‐ 1 ‐

Company Introduction1 Company Introduction

Product Series

1

Quality Guarantee

R&D Team

Marketing Regions

Sales Achievement

‐ 2 ‐

Company Introduction

· Company Name: Hiconics Drive Technology Co., Ltd.

· Registered Capital: 1.2 hundred million RMB

· Headcount: 500

· Business Nature : Sino-foreign joint venture

· Primary Business: Design and manufacture MV VFD y g

· Foundation: 2003

· Sales Volume: more than 2000 units

The total area of plant is 23,594 square meters including production workshop and office building. It provides 12 test motor units and a test platform for up to 4000kW synchronous/ asynchronous motors with load.

‐ 3 ‐

Directors

Dep

Dep

Chairm

Chief E

uty Chie

Genera

puty Gen

Finance man -Jin

Enginee

ef Engine

al Manag

eral Man

e Directo ncheng L

r -Xinlin

eer -Qiu

ger -Jinw

nager -T

or –D

on Liu

n Du

uquan Ch

wu Ye

Tao Zhan

g Wang hen

ng- 4 -

History

Jun.2003 Hiconics was established by R&D team

Apr.2007 Shanghai Shangfeng Group Co., Ltd. with plentiful LV inverter experience

participated in Hiconics

Jun.2009 Legend Capital together with other four corporations joined Hiconics

2010年1月，合康变频在深圳证券交易所上市.

g p g p j

Jan.2010 Successfully listed in GEM and issued thirty million shares

‐ 5 ‐

•One of the drafters of National MV VFD Standard

Hiconics has become a drafter of national MV VFD standard since 2006.

‐ 6 ‐

Market Position

Hiconics market share is rising year by year.

13%

2008

200913%

12%

20077%

2005

2006

3%

5%

0% 20% 40% 60% 80% 100%

2005

‐ 7 ‐

Financial Situation

45 000 00

Unit：ten thousand RMB

35,000.00

40,000.00

45,000.00

25,000.00

30,000.00

35,000.00

15,000.00

20,000.00

5,000.00

10,000.00

0.002006 2007 2008 2009

Total Assets Business Income Net Income Tax

‐ 8 ‐

Company Introduction2 Company Introduction

Production Line

2

Quality Guarantee

R&D Team

Sales Network

Sales Achievement

‐ 9 ‐

Application Industries

Power Industry Metallurgy PetrochemicalCementMining

Force Draft Fan

Ash Slurry PumpCompressor

F d t fKiln Draft Fan Circulating Pump

F d P

Mud pump

Slurry PumpAsh Slurry Pump

Primary Fan

Compressor

Feed water fan

Decaling pump

Induced Draft fan

Coal Mill

Cooling fan

Dust Removal Fan

Feed Pump

Compressor

Brine Pump

Slurry Pump

Clear water pump

Feeder Pump

Induced Draft Fan

Secondary Fan

Circulating Pump

Kneader

Force draft fan

Blast-Furnace Blower

…… Booster Fan

Water injection Pump

……

Mixing Pump

Axial Flow Fan

Medium Pumpg p……

ast u ace o e

……Drainage Pump

Contra-rotating Fan

……

‐ 10 ‐

Product Series

6kV Series (Adoptable motor ：250～7,600kW) General Products

10kV Series (Adaptable motor ：400～10,000kW) General Products

Vector Control (Adaptable motor ：315～4000kW) High-Performance ProductsVector Control (Adaptable motor ：315 4000kW) High Performance Products

Synchronous VC (Adaptable motor ：315～4000kW) High-Performance Products

3 3kV Series (Adaptable motor ：200～2 000kW) Overseas Application

20%

3.3kV Series (Adaptable motor ：200～2,000kW) Overseas Application

4.16kV Series (Adaptable motor ：200～6,800kW) Overseas Application

6 6kV S i (Ad t bl t 280 7 850kW) O A li ti6.6kV Series (Adaptable motor ：280～7,850kW) Overseas Application

