HUAGONG TECH COMPANY LIMITED Military Civil Fusion

 

Basic Information

The English name of HUAGONG TECH COMPANY LIMITED, hereinafter referred to as HUAGONG TECH COMPANY LIMITED. The registered address is No. 66, Future Second Road, East Lake New Technology Development, Wuhan (Free Trade Zone, Wuhan Area).

Office address: No. 1, Road 6, Science and Technology Park, Huazhong University of Science and Technology, East Lake High-tech Development Zone, Wuhan City

 office address 

Company website: http://www.hgtech.com.cn

Organization code: 91420000714584749G Subsidiaries

in mainland China

Wuhan Huagong Laser Engineering Co., Ltd. (referred to as "Huagong Laser")

Wuhan Huagong Zhengyuan Photonics Technology Co., Ltd. (referred to as "Huagong Zhengyuan")

Wuhan Farley Lecce Welding System Engineering Co., Ltd.

Wuhan Huagong International Development Co.,

WuhanElectronics Co., Ltd.

Wuhan Huagong Image Technology Development Co., Ltd.

Xiaogan Huagong Gaoli Electronics Co., Ltd.

Huagong Farley Lecce Welding System Engineering Co., Ltd.

Wuhan Zhengyuan Gaoli Optical Co., Ltd.

Hubei Huagong Image Technology Development Co., Ltd.

Wuhan Huagong Technology Investment Management Co., Ltd.

Shenzhen Huagong New Energy Equipment Co., Ltd. 

Hebei Huagong Senmaote Laser Technology Co., Ltd.

Wuhan Huagong Kenneng New Materials Co., Ltd.

Huagong Technology Industry Co.

Shenzhen Huagong Saibai Information Technology Co., Ltd.

Wuhan Huagong Saibai Data System Co., Ltd.

Huagong Zhengyuan Intelligent Terminal (Xiaogan) Co., Ltd.

Huanggang Huagong Zhengyuan Photonics Technology Co., Ltd.

Jiangsu Huagong Laser Technology Co., Ltd.

Wuhan Huagong Medical Technology Co., Ltd.

Chengdu Huagong Laser Technology Co., Ltd.

Suzhou Huagong Automation Technology Co.

Ruijian Information Technology Co., Ltd.

Wuhan HuagongCompany

Jiangsu Huagong Blue Sky Intelligent Technology Co., Ltd.

Zhejiang Huagong Saibai Data System Co., Ltd.

Wuhan Huagong Photosynthetic Technology Co., Ltd.

Shenzhen Huagong Measurement Engineering Technology Co., Ltd.

Huagong Xingdong

Shanghai Huagong Aimar New Material Co., Ltd.

Wuhan Huagong Ruiyuan Technology Venture Capital

Investment Partnership (Limited Partnership), a 

foreign subsidiary of

HGGENUINE USA CO., LTD 

In 2021, Wuhan Huagong Zhengyuan Photonics Technology Co., Ltd. made another investment in its subsidiary HG GENUINE USA CO., LTD established in the United States. After the investment, Wuhan Huagong Zhengyuan Photonics Technology Co., Ltd. invested a total of USD 4,873,134.28 (RMB 33,099,836.79), accounting for 100% of the registered capital, for sales. Place of registration: 2025Gateway Place, Suite128 SanJose, California 95110

Name verified on the California official website: HGGENUINE USA CO., LTD., registration number 4192072, establishedon September 6, 2018. The agent entrusted to register is YIBING YANG.

HG-FARLEY SERLABCO.PTY LTD is

an Australian subsidiary, wholly-owned, manufacturing, registered at 47-51Export Drive Brooklyn VICTORIA 3025

Australian government official website information: HG - FARLEY LASERLAB CO. PTY LTD, registration number 60 094 339 563, business address VIC 3020, established in 2000.

HG Surmount International Corporation

is an American subsidiary of HG Surmount International Corporation, which holds 55% of the shares and is engaged in production. The registered place is 8700 COMMERCE PARK DR SUITE 116 HOUSTON TX 77036. The subsidiary of Hebei Huagong Senmaote Laser Technology Co., Ltd. is HG Surmount International Corporation.

Information on the official website of the Texas State Government: HG SURMOUNT INTERNATIONAL CORPORATION, registration number0801977658, tax identification number: 32053876317, registered address: 8700 COMMERCE PARK DR SUITE 116 HOUSTON, TX 77036, established on April 24, 2014, registered agent :XUHONG DUAN.

HGLASER CO.,LTD

is an American subsidiary with a 100% shareholding and is engaged in production. The registered place is 1920 Anheim Ave, Costa Mesa, State of California, USA.

