Southern Fan Co., Ltd. owns Southern Fan Research Institute and Southern Fan Testing Laboratory, which has strong R&D capability and testing capability. Among them, Southern Fan Testing Laboratory is one of the only three laboratories in the domestic ventilation and air treatment industry that have been recognized by China National Accreditation Committee for Conformity Assessment. In May 2006 and February 2008, our company was recognized as a high-tech enterprise. The company has strong market competitiveness and high market share in the application fields of high-end products such as nuclear power, subway and highway tunnel.
In the field of nuclear power, after years of technical research, our company broke the technical blockade and technical monopoly of the nuclear island HVAC system and equipment of the million-kilowatt-class unit, developed the nuclear island HVAC system and equipment of the million-kilowatt-class PWR nuclear power plant, and successfully applied it to the second phase of Ling 'ao nuclear power plant, becoming the only manufacturer in China who has mastered the key technologies of the nuclear island HVAC system and equipment of the million-kilowatt-class PWR nuclear power plant and has general contracting experience. At present, the company has applied to the State Patent Office for four invention patents and four utility model patents for the equipment related to the heating, ventilation and air conditioning system of the nuclear island of the million kilowatt pressurized water reactor nuclear power plant. As of June 30, 2009, the company's HVAC system has become Guangdong Ling 'ao Nuclear Power Phase II (2 * 1 10,000 kW), Liaoning Hongyanhe Nuclear Power Phase I 1234 units (4 * 1 10,000 kW) and Fujian Ningde Nuclear Power Plant Project 1234 units (4 */) According to China Ventilation and Air Handling Industry Research Report, from 2004 to June 30, 2009, the company's domestic market share of HVAC systems and equipment for nuclear power plants was 72.44%, of which the market share of HVAC systems and equipment for nuclear power plants was 77.50%. As of the signing date of this prospectus, our company is the only enterprise in the domestic ventilation and air handling industry that has obtained the design and manufacturing license of nuclear-grade fan products issued by the National Nuclear Safety Administration, and it is one of the four enterprises that have obtained the design and manufacturing license of nuclear-grade air valve products issued by the National Nuclear Safety Administration.
In the field of subway, our company designed and developed the subway ventilation environment control system with the help of CFD, and developed the subway ventilation air treatment system products with large flow, high pressure, high efficiency and low noise. All the performance indexes of the products have reached or exceeded the national standards and reached the international leading level in the same period. Among them, the NXT direct-fired high-temperature axial fan innovation project for fire fighting and smoke exhaust passed the acceptance of the Technology Innovation Foundation of the Ministry of Science and Technology, and the product was recognized as a national key new product. The company's breakthrough in ventilation and air conditioning equipment in the subway field has changed the situation that domestic subway ventilation and air conditioning equipment depends on imports. As of June 30th, 2009, our ventilation and air treatment equipment in the subway field has been successfully applied to Guangzhou Metro Lines 2, 3, 4, 5 and 8, Shenzhen Metro Line 3, Tianjin Metro Line 2 and Chengdu Metro 1. According to China Ventilation and Air Handling Industry Research Report, as of June 30, 2009, the total length of subway lines that have been built, under construction and have completed the bidding for ventilation equipment in China is about 920km. Among them, the mileage of subway lines provided by our company is 298 kilometers. Calculated by kilometers, as of June 30, 2009, the company's domestic market share in the field of subway ventilation equipment was 32.39%, ranking the top two in the field of subway ventilation equipment.
In the field of highway tunnels, our company took the lead in developing a large axial fan with adjustable blades for highway tunnels in China, saving about 10% of electricity compared with ordinary products, and successfully applied it to the ventilation system of Zhongnanshan Tunnel in Qinling, the longest two-way tunnel in the world. China Ventilation and Air Treatment Industry Research Report shows that from 2006 to 2008, the market share of ventilation equipment for tunnels over 5km was 18. 15%, ranking the top three in the tunnel field.