11kV Series (Adaptable motor ：470～11,600kW) Overseas Application

‐ 11 ‐

High-Performance MV VFD

General High-Performance

1.806.70 9.60

18.40

80%

90%

100%

60%

70%

80%

98.20 93.30 90.4081.60

30%

40%

50%

0%

10%

20%

2006 2007 2008 2009

High-Performance MV VFD shares

‐ 12 ‐

General Product Certification

Harmonic Testing Report6kV Testing Report 10kV Testing Report

‐ 13 ‐

High-Performance MV VFD Certification

Vector Control Testing ReportVector Control Testing Report Mine Certification

‐ 14 ‐

Combination Program 2

Instruction Book

C tifi ti fCasebook

Certification for

UUser Manual

‐ 15 ‐

Company Introduction3 Company Introduction

Production Line

3

Quality Guarantee

R&D Team

Sales Network

Sales Achievement

‐ 16 ‐

Testing Process

Whole SystemAssembly

PCB Board Debug

Raw MaterialsInspection

Cells Burn In With Load

Whole System Debug & Burn In

P C ll D b

Whole System Debug & Burn In

For continuous 72

PCB Board Burn In

17

Power Cells Assembly

Power Cell Debug hours burn in before leaving

factory‐ 17 ‐Assembly

Company Introduction4 Company Introduction

Product Line

4 Quality Guarantee

R&D Team

Sales Network

Sales Achievement

- 18 -

R&D Backbones

Xinlin DuYongpan LI Feng DingLijun Liu Qiang Xing

Yunlong Xu Shun LIFengshan YangJimin LI

Qiuquan chen

- 19 -

Core Technology

Patent Name TechnologyResource

Maturity Degree

Full-digital vector control technology applied in medium Patent Integrated InnovationFull digital vector control technology applied in medium voltage synchronous motor

Patent Technology

Integrated Innovation

Medium voltage VFD with high reliability and redundancy design

Patent Integrated Innovation

Vector Control technology applied in High-voltage asynchronous motor

Independent R&D Integrated Innovation

Energy Feedback Technology applied in Power unit Independent R&D Integrated Innovation

Grid synchronous switchover technology Independent R&D Integrated Innovation

Speed-start technology Independent R&D Integrated Innovation

Instantaneous power failure process technology Independent R&D Integrated Innovation

Medium voltage large power device application technology Independent R&D Introduction & Innovation

Medium voltage large power VFD without grid pollution Patent Technology

Successful Application

A kind of medium voltage power converter method and device Patent Technology

Successful Application

*Note :Up to now, Hiconics has already got 13 utility model patents and a patented invention, meanwhile other 8 patented inventions are entering substantive review phase.

- 20 -

pate ted e t o s a e e te g substa t e e e p ase

Overseas Study Exchange

For a long time, Hiconics has learned advanced technology and management experience, and established a long-term relationship with the domestic and foreign universities and research i tit tiinstitutions.

Learning Production and Management Experience from ABB

Learning Wiring Schemes from AB

- 21 -

University-Industry cooperation

North China University of Technology Power Electronics Research Center in Virginia Polytechnic Institute and State UniversityVirginia Polytechnic Institute and State University