California government official website information: HGLASER CO., LTD, registration number 3941916, registration time on September 1, 2016, registered address 3060 KENNETH STREET SANTA CLARA, CA 95054, registered agentRAN DUAN

subsidiary HG-FARLEY LASERLAB CO.PTY LTD The current corporate income tax rate is 30%; the US subsidiaries HG Surmount International Corporation, HGLASER CO., LTD and HGGENUINE USA CO., LTD are subject to 15%-39% income tax rate depending on their taxable income.

The strategic cooperation between Huagong Technology and China Ordnance Industry Group

(Photo source: Juchao)

Introduction to Ordnance Group

In 2011, Huagong Technology Industry Co., Ltd. issued a strategic cooperation framework agreement between Huagong Technology Industry Co., Ltd. and China Ordnance Industry Group. The announcement of China Ordnance Industry Group is as follows,

"China Ordnance Industry Group Corporation (CNGC), referred to as China Ordnance Industry Group, China Ordnance Industry. Also known as China North Industries Group Corporation, is a super-large state-owned company directly managed by the central government. It is an important backbone enterprise, a ministerial-level central enterprise, an enterprise under separate national planning, and one of China's top 500 enterprises. The group company is not only the main research and production base for China's army weapons and equipment, but also provides the navy, the air force, the Second Artillery Corps and other arms, as well as the armed police, the public security, with a variety of weapons, ammunition and equipment, which is a strategic basic industry for China's national defense modernization."

Cooperation content

1. Huagong Technology uses the background resources of colleges and universities, its own technical resources, and industrial superior resources to actively provide China  Industry Ordnance products, contributing to China's national defense. Especially products and processes in the field of laser technology and applications (including advanced solid-state lasers, industrial laser equipment, fine plasma cutting equipment, optical communication devices, various sensors, etc.) ,civilian, are for military use. Under the same conditions, Chinese military industry has priority.

Considering Huagong technology products, at the same time, China Ordnance Industry actively provides the company with technical and market information that "integrates the army and the people".

2.The two sides use their respective advantages to strengthen military and civil projects ' research and development cooperation, jointly overcome difficult issues, and jointly apply for projects.

3. The senior management of both parties shall establish a regular communication mechanism to study the problems existing in the cooperation process and make corresponding

decisions Establish an interaction mechanism between the middle and lower levels of the two sides, and promote the implementation of the cooperation content determined by the high level of the two sides.

4. Establish a cooperation mechanism for information exchange, talent exchange and training. The two parties regularly exchange relevant management and

technical

provide services for the Chinese military.

the business within the scope of cooperation andshare necessary information on

Customers and Products

2021 Annual Report on

Huagong Technology Industry Co., Ltd. has successfully won bids for Dongfeng Lantu, Dongfeng Liuqi, NIO, SAIC-GM, BYD, Volvo, GAC Honda, Haust, etc. in the field of automobile body-in-white welding production lines Automated production line projects of well-known automobile brands, and completed the acceptance of many welding main line projects.

"Break through" amid the global epidemic, Sino-US trade haze, and tight international logistics capacity, seize the opportunity of opening up to the outside world at a higher level, achieve a substantial increase in the share of SAMSUNG air conditioner temperature sensors, and actively "vertical extension" to sensors for kitchen appliances; Arcelik, Vestel, Philips, Gorenje sensors for smart home appliances in batches; Nissan, Hyundai, RIVIAN and other new models of sensors, PTC heater projects mass production. In the eight major industries of high-end smart home appliance segment, power photovoltaic, industrial control, etc. With the rapid growth of new energy vehicles of 157.5% year-on-year, the company's new energy vehicle PTC heaters have achieved full coverage of domestic OEMs, ideal, Wuling, Dongfeng Nissan, Dongfeng Liuqi, SAIC, GAC, Changan, BYD The share has increased significantly; Nissan, The new projects of GAC, BYD, Liuzhou Automobile, Dongfeng Lantu, Weimar and GM were mass-produced; the sales growth of PTC heaters for new energy vehicles reached 176%. The temperature sensor has been continuously expanded in the fields of new energy vehicle charging piles, batteries and motors; it has obtained the qualification of supplying sensors for well-known German car companies and Valeo global automotive sensors.

Optoelectronic equipment production and sales segment: mainly develops, produces and sells semiconductor laser components, detector components, passive connectors, optical transmitter/receiver modules, optical transceiver modules, etc. for optical communication. The research and development and production and processing capabilities of a full range of products. The products basically cover active modules of various rates and different packages for transmission and data communication, mainly used in transmission networks, data networks, access networks, CATV/CDMA/WLAN, etc. The complete production line of optical fiber link terminal (fiber cat) provides terminal equipment for China Telecom, China Mobile, China Unicom and other operators of fiber to the home.

