WEIFANG, China, August 18, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (OTCBB:WTFS.OB), a large scale group specialized in producing diesel engines, diesel generators, diesel engine fuel injection systems and related products, reported today that since being qualified for a national subsidy in 2010, the 6-line and 8-line ride-style-type rice transplanters manufactured by its Huaxin Diesel Engine subsidiary through the first half of 2011 have reached the 5000 unit sales mark, realizing total income of RMB 60 million ($9,273,572).
"Qualifying for the subsidy with our agricultural products was a significant achievement for our young company, with ongoing benefits," stated Mr. Dianjun Liu, President and Chief Executive Officer of Xinde. He explained that being on the national subsidy list entitles a product to a more than 30% national subsidy on its selling price and no less than a 20% local subsidy, resulting in a more than 50% subsidy in total and a significant marketplace advantage.
"Further," Mr. Liu stated, "products entering the subsidy catalogue sell at a 10% to 20% premium over similar non-subsidized products, which also clearly gives us room for increased profitability."
The Company noted there are other benefits from qualifying for the national subsidy. In particular, qualifying products must show they clearly meet specific needs in the agricultural sector and also be of higher quality than other similar products. Further, there are strict after-sale service requirements.
"The fact is," Mr. Liu said, "That Xinde products stand out in the marketplace, where they are known not only for quality, but for the high level of our after-sale service system, providing us a continuing competitive advantage."
About Xinde Technology Company
Based in China's Shandong Province in the city of Weifang, Xinde Technology Company, with fiscal 2010 revenues of $123 million, competes in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. The Company has a broad range of products including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, agricultural machinery and construction machinery which greatly reduces its comprehensive costs which, in turn, increases its competitiveness. The Company's focus is on the domestic market in China, where its customers include several of China's largest companies in the country's most rapidly growing industries. As a consequence, the Company's production volume has been growing approximately 30% annually.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the quarterly report for the three months ended March 31, 2011 on Form 10-Q, can be viewed on EDGAR Online or www.sec.gov.