Semiconductor Power Electronics Center in University of North Carolina

Electric and Computer Institute in Michigan State University

- 22 -

y g y

Company Introduction5 Company Introduction

Product Series

5

Quality Guarantee

R&D Team

Marketing Region

Sales Achievement

‐ 23 ‐

Marketing Regions

Beijing Head Office

Shanxi Office

Shandong OfficeXinjiang Office

Central ChinaNingxia&Neimeng

Office

Qinhai Office

S th t R i

Jiangsu Office

East China Region

Southwest Region

Shaanxi OfficeSouth China

Shaanxi Office

- 24 -

Company Introduction6 Company Introduction

Product Series

6

Quality Guarantee

R&D Team

Marketing Region

Sales Achievement

‐ 25 ‐

Industrial Distribution

Industry Power Cement Steel Mine Petro- Paper- Water Heating Others

More than 2000 units have been sold

chemical

making

Percentage 35 18 18 17 4 3 2 2 1

Power 35%Cement 18%

Steel 18%

Mine 17%

Petrochemical 4%Water 2%Heating 2%

Others 1% Petrochemical 4%Papermaking 3%Others 1%

- 26 -

Sales Achievement Growth

900900

700

800

473

609

500

600

212

300

400

1 942

79.00

212

100

200

1 90

2003 2004 2005 2006 2007 2008 2009 2010

- 27 -

Sales Achievement

Power Industry

Harbin Third Power Plant

Chifeng Datang Fulong Thermal Power Co.,Chifeng Datang Fulong Thermal Power Co., Ltd.

Datang Power Baoji Brannch

Xi ji H di W ih li P C LtdXinjiang Huadian Weihuliang Power Co., Ltd.

……

- 28 -

Sales Achievement

Petrochemical Industry

Sinopec Qilu Petrochemical

Jilin Chemical Fiber Group Co., Ltd.Jilin Chemical Fiber Group Co., Ltd.

Shengli Oil Field

Sinopec Yueyang Baling Petrochemical industry

Chongqing Iron & Steel (Group) Co., Ltd.

……

- 29 -

Sales Achievement Shougang Jingtang Iron & Steel Corp.

Nantong Iron &steel Co. , Ltd

L i Y f I & t l C Ltd

MetallurgyLaigang Yongfeng Iron &steel Co. , Ltd

Handan Iron & Steel

Panzhihua Iron and Steel Groupa ua o a d Stee G oup

Huludao Non-Ferrous Metal Group Co., Ltd.

……

- 30 -

After installing MV VFD, the average running power is 650 kW per cycleThe power could be saved 880 kW comparing with rated frequency running, so the

ld b denergy could be saved :880×24 = 21120 kWh/day

Supposed the electrovalence is 0.46 RMB/kWh, the money could be saved: 21120 × 0.46 = 9700 RMB/day

In this case, 11 units MV VFDs’cost could be saved within 6 years.

- 31 -

Sales Achievement

Mine Industry y

Huaibei Mining (GROUP) Co., Ltd.g ( )

Yangquan Group

Fengfeng Jizhong Energy Group

Beijing Coal Group

……

- 32 -

Sales Achievement

Cement Industry

Shanshui Cement Group LtdShanshui Cement Group Ltd.

BBMG Liulihe Cement

China United Cement Corporation

Chongqing Changqing Cement plant

……

‐ 33 ‐

Domestic No.1 Sales Achievement

Project Name Significance

Daye Special Steel Co., Ltd. The first domestic 1800KW MV

Shengli oil field Gold United International Development Trade Co Ltd

The first domestic MV VFD applied in marine platformDevelopment Trade Co. , Ltd. platform

Fuzhou Hongmiaoling Waste to Energy Co. , Ltd.

The first domestic MV VFD applied in waste to energy project.

Russian Nizhni Novgorod Power Plant The first domestic MV VFD exported to RussiaRussian Nizhni Novgorod Power Plant The first domestic MV VFD exported to Russia.

Huaibei Mining (GROUP) CO., LTD. The first domestic vector control MV VFD.

Shandong Xuecheng Coking Plant The first domestic MV VFD using synchronousShandong Xuecheng Coking Plant The first domestic MV VFD using synchronous brushless exciting technology.

Fengfeng Group The first domestic synchronous vector control MV VFD.

Indian SHREE cement plant The first domestic 7700 KW MV VFD exported to India.

- 34 -

Overseas Market

Hiconics began to export to Russia from 2006 and takes 50% market share.In 2008, Hiconics developed Indian markets.In 2010, MV VFD went into Pakistani market .In 2010, MV VFD went into Pakistani market .Up to May of 2010, overseas sales volume is more than 100 units.

Russian Nizhni Novgorod Power Plant6kV / 4000kW Unit

Indian SHREE cement plant6.6kV/630kW

- 35 -

总结

‐ 36 ‐