On September 7, Zhejiang Xiantong Rubber & Plastic Co., Ltd. was approved for initial public offering by Issuance Examination Committee of China Securities Regulatory Commission. According to this company, no more than 22.56 million new shares would be issued and listed in Shanghai Stock Exchange.

The actual controller of Zhejiang Xiantong is Li Qifu, the president who holds 62.94% of shares of the company. After this issuance, Li Qifu will still hold 47.21% of shares, keeping the status of relative shareholder and still the actual controller of the company.

Based on the order of importance and emergency, the fund raised is planned to invest in the automobile rubber sealers expansion project with the annual output of 23 million meters, the automobile plastic sealers expansion project with the annual output of 13 million meters, the automobile sealing strip R&D center construction project and the supplemental working fund project. The total investment is 514.2 Million Yuan.

The development program of the company for the next two years is to expand capacity by taking technological innovation as the driving force and mature technology as the basis, relying on existing product line and following closely with customer requirements and to establish an automobile sealing strip R&D center and a high-level of R&D team to improve R&D capabilities in new product research and development, technology improvement, automobile company oriented simultaneous development and overall scheme design, etc.

The main product of Zhejiang Xiantong is automobile sealing strip. Through nearly 20 years of key development, it has become a member of first tier in Chinese domestic automobile sealing industry and maintained long-term stable cooperation with Saic Motor, FAW, Geely, Chery, Changan and other domestic outstanding finished automobile companies. Besides, it has also successfully expanded the joint-ventured finished au- tomobile market originally occupied by foreign manufacturers, becoming a tier one supplier of SGM and SAIC-GM-Wuling Automobile and a tier two supplier of Toyota, Honda, Nissan, Benz, HYUNDAI, KIA, etc. In 2015, Zhejiang Xiantong’s income for supporting joint-ventured manufacturers was 245 Million Yuan, accounting for up to 57.79% of operating revenue.