company was 28.7712 million yuan, down 12.58% from the previous year. In the first quarter of 2009, the operating income was 150 million yuan, down 33.2% from the same period last year; the operating profit was a loss of 13.21 million yuan; the net profit belonging to the parent company was a loss of 60, 000 yuan, and the basic earnings per share was-0.0003 yuan. It is estimated that the earnings per share from 2009 to 2010 will be 0.12 yuan and 0.15 yuan per share, with a corresponding dynamic price-to-earnings ratio of 64 and 51 times respectively, giving it a "neutral" rating.