Historical Customers and Products

2013 Huagong Technology Bond Prospectus

The top five customers in 2011 were Huawei, ZTE, Apple, Gree, and Midea, of which sales to Huawei and Apple were 222 million and 44 million respectively.

The first phase of the 2021 ultra-short-term financing bill prospectus

is mainly engaged in optoelectronic devices, laser holographic anti-counterfeiting products, laser processing and series of complete sets of equipment, and sensitive components. In 2018-2020, the revenue of optoelectronic device series products increased continuously from 2.17 billion to 2.645 billion. The gross profit mainly comes from laser processing and series of complete sets of equipment, which has exceeded 608 million for three consecutive years. The highest gross profit is laser anti-counterfeiting.

Military Industry Customers and Military Products

Chemical Technology Intelligent Equipment Division have been standardized, and have entered the largest thermoforming and military customers in China in large quantities; launched a new national defense series of economical laser cutting platforms Equipment.

Chemical technology laser processing and series of complete equipment customers include Apple, Huawei industrial chain enterprises, Shanghai GM, Honda China, Sany Heavy Industry, Wuchuan, Zoomlion, China Railway Baoqiao, etc., which are divided into laser precision manufacturing and intelligent equipment manufacture. Products: Cutting equipment and production lines, including high-speed and high-precision beveling equipment, the first 500-diameter heavy-duty pipe cutting machine in the domestic laser industry, three-head laser uncoiler blanking line, laser cleaning machine and other new products, three-dimensional five-axis equipment, etc. .

In 2016, Wuhan Huagong Laser Engineering Co., Ltd. and Huazhong University of Science and Technology, Shenlong Automobile, General Motors and other downstream units jointly developed the project of "High-quality and efficient laser welding, cutting key processes and complete sets of equipment in automobile manufacturing", which won the national scientific and technological progress. The first prize, realizing the localization of key processes and complete sets of equipment for laser welding and cutting in the field of automobile manufacturing.

Military scientific research

According to the website of the Ministry of Science and Technology of the Communist Party of China, "High-quality and efficient laser welding and cutting key processes and complete sets of equipment in automobile manufacturing" (No.: J-216-1-01) The partners include: Huazhong University of Science and Technology, Wuhan Huagong Laser Engineering Co., Ltd., Shenlong Automobile, Jianghuai Automobile, Shanghai General Motors Co., Ltd., Jiangling Motors, Great Wall Motors, Wuhan Farley Lecce Welding System Engineering Co., Ltd., Hubei AVIC Precision Machinery Technology Co., Ltd. (subordinate to AVIC), Lingyun Industrial Co., Ltd. Company (page 69 of China North Industries Group Corporation's 2021 Financial Statements lists Lingyun Industrial Co., Ltd. as a subsidiary of China North Industries Group Corporation). It shows that the strategic cooperation agreement signed by Huagong Technology and Ordnance Group in 2011 has been implemented.

According to the 2021 Annual Report of AVIC Electromechanical Systems Co., Ltd., Hubei AVIC Precision Machinery Technology Co., Ltd. is a wholly-owned subsidiary of AVIC Electromechanical Systems Co., Ltd., and the controlling shareholder of AVIC Electromechanical Systems Co., Ltd. is China Airlines. Industry Group Co., Ltd., China Aviation Industry Electromechanical Systems Co., Ltd. is a system-level supplier of military and civil aviation electromechanical products in mainland China, and has an absolute leading position in the aviation electromechanical industry in mainland China.

2018

According to a report from Sohu in 2018, onMay 7, 2018, Fan Zhiping, Deputy General Manager of the Civil Products Development Department of China Ordnance Industry Group, and Mu Yuehui, General Manager of Lingyun Industrial Co., Ltd. Visit Huagong Technology. Xiong Wen, vice president of HGTECH, and Deng Jiake, general manager of HGLASER and general manager of laser intelligent equipment business group, received the group.

In April 2018, HGLASER, as an outstanding supplier representative, was awarded the title of "2017 Strategic Partner" by Lingyun, and the two parties signed the "2018 Enterprise Strategic Cooperation Agreement".

In 2018, the cooperation between HGTECH and Ordnance Group entered a new stage, and HGTECH will continue to make further contributions to serve the key areas of "Made in China 2025".

Suppliers and Materials

The lasers purchased by HGTECH are mainly fiber lasers and CO2 lasers. The main suppliers are Wuhan Raycus Fiber Laser Technology Co., Ltd., Luofen, IPG, SPI and other companies. Development Co., Ltd. purchasing.

Foreign Currency Monetary Items

Foreign currency monetary items show accounts receivable in USD, EUR, AUD and HKD, indicating that there are corresponding sales revenue.

There is also $56.55 million in short-term borrowings. U.S. dollar accounts payable to demonstrate the presence of foreign suppliers.