Conveyor Belt

Double Arrow Stock: IPO pointing its sword towards conveyor belt leading enterprises

- Pei Qi

china conveyor belt  industry leaders, Zhejiang Double Arrow Rubber Co., Ltd. Sign A-share market the countdown. License by the China Securities Regulatory Commission China Securities Regulatory Commission (2010) No. 259 approved the text, Zhejiang Double Arrow Rubber Co., Ltd. (Stock name: Double Arrow shares, stock code: 002,381) March 16 issued a letter of intent offering it plans an initial public offering of A shares 2000 million shares, March 24 under the net purchase and distribution after completion of the SME board in Shenzhen Stock Exchange.

Double Arrow shares main business is a very prominent, and is mainly engaged in the production and sale of conveyor belt , at present the company has established a full range of product lines, can produce a variety of main conveyor, the product quality is stable, are exported to Japan, Korea, South Africa, Europe and other countries and regions. Data show that pairs of arrows of shares in 2007, 2008 and 2009 the output of conveyor belt industry rank second in China. Revenue in 2008 reached 695.45 million yuan, net profit of 41.21 million yuan; in 2009 sales reached 626.88 million yuan, net profit of 64.54 million yuan.

China conveyor belt industry a bright future. At present, China is the world’s largest producer and consumer countries conveyor belt, the world’s total output of about 1 / 3 at the same time, our country is in the process of accelerated urbanization and industrialization, the development period, coal, electricity, steel, ports, cement and other heavy chemical industry has a broad development space, while the demand for these industries on the conveyor belt of the total domestic demand accounted for more than 90%. In addition, domestic food, electronics and other industries are in a period of rapid growth, for the development of lightweight Steel Cord Conveyor Belt provides a lot of space. Quite a long period of time in the future, the conveyor belt demand will continue to maintain rapid growth.

It is worth mentioning that the pairs of arrows shares attaches great importance to product innovation and R & D, technology and product innovations always put on the strategic position of enterprise development, and built according to the characteristics of production and operation of the company’s technology innovation, developing a number of products and technologies . One high-cold conveyor belt products, pairs of articles and sulfur cutting technology has reached the international advanced level, tubular conveyor belt as the project by the National Science and Technology National Spark Program projects, high-cold conveyor belt by the National Science and Technology as a National Torch Plan Project . Since 2005, there have been pairs of arrows shares tubular conveyor belt, coal conveyor belt with the MT668-type and the entire core with a mass-market of new products and new products, product sales accounted for the proportion of total sales increased year by year.

Relative to domestic and international counterparts, two arrows share a unique competitive advantage, highlighting the investment value. First of all, the high cost performance products. Double Arrow shares the technical level and product quality are close to or reached the international advanced level, but the conveyor belt product costs and prices much lower than in Europe, the Americas and Japan’s products; quality of their products far superior to India, Vietnam and other countries . Coupled with China’s conveyor belt sitting on the world’s largest consumer market, locational advantages, obviously, than their foreign counterparts have more access to resources and the rapid development of industries.

Compared with domestic counterparts, two arrows share the establishment of a sound and flexible supply, research, production, marketing systems, operations and high efficiency. Flexible procurement system and clear the channels to purchase to ensure the supply of raw materials and reduce procurement costs. The scale of production and sales lead in June 2009, two arrows share a new 3 million square meters annual output of steel cord conveyor belt production line put into operation, the conveyor belt to reach annual production capacity of 24 million square meters. Relying on the scale of production and marketing leading edge, double arrow large-scale purchases of shares by reducing the unit procurement cost of raw materials and production costs of the sales process of the public to realize the cost advantage relative to peers.

In addition, the pairs of arrows shares have established a good brand image and market position. In 2005, the “Double Arrow” brand has been recognized as China Rubber Industry Association, recommended to the community of high strength conveyor belt brand; in 2007, the company high-strength conveyor belt products are recognized as the State Quality Supervision Bureau of China Famous Brand Product. At present, the downstream major customers are gradually establish a vendor management system, and greater emphasis on vendor’s brand image and market position, which pairs of arrows of shares to obtain orders for high-quality high-end customers are more profitable.

For the future development of pairs of arrows of shares has drawn up a clear development plan. According to reports, will focus on the pairs of arrows shares conveyor belt production and marketing, focusing on the development of high strength conveyor belt, especially the broad market prospects, high value-added tubular conveyor belt and flame-retardant conveyor belt; take full advantage of the company’s brand strength and technological advantages, committed to developing Asia’s largest and internationally competitive professional china conveyor belt manufacturer .

It is understood that pairs of arrows of shares to raise funds will be used for this investment in building an annual output of 11 million square meters of high strength conveyor belt production line. Fund-raising project put into operation, will greatly ease the backlog of orders for the company worry about capacity shortages caused problems, and expand market share, improve profitability, but also conducive to further optimize product structure and strengthen the competitiveness of core businesses.