26 Apr 2013 ... Engineer Logistics Center and High-speed Elevator Test Tower. Project by
Shanghai Mitsubishi Elevator Co., Ltd. The company's board of ...
Stock Code: 600835(A) 900925(B)
Stock Abbreviation: Shanghai M & E, M & E B Share
Code: Lin 2013-009
Announcement of Shanghai Mechanical & Electrical Industry Co., Ltd. on Implementation of the Construction of Manufacture and Engineer Logistics Center and High-speed Elevator Test Tower Project by Shanghai Mitsubishi Elevator Co., Ltd. The company’s board of directors and all the directors guarantee that the report do not have any false records, misleading statement or significant omission, and individually and collectively undertake the responsibility for the correctness, accuracy and completeness of its content. Important reminder: It was agreed at the 6th session of the 7th Board Meeting of the Company that Shanghai Mitsubishi Elevator Co., Ltd. (“Shanghai Mitsubishi Elevator”) might make a total investment of about RMB 550 million in implementation of the Construction of Manufacture and Engineer Logistics Center and High-speed Elevator Test Tower Project. I. Basic Information of Shanghai Mitsubishi Elevator Shanghai Mitsubishi Elevator was established in December 1986, with its registered address located at 811 Jiangchuan Road, Minhang District, Shanghai and the registered capital of USD 155.2694 million. The Company, China National Machinery Import & Export Corporation, Mitsubishi Electric Corporation and Mitsubishi Electric Hong Kong Group Limited hold 52%, 8%, 32% and 8% equity of Shanghai Mitsubishi Elevator respectively. Shanghai Mitsubishi Elevator is mainly engaged in manufacturing and selling of elevator, escalator, moving sidewalk and building management system as well as provision of installation, reformation, repair and maintenance services for all the foregoing equipment. Shanghai Mitsubishi Elevator is one of the top 10 enterprises with core competitiveness in China’s mechanical industry, and has a company-run technology center recognized by the State. Shanghai Mitsubishi Elevator takes “overall coverage, focus highlight, deep-going development, bilateral extension” as the market development strategy, in order to meet different users’ personalized demands, highlight the high-end products and also give consideration to the low-end market. Faced with the fierce market competition, Shanghai Mitsubishi Elevator highlights the quality and safety of the product as always and insists them as focus, thus further strengthening its leading position in the industry. Due to its in-depth research on core technologies of elevator, Shanghai Mitsubishi Elevator is equipped with strong ability to cope with the market in respect to new product development, new technology application, secondary development of introduced technologies, customized design, etc. Setting service innovation as an effective approach to improve its competitiveness in the manufacturing industry, Shanghai Mitsubishi Elevator adheres to its customer-oriented principle and accelerates the upgrading and transformation of service strategies, creating a service brand with its own features. Meanwhile, Shanghai Mitsubishi Elevator has gradually extended its product installation, maintenance, repair and reformation, selling of spare parts and components and other services to all provinces and municipalities in
China, greatly improving the quality and efficiency of repair and maintenance services. Assets and financial situations of Shanghai Mitsubishi Elevator in recent years: Unit: RMB 10,000 Item
Year of 2010
Year of 2011
Year of 2012
Total assets
996,802.91
1,218,949.15
1,631,261.58
Total liabilities
643,835.09
840,530.91
1,220,359.59
Net assets
352,967.82
378,418.24
410,901.99
Business income
1,022,177.40
1,145,299.60
1,279,213.51
Total profits
101,541.82
114,166.62
148,823.49
Net profits
86,518.33
97,383.09
126,886.55
II. Basic Information on Investing in Constructing Project (1) Project 1: Construction of Manufacture and Engineer Logistics Center With the development of China’s elevator market, Shanghai Mitsubishi Elevator has had its yield increased several dozen times since its foundation, and now is a factory with the highest yield per unit area in the same industry. However, tight industrial land has gradually restricted its development. Meanwhile, with its efforts to promote its transformation from “production-oriented operation” to “service-oriented operation”, Shanghai Mitsubishi Elevator is in urgent need of hardware facilities for the supporting services of construction project. To solve the shortage of business premises, Shanghai Mitsubishi Elevator intends to purchase a land of about 117 mu neighboring the existing plant and in the east of Huaning Road, so as to establish material center, shipping center and project supporting service (training) center, which are estimated to cover a total building area of 58,000 km2 after constructed. After the Project is completed, Shanghai Mitsubishi Elevator will has the ability to produce 100,000 elevators (whole unit), and strives to make a breakthrough in its sales income within the period of 3 to 5 years, which is RMB 20 billion. Amount invested in the Project is about RMB 300 million, which are all funds owned by Shanghai Mitsubishi Elevator. The Project is planned to be put into construction prior to the end of 2013 and to be with all the works completed prior to the end of 2015 for operation. (2) Project 2: Construction of High-speed Elevator Test Tower The existing elevator test tower of Shanghai Mitsubishi Elevator was established in 1997, the nominal altitude of which was 110 m (the actual lifting height is 93 m). With the rapid development of the enterprise, the existing test tower can no longer meet the demands, whether number of test wells or test height. Therefore, Shanghai Mitsubishi Elevator intends to build another elevator test tower of no more than 220 m, and add various test wells accordingly. The new test tower will meet the test requirements for development of various elevator technologies of Shanghai Mitsubishi Elevator, greatly improve the enterprise’s product research and development capability, further cope with the continuously changing market demands, maintain its product competitiveness, and lay a solid foundation for its sustainable development. Amount invested in the Project is about RMB 250 million, which are all funds owned by Shanghai Mitsubishi Elevator. The Project is planned to be put into construction prior to the end of 2013 and to be with all the works completed prior to the end of 2015 for operation.
III. Document for Reference Resolution of the 6th Session of the 7th Board of Directors of the Company All the matters above are announced hereby. Board of Directors of Shanghai Mechanical & Electrical Industry Co., Ltd. April 26th, 2013
