Tongli Machinery GEM Accepted: 2019 Research and Development Cost Rate of 4.34%

On August 19, Baoding Dongli Machinery Manufacturing Co., Ltd. (GEM issued the listing documents were accepted, the sponsor of this issue is Huatai United Securities Co., Ltd., the audit institution is Tianjian accounting firm (special general partnership). The proposed public offering of no more than 36.8 million shares, the proposed capital of 340 million yuan, will be used for an annual output of 25,000 tons of lightweight alloy precision forging projects, an annual output of 25,000 tons of precision transmission components intelligent manufacturing projects, supplementary liquidity. According to the prospecto, from 2017 to 2019, Dongli Machinery's revenue was 247 million yuan, 329 million yuan and 383 million yuan, respectively, with profits of 0.28 billion yuan, 0.42 billion yuan and 0.49 billion yuan, respectively. The research and development expenses of Dongli Machinery in the past three years were 9.55 million yuan, 10.6 million yuan and 16.64 million yuan, respectively, and the research and development cost rate was 3.87 percent, 3.22 percent and 4.34 percent, respectively.